June 2020
It's been an interesting start to June, with a lot going on around the world.
A very recent highlight was the Life20 Summit organised by the notorious Mr Paul Armson. It was a wonderful 5 days, he beamed the conference across three time zones. You can watch all the talks here: https://uk-eu.life20summit.com/
Some of you may have seen me close the event this afternoon with my talk on the informed risk scale. Let me know what you think :)
As always, this month's newsletter is packed with links that you may find interesting.
Why Are They Acting Surprised?
We may not yet be done with COVID-19, but the big financial lesson has already been delivered.
Let's look at the facts:
Starting on 19 March, the market declined by -34% in 32 days. Since then the market has recovered by gaining 40% in 72 days. It is now off by "only" about -7.4% from the market highs.
History being our guide, this recovery should not have come as too much of a surprise. Remember, volatility is the cost of admission.
Do you remember how you felt when the market bottomed on 23 March? How were your clients feeling? We were days away from most of the world being in an official lockdown, with infection and fatality numbers rising daily. We were heading into a recession, with billions of people unsure of their earnings.
Yet here we are, once again reminded that the market is forward-looking, while people are mostly good at extrapolating the recent past.
The mistakes made by investors (and professional Financial Advisers) in mid-March will haunt them for years. And if, as a caring and empathetic financial adviser, you were able to influence the decision-making of your clients during this uncertain time you have earned a lifetime of fees in 3 months.
The work you do matters.
π Main Feature
βEmpathy Starts with Curiosity [5 minutes].
Thereβs a response thatβs even more powerful than empathy when someone expresses their vulnerability, and that's curiosity.
That's because we don't know what's going on for the other person. When we don't know what is true for the other person, we have to develop understanding before we can demonstrate it. This takes humility, which almost always leads to empathy and compassion.
Stay curious.
π° Articles & Blogs
βSix Questions to Engage Your Clients [4 minutes]. Use these to connect with clients on an emotional level.
βThe Pronoun Test [2 minutes]. Spend more time talking about the people you want to attract.
βAdaptation Or Extinction [9 minutes]. Trends that were slowly grinding through the profession are seeing sudden acceleration.
βLosing the Retirement Assumption [8 minutes]. Old thinking around retirement no longer reflect current realities.
βSo Youβve Reassured Your Clients. Now What? [7 minutes]. As our world changes, our conversations will also change.
βBehavioral Finance Coaching To Help Clients Make Better Choices [21 minutes]. A look at the how of behavioural coaching..
βFinding Joy In Unexpected Places [4 minutes]. Sometimes the best thing to do is pick up the phone.
βPreparing Your Advisory Firm To Sustain Through A Market Crash [19 minutes]. Now is the time to plan for the next downturn.
βLockdown Lessons: Retirement Dry Run [4 minutes]. Few clients would consider their retirement a success if they could only afford the essentials.
βLaunch Your Own Podcast and Reap the Rewards [5 minutes]. A powerful way to build trust.
π§ Podcasts
βThe Data Coach [42 minutes]. Michael Lewis explores the quantitative, scientific, and data-driven new frontier of coaching.
βHow Coaching is Financial Planning Done Correctly [42 minutes]. Coaching is integral to true financial planning.
π Book Recommendations
βLoserthink by Scott Adams. Dilbert creator Scott Adams explains the sneaky mental habits that trap victims in their own bubbles of reality.
π Other
βThe Bumpy Road To The Market's Long-Term Average by Dimensional Fund Advisors. Very few years are average. Do your clients understand that?
βWhy work with a financial advisor? Another study showing the value of a behavioural financial adviser.
πΏ Videos
βWhat is inflation?ο»Ώ
π Encore
βThe Five Elements in Top Converting Websites [5 minutes]
βPainting the Bullseye: What Happens When We Lose Our Curiosity? [9 minutes]
βProductivity advice for the weird [14 minutes]
β50 Ideas That Changed My Life [11 minutes]
βHereβs What Really Leads to Satisfied Clients [2 minutes]
βRethinking client engagement to seize the day [3 minutes]
βMeasuring Risk Tolerance Badly Is As Bad As Not Measuring It At All [6 minutes]
