If you really cared about your clients…You would send them to me.

What’s your definition of a “small account?”  Just curious

We were on the other end of one.  I met with a referral and they had large accounts at MS. 

I asked if they were happy, they said yes. 

I asked how often they talk/see their advisor and they said talk every month, visit ever 3 months or so. 

I asked if the performance was there, and it was. 



I made a pitch, as hollow as it seemed given the circumstances, and
they said they would “give it some thought”.  Two weeks later they
called me and said they would like to transfer.  I transferred the
accounts and then asked them the reason for transferring.  They
told me because MS could not get a monthly IRA check electronically
deposited to their checking correctly- after 3 months of errors. 
Ahhh- the value of a good Assisant, and a testimony to the value of
service.

Malcolm-

I recently had a similar issue.  Married couple, never had any kids, early 50s, both have good jobs.  Bumping up against not being Roth eligible, but yet did not contribute to Roths last year.  One of their accounts has Mutual Discovery, Cap. Wld G&I, Delaware Emerging Markets, Goldman Mid-Value, and Lord Abbett Small Blend.  I swear to God I'm not making this up.  Account was up 31% trailing 12, and I just got my ass chewed out because they are "losing ground to real estate prices."  I told them no more meetings in my office until they start contributing to accounts again.  They haven't transferred yet, haven't called back since the meeting, and haven't returned the documents to add to their accounts on a monthly basis.  What do you think?

Soothsayer,

You might suggest using a small percentage of their total assets to invest in real estate, as part of a broader diversification plan. (The real reason for this suggestion is to whet their "real estate speculation" appetite without putting their entire portfolio at risk. Kind of like taking $500 to Vegas for gambling instead of your life's savings.)

Personally, I think the real estate market is near its peak. If I'm right and the real estate portion of their savings drops, you'll be the hero for preventing a total portfolio meltdown. 

These kinds of clients are like having adult children. They're too old to take your advice and/or discipline; so sometimes, you just have to let them get burned to learn the lesson. Just be there for them, when they return to you wiser but poorer.

rightway: We were on the other end of one.  I met with a referral and they had large accounts at MS. 
I asked if they were happy, they said yes. 
I asked how often they talk/see their advisor and they said talk every month, visit ever 3 months or so. 
I asked if the performance was there, and it was. 

I made a pitch, as hollow as it seemed given the circumstances, and they said they would "give it some thought".  Two weeks later they called me and said they would like to transfer. 

------------------------------------------

That was beautiful rightway! No tight-lipped prospect is going to spill their guts to you about all their problems. Just assume that they're unhappy with their current broker and give it your best shot! Cover the most likely problems they're having with their current broker, present solutions, and hope for the best.

Feel better Malcolm?

I’ve learned that I am going to get blamed for the results, good or bad. I’m OK with that as long as clients did wht I told them.



Right after 9-11 I got on the phone and told clients that had cash that when the markets opened on Monday, that “tuna was going to be on sale” and we should buy something. “What”, he said and I said the airlines are going to be cheap. So, he bought Delta, American, and United. Within a few weeks Delta and American made a decent 15-25% profit and we sold them. United at the time was the worst off and while he was profitable, he wanted to hold on to "make more."



I told him that isn’t how it works…sell this thing now while you can and get out with your 4% profit in 3 months and put your money to work somewhere less risky. Well, when we would talk over time he would gripe about United and I would remind him of what we discussed blah blah blah. It really sort of turned into a sore spot and while he kept his account with me, we didn’t really have a solid relationship after that. Who do you think he was mad at?   



It was a great lesson. Now when I talk to prospects I talk about what I do and sometimes I tell this story. I tell them that If they are going to work with me, they are going trust my professional opinion… I have passed on some accounts since then and I know I’ve saved some grief because of it.



Life is full of learning.