Advisers Work to Steady Anxious Investors
By MICHAEL WURSTHORN and
Jan. 7, 2016 4:29 p.m. ET
The tumble in global markets spawned by worries about China’s economy and oil’s deepening rout is making investors anxious, and they are reaching out to their financial advisers for direction.
A client of Jarrett Solomon’s called Thursday, concerned about whether he had enough money in his retirement account to withstand the recent turbulence. The client, Frank, who is a widower and retired last year, was put on edge after talking with his son about market conditions.
Mr. Solomon, who is a director at Connecticut Wealth Management LLC, a $500 million wealth-management firm, told the client his plan was “strongly intact” and that the amount of risk he’s taking is commensurate with his needs.
“Not all of his money is invested in the stock market,” Mr. Solomon added, saying the portfolio has assets in fixed income.
Mr. Solomon and other advisers have been busy this week pacifying jittery investors who are wondering how much their portfolios will fall.
“We’ve had a steady stream of clients calling [this week] who are nervous and concerned,” says Winnie Sun, the managing director of Sun Group Wealth Partners in Irvine, Calif. “They’re looking at their 401ks and are worried if they’ll have enough money to retire.”
Similar to the other bouts of volatility the past several months, advisers are mostly giving the same message to uneasy investors and retirees: Stay calm and keep to a long-term plan.
Stacy Francis, president and chief executive of Francis Financial, reminded clients in a letter that “having a disciplined, diversified investment approach will result in significant gains over the long term.”
Ms. Francis and other advisers say China’s most recent volatility, which caused the country’s market to drop 7% and suffer its shortest trading day in its history, has been factored into most of their clients’ portfolios, mitigating risk for now.