Lessons for Uncertain Times – Reflecting on The Pandemic, 5 Years Later

Listen in as the WHZ advisory team shares their experience of living through the first weeks of the pandemic, how the helped clients to navigate the financial and other uncertainties of that time, and how those lessons carry through strongly into today's uncertain environment as well.

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Transcript

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Thank you for joining. It's hard to believe it's been five years since, the Covid 19 pandemic hit the US. And, so today we're going to take a look back at the surreal experience of those first few weeks and kind of explore how that shaped our lives and finances at the time and, and how, those lessons have carried forward ever since. But before we get to the finance side, let's just take a minute and talk about, you know, the crazy personal experience of, of that day, that that we all kind of first, learned that the country was shutting down due to this pandemic. we, we, we as a family actually flew down to, Florida. We were in the Palm Beach area for a week. During during that first time. And it was a little weird flying, but, we, we stayed and initially we said, oh, maybe we'd stay down here for a few more weeks to wait this thing out. That would have been a lot of weeks. So we did we did make it back. But I remember when we first started, everyone's kind of like, oh, you know, we'll shut down and then we'll all be back and and, you know, none of that happened. Yeah. I was out of the country, and. And, I was with my at the time, you know, mother and only one of our kids with the plan for the rest of our family to join us. And I mean, continuous conversations both with Jim and and with my wife, Jane, to, you know, saying that things are getting a little iffy here. You might want to think about coming back and and similar to Jim, you know, saying, oh, this will pass. And, and, and then it really hit us when, when we got back here and realized just how serious that situation it was. I was in Spain with my sister when we watched that. So conference on her cell phone in our apartment in severe and said, well, it sounds like we have to find our way home so we don't get stuck here. by the time, by the time I got home, the office was remote. I was the only one that didn't have a vacation that March. And so, but I do specifically remember before Jim headed down to Florida with his family, he asked me, should I go? And I was like, well, I mean, we can do pretty much everything remotely. And, you know, so it was a little bit of like that kind of hit home and, and, the reality of the situation. But I was also of the mindset that let's just go home, open our windows. And this should all clear in two weeks will be good, because that's my, you know, anytime I'm sick, that's, you know, open some windows, get some fresh air, and it'll all be good. But, yeah, it was, you know, something that I'll never forget. And just realizing how serious it was, over that time frame. I had the same promise of two weeks and then, everything was going to get better. So I was actually transitioning jobs, and, I was supposed to be going to the, to the office in early April, and they called me on a Friday and said, hey, we're going to actually ship you the laptop and have you start remote and then we'll see you, you know, in a couple of weeks when this blows over. And a year and a half later, I think I finally stepped into the office and met people. So it was a very interesting, transition and starting a new job with people that I, you know, we were all going through it together, but I was a I was the new guy and having to figure out what to do that. And I also had four kids, trapped in my house as well. So were getting the updates that schools were shutting down and kids were going to be, trying to go to school remotely. And I was like, how is that going to work with, you know, four kids going to school, me trying to work this is going to be really interesting. on a similar topic, Jim and Laurence, can you talk a little bit about, you know, as the leaders of the organization, how you handle that transition to all of a sudden, running your entire business with everyone remotely, and trying to ensure that the client experience stayed the same throughout all of that? remember distinctly the biggest initial hurdle was when clients call us, who's going to pick up the phone? And if you think back to that time period, you know, now we take all these technologies for granted where you can, you know, have zoom and have virtual, you know, phone systems and everything is is easily transferable to, you know, remote or in-person environment. That wasn't necessarily the case. We were planning to go to a virtual phone system, and that accelerated what was going to be probably a three month process into how can we get this done in about two days? But continuously talking together and, and, you know, trying to address each challenge in turn. And, and I think we did it pretty successfully. Yeah. I would add to that, I mean, it the most important thing is that we wanted our clients to have access to us. So, you know, we I think we in addition to making sure our systems were right, we communicated to them more frequently. We, did that on email. We we accelerated our access by doing, you know, podcasts and, radio shows more frequently every, every two weeks, sort of to give the general public an update on what was going on in the world of investments in the markets, But the point is, is that we were able to immediately, to use a word that I haven't used since the pandemic, we pivoted and we we brought forward the, you know, technology to reach us. knowing how much uncertainty there was out there, we wanted our clients to be able to access us and hear what we were thinking. Yeah, we I mean, we accelerated our, you know, we typically have an investment committee meeting once a quarter. I think we, we we went from once a quarter to once a month to once a week to daily, you know, pivot was the word of the day and being flexible and nimble and, and, you know, dealing with things as they came and trying to as much as you could plan and, extraordinarily uncertain environment, you know, not dissimilar to, you know, where we see ourselves today. Were there any particular sort of lessons or insights or changes that you made during that period that, that you still carried through today? And actually served to sort of improve your processes? Yeah. I would start with, you know, it made us consider the experience we were working with clients is sort of like meeting them where they were. So if they wanted to do zoom meeting, if they wanted it, you know, an in-person meeting, they wanted a telephone boom. We tried to accommodate all of those things. And the in-person meeting actually looked like for a period of time outside and with a mask, But but, nonetheless, you know what? What we learned in that period of time is being open and accessible and meeting people where they are. And it's something we've tried to do now. So, you know, every client has an option to meet with us through, you know, some online platform like zoom or teams and or in-person meetings if they'd want those or telephone meetings. And, you know, we've gotten really good at them. We all started it. And remember, the first zoom meetings took 15 minutes because people didn't know what the volume was, you know, but but, but but in all essence, you know, we've all learned those. And, for us, a huge differentiator is how clients see our experience. And so we've adapted it. I would say the learning was meet them where they are no matter what. Yeah. And I would add, that, you know, and I think it may, may be one of the, the impetus is to, to one of our, you know, core values is, you know, this unwavering partnership. We do not, you know, we are there no matter what. This was a crisis at the time. We've been through crises before, but I think, you know, if you if you talk to our clients, they knew we were there. You know, we couldn't control the markets. We couldn't control the world. We can control the pandemic, but we they always knew that we were accessible. We were doing our best. We were working, you know, very hard on their behalf. And, you know, sometimes it would just take a reassuring call to to say, we're here. Everything's okay. Sometimes it would, you know, be a much more in-depth analytical discussion. But at the end of the day, I think, you know, I think to a person, I think you could ask all of our clients, they could say, you know, we were there, the entire time. We were unwavering. about having clients were really scared at that time. A lot of people thought, oh my gosh, I'm going to lose all my money. And, you know, the S&P did go down to I think it was 22 or 2300 was the bottom. So if you think about it being closer to 6000 today, I mean that was a pretty significant downturn. That had a lot of people worried about their money that they've worked so hard to save. And so a lot of our conversations were about that. And also talking through what the government was doing to help, give that aid so that the economy wouldn't collapse completely. So it was, it was something that I, I, worked through and, and I think keeping reminding them of their plan and what we've worked on and what we've planned for. And even though there are these tough times where markets can, you know, there can be a huge downturn, it's all in their financial plan. And so that's something that for me, learning how to have those conversations was, was really great. And I think, I mean, all of the clients they made it through and they're here today and their plans are still on track. So and that's the most important thing. I was in a different role at the time when this all came about. But we take a team approach at WFC. I was in still a client facing role. As Lawrence mentioned, we we didn't shy away from the communication, and we were calling clients to talk to them about their financial plan and the financial anxiety, but also about how they were doing personally, what they were doing to fill their time. And how how were they trying to, you know, mentally get through this, which was something we shared. We were all in the same boat. When we finally did get home, locked in our house and dealing with, you know, wiping down groceries or, or not and, doing puzzles and whatever was, was occupying us to, get through it together. And another value, sort of, as Lawrence mentioned, were, were there partners? And the service that we deliver goes beyond the number. And really gets deep into the relationship with them. And I think it a silver lining was learned more about our clients personally and what, what brings them, what brings them joy and, and what ways they found to, to get through it, so for me personally, I felt like it solidified the human touch that Jim was talking to is like that relationship side of it really matters because people wanted things more than ever, but they were still looking to have a trusted advisor to talk to about the solution. And and it kind of it comes back to sort of I mean, you've all talked in different ways about, the silver linings and the things that, that were good that you took away and integrated into your everyday practice after this. know, I think what it taught our team is, that we are communicating with clients about their goals. And, and, and being sure that we were empathetic to their needs beyond just their financial plan, listening intently to what they're doing and remembering small things about them are all part of what we do every day. But it sort of escalated during that time because, we were growing as a team. We had new members, and it made us train them in ways that were about listening and delivering beyond just the financial plan or investment strategy. And for most people, that's just as Jonathan just said, it is sort of the human element to what we do. So beyond finances is something we will continue to take forward with us no matter what. Don't get me wrong, we're going to get the financial stuff right, but we see that as, entry to the game. And what makes us different is how we treat people and listen to them and act for them. Yeah, I think that from a, from an investment standpoint, one of our, you know, core philosophical tenants is, you know, control what we can control and, and sort of manage and plan for things that we can't. And I think, you know, on a very personal level, that was a lot of what we did is, you know, you can control your own safety, you can control the relationships that you have. You can control how you respond to different crises. You can't control the pandemic. And the pandemic was going to do what it was going to do. so we all knew we couldn't control our, our situation, but we could control how we responded to it. And I think, you know, I just say, you know, our team more than stepped up to, demonstrate, you know, just the unwavering, you know, partnership that we, we deliver and, and, you know, couldn't have been prouder of the team. Yeah. And and speaking of, you know, feeling proud of of what you were all were able to accomplish together and for your clients during that time. And also, you know, kind of touching on what you said, Jim, about, you know, there's a there there's potentially some, some feelings or, or concern about, us heading into or the country heading into maybe another challenging time. Now, can you speak a little bit to how your process, in particular the plan? Well and best well live? Well, how that helped to guide, your, your work and your decisions on the financial side. you know, we were tracking how our portfolio was doing against benchmark. We were watching the economic conditions that, we're seizing and, and remember, you know, essentially rates went to interest rates went to zero overnight. So, you know, money became very, inexpensive. And there was a period of time where nothing performed. And then because of economic policy, you know, the fed made some really good moves during that time. By the end of, of 2020, you know, markets actually had had picked, picked back up and performed, believe it or not, positively for the full year. Yeah. And I think in times of uncertainty and particularly times of crisis, you know, people lose sight of, you know, their time horizon shift from, you know, I'm looking ten, 20 years down the line at some future goal to what is tomorrow look like, what is next week look like. And and I think making sure that we were able to maintain that long term view and perspective. you know, it's it's easy to think that the world comes to a screeching halt, but if you just sort of look at your own universe and say, well, I'm, I'm, I'm still, you know, on, on the internet, I'm still need to buy groceries. I, I still have goals and aspirations and my family has needs, you know, the economy can function through, you know, wars through crises, through pandemics. And, you know, being nimble enough. And again, like Jim was saying, looking at the actual data as opposed to just the headlines, can help you see through that fog, and understand, you know, where opportunities are and where risks are. And I would imagine that, you know, back then as well as, you know, now and heading into the future, it's awfully helpful to have sort of a outside, impartial partner like yourselves to kind of bring, bring people back to home base and remember the, you know, the, the fundamentals. Have, you know, Holly Lysol are you having those conversations now with, with, you know, clients? Yeah. I mean, it's, bringing them back to their financial plan. That's always one that we can revisit. And, and then also economics fundamentals and reminding them that actually the economy is doing pretty well, all things considered. And, and, unemployment's low. And there's a lot of noise in the headlines. And I think that sometimes can scare clients. And so they just need to be reminded this is this happens. I mean, we go through economic cycles and we'll get through this one, as well. yeah, I think it goes back to, what we've all sort of touched on here is that change is inevitable. The focus is really how we react to these variables that we can't control and how have we positioned ourselves. And so going back to the plan and helping people, you mentioned it, Laura, being this sort of non-biased, partner in helping them sift through the noise of the media headlines and focusing on on the data, we have a very solid process and, and our, our data driven and really, you know, are quite robust in the way that we approach, you know, what we do for clients. But but the way that we work with each of our clients was very unique. We had some clients pass away. We had clients who had family members passed away during that time period. They're in a very different situation, a very different place than clients who may have a bunch of young kids and are just saying, I want to get back to life as as it was. So, you know, taking our tools, resources, process, but bringing that forward in a way that met the client at the place that they were and in their lives and in their situation, is where the sort of the magic happens and where clients can look to us and say, yes, this is not a you know, you're not giving me a canned response. You're actually hearing what I'm saying. You know me. You know my fears, my anxieties, my situation. And you're actually speaking directly to those and planning to to alleviate those. A lot of people are just looking for a trustworthy, you know, partner to, to work through whatever issue that they have going on, whether it's big or small. And so having the time to set aside for them specifically having follow ups, we're in regular communication with our clients all the time. And so just being there, being consistent, I think is, is a big part of it. We we, went through a period of time where empathy amongst our own culture globally was amazingly, present. And so, you know, I think everyone, for the most part, found a way to listen to others, to do kind things for others. And it gives me a lot of hope as we look forward, because, you know, the premise of any, society and particularly for the American society, is that we're resilient and American democracy and its ability economically to produce in a free market society is not something that's going to go away. I think a lot of, a lot of people's fears are, you know, this time it's different. We hear that a lot in our industry. This time it's different. And I've been doing this long enough that every time is different and every time is really the same. You know, I believe uncertainty prevails. There's crises, there's things happen. We can't control it all. But we can control how we respond. And for our clients, you know, we help them think that way long term and strategic. And we particularly show them what it means for their plan. If I sat in front of a client in 2020 and told them that we would be at all time highs five years later in markets, and that their portfolio values would be at all time highs, they would have all laughed at me. But the reality is, it just shows you how resilient the US economy is and how those in that society that that companies can find ways to adapt and win no matter what comes their way. They may not all be there the same way where at all, but there are other industries and other parts and other sectors in the global economy that will pervade. And, you know, that's the why you need to work with an advisor that can find them and help your portfolio meet your goals. And, that's what we do here at the.