Financial Spanking or New Ideas

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Oct 1, 2008 10:29 am

The sun has risen and the sun will set once again. After the last few days FAs and clients have been somewhat stressed and confused and yes even angry. All that being said here is an opportunity to review , rethink and open communications with your clients.

What has and is happening is a significant financial correction and it will take time to work through the system. As we were told as kids ....... you always have to pay for your actions. The economy and markets are saying exactly that.   For your review and consideration :   1) The Subprime Situation is the face of the problem BUT not the only problem that has to be corrected. 2) Review your financial planning theory and see if it applies to today, tomorrow and for next several years. Yep.......Investment Theory 101. 3) Consider the escalation of Government spending ( to wit increasing taxes ) at ALL levels of government. What does that mean to you and your client. 4) Think SIMPLE for investments. Yes , that means P & G , McDonald's , Coca Cola , Heinz , Campbell Soup or other similar companies. These are sound companies with global franchises. 5) Be prepared for more " bumps " in the road and have a plan/s to deal with those events. 6) Read about our business and past events and how they have impacted the economy , investors and the industry. 7) Look at your Product Shelf and grow areas that you have neglected. 8 ) This is IMPORTANT ....Contact your Clients to have an open dialogue about the changes we can expect over the next several years. What an opportunity to discuss Financial Planning. This is not a Sales Call but an Invitation to really understand their needs and concerns. This is what Financial Planning is really all about.  
Oct 1, 2008 11:59 am

Norway…read this from Marketwatch…
Oct 1, 2008 12:09 pm

Thanks Bspears.

Oct 1, 2008 12:19 pm

Yes, Norway, nice list . We must have both gotten through most of urgent calling list, I am cracking off some calls to the < 1k revenue clients at this point.

What are you using for financial planning? We are updating everyone's data collection - at least offering the option - before they come in, an generating some follow-up deliverables off Forefied, mainly, after the meeting. And of course, cutting costs to the bone.
Oct 1, 2008 12:33 pm

Nice link, but Suze O. says she feels the market will be down until 2015 and folks should only contribute to the level of matching in their 401ks. I wish I could profit better from this ignorance.

Oct 1, 2008 12:34 pm

[quote=bspears]Norway…read this from Marketwatch…[/quote]   OK, that's scary.  I wonder if this is really true.  Sometimes these economic theories prove to be create a theoretical pattern based on nothing more than coincidence.  I have not looked at it in detail, but if what they are suggesting is true, how do you respond to it from an investment perspective???
Oct 1, 2008 12:37 pm

I personally see a close resemblance of the 1970's coming into play and it was ugly.  If you've read Nick Murray's book..he talked highly of the 70's.  As I go along in my career, I think I'm becoming a true contrarian to the establishment.   

Oct 1, 2008 12:54 pm

The car mfg’s are coming out with September numbers…ugly…

Oct 1, 2008 12:58 pm

Bspears et al …for those of us who choose to keep abreast of a host of views of the markets ( past , present and future ) it assists us in our approach to at a minimum understanding the theory and perhaps more importantly gives us a thought process on how to deal/manage our practice. Agree or disagree with the idea/theory at least you are better able to use it in your overall planning.

Oct 1, 2008 1:03 pm

Back a few months ago I mentioned I was reviewing the Asian Tigers and the impact their implosion caused to the Global Markets. The point was to review actions that were similar and disimilar to tho the current situation. I was watching Glen Beck the other night and he was interviewing some " Financial Experts " …both he and the guests were commenting on how the Asians are bigger savers , more prudent investors etc…I nearly bust a gut listening. Obviously either they don’t remember or are ignorant ( as in not aware ) of that part of financial market history.