Your clients rely on you for holistic guidance. Traditional notions around investing and financial planning are evolving as clients seek more tailored solutions that reflect their values, passions, lifestyles, and family dynamics. And the work you’ve been doing together prepares them to weather volatile times like these and stay focused on their long-term goals.
We’ve witnessed drastic fluctuations in global markets over a short period of time, and that makes it easy to focus narrowly on things like intraday movements and individual securities, forgetting the humans behind the volatility. It’s important to step back and consider the big picture. While some strategic moves may shift with the market environment, our 70+ years of experience serving charitably-inclined investors has revealed that their values and long-term priorities remain constant—and serve as opportunities to connect with your clients.
As you’re working with clients on navigating the markets, don’t abandon these all-important components of their financial plans.
Whether your clients will be passing assets to their heirs and beneficiaries or receiving assets in the coming years, preparation is required.
Revisit financial plans, wills and estate plans to ensure they reflect your client’s current priorities, along with their key tax management and philanthropic objectives.
It’s prudent especially in times of volatility to revisit risk tolerance with your clients and identify portfolio adjustments that will allow them to take advantage of value investments, harvest losses and minimize capital gains taxes.
If taxes are of particular concern, it might make sense to explore a multi-disciplinary tax strategy that includes investment, legal and philanthropic elements.
As we enter the season for weather-related disasters, now is a good time to check in with clients who are in flood zones and areas that are prone to wildfires, tornadoes, hurricanes, and other dangerous conditions.
A few key questions to consider:
Clients dealing with chronic illnesses and short-term ailments – personally or within their extended family units – have special needs and concerns that don’t go away when the market is erratic. Now is the time to reinforce that you understand and support their priorities.
The responsibilities of business owners don’t change when the market is fickle. If anything, they get more complex and layered as the range of consumer responses emerge. Business owners may need additional services from you, such as lending or retirement planning, to help them navigate a period of uncertainty.
Those that are considering expansion or succession initiatives that result in acquisitions and transactions will need comprehensive preparation and planning to ensure optimal outcomes. Clients who are thinking about their next chapter may want to discuss how the current environment could impact their financial plan and their lifestyle in the coming years.
Charitable giving and overall wealth strategy go hand-in-hand for the high net worth, so they expect to discuss these topics and for you to manage the intersection between the different parts of their financial affairs. In a client survey of private foundations and donor-advised fund account holders earlier this year, 21 percent told us they are thinking about charitable giving as part of their financial plan, and 22 percent are considering a defined budget to make gifts to become more effective givers. This is a key opportunity for advisors to add value.
Need everywhere typically increases during periods of financial duress making charitable funding and private philanthropy even more critical. Affluent households have many choices about how to make charitable gifts, and especially now, may want your guidance finding the best solution for their objectives.
Connecting with clients in difficult times is one of the most important things an advisor can do. It demonstrates that you are with clients through thick and thin, reinforces that you don’t shy away from difficult conversations and creates an opening to remind them that you’ve got your eye on their long-term objectives. The chance to support your clients in a tumultuous fiscal environment may be outside your comfort zone, but also presents you with a unique and extraordinary opportunity to establish your value and deepen your relationships. Don’t miss it.
Gillian Howell is the National Philanthropy Executive and a member of the leadership team at Foundation Source.
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