Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
AdvisorHub’s Publisher & CEO — Tony Sirianni — asked executives from top firms their opinions on the dual management of the Coronavirus and market meltdown crises. Read how leadership is managing one of the most unique challenges we have faced as a financial community.
Here is how Louis Dworsky, CEO of Hayden Royal responded.
The last few weeks have been unprecedented and unexpected, a perfect storm if you will, of management challenges both on the employee and client level. You have had to deal with employee safety issues that no executive has training for, and a directly correlated market crash. What have you implemented at your firm to address this dual threat?
We hold true to our philosophy that sound investment selection, continuing to educate our clients and being available to provide the answers and support in trying times is paramount.
I believe that our proactive approach to generational wealth building puts our clients at ease and allows us to be prepared for situations such as these. We continually work to improve our offerings through our six pillars of building a legacy and look at every aspect of our business from a risk management standpoint. In doing so, we are well versed and astutely prepared for unforeseen situations such as what we experienced this spring. We are looking at this as an opportunity to revisit our processes and procedures and improve our risk management parameters. Once the indication became clear that we were going to be experiencing some uncertainty and in turn, market volatility, we began an ‘all hands-on deck’ mentality and a companywide initiative to educate our advisors on prior economic situations and any rules or regulations and thought leadership on the conversations they should be proactively having with their clients. We implemented weekly email distributions lines and offered access to our corporate marketing department to train the advisors on new ways to reach their clients via emails, websites, and webinars.
We truly feel we are ahead of the game in the financial services marketplace in what we can provide, and more specifically, when it comes to situations where we must quickly formulate a strategic plan to support our clients. I am impressed with our advisors which I proudly call my partners for their quick reaction and strategic conversations that they are having with their clients.
We are a fast-growing company in a sector where we see more opportunity than ever before to grow a firm full of passionate people who manage a good practice and do the right thing for their clients. Too many advisors are placed in a box of what services they can provide. We are here to disrupt that idea. The client comes first. Always. Our clients, matter.
How about the continuing market volatility? What are you telling your advisors to do and what are you hearing from clients?
We have experienced a very low period of stock market volatility over the past 10 plus years. A VIX value of 12-15 seemed to be more of the norm than the COVID related high of 85 and the current reading in the mid-30’s at the time of this interview in late June 2020.
As such, it is more important now than ever to have discussions with clients, given the higher level of market uncertainty, and what may be occurring in the future. A real financial advisor’s worth comes in helping clients understand that market cycles are different and that a long-term view, regardless of market volatility is necessary to achieve true generational wealth.
We are telling our advisors it is more important now than ever to communicate with their clients more frequently and it is increasingly important to look at your investment management portfolio as part of a holistic and comprehensive financial strategy.
At Hayden Royal, we believe that a true financial advisor addresses all six pillars of that financial strategy:
- Liability Structuring
- Insurance Services
- Estate Planning
- Real Estate Strategies
- Tax Planning
- Investment Management
What about the economy longer term? Where do you think we will be in 6 months, and how can advisors and their clients take advantage of that long-term direction?
Trying to predict the economy is a game very few consistently win. While many people are expecting a V shaped recovery, much of that will depend upon if a second wave of the virus hits, and what financial assistance the economy will receive from the Fed, Congress, and Executive Branch.
Betting against the Fed and the US economic engine has never proven to be successful, and innovation and profitability has consistently provided higher returns. A stable portfolio should involve conservative and growth-oriented investments and those less affected by a recession and should be viewed in the long-term as part of a prudent financial strategy.
An investment advisors’ job is not to buy stocks but prevent clients from selling in times of fear – unless there is a true liquidity need – promoting emotional intelligence.
What about our business? What do you think the long-term impact of this dual crisis will be on the advisor business model?
Fortunately, we have succeeded at surrounding ourselves with seasoned advisors who have experienced market downturns. The advisor business model is needed more now than ever. Advisors who are continuing to communicate and address all aspects of client’s needs will prevail over the long haul. That communication is what we are committed to do with each of our advisors so they can provide the best possible service to their clients.
So these things tend to bring out the good and the bad in people. What has most encouraged you, what have you seen that’s reaffirmed your faith in our community and how it’s handling these difficult times?
I believe the way our community has come together and simply helped one another has been truly wonderful to see. People have really embodied a “help your neighbor” mentality and reiterated the fact that we are all in this together. It’s really given us at Hayden Royal, and myself personally, time to reflect, slow down and realize what matters most in life. We are very fortunate that we are in a position of service to our advisors and their clients – helping them protect livelihoods and dreams they have worked so hard to achieve. Having this perspective is what our team embodies daily and why we are so proud to work in the industry we do. At the end of the day, family comes first.