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Jun 17, 2009 8:33 pm
wind3574:

Yes thanks BondGuy. The problem though, is that he argued with me that Vanguard is all managed funds. When I mentioned that the expense is cut by riding of the money managers, he told me I was wrong and i needed to get my facts straight lol. According to him, all Vanguard funds are managed just as well as any other firm.

  Simple answer then....bye...next prospect!   btw...great post bondguy!
Jun 17, 2009 8:46 pm

Thank you Bondguy.

Jun 17, 2009 8:53 pm

Another point to consider:  Vanguard has ETFs…if he is sold on the brand, you could use them in a commission based account and just explain that the expense rations are nil (9 bps on VTI for example) and the commission is how you get paid for allocation work, etc.

Jun 17, 2009 9:03 pm

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Jun 17, 2009 9:06 pm

Why fight him on it.  Just put him in a fee based account and let him have his Vanguard funds. 

Jun 17, 2009 9:07 pm

[quote=wind3574][quote=Hey Kool-Aid] 

Simple answer then....bye...next prospect!  [/quote]   He is a client, not a prospect.[/quote]   Wrong.  He's a customer.  One doesn't fight with clients.
Jun 17, 2009 9:11 pm

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Jun 17, 2009 9:13 pm

[quote=wind3574]I have a client who is absolutely un-ruly. Likes to argue about anything. Today, he was arguing with me that Vanguard was the best thing since sliced bread. I however wasn’t saying anything back, so it was almost like he was arguing to himself. Anyway, does anyone know of a website or somewhere that I can get literature showing Vanguard funds vs. Traditionally managed funds like American Funds, Lord Abbett or whatever. I don’t care what fund, I just want some sort of literature to compare the performance.[/quote]

Show him how index annuities have no expenses and would have outperformed his stupid mutual funds over the last decade. If he says no, fire him. Then, fire yourself for arguing with an idiot.

Jun 17, 2009 9:17 pm

Wind,

  I know you don't have fee based at Eddy J.  I was just inappropriately playing with the Ed J model.  One small advantage of being outside of Jones is that you can have access to Vanguard in a fee based account.   In my experience you will never win over this client in the short term.  See if he'll let you prove it to him.  Ask him if he'll put some money into what you are recommending and then over the next 5 years you can review performance and YOUR value.  If you do your job he MIGHT eventually see the light.   Good Luck with this one, these are some of the most frustrating clients to deal with. 
Jun 17, 2009 9:19 pm

[quote=wind3574]I don’t fight with anyone. He was trying to start a fight over a comment i made. Thats all. We can’t put him in a fee based account at EDJ, except for advisory solutions, but the problem is getting him to see the value in an actual advisor. If he wasn’t already a client, i’d quit awhile back.[/quote]


There is no value in an advisor. You failed to figure out what he wants to buy and then sell it to him. He doesn’t want to pay you for advice and he doesn’t like to pay fees. A good index annuity would be an easy sale.

Jun 17, 2009 9:20 pm

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Jun 17, 2009 10:37 pm

[quote=wind3574]I don’t fight with anyone. He was trying to start a fight over a comment i made. Thats all. We can’t put him in a fee based account at EDJ, except for advisory solutions, but the problem is getting him to see the value in an actual advisor. If he wasn’t already a client, i’d quit awhile back.[/quote]

Why do you consider him a client if he does not see the value of you as an advisor, just a guy that sells bonds? 

Advisory solutions with an ETF model and you reducing the fee by 25bps is probably the lowest cost thing we could do for this guy.  You of course already know that.

Jun 18, 2009 11:07 am

Wind, he isn't a client.  He's a customer.  You have to recognize the difference.  Why should he pay more to work with you if he doesn't see value?  Do you believe that he will do better if he works with you?

Jun 18, 2009 1:43 pm

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Jun 18, 2009 1:49 pm

[quote=wind3574]The guy is truly a nice fellow in general, but for some reason when i make any sort of comment about investments, he thinks he knows more than me. I think there is just some sort of guard up, that I have to get through. He’s already told me to call him with more Muni bonds. I think there is some more business with this guy, I just gotta get that guard down…Thats the only reason i ask.[/quote]

He probably DOES know more than you. One thing for sure…he knows more about what HE WANTS than you do. You’ve proven THAT to him.

Jun 18, 2009 2:11 pm

Slap !!!!!!

Jun 18, 2009 2:37 pm

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Jun 18, 2009 2:59 pm
voltmoie:

[quote=wind3574]I don’t fight with anyone. He was trying to start a fight over a comment i made. Thats all. We can’t put him in a fee based account at EDJ, except for advisory solutions, but the problem is getting him to see the value in an actual advisor. If he wasn’t already a client, i’d quit awhile back.[/quote]

Why do you consider him a client if he does not see the value of you as an advisor, just a guy that sells bonds? 

  Client = Someone who pays for your service, asks you what they should invest in, you say "muni bonds" and they buy.   Customer = Someone who wants to buy muni bonds, looks up who sells them, walks in and buys muni bonds.   Wind, when you went to Best Buy to purchase your 17" Magnavox TV.  Did you go in there to buy a TV, or did you ask the salesman what the most affordable item in the store is for a newbie EDJ rep?  Here's a scenario, you are the lead character:   Wind: I'd like to buy a TV but I only have $200, can I get that one right there? (Points to 17" Magnavox) Salesman: Absolutely.  Let me go into the back and grab the box for you. Wind: Thanks, I'm glad I came here to purchase a TV and you were kind enough to have what I wanted. Salesman: Your welcome.  As a matter of fact, do you also store perishable food in your house? Wind: As a matter of fact, yes. Salesman: Great, well we have a new stock of Kenmore Refrigerators in the fridge aisle.  I guarantee that this item will be an upgrade from your current fridge. Wind: Thats ok, I like my fridge.  Salesman:  I can appreciate that, but this one not only dispenses ice and water out of the door, but also ORANGE JUICE! Wind: Thats ok, I like my fridge.  I'm allergic to oranges anyways. Salesman: I can appreciate that, but this one has a lifetime warranty and will never break down. Wind: Thats ok, I like my fridge.  (Takes TV and goes to register to pay)   (Meanwhile, Salesman walks to back to discuss recent sale with buddy co-worker)   Salesman: I have a client that just bought a TV from me, how do you suggest I go about getting him to purchase a fridge as well? Buddy: Does he want to buy a fridge from you? Salesman: No, he just came in here for a TV and said he's happy with the fridge he has. Buddy: Ok...well maybe he's just happy with his fridge. Salesman: But our fridge is much better!  I need to find a way to get him to take his guard down. Buddy: Take his guard down?  Maybe he just doesn't want to buy a f***ing fridge.     See the correlation?
Jun 18, 2009 3:25 pm

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Jun 18, 2009 4:51 pm
wind3574:

lol…Not really because i haven’t asked him to buy anything else, so the second half of your senario could be erased. I’m just talking in mid conversation, we could be talking about nothing that is particular to him… He’s just a know it all. I’m just trying to find a way to bring down the wall he has. You are acting like i don’t understand your definition of a customer and a client. I understand that.

  You have made it clear you DON'T know the difference between client and customer.  If you would STFU for a bit and actually read what Alice is writing, you'd understand that he's spot on.    Clients don't argue, put up walls or are unreceptive.  Clients listen and are open minded to many kinds of ideas.  The question is, do you want to make this guy a client?  Just because he has money to invest doesn't mean he is an ideal client.  Personally, I think the less you argue/sell/persuade this guy, the better off you'll be.  You'll find out pretty quickly if he is willing to make a jump to 'client' status.  Right now, it sounds like you're coming off as a bit too eager.