It seems that the WSJ has taken notice of the work that we have been doing on our clients behalf: Getting them prepared to ride out the market volatility. The question posed to me during my interview was how was I able to keep my clients invested through the “Great Recession” to be able to participate in the eventual stock market rebound?
I stated during the attached interview for the Wall Street Journal that it starts at the beginning of the relationship. The key is having my clients understand what ordinary market volatility is and what is required of them to be able to capture the returns that they need to help them reach their goals.
We work beforehand to give them the actions that we will undertake during the eventual downturns (such as re-balancing to purchase shares at low prices) and establishing a cash reserve to be able to reduce or eliminate the withdrawals during these downturns.
The article discusses our use of the fire drill exercise that we use to prepare them for the downturns. I wrote a post concerning this exercise which can be found here: [button link=”http://www.rootsofwealth.com/financial-fire-drill” color=”silver”]Financial Fire Drill[/button]
I hope you enjoy my interview. Push on the teal button below to read the article from the Wall Street Journal. (If you are unable to gain access, let us know your mailing address in the Contact Us and we will regular mail you a pdf copy)
[button link=”http://online.wsj.com/article/SB10001424127887324659404578502900086762228.html” color=”teal”]Preparing Clients to Ride Out Volatility[/button]
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