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Sep 27, 2006 3:03 pm

[quote=BondGuy][quote=NASDY Newbie] [quote=anonymous]

NASDY, I'm repeating my question because you either don't have an answer or chose to ignore it.

  You had a long illustrious management career.  What was your advice to brokers on how they should handle accounts that were not profitable and were never going to be profitable in the future?


If you accept an individual as a client you owe that individual 100% of your efforts just as if they were the biggest account in your book.

If you are so self centered that you are not prepared to give every one of your clients the best you have either drop out of the business, or be more selective in who you choose to do business with.

NASDY is right. If you choose to take someone on as a client you do owe that person your best. That gets tough when the client buys one bond from you or 100 shares of stock. As a rookie's career developes they will learn when to walk away from a prospect. Not everyone needs our service. It's not that we dislike people without money, we just can't help them. Still, there are times when a small account will have to be opened. A friend of a friend, a client's daughter, or neighbor. That person gets the full treatment, period!

 Personally, I will open a small account if I see big money on the table. I'm not going to purposely open an account where I know it's the person's last 10 grand. Even if I stuck that money in a 5.75% front load mf, over the next five or ten years, with the service work involved, it's a money loser. And that's a tough lesson to learn.


The reality is that I do have clients who do not generate the "big bucks" for me. I agree that once you take on a client, they deserve the best service warranted. That doesn't mean I give them substandard advice or that I don't meet with them or that I don't attempt to uncover other needs.  It also doesn't mean that I don't care about them.  In fact some of these clients when given time to nurture, can turn into more substantial clients.  They are loyal and even if they don't bring the "big bucks" they do refer their friends and family to me. 

I'm not in the beginning of my career, so I do have the luxury of declining clients and referring them elsewhere.  I will do so if I decide that I won't be able to get along with them for personality or investment style reasons.  I will also turn them down when it is apparent that they want to "do it themselves" and won't take my advice.  Those are Etrade accounts and they can learn2google too.  I'm not going to take an account, give them free advice and then have them implement it elsewhere.

The big reality is that a client who has a portfolio of over a million dollars comprising stocks, bonds and other equities and who frequently trades with me is going to require more of my time and take up more resources.  The client who is dealing with complicated estate and business issues is also going to be requiring more service.

The idea that everyone should pay the same amount in fees regardless of the account size or complexity, which is the premise that I was arguing against, is just ridiculous. 

You get what you pay for.  If you don't want to pay for services and for the knowledge that has taken me years and years of hard work to acquire and want to do it yourself, then have at it. Newbie/JonesConcerns and all of his other schizoid personalities contend that we don't provide a service and that anyone can do this job. 

In another thread he is ticked/ offended/ shocked shocked,  because I told him to google the information that he wanted us to hand on a silver platter to him.  Yes, I was being snide and snarkey.  Why not?  If you think this is so easy, then figure it out on your own.