Navigating Market Volatility: How Advisors Can Help Clients Stay the Course

Volatility doesn’t just affect account balances—it also affects behavior. And for many clients, that behavior is shaped more by fear than logic, which can potentially lead to rash decisions. We’ve all seen investors who react emotionally to stock market volatility, either by exiting the market or remaining passive, which can hinder their long-term financial goals.

These emotional swings can lead to poor decisions, like selling at the wrong time or sitting on the sidelines. Loss aversion is real – behavioral research tells us that people feel the pain of losses twice as intensely as the joy of gains.¹ That emotional pull leads many clients to abandon financial plans that were built for the long haul.

It’s our job to work with our clients to reframe that fear with clear perspective. We can use long-term market insights and examples to show clients that while markets may be volatile in the short term, optimism will return, as we see from each major historical downturn and subsequent recovery over the past 100 years.

Another technique is to shift your language: Instead of asking “Does volatility impact your investment thinking?”—which will always be a yes—ask “How is this volatility affecting your thinking?” That small change opens the door to real conversation.

Because usually at the heart of their anxiety isn’t the market volatility—it’s the wedding they want to pay for, the retirement home of their dreams, or perhaps the future they’ve envisioned that suddenly seems to be at risk.

Bottom Line: The best advisors don’t just manage portfolios—they manage perspective.

Our clients don’t need someone to predict market conditions. They need someone who can help them tune out the noise and focus on what they can control. And that starts with how you communicate.

A study done in 2024 by the Financial Planning Association (FPA)² highlighted that there’s a gap between what financial planners assume their clients are worried about financially, and what actually keeps clients up at night. This gap in understanding presents a tremendous growth opportunity for you— listening deeply, uncovering the underlying factors motivating your clients’ actions, and developing a plan that addresses those concerns can deepen client relationships and build lasting trust.

When it comes to talking to clients during volatile times, we find the most successful advisors bridge that gap with proactive outreach, transparency, and empathy. One advisor we know has never done advertising—his practice grows purely from referrals. The reason? His clients hear from him when it matters. Every client has the opportunity to hear what’s happening through his lens—a bigger, broader and more accurate lens than their own.”

Here’s what his volatility communication plan looks like, in addition to his normal client meeting cadence:

You don’t need a flashy strategy. You need a consistent one. And it should flex when markets get unpredictable. Before diving into a sample messaging framework, think about your current client communication cadence:

Then, follow this three-step approach to help structure your client communications during market turbulence:

When markets wobble, clients look for something that doesn’t. Annuities aren’t just about returns. They’re about reliability—especially for clients focused on income and downside protection. They can give clients the peace of mind to stay invested in the rest of their portfolio, even when emotions run high.

Not every client needs an annuity—but many benefit from one. The key is starting with the client’s goals, not the product. Always check suitability based on time horizon, risk tolerance, and income needs. Refer to current product guides to stay accurate.