Financial planning and the economy: It isn’t politics, it’s math

Your clients may be worried about what’s happening with the economy now, and especially how it’s going to affect them in the short and long term. This, however, is an opportunity for you as their financial advisor to help clients focus on their financial plans and how you can position them to win no matter if the stock market goes up or down.

With the economy and politics, none of us really knows what’s going to happen. I follow experts on both sides of the political spectrum. Some of them think we’re getting ready to hit another bull market, and some think we’re getting ready to have a deep recession.  The consistency I see is that there’s a widespread range of opinions on both sides. 

I like to communicate to clients, “Here’s what we can do to strategize, to get you balanced and prepare you so that no matter what happens, you’re going to win.”

When clients are focused on a political side and they want to base all of their investing and financial planning on that, I want to eliminate as much of that as possible. So, I ask them to focus on the four-letter word “math.”  The math doesn’t lie. The math has no political affiliation. I’ll tell clients, “Let’s do the math and figure out what’s best for you and your situation regardless of what’s going on around us or who believes what.” To me, that’s a more viable way to approach the economy and focus on what’s best for clients. 

See more from Hopkinson on this topic in his mdrt.org video, “Stay neutral, stay trusted: How to talk economy with clients.”

Howard Hopkinson is a 10-year MDRT member as well as a Top of the Table member.

For more client communication ideas:

• Watch “Trust-building ideas for skeptical clients” (MDRT member-exclusive content)
• Read “Why retiring is about more than money”