Sitting here at the computer I just received a flash that the Dow has again reached 12,000.
The first thing that came to my mind is how many of our clients and potentially future clients will be blinded by this Wall Street accomplishment. Will they say to themselves that "the opportunity is here and I am getting on the bandwagon. This time I am not going to be left behind?"
How quickly one’s rationale and judgment wanes in times when there is potential growth in the market! Is it greed? Or is it that they want to be the one who can brag about how smart they were?
Whatever the reason that one would throw his/her common sense out the window, which was heightened and clearly defined by the struggles of the Lost Decade, should be revisited. The focus should now be on the pain experienced this past decade, and make them sensorily revisit the pain, struggle, the fear, doubt and frustration that they viscerally felt.
Seriously,this is all hypothetical, but is it not funny when on the other side of the fence as an adviser who cared, nursed and made maximum efforts to alleviate their pain would automatically go into defense mode by hearing this news. All of the sudden my head is full of the reasons they should not do it. Where's my phone list — be ready!
The big question really is will they do it? If we have developed the correct relationship with our clients by advising, teaching and clearly showing them that the market is the wrong place for one’s retirement nest-egg there shouldn’t be a real problem. But like many advisers there is a small percentage of your client base that will be fickle enough to wet their big toe in the waters of Wall Street.
Tell them, "Not with your retirement nest-egg dollars. Those dollars are needed for better things!"