'SAFE' conversations: the key to helping clients overcome market anxiety

Uncertainty in the markets is nothing new – but that doesn’t make it any less unsettling for clients. Whether driven by inflation, economic downturns, geopolitical events or changes in policy, volatility can stir anxiety among investors. The new presidential administration is one such example, ushering in speculation about potential changes in taxes, tariffs and other economic shifts. 

Advisors have a vital role to play in easing client concerns by steering them toward positive behaviors during these periods of volatility and unrest. When markets get choppy, advisors aren’t just managing portfolios – they’re helping to safeguard their clients’ dreams and aspirations. 

With that in mind, the following is a four-step framework that can help advisors confidently guide these critical conversations, providing the guidance clients need to stay focused and resilient during volatile periods.

Seek to understand

Begin conversations with anxious clients by approaching them with empathy and genuine curiosity. Open-ended questions encourage clients to express their thoughts and emotions more freely, offering advisors a deeper understanding of their concerns. 

For instance, if a client says: “I’m worried about the market and don’t think I’m invested correctly anymore,” resist the temptation to immediately offer solutions or advice. Instead, dig deeper by asking clarifying questions such as: “What specifically has you worried?” or “Can you explain what you mean by being invested correctly?”

By prioritizing understanding over problem-solving, advisors can create a space for clients to feel heard and validated. Another way to think about it—an advisor must first acknowledge and understand what a client is feeling before the concerns can be assuaged. This approach helps to establish trust and enables the advisor to better tailor advice to each client’s unique concerns and goals.

Anchor to the why

Reconnecting clients with the purpose and goals that initially shaped their financial plan can provide much-needed perspective. Remind them of their core motivations and long-term objectives, emphasizing how these priorities guided the strategy’s initial construction. Anchoring the conversation to their “why” can reinforce the value of staying committed to their plan, even during periods of uncertainty. 

For example, an advisor might say: “I’m looking back at our previous discussions, and I see that we structured your investments with two key goals in mind: first, to give you the flexibility to leave work on your own terms, and second, to support your children’s future education. Have these priorities changed?” 

This approach reaffirms their original intentions and also opens a dialogue to ensure their plan remains aligned with their evolving needs and aspirations.

Facts and figures

This is the moment to present compelling, historical data and logical reasons that support staying the course. Use charts, graphs and visuals to highlight the importance of maintaining investments during volatile times – while illustrating the potential consequences of making any drastic changes to the plan or pulling out of the market prematurely.

For instance, you might say: “Before making any major decisions, let’s consider the implications of a change. While exiting the market may provide immediate relief, it could also result in delaying your retirement or requiring more of your current income to be directed toward savings.” 

Try to leverage data to support these potential outcomes. While logic may not always outweigh emotion, it can play a critical role when presented at the right moment, helping clients make more informed decisions.

Ease the anxiety

It can be incredibly difficult for clients to stay the course when the world around them seems increasingly chaotic and unpredictable. For many people, the urge to take action – even if it’s not optimal – stems from a need to regain a sense of control to alleviate their anxiety.

Instead of making drastic moves, like selling out of the market, offer alternative options that allow them to act in less risky ways. Some possibilities include giving them a homework assignment to research past market downturns – exploring how they unfolded and how long they lasted. Advisors can also play devil’s advocate and come up with three reasons why the client should stay invested.

Another option is to focus on aspects clients can control, such as rebalancing, tax-loss harvesting, investing extra cash or doing Roth conversions, depending on their unique situation. Ask them to map out where adjustments would need to be made if they decide to sell, such as increasing savings to stay on track and identifying areas in their current spending to cut.

If clients still feel the need to sell, suggest they start by selling only a small portion and agreeing to reassess in two weeks. And if they do sell, clients should have a clear plan for when they will re-enter the market.

Be “SAFE” and help build client confidence

It’s natural for clients to grow anxious when market volatility and political uncertainty rear their ugly heads. Being an advisor in these times requires more than just financial expertise – it demands showing empathy, while offering clarity and a structured approach to client communication. 

By leveraging the “SAFE” framework, advisors can transform moments of client uncertainty into opportunities for reassurance and empowerment. In doing so, they can give clients the confidence to move forward in their financial journeys, regardless of the headline noise.