If there was any time for an advisor to be on top of their clients’ affairs, it’s right now. With more Canadians losing jobs, the markets regularly bouncing around and home prices more volatile than ever, advisors have a perfect opportunity to show their value by helping clients deal with all this uncertainty.
With that in mind, we’ve put together an in-depth debt package to help you and your clients navigate these turbulent times.
Jobless clients need advisors’ help: With 213,000 Canadian jobs lost since October, many advisors have at least one client who’s been given the pink slip. Dealing with the laid off investor requires more than just a few encouraging words and a quick look at the finances, though — when a client loses a job the advisor become part therapist, part financial planning guru.
Time to open an emergency account: It’s something every advisor knows and hopefully puts into practice: get your clients to establish an emergency bank account.
Dealing with dropping home equity: In less than a year, the world of homeowner lending has been turned upside down and, going forward, it’s going to be much harder for clients to obtain new lending arrangements. Adding to this problem is that a key piece of collateral many Canadians use — home equity — is declining in value.
Think leveraged investing in down markets: Given the market setbacks of recent months and the gloomy economic news that still dominates the headlines, it is not surprising that many investors simply want to sit on the sidelines for the time being. But many of your clients might be better advised to try to recapture the mood and the method that prevailed before last fall’s market meltdown.
Treating a household like a business: During recessions and market downturns, homeowners often take comfort in their biggest investment asset: their home. But should they? With spending and investing on many people’s minds these days, home prices, and the widespread conviction that investors never lose money on a house purchase, are being tested.
Back to basics: A downloadable household balance sheet: The economy and credit crisis have affected nearly every client, so download Diane McCurdy’s household balance sheet and help plan for the future.
To Clients: Managing debt (updated): In today’s troubled economic times, it’s imparative for advisors to reach out to their clients. This template letter will you connect with worried investors.
(02/10/09)
