Emotional client? Consider hiring help

Investing always involves emotion. As an advisor, you’re not only dealing with people’s money, but also their hopes and dreams.

It’s your job to help them through difficult periods, such as the death of a loved one, loss of employment, or the collapse of a business. But while clients need your help settling financial affairs and adjusting goals, you’re not necessarily qualified to handle their emotional well-being.

When analyzing new products or complex data, you often seek expert opinions; consider doing the same when clients are distressed.

Mark Weber, a chartered financial consultant, told Financial-Planning.com his firm keeps three industrial organizational psychologists on staff to deal with tough situations, such as when family members are warring over succession plans.

A psychologist’s advice is independent and private, so her advice may conflict with yours. But regardless of whether clients change course financially, they will appreciate the added perspective and the valuable assistance you’ve provided.

Not all instances and problems require professional intervention, however. Learn more about common client fears, behaviours and mishaps, and how to deal with them.

Read:

Tame the inner caveman to succeed

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More choice isn’t always better

Taking advantage of the fear premium

Control the appetite of risk-hungry clients

Apps meet behavioural finance

Help clients avoid emotional investing