MARKET STRATEGY
Tracking the year from page 12
FURTHER THOUGHTS
On the impact of COVID-19
With the COVID-19 pandemic affecting absolutely every business and every person in
some fashion, I asked the insurance pros who participated in this article if they’d like to
comment. Their perspectives follow:
Randy Scritchfield, CFP, LUTCF
“With the COVID-19 situation and the resulting impact
on our economy and stock market, it is another reminder of
how important we are to our clients. To have the products
that we promote in place and to have a trusted financial
advisor is now more important than ever.
“Of course, the products I speak of are the ones that we
use to help people prepare for dying too soon, living too
long, or becoming sick or disabled. Relevant to the recent
stock market collapse, the primary benefit that we trusted
advisors provide is help to ensure people’s money does
not die before they do, either through protection features,
proper asset allocation and diversification, or both. And of
course, what we do for clients in times like these is often to
counsel them to ‘stay the course,’ as appropriate.
“This COVID-19 situation reminds me of what our most
important job is — not money management or investment
advice but rather behavior management. It is in times like
these that we do our most important work — helping clients
do the right thing or not abandon what we decided years ago
was the right thing.
“I am reminded of the three primary activities a financial
advisor should spend time on: creativity, relationships, and
leadership. We use creativity to design sound financial plans
for our clients. We must now reach out in a relationship-
based approach to ensure that our clients are okay, and use
our leadership skills to keep them to stay ‘on track’ with the
original plan we created.
“At times like these, when our clients are stuck in their
homes, it is most important to reach out and provide
counsel. I am reminded of an axiom that I always have tried
to apply to my business but I may have gotten away from in
recent years. That is ‘high tech/high touch.’
Let me elaborate. I have a confession to make: I have
become a big proponent of using email for communication.
I am fond of the efficiency of conveying information by email
rather than making outbound phone calls. That can be a trap
that can put our client relationships at risk.
“In recent weeks I have made a point of calling a certain
number of clients every day, not only to allay their concerns
about the markets, but primarily to see how they and their
families are doing.
“Given the nature of my clientele, many of my clients
are elderly. These calls, not surprisingly, are being very well
received and much appreciated. Guess what I will be doing
the rest of my career? High tech and high touch.
“So, my admonition to any advisor is as follows: Do not
fall into the trap of just communicating through electronic
means.
“The other new technique that this veteran advisor will be
adopting is virtual meetings. As I write this, just this morning
I had my first virtual meeting with two clients using Zoom
and video conferencing. (I know, many of you are asking,
‘What took you so long?’) This is something else that I will
be doing more of in the coming years. Just because it didn’t
necessarily fit the demographics of my clientele does not
mean that it is something that I should not be doing and
offering to all of my clients.
“The way we learn to do new things is sometimes by first
being forced to do them out of necessity. I welcome some of
the different ways that I will be doing business in the coming
years, but more relevantly, I look forward to getting back
to some of the things that I did when I originally built my
business, such as outbound relationship-based calls.
“So speaking specifically to the COVID-19 situation, I
maintain that this will be one of the best opportunities
for financial advisors, both through this crisis and, most
importantly, after we get through this situation. High tech
and high touch!”
Tracking the year continued on page 16
14
Perspectives
Q2 2020