Advisor Today - March/April 2016 - (Page 28)
While producers and clients alike wish for clear skies,
the reality is that markets are volatile. Here's how top
advisors weather the storm.
By Jean Feingold
In an ideal world, there would
be many investment choices, each
paying a guaranteed minimum rate
of 10 percent annually without risk
of principal loss. The real world,
however, is far from ideal. How do
you advise clients that everyday events
and governmental actions create huge
market swings daily?
28 ADVISOR TODAY | March/April 2016
Volatility is nothing new
"The market is volatile now, has
always been volatile and always will
be volatile," says Gregory B. Gagne,
ChFC, of Affinity Investment Group,
LLC. "It is essential to keep funds
you need for unforeseen expenses-
we call these 'life events'-liquid
in the bank. This lets you have a
long-term focus on the investment
portfolio. Keep emotions out of
investing to prevent selling assets
during market downturns.
"Accomplish this by building an
investment policy statement for each
client," he continues. "This puts
parameters around how the portfolio
should be designed, expected level of
risk, expected long-term return and
the client's goals and objectives. It's a
great document to have for reference
when the market is not doing well."
Table of Contents for the Digital Edition of Advisor Today - March/April 2016
From the Editor
A Question of Ethics The Details Often Make the Difference
What's Ahead for Financial Advising?
Whos's Saving the Most and Why?
Making the Case for Critical Illness Insurance
Are You a Retirement Expert?
Selling the "Best Plan"
Taking Incremental Steps Toward Success
Investment Strategies for Today’s Consumers
How Tax Efficient is Your Investment and Retirement Portfolio?
Ideas for a Profitable Practice
Crossing the Two Client Relationship Bridges
Working with Muslim-American Clients
Attracting and Serving Today's High-Net-Worth Clients
Becoming a Networking Success
Advisor Today - March/April 2016