The livin’ is not so easy in the new American summer

The summer’s generally overcast economic and market climate probably presents the greatest challenge for many advisers and their clients.

Forget that the solstice is still a couple of weeks away. June has arrived and that means it’s summer.

After two years of pandemic restrictions and fears, Americans can’t wait to fully enjoy the season that lives forever in our memories of long sunny days, swimming, vacations and fun.

For many advisers and their clients, however, this summertime may be one when the livin’ isn’t so easy. Not to throw cold water on dreams of sizzling good times, but volatile markets, high energy prices and general unease about the economy are likely to translate into lots of work and perhaps even some heartburn for advisers and their clients, in addition to fun and sunburn.

The summer’s generally overcast economic and market climate probably presents the greatest challenge. The inflation ignited by Covid-induced supply chain problems and fanned by the huge government fiscal stimulus was only exacerbated by the effects of the Russia-Ukraine war on energy prices. The Federal Reserve tightened rates to try to dampen the inflationary fires without causing a recession. But between fears of the economy running too hot or too cold, higher interest rates and continuing shortages of essential goods, as well as a dearth of workers, the result is a mood that is far less than festive.

For investors, and especially those nearing retirement or in retirement, the nagging question is, “What do I do now?”

For advisers, answering that question means revisiting financial plans, determining what to change and what to hold steady — all of which requires many more conversations, some of which undoubtedly will be less pleasant than talks when markets were soaring.

This summer, those conversations may return to the in-person variety, at least in part. While so many advisers and clients have become accustomed to Zoom meetings and other forms of virtual get-togethers, many advisers and clients are likely to resume the face-to-face sessions that help cement long-lasting relationships. Client appreciation events also are likely to be held for the first time in quite a while. All those in-person encounters will require more time, planning and effort than a phone call.

Another item requiring more time will be the in-person, press-the-flesh socializing that’s once again possible and that complements the online marketing and educational efforts advisers have been mastering during the pandemic. Given potential clients’ general unease and sense of financial insecurity, this summer is likely to be a particularly productive time for advisers to spend time mingling in social settings and discussing what they do and how they help.

And if providing assistance with traditional financial issues isn’t enough to keep advisers busy this summer, there are some nontraditional areas where adviser input may add extraordinary value. One of these is travel, where contributing editor Mary Beth Franklin points out potential financial disasters that could befall Medicare recipients traveling overseas. If an adviser doesn’t alert clients to these risks, who will?

From now through Labor Day, there is a lot of work for advisers to do. But in between the work, remember it’s still summer. Try to squeeze in some fun.