In the next week to ten days, clients are going to be receiving their year end statements.

Almost every client knows that the news won't be good. In some cases, they've been tracking their portfolio regularly, sometimes going online every day to see how they're doing. In other cases, however, clients have only the vaguest ideas about how hard their investments were hit ,,, and their statements will be bad news. In some cases, concerned calls may result.

The best way to deal with the bad news when clients open their statements is to get in front of it. With statements on their way to clients as you read this, be aware that time is of the essence - and you have to act right now.

For example, you could call your top clients today and say - "You're going to be receiving your year end statement in the next week or ten days. As you know, last year was an incredibly difficult one for markets.. I'd like to schedule a phone call (or meeting if that's appropriate) to talk about what happened last year, where you stand today and to discuss what we should do going forward."

Scheduling a time to talk does three important things - it prepares clients for bad news, lets them know you're proactive and on top of the situation and reduces the anxiety they feel.

Chances are you can't do this for every client. One alternative is to have your assistant call your second tier of clients to book phone appointments out three or four weeks. Even though clients have to wait to talk to you, knowing that they have a call scheduled reduces their anxiety. Or worst case, you can send clients an email, saying that you'd like to schedule a time to talk once they've received their statements.

.Another Chairman's Club level advisor invites top clients to a twice yearly luncheon in his boardroom to talk about what's happening in markets and to answer their questions. He then organizes a conference call for late January that he opens up to all clients, to walk them though the material he's prepared.

A final comment on the conversations you have with clients.

Your goal in meetings and telephone conversations should be to project an image of realistic optimism - clients want to feel better after they talk to their advisor, not worse. There's an incredible amount of doom and gloom out there; consider using some of the recent articles talking about more hopeful, positive aspects of where Canada and the U.S. stand to help clients look past the bad news that is overwhelming us currently to focus on the mid term positives at the core of the Canadian and U.S. economies. Links to some of these articles are below - note that more articles can be viewed under "Links to useful articles."

Globe and Mail - Jan 10
"Good time to accentuate the positive"
Some reasons for hope, amid the flying pink slips
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Forbes - Ten Reasons For Some Economic Optimism - November 26 http://www.forbes.com/2008/11/26/economy-recession-housing-biz-beltway-cx_jz_1126optimism.html?partner=email

New York Times
OPINION | November 28, 2008
Op-Ed Contributor: Dying of Consumption By STEPHEN S. ROACH
There is a deeper, potentially positive, meaning to the decline in consumer spending: Americans are now moving back to more prudent income-based lifestyles.

Morgan Stanley

November 20 - Neither the Great Depression nor Japanhttp://www.morganstanley.com/views/gef/archive/2008/20081120-Thu.html

Wall Street Journal

WSJ.com - Opinion: The Economic News Isn't All Bleak* - Dec 11