Keeping clients calm and focused

Financial planners and investment advisers appear to be earning their fees. A survey by the Washington-based Center for Audit Quality found that investors haven't panicked in the face of the financial crisis and the resulting bear market. In fact, the public policy organization's latest survey of investor confidence found that just 3% of those surveyed had sold their investments in the past year. Further, the survey found that 70% of the respondents continued to voice confidence in the U.S. capital markets, though this was down from 84% voicing such confidence last year, before the mortgage and credit market crises hit. While people who invest may naturally be more optimistic than the average person because they are looking to a better tomorrow, the survey results may also be a tribute to the work of financial planners and investment advisers. No doubt many financial planners and advisers have kept their clients from pressing the panic button with calming words and judicious changes to the clients' investment portfolios. Preventing clients from making ill-advised investment moves is one of the most important services that planners and advisers can provide.