How to build investor confidence in today’s markets

In years of markets plagued by volatility and uncertainty, the prior experience of financial crises that many advisors have can be a boon to investors. Advisors, with their experience, can help guide investors to the best-suited assets to help mitigate risk in fluctuating markets.

Nationwide found that around 70% of finance professionals are confident they can help their clients protect their assets through the next financial crisis, while only 40% of investors believe they can navigate successfully themselves. same, writes Eric Henderson, president of Nationwide Financial. branch of activity, in blog post.

This finding highlights the impacts that a financial advisor can have; a recent Advisor Authority study by Nationwide indicated that more than six in 10 investors currently work with a finance professional (63%), and most investors are turning to their advisors for advice as markets continue to decline. be frothy.

Investors continue to be concerned about inflation and the effects of Fed tightening, with nearly 70% saying in a national survey that they are worried about a recession in the next 12 months. The reduction in purchasing power due to inflation is also strongly felt by investors, with 56% saying they think inflation is long-term.

“To hedge against risk and market volatility, finance professionals tend to rely on strategies that can help manage the impact of market fluctuations. Diversification, fixed annuities and fixed index annuities top the list of the most commonly used solutions to control market risk,” writes Henderson.

This crisis is particularly felt in retirement planning and income, as bonds continue to be heavily impacted by inflation and increasing Fed tightening. Many households have postponed their retirement savings, pulled out of retirement during the pandemic, or postponed their retirement plans. Financial advisors can help clients get back on track and set realistic new goals for current markets and financial situations.

“To help protect clients against longevity risk, or the risk of outliving their assets, the most common strategies of financial professionals are turning to social security, dividend-yielding stocks, and variable annuities,” explains Henderson.

For advisors looking for retirement income options for their clients, At national scale offers a variety of actively managed ETFs for advisors that suit a range of exposures and investment strategies within major indices.

For more news, insights and strategy, visit the Retirement income channel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.