Put Investing in Terms That Clients Can Understand

Put Investing in Terms That Clients Can Understand

Everyone knows that cars go down in value. That’s just the way it is. No matter what you pay for a car, and no matter how carefully you look after it, it’s going to be worth a lot less than you paid for it. It’s never going to bounce back in value, but car owners are okay with that. They are pre-conditioned to the loss. However, clients don’t see their investments this way. They think investments are only supposed to go one way – up. When investments go down, clients feel they have lost money, even if they have not sold out. They will take a hard loss on a car and not bat an eye, yet they can’t stomach a paper loss in their portfolios.

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Remind Your Clients Investing Is a Marathon

Remind Your Clients Investing Is a Marathon

Despite regular and sometimes frightening dips markets continue to rise incrementally over time, continually setting new highs. The problem is that many clients disbelieve this; they panic when the market temporarily falls. As their financial advisor, it’s your job to keep them on track.

You need to get them over their short-termism and make them see that their focus should be on 20, 30 or 40 years from now – not on this afternoon or next week.

Use all the tactics at your disposal to illustrate that investing is a marathon not a sprint.

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5 Tactics to Get Prospects off The Fence

5 Tactics to Get Prospects off The Fence

Breaking a prospect’s apathy is difficult.

Telling someone to invest or think long term is like telling someone to be patient. And telling someone to be patient simply doesn’t work. Instead you need to ‘teach’ prospects what long term investing really means. Use stories and analogies to stir emotions, curb their impatience and give them reasons to invest. Here are five ways you can do that and help prospects get off the fence.

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How to Get Prospects Off The Fence

How to Get Prospects Off The Fence

When a prospect turns around and says he or she needs to think things over they’re likely basing their indecision on fear or laziness. Maybe they’re fearful about the shaky economy, distrustful about paying you a fee, or just simply don’t want to leave their comfort zone. All their ‘reasons’, however, are based on emotion – and to break this inertia, you need to use techniques that will motivate them to act.

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Creating Urgency with Prospects

Creating Urgency with Prospects

I can recall few times in my career when business has been as slow as it has been recently. Perhaps the slowdown is due to the fast approaching year-end. Certainly, the pending Presidential election has a lot to do with it, as does the recent DOL running. Clients and Advisors alike have adopted a wait-and-see attitude. But there also are more traditional reasons at work.

People don’t enjoy the prospect of saving for a rainy day. There’s always a reason to delay investing, and never a ‘right’ time to make the move.

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What If Clients’ Sentimental Equity Holding Doesn’t Match Their Risk Tolerance?

Don Connelly audio blog post

Today I’d like to share with you an email I received a while ago from Mike at Edward Jones. ¨What is the best way for an FA to approach a client about an equity holding that has sentimental value to the client but does not fit their risk tolerance? I have a 75-year old widow with over 50% of her net worth in Disney stock. I also have a widow who inherited her husband’s IRA at another firm. She had no idea what was in it, it was with an advisor she doesn’t know. Turns out it is 60% in aggressive investments, but she still wants to keep it there. Help.¨Listen to Don’s answer or read the transcript.

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Three Must-read Success Stories for Financial Advisors

Three Must-read Success Stories for Financial Advisors

As a financial advisor you need to work flat out on building your business. But it also pays to take the time to stand back and find inspiration from the best in the business. By understanding what helped some top pros rise to the top of their profession you can gain valuable pointers to motivate you both personally and professionally. Here’s a brief introduction to three professionals you should have on your radar.

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Investing in a Bull Market

Am I oversimplifying things? - AskDON episode

This is an AskDON audio episode where Don Connelly answers Larry’s question about investing. Larry is from Texas, he’s been in the business eleven years and he is managing just a shade under $100 million.

Larry’s question was:

“The market’s been up four years, without a correction. What do you say when people comment that maybe the market’s too high?”

Click the play button to listen to Don’s answer or read the transcript below.

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How to Explain to Prospects They Should Invest Now

How to Explain to Your Prospect They Should Invest Now

As you know better than I, clients are always looking for a more convenient time to invest. There’s always something to do – like buy a new car, redo the home, whatever it is.

The time to invest is now – we can’t put it off.

* This podcast originally appeared on Don Connelly 24/7. Click the play button or read the transcript below.

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