In times of financial uncertainty, financial advisors are more important than ever. During a recession, financial advisors can help their clients navigate an uncertain market and make sound financial decisions. They provide invaluable assistance to those looking to protect their assets during a downturn, and embrace new strategies like alternative investments. Financial advisors can offer guidance on asset allocation strategies designed for different levels of risk tolerance, as well as advice on how best to manage debt in the face of rising costs. With the right financial advisor, clients can weather any recession with confidence and security knowing their future is secure.
Here are three ways financial advisors can provide extra value and help their clients thrive during a recession.
Provide tailored, customized financial plans
Clients are looking to financial advisors to help provide tailored, customized financial advice more than ever right now. With markets in flux and financial uncertainty looming, financial advisors must help their clients make sound decisions that protect their investments and assets – based on each unique situation, risk tolerance, and future goals.
If you’re an advisor, ensure you have a holistic view of each clients’ financial portfolios in order to properly advise them during a recession. By taking into account all aspects of our client’s financial situation—including asset allocation strategies and debt management—you’ll be able to provide tailored advice that takes into consideration each individual’s unique risk tolerance level. In doing so, you can help our clients thrive during an uncertain market and recessionary period with confidence.
Technology platforms like AltExchange allow you to aggregate all your clients’ investments for a holistic view of net worth – including any direct-owned real estate, fine collectible items, private equity, and more.
Stay connected with your clients through technology
To help build trust, provide transparency, and enhance your relationships, financial advisors must stay connected with their clients as much as possible. Staying in contact with clients is an essential way for financial advisors to understand each client’s individual financial situation, risk tolerance level, and asset allocation strategies. Furthermore, staying connected also serves as an important source of support for clients who may feel overwhelmed by the current state of the economy.
Ways to stay connected with your clients include traditional methods such as scheduling one-on-one meetings, for example. But there are plenty of other ways to stay in touch. Producing regular content, such as newsletters, email updates, and even text message marketing can be a great way to keep in touch. Additionally, using technology platforms such as AltExchange allows you to send clients direct updates, such as sending automatic capital call notifications and reminders, and more.
By staying connected with your clients during a recession you can help them make sound financial decisions and protect their investments and assets from any downturns in the market.
Protect your clients with alternative investments
Many financial advisors are embracing alternative investments right now. In fact, 94% of wealth firms said they are either already offering clients access to alternative assets or are working toward it, according to a recent survey by Delio.
Alternative investments provide diversification and help protect against market downturns, which are particularly prevalent during a recession. They also have the potential to offer higher returns than traditional financial instruments such as stocks and bonds. Furthermore, they can be tailored to meet each client’s individual risk tolerance level, allowing financial advisors to craft strategies that fit each clients’ needs perfectly. By incorporating alternative investments into portfolios, financial advisors can help their clients thrive even in uncertain times and give them greater peace of mind knowing their future is secure.
AltExchange offers solutions to help advisors manage, track, and report all alternative investments. If you’re an advisor currently offering alternatives, or just interested in getting started, check out how our technology-powered solution works for you.
Schedule a call or book a demo today to learn more.