Managing Savings for the Rest of 2020
It wouldn’t be an exaggeration to say that the knock-on effect of the Covid-19 crisis came as a surprise to all of us. The last few months have seen governments, businesses, and individuals make really difficult decisions to help themselves overcome this outbreak. With all the necessary precautions being taken and work continuing on the way to a vaccine and treatment, we will hopefully be able to get back to normal soon.
Financial advisers are likely to find themselves in a unique position where their client base has done very little with their savings over the last couple of weeks and months. When we reach the other side of the pandemic and confidence returns to world markets, there will be a great opportunity to make smart investments as certain businesses and services see interest levels return back to where they were at the end of last year.
As a financial adviser, it is important that you are ready to make the right decisions for your clients, so here are some things to mull over.
For your client base, what you are likely to find across the board is that outgoings have been reduced over the lockdown period. With no opportunities for holidays, meals out, socializing, etc. people have been understandably cautious with their money in the recent past. This might mean at the other end of the crisis; people will have more money to dedicate to their financial priorities. This is something to remember when engaging with your clients.
Where the Opportunities Lie
An important part of any investment strategy is knowing where to look for markets that will gain when the Covid-19 crisis eventually passes. Ensure you take the time to research the different ways to invest and think about how this can best benefit your clients. You are there to advise on where the best opportunities are, and any research you do just now will be beneficial down the road as the economy gets a chance to recover.
Good Money Habits
Taking the recent news out of the equation for a moment, it’s also a key consideration to remember that individuals will have their own priorities and saving plans in places, regardless of what has been going on. You will have a mixture of people saving for retirement, or a one of big expense, etc. The news is enough to make anyone careful with their money, and we’re likely to see an increase in interest around good money habits to have with your personal finances in the near future.
Growing Relationships in the Future
The last few months have been fairly unprecedented, but that’s not to say that 2020 can’t be a successful year of long-term growth and better relationships. Financial advisers are the very people who are in demand in difficult times and in periods where there is a great opportunity for growth. Being there at the right time and with an existing relationship will ensure that your clients will trust you to get on with the job as we move into the latter half of 2020.
Financial advisers are in a position where their expertise and ability to see the devil in the detail puts them in a position to grow some great relationships as the current challenge runs its course. The decisions you make and the expertise you can demonstrate in these times will become indispensable to the people that make up your client roster. In following some of the advice we have outlined above, you can grow in a proactive way in circumstances that might otherwise appear challenging in a different context.