Edward Jones

VIDEO UNIT

BACK TO HOME

Long-term financial strategies in uncertain times

Financial advisor Julie Kelly on empathic advising

Edward Jones’s Ken Cella on embracing technology

EXPLORE MORE

BACK TO HOME

Why financial advisors need resilience more than ever

With the markets in flux and investors nervous, offering financial advice from a position of strength and adaptability is key to success.

The 19,000 financial advisors at Edward Jones, the St. Louis–based investment firm, do it every day, thanks to a business model that puts clients first, says Tammy McKennon, an Edward Jones financial advisor based in Newport Beach, Calif. “As a privately held partnership, we are not responsible to outside shareholders and, instead, focus solely on our clients.” she says. “That means, we have the freedom to recommend solutions based on their individual needs, rather than product quotas.” An empathetic financial advisor who provides advice tailored to a client’s specific needs can create a greater feeling of stability. In fact, according to a September survey by Edward Jones of 2,000-plus investors who work with a financial advisor, more than 80% said that their relationship with their financial advisor gave them a greater sense of comfort about their finances during the pandemic.

Communicate with empathy

In 2020, we’ve reached a “new normal” in American business. Though we have all faced many challenges, opportunities for doing things a better way have also arisen. History has shown us that businesses with the capacity to evolve to meet the new needs of their customers have an opportunity to not only survive challenging times but also thrive in their aftermath. The pandemic, of course, is not the first time this country has faced major economic upheaval. But each time the economy has faced seemingly insurmountable challenges—from the Great Depression to 9/11 to the recession of 2009—it has recovered and rebuilt stronger. In the world of personal investing, financial advisors who can tap into resilience and cement their relationships with clients during these turbulent times may be set up for success even after the pandemic subsides. But how can financial advisors, who are going through the same situation as their clients, rise to the occasion? Honing communication skills, leading with empathy, embracing technology, and staying future-focused will help.

Harness technology

Though communication has always been key for financial advisors, there are noticeable changes in clients’ needs today that require a slightly different approach. New and seasoned investors of all ages may be struggling through job losses or major medical events, or they may simply be having trouble navigating the current market volatility. A good financial advisor must truly listen to clients and have empathy in order to recommend solutions and advice that help build resilience during these difficult times.

Now more than ever, it’s important for financial advisors to communicate with clients often about what’s happening in the markets and the potential impact it has on their long-term planning—and to explain what is being done to help them manage their assets. But both sides must adapt to a virtual world, now that in-person meetings are not advised. Meeting face-to-face, even if it’s through a computer screen, allows clients to see, hear, and feel reassured by the confidence of their financial advisor. While some financial advisors already used online tools, the events of 2020 have proven the widespread viability of virtual meetings and digital connections—and the client demand for them. Edward Jones has always embraced technology that has allowed its financial advisors to adapt and continue to deeply serve clients. Continued investment in virtual business enablement technology, combined with support from the home office, has proven invaluable over the past few months, as financial advisors navigated to the challenges presented by the pandemic.

Stay focused on the long term

According to the American Psychological Association, a key factor in building resilience is a focus on the future and the ability to adapt as needed to get there, no matter what happens along the way. For financial advisors, thinking about the long term and approaching financial decisions with a purpose can help their clients bounce back from difficult times. The history of major financial indexes like the S&P 500 has shown that while there is no guarantee, markets tend to recover over the long term, and the portfolios of those who’ve remained invested throughout an entire cycle have tended to outperform those who made changes based on the news of the day. “I tell my clients that continuing to hold good, quality investments, can help you recover,” McKennon says. “Companies are not nonprofits; they’re in the business of staying in business. As long as we can outpace inflation and make sure that a client is on track to achieve long-term purchasing goals, [we recommend they] stay the course.” Financial advisors can help their clients by encouraging them to make decisions based on their long-term goals, rather than allowing emotions to enter the decision-making process. This will build the knowledge and confidence necessary to help get them through both the current crisis and whatever new challenges arise in the future.

“Edward Jones has done a great job providing us with the education and resources to have confidence in our role,” says McKennon. “We can then pass that education and confidence on to our clients.” What’s more, these digital tools will be used in the financial industry far beyond 2020, and financial advisors who enthusiastically embrace the digital transformation required to do business today will further enhance their own reputation with clients. The most successful financial advisors will take with them a flexible approach to their business, continuing to change their models as needed to meet their clients where they are, helping them create portfolios based on the same principles. “Technology has built resilience, not only for financial advisors but also for the relationship they have with the client to help them to really get their needs met in this world where we’re all connecting virtually,” says Ken Cella, principal at Edward Jones and leader of the Client Strategies Group. “Whether that’s through phone calls or Zoom calls, it really creates that trusted relationship and builds the resilience that was often the foundation of the personal relationship from the beginning.”

More than 80% said that their relationship

with their financial advisor gave them a

greater sense of comfort about their

—Ken Cella principal at Edward Jones and leader of the Client Strategies Group

the relationship they have with the client.”

only for financial advisors but also for

“Technology has built resilience, not

How financial advisors can adapt and thrive in every climate

©2020 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy (Your California Privacy Rights) | CCPA Do Not Sell My Information Fortune may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions. | EU Data Subject Requests

finances during the pandemic.

of comfort about their finances

also for the relationship they have with the client.”

Long-term financial strategies in uncertain times

Edward Jones’s Ken Cella on embracing technology

How financial advisors can adapt and thrive in every climate

Financial advisor Julie Kelly on empathic advising

Why financial advisors need resilience more than ever