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You got the wirehouse advisor’s client, now what

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Mar 9, 2009 3:29 pm

How are you
positioning your value proposition to clients and proving new clients made the
right choice? Especially if it is mostly performance
that made a client leave their former advisor, what can advisors do now to
improve on that? Short of willing the DOW to break 10,000 again, what is the
main thing that you find new clients need right now?<o:p></o:p>

<o:p></o:p>

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Mar 9, 2009 4:17 pm

Protection. … Realistic expections.  … Predicitable income for retirees. … Look for opportunity for those 30 to 50.

I don't know how to do this, but we've got to get people away from the question: 'When am I going to be even again?' We have to get them to focus on adjusting to today's reality.
Mar 9, 2009 7:40 pm

Fixed Annuities

Mar 9, 2009 7:41 pm

Just transferred in a SB account. She’s scared to death.

  Fixed Annuity.
Mar 9, 2009 7:45 pm

[quote=Borker Boy]Just transferred in a SB account. She’s scared to death.

  Fixed Annuity.[/quote]

I would imagine the general collective unconscious of investors is in panic mode as the market continually goes down like Joe Fraizer, but what exactly is she scared of, if you don't mind sharing?
Mar 9, 2009 7:55 pm

[quote=staffwriter2] [quote=Borker Boy]Just transferred in a SB account. She’s scared to death.

  Fixed Annuity.[/quote]

I would imagine the general collective unconscious of investors is in panic mode as the market continually goes down like Joe Fraizer, but what exactly is she scared of, if you don't mind sharing? [/quote]     losing all of their money... they just want protection of capital.
Mar 9, 2009 8:11 pm

Don't let victims of volatility become victims of inflation. This is the next "mistake" waiting to happen. 3T of funny money chasing real assets. Even 80 year olds need inflation protection, which is provided mainly through ownership, not lending products.

Staffwriter: if the wirehouse account was invested in managed bond funds, this may have been a 'stable' part of the account that "blew up". The learning for the client and new advisor may be, continue to have the right mix of stocks and bonds, but let your bonds be more conservative, so you can sleep  at night. Also, maybe increase the fixed allocation (cash and bonds). Having said that, is now the time to adjust your risk tolerance? Remember, the market runs on fear and greed. Fear and greed. Greed means inflation. Feel your fear now, and feel the weight of your experience with inflation. Inflation is coming. Very scary inflation is coming, will you become a victim of inflation, and will this be compounded by your reaction to your fears now? You decide, Ms. client.

Mar 9, 2009 8:20 pm

Topic: You got the wirehouse advisor’s client, now what
It doesn't matter where the new client came from, as I am in a wire house and have transferred in 13 new client relationships so far this year.  They have come from Trust companies, indies and other wires.

   I would imagine the general collective unconscious of investors is in panic mode as the market continually goes down like Joe Fraizer, but what exactly is she scared of, if you don't mind sharing?   The new clients that I have acquired have moved-in for three basic reasons - 1) lack of communication from prior rep 2)  a new investment plan that addresses their portfolio in this current environment and goal adjustments, 3) usually are a referral from their CPA.   With this continued decline month after month - clients lack faith in their rep's advice when they keep hearing - we have seen this before, you just need to hang in there.  Adjustments need to be made.  With this volatility even a conservative portoflio's SD may be beyond a clients tolerance.   An older client with minimal communications, and told to hold the course, may look at the decline in the monthly statements - divide the port value by the monthly decline and come to the conclusion that they only have a few months left at that rate.   
Mar 9, 2009 9:11 pm

So … you adjust conservative portfolios to be more conservative during a recession?

Mar 9, 2009 9:27 pm

[quote=staffwriter2] [quote=Borker Boy]Just transferred in a SB account. She’s scared to death.

  Fixed Annuity.[/quote]

I would imagine the general collective unconscious of investors is in panic mode as the market continually goes down like Joe Fraizer, but what exactly is she scared of, if you don't mind sharing? [/quote]   Vin's correct, she's scared of what's going on in wirehouseland and is convinced her mutual funds are going to zero.   I'm tired of begging people, who don't even need their money in the near future, to stay invested. She actually inquired about an annuity; I don't have that happen very often.
Mar 9, 2009 9:42 pm
Doksee:

So … you adjust conservative portfolios to be more conservative during a recession?

  What I am saying, is the client needs continued communication to be able to make prudent decisions based on their suitability. 
Mar 9, 2009 10:03 pm

Agreed. The biggest mistake is clamming up and not communicating about what is going on. That's how clients are won or lost in these times.

Mar 9, 2009 10:31 pm

[quote=staffwriter2]

How are you
positioning your value proposition to clients and proving new clients made the
right choice? Especially if it is mostly performance
that made a client leave their former advisor, what can advisors do now to
improve on that? Short of willing the DOW to break 10,000 again, what is the
main thing that you find new clients need right now?<o:p></o:p>

<o:p></o:p>

<span style=“font-size: 11pt; font-family: “Calibri”,“sans-serif”;”>


<span style=“font-size: 11pt; font-family: “Calibri”,“sans-serif”;”>

<span style=“font-size: 11pt; font-family: “Calibri”,“sans-serif”;”>


[/quote]

Index annuities. The wirehouse guys won’t show them to their clients.
1. No fees
2. No commissions
3. No loss of principal
Mar 9, 2009 10:41 pm

They can’t show them to their clients. 

  Do you really think a wirehouse broker would pass up an 8% commission if it were available to them?
Mar 10, 2009 12:08 am

[quote=Borker Boy]They can’t show them to their clients. 

  Do you really think a wirehouse broker would pass up an 8% commission if it were available to them?[/quote]

It works better when you say "won't."
Mar 10, 2009 12:33 am

[quote=staffwriter2]

How are you positioning your value proposition to clients and proving new clients made the right choice? Especially if it is mostly performance that made a client leave their former advisor, what can advisors do now to improve on that? Short of willing the DOW to break 10,000 again, what is the main thing that you find new clients need right now?[/quote]

Staffwriter2 -   This is why the communication and planning process is the key to a value proposition - the focus should not be on the short term performance.  If new clients are enticed to come over based on performance - then be prepared to lose them in the future.  Yes, we have a responsibility to be good stewards of our clients portfolios, but, the client also must be good stewards of their monies.  If a committed plan is established initially - then a client should not be leaving because of performance.  And if a client came over because of performance - then you must make sure that the new clients expectations are realistic.      
Mar 10, 2009 2:36 am

[quote=Blitzkrieg Bop] [quote=Borker Boy]They can’t show them to their clients. 

  Do you really think a wirehouse broker would pass up an 8% commission if it were available to them?[/quote]

It works better when you say "won't."
[/quote]     Touché  
Mar 10, 2009 10:31 am

“Index annuities. The wirehouse guys won’t show them to their clients.
1. No fees
2. No commissions
3. No loss of principal”

  No commissions??  You may find it a little easier to feed your family if you ask the insurance company to pay you the commission. 
Mar 10, 2009 12:15 pm

[quote=anonymous]“Index annuities. The wirehouse guys won’t show them to their clients.
1. No fees
2. No commissions
3. No loss of principal”

  No commissions??  You may find it a little easier to feed your family if you ask the insurance company to pay you the commission. [/quote]   Why let the truth get in the way of a good story?