How a Plan Cemented a Client Relationship
One of the best things about being independent is the freedom to create the type of client-focused practice you can feel good about. Another benefit is the correlation between the effort you put forth and the rewards you receive, both monetarily and otherwise. This week I had a very positive experience with a somewhat wealthy client that I’d like to share.
This client first engaged me in July 2008 to create a comprehensive financial plan. When the markets took a nosedive in the fourth quarter of last year, we felt another look was in order. So in January 2009 we revised the plan. We also got together and revised it a few weeks ago which I presented to him last week.
Up to this point, I was not managing any of his money. Because of his confidence in the unique analysis contained in the financial plan, and in the advice I have rendered thus far, he has now placed some of his financial assets under my purview. What made the difference?
It has been my experience that the more wealthy the client, the more complex the situation. Moreover, the more complex the situation, the more they need someone to design a well-crafted comprehensive plan.
Most people long for simplification. They also long for someone—a sort of knight in shining armor—who can be trusted and who will “pull everything together” and simplify their life. That’s the position for which I apply. If you do an especially good job for the client, the client will assume you would do a good job for others. That is where the genesis of referrals originates: in the mind of a highly satisfied client.
That is just one more reason why I am so adamant about treating the client right and doing the very best job I can. That is also why I am glad I chose to become a registered investment advisor. As an RIA, I am subject to a fiduciary standard that is the very best proposition for the client, in my view. It’s really no different from the Golden Rule which says, “Do unto others as you would have them do unto you.”
So as you conduct business, remember to put the interests of the client first, and with perseverance, you will enjoy a successful, rewarding business life.
As always, I look forward to hearing your thoughts on these postings.
What did you charge for the plan?
What planning software do you use?
exactly!! Putting the customer or client first is the mantra for any business and not many people do that. Their interest comes first and the product they sell or recommend over shadows the client situation or interest.
I agree with you 100%
I too would like to know what planning software you use. How did the prospect let you do a comprehensive financial plan without having any of his investible assets?
As an escapee from 28 years with a “wirehouse” my most critical “independent” need is advice on what planning software to use. Can anyone e-mail their opinions on this? I don’t need a 200 page report. 20-50 will do. glennwleboeuf@msn.com Thanks folks!!
Take a look at Money Guide Pro.com , easy to use ,graphic’ s that make sense and the have an excellent risk profile tool.
Ed, Preston, and Glenn,
What did I charge for the plan?
The plan was a revision and I charged $1,200 (this can vary depending on the complexity). If the client has assets with me, I deduct the fee quarterly ($300 per Q). If the client has no assets with me then I would bill the lump sum amount.
What software do I use?
I use MS Excel with an add on called Crystal Ball. CB adds MCS and optimization. I built it so it’s not publicly available (at least at this time).
How did I do a plan on a client with no assets with me?
The RIA business model is on of advice. Therefore, if the client has some wealth and can afford my fee, then I will do a plan for them. I view the planning process in part as a way to establish me as the only advisor who has a complete picture of a clients situation. Good for me and good for the client!
Money Guide Pro is a good program IF you don’t need estate planning in a Community Property state. Last I checked, you could not title retirement plans, annuities, or life insurance (anything with a bene designation) as community property. Other than that, I like it. I almost subscribed.