Answer Volatility With Agility: Pilot Clients Through Turbulent Times

Investments Mark E. Caner, MBA, AEP, ChFC, CLU, CFP®
Older couple meeting with financial advisor

Times of pronounced market volatility highlights the importance of relationship building. Maintaining consistent communication and helping clients address planning challenges enable financial professionals to demonstrate their expertise and worth. The types of decisions brought on by financial instability are tough to face alone. While advisors won’t have all of the answers, they should be equipped to help define the issues and identify options.

Professionals benefit by laying it out on the table for their clients. Volatile times such as these call for versatile solutions with the potential for growth and the assurance of protection. Annuities issued by highly rated insurers providing various guarantees offer prudence and confidence during times of doubt and instability in the financial markets.

Adapting to Volatility: Assess the Situation

Clients affected by investment volatility may need to modify their plans in three ways. First, their situation may require new assumptions for working longer and retiring later. Reworking a portfolio’s asset allocations in response to the prospect of a later retirement can be a daunting challenge to a lone investor. The support and perspective provided by an experienced financial professional may be especially valuable in times of investment uncertainty.

Second, consider how market movement may have altered a client’s risk tolerance. Previously aggressive investors may become more conservative, while formerly conservative investors may be spurred to seize advantage of a bear market.

Third, another way to assist clients during unstable times is to confirm their continued appetite for more variable investments. It may be that a portfolio no longer reflects an investor’s needs and comfort level.  When market values are erratic, they may want to shift to a more stable alternative. Although this may not relate directly to portfolio diversification in response to later planned retirement, changing the client’s short-term plan may ease fears of immediate volatility.

Adding Value Amid Change

Amid all of these external pressures, changes in client behavior also must be observed and interpreted if a financial professional is to maintain a value-added presence in a client’s financial life. Assist clients according to their individual needs and personality and develop a rapport that supports a consultative relationship. Consistently communicating with clients through all investment climates and economic events will help build rapport and give financial professionals credibility that advances their business.

In the end, when applied to financial services, relationship building in times of change can serve to everyone’s advantage.  Use difficult circumstances as a platform to foster connections with clients. The perspective of a financial professional proves its worth, especially in today’s investment environment.

A variable annuity is a long-term financial vehicle designed for retirement purposes. An insurance company accepts premiums and provides future income or a lump sum to the contract owner by contractual agreement. Contract limitations, fees, and charges include, but are not limited to, mortality and risk expense charges, administrative fees, surrender charges, additional fees for optional benefits and underlying fund expenses. Withdrawals also may be subject to charges and may reduce annuity contract benefits and values. Refer to the product and fund prospectuses for full details.

Variable annuities are issued and guaranteed by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and distributed by Touchstone Securities, Inc.*

Payment of benefits under the annuity contract is the obligation of and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. Variable annuities are suitable for long-term investing. Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost.

An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, visit Western & Southern Financial Group Distributors Resources. Please read the prospectuses carefully before investing.

*A registered broker-dealer and member FINRA/SIPC.

Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. W&S Financial Group Distributors, Inc. (“the Company”) does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. Consult an attorney or tax advisor regarding your specific legal or tax situation.

Ready to Continue?

You have clicked a link to access information on a new website, so you will be leaving

Because this new site is independent, Western & Southern Financial Group neither manages nor assumes responsibility for its content. 

Are you ready to move forward?