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When it comes to advising clients though a volatile market, we often find ourselves repeating that it’s “time, not timing” that makes an investor successful. Even so – every advisor has had the disheartening experience of watching a client get spooked out of the market or miss the mark trying to time a correction.

Next time you see a client’s resolve to stay invested waver, ask them two questions:

“What would you pay yourself for an hour of your time?” and, “Is it more, or less than $243.09?”

Imagine momentarily that it is 1994: the year that three investment advisors and the eventual co-founders of McLean & Partners began working together. At the same time, unbeknownst to you, your client has invested $1,000,000 in the S&P 500 and then promptly forgotten about it until this very morning. All this time there would have been no one to rebalance the portfolio; no one to pick the right winners; no one to anticipate the bubbles and bursts.

Indeed – without you there to guide it, the investment would have weathered:

  • 2000: The Dot-Com Crash
  • 2007: The Great Financial Crisis
  • 2018: The US/China Trade War
  • 2020: The Covid-19 Pandemic

And yet it would be worth roughly $11,700,000 today.

The portfolio would have paid your client $243.09 an hour for every hour that the stock market was open.

This is not to say that your services aren’t worthwhile. On the contrary – ask yourself why, even if every one of your clients were to see these numbers, some might still find it so difficult to stay consistently invested?