Simple Susan vs. Complex Carl

Water Cooler
#41

First Meeting: Talk about the firm, my resume, then mainly about their situation - so I can understand their current situation. I just ask question after question. Learn about their current financial plan (if they have one), current experience with advisor, what are they happy with, unhappy with, expectations (investment returns, service etc.). By the end of the first meeting, I’m going to make a decision as to whether or not I want a second meeting. Ask them the same. (If you want to have the second meeting, it gives you some time to think about their situation, so you can make some additional points for the next meeting. I never like to do stuff on the fly in the meeting).

Second Meeting: Introduce the wealth planning tools I use for clients. Outline their issues and opportunities as part of a financial plan.

Third Meeting: Talk about investment management, philosophy and strategy. This concludes the discovery process. Client and myself need to decide on whether we will proceed to become a client or not.

Fourth Meeting: Complete account opening forms. Initiate wealth planning: Investments, Financial Analysis (Retirement, cash flow plan) Insurance, Tax Planning, Wealth Transfer.

The nice thing about this business is you can choose to be picky in whom you want to work with as a client (if you want). My philosophy is that when I sign up a client, they are going to be a client for life. I want clients who are going to participate, follow advice, and are nice to work with, they see value in the work we do and are going to pay for it.

If they don’t see the value in the planning, its likely because their (current) advisor never took the time to educate them about the process, or didn’t quantify the value of the benefits of the plan for them.

#42

Well, I plan to put this on a list of “Greenman’s Parables” on my website. That way people can read it if they want. Or if they ask, “Why am I paying $10k per year while my friend who referred me is only paying $3k?” I can say, “Well, not all clients have the same needs. Read “Simple Susan vs. Complex Carl” as an example.” And if people don’t read it, then…ok.

#43

Ok. So, it seems that you want the old rich folks to identify with “Complex Carl” as a reason to justify higher fees. In that case, shouldn’t you try to portray him as some kind of hero? What sort of values should this guy have, if you still choose to use this indirect comparison?

For what it is worth, all this asset manager spam I get tends to directly address the reader. For instance, “you have worked hard to get these assets”, “you need to protect your investments”, “you need to ensure your future”, and so on. So, you’ll think, oh shit, I need to think about this stuff.

By the way, I think there is a website that teaches you how to communicate with clients. Advisor’s Perspective or something. It’s made by a top business writer, executive, and humanitarian and astronaut.

#44

Jesus Christ Greenie

#45

Yes, Advisor Perspectives. I read it often. That’s where I get all my Sara Grillo material, such as “How to Throw Down on Youtube.”

#46

Good point.

The intent of the essay was to portray two people who are diametrically opposite to each other. Carl was supposed to a be disorganized, dysfunctional dumpster fire waiting to happen. Maybe it’s best that I portray him in a better light, so that it’s more attractive to the people I want to attract.

#47

BSD Busy business-owner Ben

#48

Maybe you can tell the story about a man who built a real estate empire, became a billionaire, ran for president, won, and continues to win every single day.

#49

I Liked This One

#50

None of these really speak to me.

Why is there not Rawdog Richard?

#51

crooked clinton

#52

Rawdog or nah dog

#53

yes, Greenman, take notes, one case can be about a crime family who had a criminal foundation they use to do evil, unspeakable things. They tried to take power and was defeated by a brave and smart business man and the backing of the American people and now they need retirement planning because they are finished.

#54

Aggressive all in alpha believes in the company he founded and has never sold any of his stock in facesoft which has a 10 year annualized cagr of 40%. It currently represents 100% of his net worth. he has recently been fired as ceo and has been asked to step down as chairman due to accusations from several staff members of inappropriate advances. he believes that many others at the top of the firm are at risk since it was part of the culture. he wants as much of his facesoft at current prices but he owns 50% of the company and the daily volume is only 1% of total market cap. he would like to diversify his asses in the future as well and live in a place where his asses wont be taxed. how much should we charge alpha and where should he move?

#55

Greenie: any update you want to share here? Where are you at with the owners / partners on this? Did you talk to them yet about growing the investment business? (I added these comments but for some reason it didn’t post them?)

#56

Well, Partner #2 (the one I don’t particularly get along with) kicked me in the balls about five times in the span of a week about a month ago.

He dragged me to dinner with some JP Morgan Private Banker (a.k.a. a salesman who had zero technical information, but is just a mouthpiece to get clients to the right department at JP Morgan). I told Partner #2 that I didn’t think that Mr. JP Morgan offered anything that I couldn’t. I thought that I could do just as good a job as him, except then we (collectively) could get paid if he referred business to me. Partner #2 responded with, “Well, you’ll get there eventually.” Then, within ten minutes of getting back to the office, he referred a multimillion dollar case to said JP Morgan Private Banker.

Later that week, when I asked him about it, and reminded him that I can work with BNY Mellon and get virtually the same products, except then I can get paid on them, he said, “Well, the problem is, I don’t really trust you.” (Even though he trusts me to do his tax returns and give his clients advanced tax planning advice and case design–but doesn’t trust me to rebalance a mutual fund portfolio every year.)

In that same conversation, he told me that he had negotiated three additional parking spots for our firm at our building, but that I wasn’t entitled to any of them, because I wasn’t “leadership of the firm” (even though he has told me several times that he wants to train me to be the next partner). Instead, he gave them to a high school graduate (who has been here 20 years, in all fairness), and a degreed non-CPA who was still in high school when I got my CPA license. (In and of itself, I don’t really care about the parking spot. I drive a beaten up POS. It doesn’t make sense to pay $600/yr to park a $500 car. It’s just the sentiment that I am somehow lower on the totem pole than these other people.)

Then he called me into a client meeting to ask an extremely routine question (contractor vs. employee). I told the client what I thought, and then Partner #1 says (in front of the brand new client), “Well, I don’t agree with that. I think we should do it this other way.” I almost cussed him out and walked out of his office immediately.

(to be continued–client coming in)

#57

Why do you work there?

#58

im rooting for you greenie. also how did partner 2 kick your balls 5x metaphorically? it seems partner 1 is a dick too. but just to put things to perspective.

certifications doesnt equal trust. you have to earn it imo. he could be doing it because he receives referrals from him as well, but thats just something you dont admit to.

for the parking spots, it doesnt necessarily mean he is giving to someone with value. it could be seniority in firm. it could be based on who he likes. he wont give it based on certifications, thats just silly or age of person.

finally, i wouldnt take him disagreeing with you so personally. there could be other factors, maybe more fees, maybe a way to reduce taxes further. plus as the boss, its in his discretion to determine direction. we can only advise and give an opinion when asked.

#59

Well ok then.

Remind me again, what exactly do you want? (You want to have about $XX AUM where you look after the investments, tax return prep and personal insurance business?)

#60

Sorry–it was all the same partner. I will fix the mistake.