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When people think of a financial advisor, what comes to mind are Roth IRA conversions, tax planning and investing your 401(k). Nobody thinks a financial advisor has the power to save somebody’s life.
Continued from part one... Q1 hedge fund letters, conference, scoops etc Abrams and his team want to understand the fundamental economics of every opportunity because, "It is easy to tell what has been, and it is easy to tell what is today, but the biggest deal for the investor is to . . . SORRY! Read More
There’s a new market force on the scene, and it’s more powerful and far reaching than any recession. It’s made its evil entrance and it is here to stay, although many people don’t realize it is even here until they feel its jagged edge. This invisible monster preys upon rich and poor alike, taking its toll on every race, color, and creed. It can decimate an account in minutes and bring the most well-off of families to financial ruin. It is threatening the fabric of our society. Silently, ruthlessly and fatally it destroys the wellbeing that Americans have taken decades to accumulate.
It is the opioid crisis.
This epidemic hit home for us here at Vanderbilt Financial with one of our advisors losing his son to an overdose.
Financial advisors are being called upon to put down the graphs, charts and calculators and open their hearts as it is inevitable that at some point this devastating epidemic will come upon them and their client base.
According to Blue Virginia, 60,000 people died of drug overdoses in 2016. That is over 20 times the number of people who died in 9/11. Drug-related fatalities are growing at an alarming clip with fentanyl and heroin overdoses over 70% higher in 2016 than the year before.
Advisors must keep their clients safe
Some financial advisors, especially those with hundreds of clients, run their practice mechanically and can get by without knowing their clients that well. Others take a more personal approach, even spending time together outside of the work environment.
Either way, the advisor is the keeper of the client’s future, and the first line of defense from catastrophic events that a person may go through. As such, advisors will have to be prepared to deal with this issue, and at the present time very few are ready. Most aren’t even aware of how large a problem this is going to be, and how big an impact it is going to have on their client base.
Just like you have to be calm when your client calls you in a market slide, you must remain unflappable, empathetic, and logical. You must be the beacon of light in the storm.
Having the conversation
The first thing that advisors must do is to be astute about recognizing the signs that either a client or someone in the client’s family has an addiction. Sudden withdrawals of money that are unexplained, for example, should set off an alarm bell.
Financial advisors who don’t acknowledge addiction are part of the denial process. On the other hand, those who act quickly can help the client get help before it is too late. You could save somebody’s life by getting them into the right hands.
How do you, as an advisor, confront someone about a drug addiction? When you have the conversation, use a gentle and supportive tone. Try to avoid using the word “you.” Instead, phrase your wording in a gentle and sensitive way. “I am feeling a bit concerned that…” or “I’ve been noticing…” and “I will be here to support your family and do everything in my power to help.”
Read the full article here by Stephen Distante, Advisor Perspectives