David Hanzlik: Advisory In A Time Of Crisis
April 22, 2020 by P.E. Kelly
The effect of market volatility can be disorienting, to say the least, to the point where you may have to proactively dissuade your clients from altering the plans they have in place. So, it is always good practice, but more so in times of crisis, to revisit and reestablish the goals that you have established for them. Moreover, market corrections, as we know, are arguably beneficial in the long run… if managed properly and in accordance with the strategies embedded in each individual retirement plan.
We spoke with Dave Hanzlik, vice president of annuity and retirement solutions at the CUNA Mutual Group, who argues that it is precisely this kind of climate that will challenge the integrity of all that you do for your clients… and keep them focused on the big picture.
PEK: Advisors generally prepare their clients for volatility, which they may understand only in theory. What do you see investors doing now, in real time, as they try to navigate a substantial drop in equity values?
DH: It really depends on the strategy they have built. We find the people that have guarantees embedded in their strategies are much more settled versus those that do not. There is a lot of reevaluation of strategies, goals and risk tolerances right now. There is nothing wrong with that – crises tend to reveal the mettle of our strategies in all of us – but I caution everyone to take their time before making changes to their strategy. None of us could time the market three months ago, we still can’t today.
Click HERE to read the full story via Advisor Magazine
