The possibility of a stock market crash can scare employees away from investing in the stock market. Everyone has heard of the Crash of 1929, but the stock market crashed in 1987 and again in 1989. The Dot.Com bubble burst in 2000. The most recent crash took place in 2020 when the Coronavirus problems became apparent. The mere possibility of a stock market crash will have some employees saying, "I will never invest in the stock market." Maybe a little employee education would be a good thing.
Encouraging employees to get into the stock market seems like something that isn't part of the traditional employer/employee relationship. They might say: "You have no business telling me what to do with my money!" There is another way to approach this subject. Employees may feel it has traditionally been the company's job to provide for their retirement. Their parents or grandparents might have had defined benefit pension plans. Today, the landscape has changed. Defined contribution plans mean employees bear the primary responsibility for their own retirement. But would they appreciate advice on how to help their money to grow?
A Bank of America study shows 84% of employees feel financial wellness tools offered by the company helps reduce employee attrition. The study shows 97% of employers feel a sense of responsibility for employee financial wellness compared to 41% in 2013. The study also shows 56% of employees feel good about achieving their retirement goals. Sounds good, right? In February 2022, that number was up at 69%. Helping educate employees about financial wellness can focus on helping them plan for retirement.
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Bryce Sanders
Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He trains financial professionals on how to identify prospects within the wealthiest 2%-5% of their market, where to meet and socialize with them, how to talk with wealthy people and develop personal relationships, and how to transform wealthy friends into clients. Bryce spent 14 years with a major financial services firm as a successful financial advisor, two years as a district sales manager and four years as a home office manager. He developed personal relationships within the HNW community through his past involvement as a Trustee of the James A. Michener Art Museum, Board of Associates for the Bucks County Chapter of the Fox Chase Cancer Center, Board of Trustees for Stevens Institute of Technology and as a church lector. Bryce has been published in American City Business Journals, Barrons, InsuranceNewsNet, BenefitsPro, The Register, MDRT Round the Table, MDRT Blog, accountingweb.com, Advisorpedia and Horsesmouth.com. In Canada, his articles have appeared in Wealth Professional. He is the author of the book “Captivating the Wealthy Investor.”
