/ by Don Connelly / Investing Wisdom / 0 comments
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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Explaining the Nature of the Relationship (Acapulco Cliff Divers Analogy)
/ by Don Connelly / Managing the Relationship / 0 comments
“Mr. and Mrs. Client, I want to give you a word of caution in the event we experience volatility and turbulence. Investing money can and often does feel counterintuitive. There will be times when I urge you to add money to your account when the market is going down. That’s not going to feel right to you even though that’s exactly the time we should be adding to your account. It’s important that you understand why I would do that. May I tell you a story?
Watch this video or read the transcript below, adapted from the video, to learn a great story and analogy to help cement the relationship with a client.
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The Clock: A Great Sales Idea to Overcome Irrational Pessimism
/ by Don Connelly / Investing Wisdom, Storytelling, analogies and power phrases / 0 comments
You may have heard me talk before about my good friend and successful Advisor, Mark Dick. He once said to me that ‘dividends are tangible evidence that good companies don’t use smoke and mirrors because dividend checks don’t bounce.’ That is a strong power phrase that gave me a great sales idea.
Listen to the audio episode or read the transcript below to learn what the clock sales idea and how to use it.
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Remind Your Clients Investing Is a Marathon
/ by Don Connelly / Investing Wisdom / 0 comments
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.
Read more
You Have to Take Risks to Reach Your Goals
/ by Don Connelly / Investing Wisdom, Storytelling, analogies and power phrases / 0 comments
Here’s a Mr. and Mrs. Client story to help you explain to prospects and clients why taking risks is necessary.
Mr. and Mrs. Client, I know you know what to do. Let me show you how to do it.
You can watch the video or read the transcript, if you prefer.
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What If Clients’ Sentimental Equity Holding Doesn’t Match Their Risk Tolerance?
/ by Don Connelly / Investing Wisdom, Managing the Relationship / 0 comments
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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Investing, Self-awareness and Tolerance to Risk
/ by Don Connelly / Investing Wisdom / 0 comments
Before you can embark on any financial plan on behalf of a client it’s essential that you understand their tolerance for risk. You must also know what their goals are, ensure they are achievable and keep them committed to the plan for the long term.
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3 Analogies on Long-Term Investing to Use with Clients
/ by Don Connelly / Investing Wisdom, Storytelling, analogies and power phrases / 0 comments
Today, I’d like to talk about the long term. You know that I like visuals; I like props; I like things that talk in mom-and-dad language. So I’ll share three analogies you can use with prospects and clients to help them commit to the long-term nature of investing.
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Don’t Replace Your Good Furniture – Analogy
/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
We’ve said time and time again that people love analogies and stories. If you become a great storyteller, you’re gonna hit the ball right out of the park every single day in this business.
Listen to Don’s audio post with the furniture analogy or read the transcript below.
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Investing in a Bull Market
/ by Don Connelly / Investing Wisdom / 0 comments
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 Asking Yourself WHY Would Help You Be a Better Advisor
/ by Don Connelly / Best Practices / 0 comments
Asking ‘why ‘can greatly increase your understanding of yourself and of those around you, both of which will make you a better advisor. Asking ‘why’ your clients do business with you can make the referral process easier. Asking ‘why’ can help motivate your clients into investing for their future. Asking ‘why’ you became a financial advisor can help you re-energize your career.
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