Focus on what you can control

We have all heard the adage that highly effective and resilient people focus on things they can control.

We have all heard the adage that highly effective and resilient people focus on things they can control. These words ring even more true in these tumultuous times, when market volatility is in the stratosphere and investor confidence is in the basement.

Like many financial advisers, you may feel caught in the middle — pushed and pulled and overwhelmed. Despite the pressure, there is a way to turn things around. I recommend focusing on issues you can control, and taking the active steps that result in greater productivity and a greater sense of well-being.

Let me suggest six areas of control.

Your own mental attitude. If this bear market has you down, the first step is to find a mirror and evaluate yourself. It’s your job to stay upbeat, to better guide the families you serve. Look yourself dead in the eye and ask the tough question: Are you letting negativity get in the way of providing sound counsel to your clients now, when they need you most?

Here are some tips to help you stay positive: Limit the time you spend watching TV and radio news; turn away from negative comments; exercise, and get enough sleep and eat well in order to stay strong and healthy. Remember why you chose to be an adviser and concentrate on the passion you have for this profession. Take an objective look at your skills and expertise and give them the respect they deserve.

Communicate. I should repeat that suggestion several times. This is not the time to keep a low profile. Work the phones and connect with clients. Keep them informed and up to date about market trends and issues. Reach out often and talk as long as necessary. Select the communication modes that work best for you and each client, whether that’s phone, e-mail, in-person meetings, teleconferences or newsletters. Communicating can make a significant difference, especially in tough times.

Be honest and direct. Get past platitudes. Clients and prospects don’t want prepackaged baloney. They want frank talk, so be honest and remind them that today’s markets may be the best entry point for new money and the worst moment for capitulation. Recommend that clients re-balance their portfolios back to target allocations, and if you believe otherwise, explain why.

When reviewing portfolio strategies, be up-front and clear. Discuss emergency cash funds, job security and the possibility of postponing or rethinking retirement. Don’t shy away from the tough topics, and listen carefully to the answers. To best serve clients, you have to know what they really think and how they actually feel.

Develop a point of view. There are dozens of theories about where the market and the economy might be headed. Study the issues sufficiently to decide for yourself what you think the probable recovery scenarios will be. Clients know you don’t have a crystal ball. What they are looking for, however, is guidance based on your best thinking. For example, you may choose to talk to your clients about valuations, volatility or current Fed policy. No matter the topic, show your clients that you are in the game, that you are spending your evenings and weekends studying the issues, and that you have a coherent world view that forms a context that may affect their portfolios.

Network. Interact and exchange ideas with other professionals you respect. Join an industry association. Discuss best practices and ask your peers how they are dealing with the current situation. Participate in webinars and attend local conferences. Read and reread articles that explain today’s complex issues. Visit websites with information pertinent to client portfolios.

Attend discussion groups and consider organizing one of your own. Being informed and connected pays big dividends in knowledge and mental well-being.

Be a leader. Your clients and staff need your leadership now more than ever. Step to the front and be present in each moment. Remember, leaders bring comfort to those who are uncomfortable. Even the little things you do or say can profoundly influence their well-being. Don’t hide under a rock, be a rock, providing the support and advice your clients need.

This may be the ultimate moment to deepen your connection to your clients and their families. You may never have a better opportunity to become an invaluable resource to the people you serve. If you focus and control the things you can control, this will be your time.

David Richman is a vice president and national director of the Eaton Vance Advisor Institute in Boston.

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