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Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

TIME TO BREATHE/PAUSE AND REFLECT

As you’ll no doubt know, for some clients, this may be the first time they’ve been unfortunate enough to experience a significant downturn in their financial health as a result of falling stock-markets. For others it may be all too familiar. Either way the same fears exist; what do I do? Do I sell everything? Do I invest now prices are low?

One thing is certain; having a solid financial plan will help your clients remain calm and assured through such times.


It’s important to remind clients that just because markets fall, it doesn’t mean that theircurrent plan is misguided. If their asset value is falling, you’ll be supporting them as they ask “why?” before considering a major sell off. They’d want to consider whether they were selling for sound, financial reasons or other outside factors? Every setback creates an opportunity to appraise your client’s current situation and to make sure they remain on track with their financial goals. Identifying their key concerns and how those impact their immediate needs will be vital to ensure that both you and they emerge from the current crisis in relatively good shape.



TAKING A LONG TERM VIEW

Taking a long term view whenever investing in the stock market or assets driven by stock market performance is clearly vital. Short term price movements can appear unsettling but, after all, this is a long-term investment. History has shown that the stock markets will return and those losses should become gains over time. This is clear when you take a look at the historical performance of some of the major reference indices since 1998, which encompass a variety of financial quakes over this period.


Reference index
Cumulative Return
Annualized Return

Morningstar UK GR USD

56.48%

2.08%

Morningstar US Core TR USD

254.89%

6.00%

Morningstar Europe GR USD

97.46%

3.18%

Morningstar Global Markets GR USD

170.12%

4.68%

Morningstar Emerging Markets GR USD

323.00%

6.86%


Separating fact from fiction is key, as isreminding them to make important decisions about their investments using sound, financial reasoning and not out of fear and uncertainty. Now is the time to engage with your clients and to provide some reassurance that they have a sound financial plan in place.