Editor’s note: Karen Altfest is a longtime columnist with Rethinking65. Read more of her articles here.
In most cases, clients come to us for advice on how to navigate a personal financial situation. Sometimes they wish to validate their opinions. Over the years, clients have also asked us how they should invest money in view of a new administration or a changing economic forecast. What they’re mostly seeking is reassurance, not a revelation of our firm’s political leanings.
Knowing we might alienate many of our clients with whatever position we take, my colleagues and I strive to give our informed opinions of economic changes and investment strategies — and offer plans for a comfortable retirement — without crossing the fine line that would raise questions about our political views.
It is a delicate balance because our clients want to hear from us when a change is coming, but don’t want to hear too much about our personal beliefs. We’ve found that the simplest way to share our truthful views and not alienate clients is to avoid negative comments on any political issues. But sometimes clients view our intentions differently.
Perceptions of a Client Letter
My firm sent a letter to our clients sharing our views of the markets and the economy at the start of 2025. We had two of our employees write the letter and four more edit it and point out any sentences that might cause discussions. As a team, we were satisfied that we were both truthful and neutral. We purposely did not comment on personalities, styles, historical policies or political allegiances.
Many clients thanked us for relieving their investment anxiety so soon after our national election. They said our letter was timely, well thought-out and comforting. Yet one client questioned some points in our letter. He read much more into our letter than we recognized ourselves.
We think questions are good, but this client did not want to have a follow-up conversation. Instead, he seemed to rewrite the letter in his mind when reading it, adding more meaning to every phrase on paper than we had intended. When we called him to apologize for upsetting him, he accused us of choosing one political side over the other. He did not linger on the phone; he just expressed himself and left us wondering.
Of course, we never want to make clients anxious about any topic. He was the only one we heard from with critical views of our post-election letter, but perhaps there were more uneasy clients out there.
Anxious Attendees
Something similar happened once before, many years ago, when we had a noted economist from a think tank address a large group of our clients. After the discussion, which was ripe with knowledge and interesting information, a small number of clients said they were insulted by a position we did not actually hear our esteemed speaker take.
These clients felt that the speaker only told part of the story. They criticized what he did not say, believing he opposed their own thinking. Instead of arguing with these clients, we empathized with them and made sure they felt heard before the evening ended. I felt that was what those clients wanted most of all.
How Can RIAs Avoid Conflict in the Future?
Here are a few suggestions, based on my years advising a range of clients, that may help you avoid conflicting with — or possibly losing — a client over perceived political or other differences of opinion:
- Try to be neutral. We all have preferences, but you won’t be heard if you appear to favor one side over another.
- Know that if one client raises questions, many more may feel the same way about a message or recommendation.
- Don’t be self-righteous. Listen to other opinions, keep an open mind and hear what clients are telling you.
- Don’t engage in arguments with clients. Neither they nor you will convince the other side.
- Be sympathetic to your clients. They often want your understanding and approval, especially when they feel strongly about something.
- Resolve to listen closely to clients’ feelings and respond honestly before you send out a letter, or even a standard quarterly investment report. Strive to avoid an argument at all costs.
- Ask someone removed from the writing process to take a look at a message to one or more clients and tell you how your opinion sounds to them. Is it about the work you do, or does it verge on the personal? It may strike a tone you did not intend.
- If an unintended issue develops, apologize to clients for not being clearer in your remarks or for not considering their points of view.
- Strive to educate, not pontificate.
- Ask in advance what topics a speaker you’re hosting will address with your clients. We do this now and then confidently give the floor to our speaker. We can’t control a speaker’s words, nor do we want to. However, we can review their outline and make some recommendations before the event.
A Professional Opinion
Recently, I attended a Napfa webinar where the speaker, Ashley Quamme, a financial behavior therapist who helps advisors improve client experiences, offered several useful ideas:
- Engage your clients with empathy through active listening. This is not the time to offer solutions, but instead to exhibit your understanding of what the client is saying.
- Show you are listening. If you are connecting virtually, sit up in the camera’s view.
- Validate client emotions without judging them. You can do this even if you don’t agree by saying “that makes a lot of sense.” And for your clients, it does.
Be Careful
“While our clients may not always be right, it is not our job to make them feel wrong.”
As a reminder, your goal is to keep your clients up-to-date and informed. Try to avoid alienating any of your clients with your views. Be truthful and transparent about your insights, but do not begin an adversarial relationship. While our clients may not always be right, it is not our job to make them feel wrong.
The old etiquette adage, “do not discuss politics or sex,” is wise. Of course, financial professionals can’t avoid the third topic of that familiar adage — money. Instead, we must discuss it respectfully with our clients. Say what you believe but be tactful. No need to dominate with your views.
Most of all, be careful. Review what you write before sending it out. Take precautions to consider the ramifications of what you say to your clients and how you say it. Keep language simple, ideas clear and your intentions positive. Remind clients that what you are trying to do is in their best interest. Instead of defending your positions, learn from any criticisms and try to do better in the future. We did.
Karen Caplan Altfest PhD, CFP, is a principal advisor at Altfest Personal Wealth Management. She helps many of the firm’s clients with a variety of investment and financial planning issues and specializes in helping women clients and widows. Karen’s Financially Savvy Woman programs, including the Women’s Financial $pa,TM are popular with clients. Her focus is to educate and empower women.
