While the top read story of the year was published during the summer as equity markets were marching toward an annual gain of more than 20%, its key points remain relevant:
• Some clients may react to the bull market with excessive exuberance and take on too much risk.
• Others may fear market valuations have become excessive and run for the perceived safety of bonds or cash.
Investors rushing into equities with unreasonable expectations, however, may be likely to panic sell during market corrections and therefore occur substantial losses. On the other hand, not taking enough risk may cause some investors to fail to reach their savings goals. Now, as during the summer, the key for advisors is to help their clients develop a long-term view of investing that includes sticking to predetermined asset allocations that reflects appropriate time horizons and risk and return profiles.
Expressions of gratitude can be used as powerful marketing opportunities. For example, when thanking a client for a referral, an advisor can seek out information about the prospect, such as civic involvement or other activities that can be discussed to build comfort with the individual.
By thanking clients for providing referrals, advisors also convey that they are interested in bringing in new accounts. Thanking prospects for completing an initial meeting, meanwhile, gives advisors another opportunity to describe why their skills and services may be a good match for the potential client.
Client communications, of course, involve more than expressions of gratitude and despite the acceptance of informal language when texting, good writing is an essential marketing skill. Sloppy writing conveys a message that advisors don’t value their clients and aren’t professional.
Research shows that successful advisors have captured substantial amounts of assets through social media marketing, but building a social media presence is a substantial undertaking that requires a well thought out marketing strategy and considerable resources. Content must be kept up-to-date, prospects must be managed, and steps must be taking to avoid running afoul of regulations.
In this story, an heiress to the Knott’s Berry Farm theme park filed a claim against LPL Financial saying one of its brokers lost $8.5 million with a fraudulent investment and inappropriate trading of preferred stock.