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Market turmoil, such as the current tariff situation and its impact on financial markets, presents both challenges and opportunities for financial planners and advisers in the United States. Those who have built strong, trusting relationships with their clients are uniquely positioned to navigate these uncertain times effectively. Here’s why client relationships are critical during market turbulence and how financial professionals can leverage them to grow their practice.
Why Strong Client Relationships Matter
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Confidence and Trust: Financial planners who have proactively communicated their strategies and educated their clients about long-term planning are less likely to face panic-driven calls during market downturns. Clients who understand the rationale behind investment decisions and the importance of staying the course are "vaccinated" against fear and hysteria. This level of trust reduces emotional decision-making that could lead to catastrophic financial outcomes.
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Preparedness for Market Volatility: By emphasizing long-term strategies and preparing clients for inevitable market fluctuations, advisers can instill confidence that moments like these were anticipated. This reassures clients that the plan is sound, reducing the likelihood of rash decisions such as selling at market lows.
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Differentiation from Competitors: Many financial advisers shy away from discussing tough topics or fail to provide comprehensive planning. Those who excel in these areas stand out during turbulent times, showcasing their professionalism and expertise.
Leveraging Relationships for Growth
Market turmoil creates a unique opportunity for financial planners to grow their business through referrals. Here’s how:
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Call Your Top Clients: Reach out to your top 50 clients with a personalized conversation. Begin by checking in on how they’re feeling about their plan, reaffirming your strategy, and addressing any concerns they may have.
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Ask for Introductions: After reinforcing confidence in your approach, ask clients to introduce you to friends or colleagues who may be struggling with fear or uncertainty about the market. Highlight how your planning has helped them feel secure and prepared during this time.
Example conversation:
"I don’t usually ask this, but I feel compelled given the current situation. If you know someone who’s feeling unsure or afraid because their adviser hasn’t prepared them for moments like this, I’d appreciate an introduction. Let them know about your experience and how working with me has helped you feel confident."
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Position Yourself as a Problem Solver: Emphasize that you’re not offering a quick fix for market issues but rather a thoughtful, long-term relationship that helps clients avoid tragic mistakes during critical moments.
Key Benefits of Asking for Referrals During Turmoil
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Increased Visibility: Times of crisis highlight the difference between advisers who simply manage accounts versus those who provide comprehensive planning.
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Client Advocacy: Satisfied clients become advocates, sharing their positive experiences with others who may need guidance.
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Opportunity to Build Relationships: Referrals often come from individuals seeking clarity and reassurance — qualities that skilled advisers can provide.
Closing Thoughts
Financial planners who have invested in building deep relationships with their clients are positioned to thrive during market turmoil. By reinforcing trust, providing sound advice, and asking for referrals at the right time, advisers can grow their practice while helping more people navigate uncertainty confidently. These moments separate true professionals from the rest of the field, making their value evident to both existing clients and potential new ones.
Related: The Psychology of First Impressions: How Easy Are You to Introduce?