Max Bolka is a 30+ year veteran of the financial services industry who developed and served a nationwide planning and investment clientele. Today he “Builds First-Class Financial Advisors” of all kinds through his dynamic speaking, insightful writing and comprehensive business development mentoring program.
Script For Preparing Yourself & Clients For The Next Market Decline
© Max Bolka 2020 - Reproduction In Any Form By Written Permission Only
Use This Script To Prepare Yourself, Your Clients, Your Prospects, Your Centers Of Influence And The Media For The Next Market Decline. This Is A Great Opportunity To Be Proactive.
When markets have declined in the past, Advisors have typically been protected against legal liability as long as their clients were placed in suitable investments.
Today, however, regulators continue to move in the direction of including the burden of proving that your process for making those recommendations and creating and managing a portfolio were “prudent,” meaning you used generally accepted planning principles. This is great, except if you don’t do formal plans.
And without further clarification, this standard is hard to decipher.
To Be Forewarned Is To Be Forearmed
You can anticipate an attorney’s pointed questioning in response to a client complaint or lawsuit (using new regulatory standards for support), when the market goes down:
“You hold yourself out as a Financial Advisor, Financial Planner, Investment Advisor, etc. Did you clearly give your client the opportunity to consider what might happen if the market significantly and precipitously went down, and how it might affect their financial condition, their investments, their retirement and the ability to meet their goals? Do you have any proof?”
The Simple Solution
Below is a brief Market Decline Prep Script you can use now, while the market is still relatively high, with each of your clients. You can also use it as a door opener to attract new clients.
Note: It is very important to document your offer to review each client’s plan or portfolio. Even if they pass, getting Clients to sign off on your offer could be your best defense during the next market downturn.
Phone Script & Email Template For Setting Up 15-Minute Get (Re)Acquainted Call
Use the following script for engaging or re-engaging clients, prospects & COIs:
This is Mr./Ms. Financial Advisor calling. I'm just checking into see how you're doing with all the recent market activity going on, and to let you know we have solutions which can help mitigate the volatility associated with the steep market decline.
My goal is to help you:
• Feel comfortable, confident and in control of your money, and
• Be able to sleep well at night
• Enjoy a worry-free retirement, no matter what the market does in the short term
If you’re at all uneasy about what’s going on in the market and your investments, I welcome the opportunity to speak with you, just for 10-15 minutes for a “Get (Re)Acquainted Call” so I can find out a little more about your situation and how I might best be of service to you.
How about speaking either:
Date Time #1,
Date Time #2, or
Date Time #3?
Please let me know which of these works best, or feel free to suggest other times.
I look forward to hearing from you, and to helping you define and achieve your highest goals.
Script For 15-Minute Call
Include the following in your 20-Minute Get (Re)Acquainted Call:
You Know, Historically, Bear Markets Have Occurred Twice Each Decade 1
That’s An Average Of One Every Five Years.
This Market Has Gone Almost Straight Up For The Past 10 Years.
We’ve Added Over 19,000 Points Since 2009.
From 6,500 To 26,000, And Been As High As 29,000 2
But Along With These Returns Has Come Increased Volatility
As We’re Currently Experiencing
Now, I Don’t Know When
And I Don’t Know What Will Trigger It (Corona Virus, Politics, World Trade, etc.)
And I Don’t Know How Far Down It Might Go
But I’m Pretty Sure We’re Going To See Another Downturn.
I Fully Expect The Market To Go Down 20%
That’s Called A Bear Market 3
And Bull & Bear Markets Are A Natural Part Of Investing
Just As Expansions & Contractions Are A Natural Part Of Our Economy
My Question To You Is, Are You Prepared For Another Market Decline?
If We’re Lucky, The Market Will Go Down Only 20%
But What If The Market Goes Down 30, 40 Or Even 50%?
Can You Ride It Out For Five Years?
I Say Five Years Because
We’ve Just Gone Through The Worst Economy Since The Great Depression
And Yet, The Market Came Back Within Five And A Half Years 4
And Up Until Recently We’ve Been Regularly Hitting All Time Highs 5
So While I Certainly Hope We Won’t See Something Of That Magnitude Again
I Can’t Guarantee It.
If You Cannot Sustain Market Losses On Paper And Ride Them Out For Five Years,
I’d Like To Show You Offer You The Opportunity To Come In For A Consultation
So We Can Create A Plan NOW
With Which You Can Sleep Peacefully At Night
If The Market Continues To Go Down Significantly
We’ll Look At Your
Need For Income, Need For Safety, Age, Your Financial Condition, Etc.
We’ll Need About An Hour Or So, Depending On How Many Questions You Have.
How about coming in either: Date Time #1, Date Time #2, or Date Time #3?
You’ll notice no products have been discussed.
It’s not enough just to email clients with articles or letters urging them to remain calm. You must use the current market volatility to your advantage by being be proactive, calling and seeing people face-to-face to solidify existing relationships and develop new ones.
It’s a golden opportunity to build your business BEFORE the next decline.
Max Bolka is a 30+year veteran of the financial services industry who built a nationwide financial planning and investment clientele. Today he “Builds First-Class Financial Advisors” of all kinds through his professional speaking, writing and business development mentoring program, where eligible Advisors receive $1M+ fully qualified prospects. He also partners with other Financial Advisors to provide Comprehensive Legacy Planning & Master Planning For Business Owners. You can visit his web site at www.maxbolka.com or contact him directly at (828) 713-4116.
1 Surviving A Bear Market: https://retirementplans.vanguard.com/VGApp/pe/pubeducation/retirement/Thinkingaboutretirement/investing/SurviveBearMarket.jsf
2 Dow Jones Industrials Average Chart 03/06/2009 Close: 6,469.95
02/10/2020 Close: 29,398.08
3 Defining A Bear Market
4 Latest Bear Market Recovery
5 Dow Jones Industrials Average Chart
10/08/07 Close: 14,065.36
02/25/13 Close: 14,089.66
14 Sunset Drive Asheville, NC 28804
Phone: (828) 713-4116 / Email: email@example.comSubscribe to the Dunham Blog