People are increasingly more concerned about their finances in the face of market volatility, rising interest rates, and record-high inflation rates. 

If you find yourself in this boat, you’re probably wondering what to do. Navigating uncertain times requires a steadfast plan to ensure you’re doing what’s in your best financial interest now while still following a trajectory to help you meet your long-term goals in the future. If you aren’t currently working with a financial consultant, now’s your time to consider looking into it. If you are working with someone you trust, are you addressing all of these concerns with them?

Financial consultants have to answer a lot of difficult questions right now. Here are some of the top questions clients are asking financial consultants this year.

Are We Headed For a Recession?

Financial consultants are focused on building resilient investment plans with their clients to shield them from volatile markets as much as possible. If clients aren’t sure where the market currently stands, they come to their consultant to help shed some light. Most of the time, however, that’s like asking financial consultants to look into a crystal ball to predict the future. The question is warranted, although people spend too much energy worrying about the answer.

If We Enter Into a Recession, How Does This Affect My Financial Plan?

This is another fair question, and another opportunity for financial consultants to remind clients that their portfolio should be positioned to achieve success over the long term. Markets will fluctuate, that’s just the reality. If clients understand that their portfolios are adjusted to make sure their asset allocations are in line with their goals, they can have peace of mind even if the inevitable downturn were to occur.

Should I Invest Now, or Wait?

Market volatility has a way of scaring people away from investing. Clients must stop misplacing their energy into short-term consequences and focus on their future goals. Investing is always a good idea, even if that means you have to revisit and readapt a current investment strategy until the market settles down again.

Should I Be Worried About Inflation?

Inflation does make budgeting more difficult. It also has the potential to wear down certain long-term investments as well. However, financial consultants should encourage clients to refocus their attention on what they can control, like their spending and saving habits.

When Should I Sell, Hold, or Buy?

People want to do everything they can to minimize their losses and maximize their returns, especially during times of financial uncertainty. This is a difficult question to answer because there isn’t a universal response financial consultants can give to everyone. The answer depends on a client’s current situation and financial goals. It is important for clients to understand that volatile markets will eventually normalize though.

Financial consultants should welcome all the questions that come their way because it’s proof that their clients are committed to their financial plans. People should feel comfortable bringing their concerns to their financial professionals. This helps them feel confident, no matter the economic climate.