Many folks have viewed their investment statements for the first half of the year and recoiled as they’ve seen losses mount. Times of volatility & uncertainty can certainly invoke emotions that often cloud our judgement as we seek a path to reduce the pain.

I’ve been through a few of these downturns, and, like clockwork, it gives rise to the predatory salesperson. Let me be clear that there are so many good financial professionals out there, going about their work the right way & acting in their clients’ best interests but like with any profession, there are a few opportunists who have honed the craft to leverage emotions and generate a sale. 

They often present a “solution” to a macro-condition but have not taken the time to understand an investors’ specific situation. They emphasize terms like “buffer”, “floor”, “guardrails”, “protection”, “safe”, “secure” and so on; prodding at the nerve centers of discomfort. Then they roll out a solution before having an informed handle as to what your situation is, fishing for a response in hopes you take the bait. The good ones know how to choose the right bait, delivering messages that can hit a certain emotional button and trigger their desired result. Some folks just want the pain to go away so they jump on the offer without the proper vetting. 

That’s not to say that the products being promoted are good or bad. Every financial tool comes with certain costs, benefits, and provisions. Before such a tool can be recommended, time must be taken to understand the customer’s current situation, their future goals, and how certain financial products, advice, and support will get and/or keep them on the path to their goals. 

One of the pillars of my firm is prioritizing procedure before product. Now more than ever, it’s all about the process.