According to a survey by the Million Dollar Round Table.
Source: Conseiller.ca
A recent survey, sponsored by the Million Dollar Round Table (MDRT), an association of advisors from several countries, has revealed that financial services professionals play a crucial role in reducing their customers’ stress,
reports an article in Think Advisor.
This study, conducted in March with 2,000 American adults, highlights the importance of advisors’ calming skills (such as active listening, understanding clients’ needs, simplifying financial concepts, etc.), which can sometimes be just as crucial as their technical expertise. A majority of respondents (55%) with an advisor reported that their advisor helped them feel less stressed.
The survey also shows that advisors’ calming abilities are particularly effective with women and older clients. Specifically, 58% of older clients and 59% of women surveyed stated that their advisors significantly helped reduce their stress. In comparison, the percentage was 51% for men and clients aged 49 and younger.
Market fluctuations are a major source of concern for many investors. The MDRT study found that 51% of participants with an advisor believe their advisor helps them manage this stress during periods of high market volatility.
By offering personalized advice tailored to each client’s specific financial goals, an advisor helps their client navigate complex financial situations. When attentive to their client’s emotions, the advisor can enable them to make more informed and less impulsive financial decisions.
A good advisor can also help manage family conflicts related to finances by facilitating communication and fostering mutual understanding.
The survey, however, highlights some limitations in this area. In fact, only 41% of respondents believe their advisor is effective in resolving family conflicts and facilitating communication, while just 27% feel their advisor is sensitive to their emotions.
