6 Tips to Kickstart Succession Planning with Your Business Owner Clients
Here are 6 tips you can share with your business owner clients to help kickstart their succession planning.
Something that’s likely on your clients’ minds this year: inflation. With the annual reading for 2022 rounding out at 6.5%1, we’re seeing inflation at it’s highest overall since the 1980s. And although inflation appeared to level off in the second half of 2022, it remains high heading into 2023 and your clients may be understandably nervous.
According to data from the American Psychiatric Association’s (APA) Healthy Minds Monthly Poll, which included a question each month from June through December on how anxious Americans felt about a list of trending current events—4 in 5 respondents said inflation made them somewhat or very anxious2. This anxiety about the economy and finances can impact the way people feel about their retirement savings and investments—as a financial professional, it can help to listen to concerns, encourage your clients to stay the course with investments and not make any rash decisions, and let them know that they can always turn to a mental health professional for additional help.
Inflation anxiety can present itself in different ways, depending on your client and their unique financial situation. Inflation concerns, coupled with the recent periods of unprecedented market volatility and negative returns have many clients holding large portions of their assets in cash—particularly in money markets. But not staying invested in the stock market during periods of high inflation could end up adversely impacting their financial plans. Finding investment options that balance your clients’ desire for protection with their need for growth may help them feel more comfortable about finding an investment strategy that can help them plan for the future.
You can read more about best practices for managing cash on the sidelines to mitigate inflation by reading the blog here: Are your clients leaving cash on the sidelines? – Nationwide Financial
It can be a helpful reminder for anxious clients that the economy is not under their control. But what is? Their financial choices and their own mental health. Being there for your clients through tough financial times can help build trust, and you can help them address money anxiety with these tips from the APA3:
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.