The word COVID comes with an absolute cringe, doesn’t it? When it comes to finances, 2020 has served us with some life-altering situations, COVID being the biggest. When talking about financial planning, it’s common to consider What-ifs and should-haves. Now that we are in a post-pandemic world, the focus on financial goals is even more elaborate. What does it mean to prepare at this point? Financial planning now has to include a new sort of any-case scenario.
At this point, we have a pre-COVID world and a post-COVID world that we reference. We know the pre-COVID all too well. It’s the post–COVID that needs some sorting out. Our new normal is that things will never go back to normal. Financial plans got tested in 2020. There is a new realization that if you’re going to invest, you need a financial plan. Many investors that did not have a financial plan pre–COVID are developing them as you read this.
A survey conducted by Charles Schwab Financial Literacy stated that more than half (51%) of the respondents regretted not learning about setting financial goals much sooner in life. The survey done by The Harris Poll found that COVID–19 was responsible for them realizing the extent to which they were financially vulnerable.
Financial planners are becoming more valuable in this post–COVID world. Clients seem to be reaching out to their financial planners more often, are asking more questions, and making less risky decisions. It’s become crucial to look at trade-offs and what-if scenarios with clients. Three important things have changed.
- Highly Customized Planning: Clients want one on one time, no form filling, no automated decisions. Clients have always preferred this, but now, the urgency for the client’s one-on-one time is critical.
- Need to be Overly Prepared: Planning and then planning some more. The clients need to prepare for any scenario. There has been a considerable increase in the use of powerful tools that can analyze and cross-reference multiple methods at a time. The worst-case scenario has come up over and over as it applies to retirement, especially.
- 24-7 Availability: Access is everything now. With Facetime, Zoom, Skype, and any other virtual accommodating environments, clients need to connect. Having interactive tools is an absolute necessity in the post-pandemic world. Combine the tech with personalized offerings and preparedness testing tools is what the new financial clients expect.
It’s a new world, with new worries, but also new tools and unique solutions. Clients need financial planners to be educated, connected and prepared for everything. If you can be available anytime, offer customized tools, and are capable of detailed planning, then you are ready for this post-COVID era.