‘Doing what others are doing without making independent decisions’
When presenting your recommendations, bear in mind that your client may be influenced by the media, politicians and what their peers are doing. The instinct to follow the crowd is very powerful.
There are two issues to be aware of:
- You should naturally base your proposal on the objectives of the client and their attitude to risk. Drawdown is rapidly becoming the new normal and the media has been hostile towards annuities. As an individual, you’re also subject to these influences, but as a professional adviser you need to keep an open mind.
- Your client will also have been influenced by what they’ve read in the press and the actions of their peers. If your recommendation isn’t consistent with their expectations, you might encounter some resistance so you'll need to carefully explain the reasons for your recommendation.