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How financial advisors can adapt and thrive in every climate

This time of crisis is a chance to help more clients—more deeply.

The pandemic has provided a reminder that while Edward Jones financial advisors are working from their own individual offices, they’re not working alone. The firm puts an emphasis on collaboration among, rather than competition between, financial advisors. “Edward Jones provides [financial advisors] with the canvas and the tools, but it’s really [up to] each of us to create the masterpiece,” Kumar says. “We have full flexibility in terms of being able to tailor our individual practices to our clients, the market, and our personal strategy.”

Peer collaboration

In just a few months, the coronavirus pandemic of 2020 has upended the way that financial advisors do business. It has also unearthed unprecedented opportunities as many financial advisors find themselves busier than ever fielding calls from current clients as well as potential new clients looking for expert advice. But how can financial advisors find new clients in these times and serve their existing clients better? It’s all about being resourceful, being flexible, and making deeper connections with clients and peers.

Embracing digital

The current environment is one of unprecedented stress. Financial advisors across the globe are being tasked with leading the charge toward resilient investing while they themselves are adapting and facing new challenges. A key to success for many is continued education and ongoing collaboration with peers to improve efficiency and refine best practices. Edward Jones, the 98-year-old investment firm that serves 7 million clients throughout North America, has been facilitating relationship-building for its financial advisors since its inception—one in three financial advisors participates in its mentorship program. This program, as well as more informal, regionally focused peer networking has moved online since the pandemic hit, and it’s making an impact. “Digital tools have allowed me to collaborate with top-performing financial advisors [nearby] to learn about how they’ve successfully navigated past challenges,” says Krishna Kumar, an Edward Jones financial advisor based in Wilmette, Ill.

While many Edward Jones financial advisors have already been using digital tools in their practice, the pandemic has necessitated an evolution to full-service offerings, from virtual meetings to e-signatures and digital tracking of progress toward a client’s goals. There are benefits to the new virtual model that help strengthen the bond between a financial advisor and their clients—a key metric for success today. “What’s really important for us is to understand our clients personally, through a deep relationship,” says Ken Cella, principal at Edward Jones and leader of the Client Strategies Group. “We are focused on understanding what’s most important to them and then tailoring our solutions to meet their needs in a personalized way.” Even as they’ve met virtually with clients, many Edward Jones financial advisors have been able to work from their offices during much of the pandemic. That’s thanks to the unique, two-person office settings, which consist of a financial advisor and branch office administrator who supports the financial advisor and handles the office’s day-to-day business, have allowed branches to follow CDC guidelines. “It’s in situations such as this that people realize the true value of a financial advisor,” Kumar says. “They want somebody they can actually speak to, to understand what they should be doing [with their assets] in a time like this.”

Human-to-human connections

Even before 2020, some consumers had been starting to view portfolio management as more of a commoditized service, and market volatility may make it even more difficult for financial advisors to deliver standout returns. However, big-picture uncertainty has investors even hungrier for human-to-human connections with their financial advisors, as they get guidance not only on asset allocation but also on unique financial goals. Financial advisors who can provide investing advice based on their clients’ goals make themselves more valuable partners to their clients. “I continually remind clients of their long-term goals,” Kumar says. “The best way to assess performance is to see if your overall goal is on track. I encourage them to stick with the strategy, rather than getting caught up in the day-to-day ups and downs.” Indeed, in uncertain times, it becomes even more difficult to remove emotions from investment decisions. In terms of preparing for financial futures, the pandemic is like any other unexpected event that could impact markets, and it’s important for investors—and financial advisors—not to lose sight of that. That’s not to say that financial strategies shouldn’t evolve with the market and a client’s needs. But financial advisors who can help their clients approach investment decisions rationally and stick to strategies (such as building a long-term, diversified portfolio) can have confidence in their approach can deliver—just as it has after every bear market throughout history. Though past performance of the markets is not a guarantee that they will perform the same in the future. “Every time we talk to clients, even in bull markets, we tell them to expect a correction and that corrections are normal,” Kumar says. “They should expect at least one correction every five years, and a 5% drop at least twice a year. That way clients are well prepared, even before a correction really happens.” Despite the challenges presented to financial advisors this year, the good news is that surviving a crisis together can lead to meaningful and important long-term relationships, which, in turn, can potentially yield returns for new and seasoned investors. With an open mind, a will to thrive, and an empathetic ear, financial advisors can play a key role in their client’s—and their—future success. To achieve this level of partnership in this new normal, financial advisors should remain flexible and empathetic, use the tools available to them, and turn to peers for strategizing sessions.

But clients want their financial advisors to offer more digital services than virtual meetings. Four in 10 investors prefer to work with a financial advisor who uses digital tools such as portfolio monitoring or financial simulators to help clarify portfolio performance, according to Edward Jones’s Financial Resilience survey, which polled 2,000 Americans to find out how they’re feeling about their finances. For some financial advisors, this requires upskilling. To meet this need, Edward Jones’ offers lifelong training, reinforced with practical, tailored support and mentoring from local Edward Jones financial advisors.

—Krishna Kumar Financial Advisor, Edward Jones

“Edward Jones provides [financial advisors]

with the canvas and the tools, but it’s really

[up to] each of us to create the masterpiece.”

or financial simulators to help clarify

digital tools such as portfolio monitoring

with a financial advisor who uses

Four in 10 investors prefer to work

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portfolio performance.

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BACK TO HOME

tools, but it’s really [up to] each of us to create the masterpiece.”

to help clarify portfolio performance.

BACK TO HOME

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

EXPLORE MORE