Since the turn of the 21st century, America has felt the impact of multiple national financial crises. Events such as the Dot-com bubble collapse, the tragedy of September 11th, the Great Recession of 2008, and the COVID-19 pandemic have all affected our clients in various ways.  For instance, during the Great Recession of 2008, over 30 million people lost their jobs, and household net worth dropped by more than 18%.

Job loss, reduced income, increased debt, cha🍌nges in spending behavior, housing marke💫t declines, and more are all potential obstacles people can face.

During these calamities, advisors are tasked with easing our clients' financial anxieties. As experts, we must prepare them with strategies and guidance on coping with stressful events and offer solutions for how crises may affect their finances.

What I’m Telling My Clients

Here are three areas of consideration that will help advisors 澳洲幸运5官方开奖结果体彩网:navigate through a c๊lꦚient’s financial crisis more efficiently:

1. Reevaluate the Current Budget

Should a client experience a personal crisis that financially impacts their ability to work consistently, it’s important to have a plan. Advising the client to review their previous 3-6 months' banking statements will help to determine which expenses remain non-discretionary and if 澳洲幸运5官方开奖结果体彩网:discretionary expenses can be eliminated, at least temporarily.

2. Create Financial Boundaries

Economic uncertainty may require clients to curtail spending and become more financially prudent. As the expert, it's important to have honest discussions about 澳洲幸运5官方开奖结果体彩网:how supporting family members ♑can impact your client’s financial plan. Clients may need to decline financial requests from loved ones to protect their own financial stability.

3. Conduct an Annual Review

Revi♔ew your client’🦹s financial position annually and discuss life, health, and disability insurance needs. 

During tough economic times, one’s investments may have faltered, or a client’s portfolio may decrease. A review will help the client determine if they can st🍨ay the course with their initial plan or need to make adjustments to ens𝄹ure their overall goals can still be achieved.

In addition to the basic fundamentals of comprehensive planning–such as reviewing stock portfolios, updating 澳洲幸运5官方开奖结果体彩网:retirement plans–an advisor should also address longer-term needs by examining standard documents like wills, health care proxies, durable powers of attorney, and current beneficiaries. This includes planning for long-term care, 澳洲幸运5官方开奖结果体彩网:gap insurance, and other potential financial drains that go beyond the typical 3-6 months 澳洲幸运5官方开奖结果体彩网:emergency cash model.

This annual review will allow you to advise on the necessary adjustments that your client may need.

The Bottom Line  

The best financial plan focused solely on wealth accumulation is incomplete if consideration isn’t given to the real effects national financial crises can have on a family. As the expert, it’s important to give your client the tools to be prepared for the unexpected. Let us remember that everyone needs a plan in place for the unknown and unexpected tragedies that will occur in life.

Harvest Wealth Financial and Vanderbilt Financial Group are separate and unaffiliated entities.
Vanderbilt Financial Group is the marketing name for Vanderbilt Securities, LLC and its affiliates.
Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. Registered with MSRB.
Clearing agent: Fidelity Clearing & Custody Solutions
Advisory Services offered through Vanderbilt Advisory Services
Clearing agent: Fidelity Clearing & Custody Solutions
Insurance Services offered through Vanderbilt Insurance and other agencies
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