6 Ways To Recession-Proof Your Financial Job

Regardless of whether you are an independent advisor with your own practice or an employee of a brokerage firm with your own clientele, staying in close touch with your customers is essential for your professional survival. Don't wait for the phone to ring; create a letter addressing current market events and send it out. Make every effort to help clients see the current market from a long-term historical perspective.

The most successful planners are the ones who are able to make their clients and prospects understand that when items are severely underpriced for their values, it may be the time to buy. (To learn more about professional correspondence, see Correspondence That Pushes The Envelope and On The Record: Communications With The Public.)

Although communication is vital, your ability to control your clients' losses during a severe market downturn can be the deciding factor when it comes to customer retention. The judicious use of puts, option collars and other hedging strategies can make a huge difference in the numbers that show up on your clients' monthly statements.

Long-term strategies such as periodic rebalancing and dollar-cost averaging will also aid in keeping your clients' investment objectives within reach. Using market losses to the clients' advantage will greatly elevate your perceived value in their eyes. (To learn more about these plans, see our A Tour Through Retirement Plans tutorial.)

The media has been telling the public for years to seek stockbrokers, financial planners and insurance agents that have earned professional designations, such as the Certified Financial Planner® (CFP®), Chartered Mutual Funds Counselor (ChFC) and Chartered Life Underwriter (CLU). Many fee-based advisors carry the CFP® designation as their mark of expertise, and this is the primary designation that has been endorsed by the media.

Employers in the financial arena tend to look favorably upon employees who earn these credentials, and carrying these certifications will almost certainly make you a more valuable employee. Remember, it often takes money to make money, so if you have to invest in something to succeed, why not invest in yourself with an education? (Check out the article CFP®, CLU Or ChFC - Which Is Best? for more details about these designations.)