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BEHAVIORAL COACHING TOOLKIT

Guide clients confidently

Behavioral coaching helps you navigate through uncertainty—precisely when your clients need you the most. And our Market Hindsight Tool lets you give your clients a realistic glimpse at the benefits of following a financial plan.

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Address client concerns with behavioral coaching for a win-win scenario

 

You make one of your most enduring contributions as an advisor when you help clients separate their emotions from their investment decisions. The biggest detriment to an investment’s return is often the investor’s behavior, especially when volatile markets or external factors create anxiety.

You add considerable value when you address clients’ concerns and temper their natural human reactions.1 That sort of positive approach, in turn, can build trust, motivate referrals, and drive assets.

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Showcase your value in your next client meeting

In this video, Michael DiJoseph, CFA, of Vanguard Investment Advisory Research Center, shares four pillars of client meeting success designed to showcase your value, advance client goals, and drive referrals.

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PROACTIVE COACHING

Understanding your clients’ decision-making

Decision-making isn’t as intuitive in investing as it may be in other facets of life. Making this resonate with clients can be a challenge—use the following resources to help them adopt the right mindset. Start with Principles of behavioral coaching to assess where you and your client are in the coaching journey. Finish with a deep dive into investor decision-making with our whitepaper, Right mindset, wrong market: Understanding investor decision-making and coaching for success.

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    Principles of behavioral coaching

    Reveal key questions to ask for each of the three core principles.

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    Investor considerations for financial planning

    Uncover insights on the impact of behavioral coaching.

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Take these 3 steps to behavioral coaching success

So what does behavioral coaching look like at the client-relationship level? Vanguard Investment Advisory Research Center has mapped out a framework you can apply to each phase of your client engagements. Using the steps “Assess, Address, Audit”—what we call the “3A Framework”—provides a comprehensive yet easy-to-follow sequence for addressing client concerns, taking appropriate action, and building trust.

The 3A Framework

Assess

A client’s anxiety is often triggered by external stressors such as market or political headlines and life events. Responding effectively requires understanding a client’s specific situation as well as any potential implications of particular actions.

Address

Taking action—or not—can be a burdensome decision. When facing change, we’re wired to act. Opting to not make a change can be perceived by clients as inaction or failure. Coaching means helping them to understand it was a thoughtfully made choice to protect their long-term interests.

Audit

Establishing a process for evaluation provides your client with clear next steps as well as valuable context for future coaching opportunities. Auditing lets us call attention to historic value-adds and contextualize future decisions or actions.

3A Discussion Topics
Behavioral coaching advisor guide

A crucial aspect of behavioral coaching is preparing clients for potentially stressful situations. That way, they can remain on track for their long-term goals regardless of short-term market conditions. Using our Assess, Address, Audit (3A) framework, you will learn:

  • How to purposefully consider your clients' needs, their portfolio, and their emotional state in light of market conditions.
  • What iterative steps you can take to help improve their chances of success.
  • How to evaluate your decisions in order to prepare for future opportunities.
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Use the Market Hindsight Tool

Use compelling charts to show your clients the power of sticking to their investment plan. Our Market Hindsight Tool simulates market performance for historical events and compares results for staying the course versus selling to cash.

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Behavioral coaching resources

Whether you're guiding your clients or enhancing your own knowledge, explore these resources to help you elevate your practice. You'll find client conversation guides, our latest industry research, and more. There are also customizable versions of client pieces available for you to include your firm's logo.

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    Staying the course: A historically winning strategy

    Remind clients that staying the course has historically been a winning strategy.

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    How to navigate market volatility

    Help clients understand strategies to use to keep their financial goals on track during market downturns.

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    When markets are jumpy, maintain focus on your goals

    Share this piece with clients to help remind them to place their long-term objectives ahead of worries about short-run turbulence.

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    Investor considerations for financial planning

    Uncover insights on the impact of behavioral coaching.

Customizable PDFs

Add your logo to these client-ready materials to enhance your firm’s brand.

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    Understanding market downturns

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    Remember: Recoveries have rewarded patience

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    When markets are jumpy, maintain focus on your goals

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    Smart things to do (that many won’t) in a down market

1 Francis M. Kinniry Jr., Colleen M. Jaconetti, Michael A. DiJoseph, David J. Walker, and Maria C. Quinn. Putting a value on your value: Quantifying Vanguard Advisor’s Alpha. Vanguard, 2022.

Notes

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.