In the midst of short-term noise, Richardson Wealth advisor says maintaining a larger vision is essential
Some levels of panic are to be expected when periods of volatility occur, and doomsday headlines follow. But for Evan Riddell, these concerns serve as a distraction, as they cloud the broader financial plans he has curated for his clients.
Having faith in the market’s ability to rebound is an essential defence mechanism for any advisor according to Riddell, wealth and investment advisor with Riddell Wealth Management at Richardson Wealth Ltd in Victoria, BC.
Riddell specialises in holistic wealth management, serving a clientele of successful individuals in or approaching retirement. With a large proportion of his clients on fixed income, blips in the market such as US President Donald Trump’s tariffs can cause significant concern for clients who may worry about their investments and spending habits.
When a concerned client reaches out, Riddell likes to remind them that periods of volatility tend to be relatively short compared to the long-term planslong-term plans he has set up with his clients. He often asks them if they believe the world will be a better place in five years, to which his clients almost uniformly reply yes.
“If you look historically at these big events, it typically takes about three years to fully recover. But on average, if you know it takes three years, then we have at least five years set aside,” Riddell said. “We have years of runway out in front of us to weather the upcoming storm, if it ends up being a storm.”
Maintaining his passionate belief in the problem-solving skills of humanity at large allows Riddell to fully convey his confidence to calm clients who may call in a panic. Whether it was the 2008 Wall Street collapse or large-scale wars, Riddell believes humanity’s innate capacity to adapt has allowed for a prompt rebound in the market.
“If you look at huge economic events that happened in the past, it always seems bleak and there’s no way out,” he said. “But I’m a huge believer that human ingenuity will continue to try to create a better outcome for us as we go forward.”
Riddell ensures he provides conservative estimates to his clients, so even if there is a momentary blip, they have faith that in the long run their investments are in safe hands.
“It builds in an added layer of protection to say, ‘even with these conservative assumptions, it shows that based on this long-term projection, you're going to be alright,’” he said. “The reality is that typically it’s going to look better than what the projection is.”
Separating his clients’ wealth into two “buckets” is another useful tool for Riddell, as it allows clients to remain assured about both short-term spending goals such as travel along with their long-term savings goals. While there may be some tactical adjustments with his clients’ investments, he always returns to his faith in the market and human ingenuity as proof of clear skies in the future.
With successful, often busy clients, Riddell relishes his responsibility to ensure they are able to live their lives without constant concern over their finances.
“We have very busy, brilliant clients that are exceptional what they do,” he said. “Sometimes they won't get the things done that they know they need to just because life is busy and they have other priorities. Having that delegation down to us to make sure the implementation is there is greatly appreciated by our clients.”
