If you want to add value to your client meetings, help them mentally prepare for what’s coming.

Start a discussion around this.   

There isn’t just a disconnect between what the Fed is telling us and what they are actually strategizing. The data may suggest the economy is strong, but Americans don’t feel it. Even if they are meeting ends meat, they are nervous about what they think is an unstable economy.  Why would consumer spending be so strong then? I think it comes down to psychology. (surprise, surprise – I know) Americans know something seems off and they should be planning ahead, sticking to their budget and saving when they can. They are just choosing to disregard that every time they feel bad about something else. The largest demographic of consumers has the worst case of Keeping Up with Joneses in the history of social climbing. They’ve also lived through so many Black Swan events and subsequent rescue programs from the Fed that they figure they’ll figure out the debt they are pilling up later. Consumer sentiment measures right now at levels similar to that off the end of a recession, rather than a year when a recession was avoided, and the economy actually grew 3.1%.  

What to do with this information? 

Instead of using this information to push clients to save up their down payment funds now and purchase yesterday, have a thoughtful discussion with them where you put them in the driver’s seat a bit.  Here is a script: 

“How are you approaching money at the moment? Are you nervous? Are you spending emotionally? Do you have a plan in place for at least two different scenarios playing out over the next year? 

Scenario A:  We avoid a recession, and the economy feels more stable. How will you take advantage of that opportunity to create wealth? 

Scenario B: Things take a turn, and your gut instinct is right, we head for some stuff times. Will you be ready to take advantage of opportunities in this climate or will you be in panic mode?” 

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