Transitioning a book from A share to Managed
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Correct I wasn't talking about emergency funds or safe money, that stuff tends to be in a brokerage acct in CDs, fixed annuities, cash... I was refering to retirement accounts where we moved to cash in June, July and then August in 10% increments... Ice is right.. the fee is for the advice not the product.. Clients sometimes make the same mistake until you show them..."Hey your account is at $245K...yeah I charged you 1.25% last year (around 3300) but I also saved you $56K... so if you don't want to pay the fee we can gladly switch back and you can take your chances..Don’t want to bring this up again, but I think it is only appropriate to charge on cash if it is part of your investment portfolio, not your permanent “emergency fund” or “safe money” or whatever. If you are a discretionary RIA, and you decide that you want to move clients into cash for some time to weather a storm, then that should remain under advisement. I can tell you, if 18 months ago your RIA moved your portfolio into cash, you will be more than happy to be paying 1% to avoid losing 30% (or 20 or 40 or 50…).
Or you could say, "Hey, I saved you 56K last year. Let's do this....I'll give you back the 1.25% on the cash, and you give me the 56K I saved you."
[quote=B24]
Or you could say, "Hey, I saved you 56K last year. Let's do this....I'll give you back the 1.25% on the cash, and you give me the 56K I saved you."
[/quote] That would be great.. hedge fund like..[quote=iceco1d]
Squash - I meant if a client comes in an says, “We just had a flood and the damage isn’t being covered by insurance. The bank won’t give us a home equity loan because of the damage to the house, so our only two options are to put the repairs on a credit card @ 16.99% interest, or pull some of our contributions out of our Roth IRA tax & penalty free, what should we do?”
You know the right answer. And you know the answer that pays you better. Conflict.[/quote]I see your point, but giving them the right advice might cost you a few dollars today but generally pays off in the long run.
I have a local mechanic who saved me 2 grand on a transmission overhaul at the dealership when he noticed a way to fix the problem for free. Needless to say, he gets ALL my business now and I don't even second guess anything he says I should do.
[quote=Ron 14]Gaddock, speaking of transactions, the NDX Jun 1025p was $2.05 bid today for a while. I just got a personal options account up and running, that was my first trade, total launch ![/quote]
Were you selling the put then?
Squash - I meant if a client comes in an says, "We just had a flood and the damage isn't being covered by insurance. The bank won't give us a home equity loan because of the damage to the house, so our only two options are to put the repairs on a credit card @ 16.99% interest, or pull some of our contributions out of our Roth IRA tax & penalty free, what should we do?"
You know the right answer. And you know the answer that pays you better. Conflict.[/quote]