Helping clients deal with stress

Stress-leave figures have levelled off since then, but the current economic climate in North America has mental-health professionals bracing for a coming storm.

Generally tough conditions can affect vulnerable people, according to Bill Wilkerson, co-founder of the Global Business and Economic Round Table on Addiction and Mental Health. Job uncertainty, increased expectations and overwhelming financial pressures can combine to trigger a response in someone who, in a less anxiety-inducing environment, might have been able to cope with his or her stress.

Furthermore, Wilkerson says, the technology designed to make our lives easier _ such as email and cellphones _ can add to the problem. The use of these devices often means that some of your clients are never “off the clock.”

A good financial advisor will ensure that he or she can provide some genuine help to clients going through such a difficult time in their lives, says Margaret Tebbutt, senior consultant of workplace initiatives with the Canadian Mental Health Association in Vancouver.

Disability leave is financially harrowing, Tebbutt says, not just because it causes your client’s income to drop, but also because it almost always means an increase in expenses. Most insurance plans provide a few weeks’ pay at 100% income, but that gets chopped as more time is required. A client on disability leave may have considerable need for prescription medications and counselling services, for example, both of which can be expensive.

Health plans can help, Tebbutt adds, but there are usually considerable out-of-pocket expenses. “Even if you have an employer health plan to cover psychological services,” she says, “that might be limited to $600 to $1,000 a year. It would cover between four and six [therapy] sessions, where-as most mental-health guidelines recommend 12 sessions.”

Although you will be able to help with financial advice when a client goes on stress leave, there’s far more you can do. Here are some ways you can help:

ENCOURAGE HONEST COMMUNICATION. Before clients can get any help from you, they will need to tell you about their situation. The problem is that you, as a financial advisor, might not be on your client’s go-to list of professionals during a mental-health crisis.

Betty-Anne Howard, a financial planner with Making Dreams a Reality Financial Planning , which operates under the Independent Planning Group Inc. banner in Kingston, Ont., was a social worker before she became a financial advisor. Her background has taught her the importance of keeping the lines of communication open with her clients.

Howard recalls one situation in which the husband of one of her clients got into serious trouble with the law. “[The client] was completely ostracized by her community,” Howard says.

Fortunately, Howard says, her client wasn’t afraid to share this information with Howard because of their past relationship, which had been built on candour. Howard was able to assure her client that all was not lost and that she could still build a life for herself.

Jane Olshewski, financial life planning expert with Investors Group Inc. in Winnipeg, encourages advisors to regard disability leave as just another life event. By including it on the list of events that could affect financial planning _ right alongside marriage, divorce and adoption _ advisors are making sure they will be on the minds of their clients when mental-health issues arise.

Creating a top-of-mind relationship isn’t something that happens overnight, Olshewski cautions: “You have to show [your clients] over the course of working with them that even minor changes in their lives can translate into adjustments to their financial plan.”

UNDERSTAND THE VARIOUS SIDES OF THE PROBLEM. A mental-health issue often is com- pounded by social stigma and other pressures.

For many clients, being unable to cope mentally is accompanied by feelings of shame, Allen says, and you must react with genuine compassion.

“A lot of people still see [mental illness] as a weakness,” Allen says. “They think that somehow their career will be affected if people know they have a mental illness.”

You can help by reassuring your clients in such situations that no one is immune, adds Allen: “There are many people in very significant leadership positions right now who have dealt with mental-health issues and have gone on to live very productive lives.”

Understand that clients on mental-health or stress leave often are worried out about what their colleagues will think of them when they return to work.

You also should recognize that financial worries will intensify other forms of stress, according to Wilkerson. This is especially true if the stress leave coincides with significant financial events, such as income-tax and RRSP deadlines.

TAKE IT ONE STEP AT A TIME.

Avoid overwhelming your clients with too much information when they’re facing a mental-health crisis, Howard says. Reassure them that going off track is part of life. “Any financial plan,” she says, “is bound to run into some kind of interference as life intervenes.”

This is not the time to discuss the client’s financial plan in great detail. Hold off on the big-picture decisions for as long as possible and, instead, urge your client to focus on getting better _ as you would in the event of any illness.

WATCH FOR CHANGES IN FINANCIAL HABITS. As a financial advisor, you might be the first to spot potential mental-health issues by observing a dramatic shift toward erratic or irresponsible spending habits.

In such cases, you shouldn’t be afraid to tell your client that his or her habits may indicate the need for help. Tebbutt recommends broaching the subject by telling your client you had seen similar behaviour in another client, who got help. Clients going through such a situation are often relieved to know that their advisor has helped someone else get through it successfully.

PROMOTE RESPONSIBLE SPENDING. Time off work can pose financial challenges that require a tighter budget. In cases in which your client feels crippled by his or her new budget while on disability leave, Howard suggests cutting back on investments.

“If [an investment plan] is creating more stress for them, they don’t need that,” she says. “[Suggesting clients put new investments on hold] also conveys the message that you’re thinking about their needs _ not yours.”

Being disconnected is the single greatest health risk to a person on disability, according to Wilkerson. Encourage “wellness spending,” such as a gym membership or a “mental wellness” course (training to improve emotional resilience, for example).

PROFFER HELP BEYOND FINANCES. Taking disability leave often involves a mountain of paperwork. Clients taking such a leave must fill out forms for insurance, their employer and the health professionals from whom they seek treatment.

These tasks might seem onerous to an already stressed client. By being accustomed to the terminology used in insurance claims, you can be a big help in getting your clients through the process.

© 2012 Investment Executive. All rights reserved.