Education in Fluctuating Markets

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Markets Will Always Move
Recent market sell-offs have reminded both plan sponsors and participants of the inevitability of market changes. However, proactive education plays a crucial role in managing these shifts without panic. Financial advisers emphasize that educating participants on the long-term nature of investing is key to helping them stay calm during volatile times.

Despite a significant drop in the U.S. stock market, where major indexes fell more than 2.5%, many advisers reported receiving few concerned calls from clients. John O’Brien, director of retirement plan consulting at Venture Visionary Partners, attributed the calm response to ongoing participant education. His firm has spent months preparing clients for potential downturns, which minimized panic and redirected focus toward opportunities like increasing contributions or revisiting risk tolerance.

The Role of Education
Regular educational conversations about market growth, the dominance of certain stocks, and portfolio diversification have helped tone down reactions. O’Brien notes that while some participants with shorter time horizons may have concerns, proactive communication—especially around events like open enrollment or year-end—keeps them focused on long-term goals.

Sean Kelly, vice president at Heffernan Financial Services, echoes this sentiment. He stresses the importance of staying invested through group education and one-on-one coaching. Kelly reminds participants that some of the best market returns often follow closely after significant declines, underscoring the value of remaining patient and avoiding rash decisions during downturns.

Proactive Communication Is Key
“Stay calm and carry on” is the approach Retirement Planology founder Courtenay Shipley takes with her clients. Despite big market swings, she rarely gets panicked calls, attributing this calmness to the firm’s ongoing messaging. Shipley advises her clients to ignore panic-driven headlines and focus on their long-term strategy.

Michael Gheen, vice president at Oswald Financial, reinforces the value of helping participants understand their asset allocation. When market fluctuations occur, the firm emphasizes reviewing allocations to ensure they align with participants’ goals, rather than reacting impulsively to recent downturns.

Market Recap
Ultimately, a proactive education strategy is critical to navigating market volatility. Grant Ellis, managing principal at Ellis Retirement Services, says that by consistently educating participants over time, his firm has significantly reduced concerned inquiries. He adds that calm, confident messaging reassures clients during difficult times, helping them stay focused on long-term investment goals rather than short-term market noise.

In the end, understanding that market fluctuations are inevitable—and preparing participants through ongoing education—is the key to keeping both sponsors and participants confident and focused on their retirement goals.

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