After a significant drop in the stock market, one of your clients contacts you to set up an appointment to discuss the impact of this event on their retirement savings. They are in their mid-60s, have two million dollars in retirement assets, exhibit a low risk tolerance, and enjoy traveling. The current portfolio allocation is 50% stock/50% fixed income. What would be the best course of action to assist your clients?
A) Tell them to monitor their savings on a daily basis and contact you when they are ready to liquidate.
B) Show empathy toward the clients’ concerns and remind them of the market’s long-term positive bias.
C) Offer your clients the chance to immediately change their asset allocation to an even mix of investment-grade bonds and U.S. Treasuries.
D) Refer your clients to a financial counselor who may be suited to help them address their financial anxieties.
