Dumb clients

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Jan 20, 2010 5:33 pm

Why are clients so dumb when it comes to investments?

Jan 21, 2010 12:50 am
skbroker:

Why are clients so dumb when it comes to investments?

 
I bet doctors say the same thing about their patients that keep coming back for STD tests after one night stands without using a domer..."Why are patients so dumb when it comes to using protection?"
Jan 21, 2010 4:10 pm

I have a friend who is a pediatrician.  When the 16 year old comes in with her baby, he isn't sure who exactly the patient is supposed to be.  But what really frustrates him is when he gives her the birth control talk and next year she is pregnant with baby #2 (still with no dad in the picture). 

 
Jan 21, 2010 4:18 pm
EDJ4now:

I have a friend who is a pediatrician.  When the 16 year old comes in with her baby, he isn't sure who exactly the patient is supposed to be.  But what really frustrates him is when he gives her the birth control talk and next year she is pregnant with baby #2 (still with no dad in the picture). 

 
 
Your doctor friend needs to tell these women not to hang out with NBA players anymore...
Jan 29, 2010 3:44 pm
skbroker:

Why are clients so dumb when it comes to investments?

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?
Jan 29, 2010 3:58 pm

Tell him you will only charge 50 dollars out of pocket......

Jan 29, 2010 4:01 pm

I was going to say $74 noggin. Getting the last appointment is always great head to head. Ask him to bring you the information on the investments they are offering. Point out the true costs of the annuity or whatever it is. Easy sale if you get him to sit down with the other broker's recommendation.

Jan 29, 2010 4:03 pm
Ron 14:
skbroker:

Why are clients so dumb when it comes to investments?

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?

 
I'd bet the $75 out of pocket is the IRA annual maintenance fee, or transfer fee, or something stupid like that.
 
I would write down all the possible ways the fee could be charged, and tell him to find out from the MS guy what the annual fee is or how much the commission is, or what the load is, or whatever you think this guy is presenting.
 
I would also tell the guy that if it was indeed $75/year, you would personally walk the account paperwork and transfer paperwork over to the MS office to ensure the transfer went smoothly, because you know you can't invest in anything for $75/year.
 
 
Jan 29, 2010 4:07 pm

Fee sensitive clients are the worst.

Jan 29, 2010 4:07 pm
Ron 14:
skbroker:

Why are clients so dumb when it comes to investments?

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?
 
Many clients are quoted the annual IRA fee, and think that's the "fee" for the account.  Until you know the investment program he is using, you can't really respond.  Chances are, the client asked "what's the fee for this?" and the FA said "$75", but they weren't talking about the wrap fee, or commissions, or internal fees on the annuity, or whatever he is proposing.
 
I would just say "$75?? Wow, and I was going to charge you $6500.  Did I mention the free Tote Bag?"
Jan 29, 2010 4:18 pm

This guy is just a complete idiot though. I mean to actually believe that is just mind blowing. No wonder he doesn't want a VA and a 1.25% wrap account. That kind of stupidity is so frustrating that I am about to end all communication. Anyone judging advisors on fees over  trust and service will jump again and again.

Jan 29, 2010 4:45 pm
Ron 14:

This guy is just a complete idiot though. I mean to actually believe that is just mind blowing. No wonder he doesn't want a VA and a 1.25% wrap account. That kind of stupidity is so frustrating that I am about to end all communication. Anyone judging advisors on fees over  trust and service will jump again and again.



Tell him that that is awesome and ask if you can have the advisor at Morgan Stanley's name and number so you can transfer your account, because even you don't get a deal that good.

Jan 30, 2010 10:07 am

All good points. I am going to call him next week and use these ideas. I will keep you guys posted. Thanks.

Feb 8, 2010 2:37 pm

Here it is:

Client has two accounts.  One with me, and one that he "trades".

We had an agreement that before he made a trade, he would call me.  However, the last couple of months he has decided that he is going to trade it without talking to me.

In November, he had $120k in this trading account and he was making good decisions.

He sent me an email today.  "Moraen, can you transfer my trading account to you?"  "Sure, I said."

There is $45k in it.  $7k of it lost in two days shorting of all things.  You almost could have shorted anything and done well. 

We NEVER discussed shorting.  I told him I would explain to him short and options strategies, but he apparently decided to do it on his own.

Guess where he learned how to trade?  From his FITNESS TRAINER!

Feb 8, 2010 2:59 pm

Awesome

Feb 8, 2010 3:05 pm

Hahahahaha!

Feb 8, 2010 7:43 pm

Thats funny but oh so true

Feb 26, 2010 12:10 pm
Ron 14:
skbroker:

Why are clients so dumb when it comes to investments?

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?
 
 
UPDATE!!!!!!
 
Guy came in and said he is going with Morgan Stanley. Brother in law has a 7mil inheritance with MS and by the prospect adding his 600k to that household it will "push the entire family to a lower cost, which is only $10 -$15 dollars a trade." I asked what is he doing for you ? Prospect - "Well the guy has done 14-18% each year over the last 10 years. He did 11% last year and that was their horrible year. He said he would be shocked if he doesn't get me 10% a year."
 
I stood up and shook his hand. Told him thanks for his honesty and walked him to the door.
Feb 26, 2010 12:47 pm
Ron 14:
Ron 14:
skbroker:

Why are clients so dumb when it comes to investments?

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?
 
 
UPDATE!!!!!!
 
Guy came in and said he is going with Morgan Stanley. Brother in law has a 7mil inheritance with MS and by the prospect adding his 600k to that household it will "push the entire family to a lower cost, which is only $10 -$15 dollars a trade." I asked what is he doing for you ? Prospect - "Well the guy has done 14-18% each year over the last 10 years. He did 11% last year and that was their horrible year. He said he would be shocked if he doesn't get me 10% a year."
 
I stood up and shook his hand. Told him thanks for his honesty and walked him to the door.


 
Hmmm...that's what Madoff said.  There was a lady in my area, Breard, that was just found out for the same stuff as Madoff...literally in my city.  She's tried twice unsuccessfully to kill herself.
 
 
Jul 10, 2010 12:00 am

[quote=Ron 14][quote=Ron 14][quote=skbroker]Why are clients so dumb when it comes to investments?[/quote]

 
I have been talking to a guy with a 650k rollover. He is a customer of the bank and also a former employee in the IT department. He comes in every month or so and asks me a question about his retirement statement and he has done this for 8 months.( I had no clue what the dollar amount was until a month ago) Last week he tells me he is also talking to Morgan Stanley. I tell him that I am glad he is researching his options and that he should go with someone he can trust. He just came in and told me Morgan Stanley is only charging him $75 out of pocket !!! I refuse to believe an FA would lie this badly so this guy is obviously a complete dumbass. Any ideas of how I should proceed ?

[/quote]

 
 
UPDATE!!!!!!
 
Guy came in and said he is going with Morgan Stanley. Brother in law has a 7mil inheritance with MS and by the prospect adding his 600k to that household it will "push the entire family to a lower cost, which is only $10 -$15 dollars a trade." I asked what is he doing for you ? Prospect - "Well the guy has done 14-18% each year over the last 10 years. He did 11% last year and that was their horrible year. He said he would be shocked if he doesn't get me 10% a year."
 
I stood up and shook his hand. Told him thanks for his honesty and walked him to the door.

[/quote]

Wow, where's the SEC when you need them?!  Amazing to me that there are still these shucksters out there making bold promises, guarantees, and downright LYING to people, yet they seem to have little problem getting clients.  Just unbelievable.  I guess I'm happy knowing I can sleep at night.