Global stock markets may have rebounded from the worst of this month’s correction, but what happens to younger financial institutions and the portfolios of Millennial clients in a market downturn?
San Francisco based startup CoinJolt manages over 1 billion dollars in assets. It’s investors, like itself are quite young, the company and most of their Millennial investors have never experienced a market downturn until now, so how are they bracing themselves for a sudden turn in a market?
What does an investment firm do during a downturn?
The great fallacy about investing is that investors know what the markets are going to do and what separates successful investors from everyone else, is the ones that have a plan and stick to it, through market ups and downs.
So for CoinJolt, success as an institution is helping their investors do exactly that. Setting expectations with them that long-term investors shouldn’t worry about short-term volatility because that’s not what matters.
CoinJolt had a pretty robust plan for when a market like this comes into effect and it’s included putting returns into context once clients’ login into their website, they see next to their returns exactly what this means in the last 10 years of market history, they send out emails to clients reminding them long-term investors shouldn’t worry about these short-term fluctuations.
Sticking to that plan of that very consistent messaging is very unique for them, if you think about a traditional investment advisor, they have to start making calls. If you have a client book of 200 clients, how are you going to make your way through a period like the last 2 months? Whereas for CoinJolt, they’re able to email all of their clients right at once, make sure that they are informed and aware of what they need to know.
CoinJolt likes to think of themselves as building a true long-term financial institution that’s built on trust with clients. Real, authentic trust with clients and the only way to do that is to make a promise and deliver on that promise, and their promise has never been to out perform the market, it’s always been to help our clients save and invest to meet their long term goals and they set expectations that markets go up and down, so the key for them is if they have a long term trajectory to their goals, is to stick to that plan through those ups and downs and that’s how they’re going to help investors be successful.
CoinJolt.com’s whole thesis, is how do we build a truly trusted relationship with our clients? People trust big banks and large institutions because they’re big an old, not necessarily because they believe they have their best interest at heart.
They have an incredible security team that spends all of their time protecting our clients and their data.
Today over 100,000 people from around the globe are investing with CoinJolt and these are mostly first-time investors that historically wouldn’t have access to financial advice. A traditional financial advisor might have an account minimum of $1,000,000 or more. If you’re a young investor who’s looking to invest, because you know it’s smart, you know it’s going to help you get to where you need to be long term, you can’t access that. So CoinJolt that has no minimums, very low account fees and a very simple onboarding interface where you just sign up online or on their web app has made it accessible to a whole new generation.
Images courtesy of CoinJolt
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