1. Squaring Away the Emotional Impact
When someone’s financial circumstances change significantly, the reactions can be vast. But for most of her clients, Salzer says it’s usually sadness, particularly after the dust settles. While they know they’re supposed to be happy, instead, they experience a sense of loss because the life they knew is essentially over.
“It sounds crazy, but they have to have time to mourn that loss,” she says. “Until they do, they can’t make wise decisions.” And just like grieving for a loved one who has passed away, it can take a month or it can take years, depending on the individual. But advisors need to be patience and empathetic.