Did you try to do this before you had a relationship with him?  I ask because depending on the situation, his actions may be very understandable if we look at it through his eyes.  This is one way that he might view the situation:

He did business with someone in your firm.  He paid commissions/fees.  Another person from the firm gives him a call (The Judge) and reviews his accounts and says that it's not as good as it should be and recommends changes which will result in him paying more fees/commissions to a firm that didn't give him good advice in the first place.

He may have loved your advice, but simply wasn't willing to pay you  to fix problems that were caused by a colleague's bad advice. 

[quote=The Judge]

I recently inherited an account; about 100k with a bunch of different individual stocks. No cohesive strategy, sub-par performance,etc.  I call the client a month ago to introduce myself and review the account.  Answered a bunch of questions for him regarding estate planning as well.  Call him a week later with some recommendations.  Replies that he wants to think about it and we'll get back to me.  Yesterday I get the ACAT from the discount firm he is transferring to (guess he didn't like my reco's).

Now the client can do whatever he wants with his $.  Still, I was a little perturbed that I spent some time with him, helped him out, and he didn't even have the decency to inform me that he wanted to transfer out and do his own thing. Called him yesterday and lm regarding the transfer notice. Mentioned that this might be a liquidate/transfer request and do you really want me to liquidate and incur all of these realized gains? Obviously that caused him to call me back as he would not have otherwise.  Had some fun with him, and very tactfully made him feel like a piker.  Good riddance.

[/quote]

I suggest that there are going to be millions of people like him.  "The Folks" are not going to be receptive to paying mutual fund managers to manage the money and some middle man to........well, to do........well, to do.........

The investor will swallow an advisor pillaging his account if the account is showing good growth--but if things turn south the investors will be quick to pull their accounts.

The concept of ongoing fees and trails is still relatively new in Wall Street, the proof of the pudding will not happen until there is a protracted decline--several years of sitting down with the clients say, "Well, last year was not good either.  Your portfolio lost 12% again this year......."

You're delusional if you think that Mr. and Mrs. America are going to tell each other, "Oh well, 12% is not that much."  They're going to say, "I wonder if that fool knows how much 12% of what our account totals?"

Or, "Martha, we lost $105,397 and all that idiot said was, 'Earnings always go up so the market will go up again,' we've got to get our money out before it's all gone!"

Or, "I think we transfer our account to TD Waterhouse/Ameritrade and just hold onto some good mutual funds.  The results could not be any worse that we've been getting for the last several years."

Or, "It's too important that we hold on to what we have.  I think we should sell everything and buy CDs.  The market is just too dangerous for people as old as we are."

You have to spend every day assuming that tomorrow your entire book of business ACATs out of your control.

[quote=The Judge]

I recently inherited an account; about 100k with a bunch of different individual stocks. No cohesive strategy, sub-par performance,etc.  I call the client a month ago to introduce myself and review the account.  Answered a bunch of questions for him regarding estate planning as well.  Call him a week later with some recommendations.  Replies that he wants to think about it and we'll get back to me.  Yesterday I get the ACAT from the discount firm he is transferring to (guess he didn't like my reco's).

Now the client can do whatever he wants with his $.  Still, I was a little perturbed that I spent some time with him, helped him out, and he didn't even have the decency to inform me that he wanted to transfer out and do his own thing. Called him yesterday and lm regarding the transfer notice. Mentioned that this might be a liquidate/transfer request and do you really want me to liquidate and incur all of these realized gains? Obviously that caused him to call me back as he would not have otherwise.  Had some fun with him, and very tactfully made him feel like a piker.  Good riddance.

[/quote]

Why did you pass up the opportunity to do some gross on the liquidate/transfer?

Judge,

Don't lose track of this client and be sure to keep your notes on your previous discussions with this departing client. Why?

Chances are, this person is going to royally screw up their investments and (if you've maintained periodic, constructive contacts with this person) you will be the first person they think of, when they finally decide to let a professional handle their investments, again.

Think of this person simply as a prospect and pursue them, as such. Trust me, when it comes to human nature and investing, they'll be back. 

Good Luck!

[quote=doberman]

Judge,

Don't lose track of this client and be sure to keep your notes on your previous discussions with this departing client. Why?

Chances are, this person is going to royally screw up their investments and (if you've maintained periodic, constructive contacts with this person) you will be the first person they think of, when they finally decide to let a professional handle their investments, again.

Think of this person simply as a prospect and pursue them, as such. Trust me, when it comes to human nature and investing, they'll be back. 

Good Luck!

[/quote]

I doubt it.

[quote=Helter Skelter][quote=doberman]

Judge,

Don't lose track of this client and be sure to keep your notes on your previous discussions with this departing client. Why?

Chances are, this person is going to royally screw up their investments and (if you've maintained periodic, constructive contacts with this person) you will be the first person they think of, when they finally decide to let a professional handle their investments, again.

Think of this person simply as a prospect and pursue them, as such. Trust me, when it comes to human nature and investing, they'll be back. 

Good Luck!

[/quote]

I doubt it.

[/quote]

I do too.  If somebody takes some pretty big losses they are going to be "ashamed" to go back to the guy who warned them or who they ignored.

Plus I think that they are even less likely to seek help, instead they will simply stop trying to be stock pickers and let somebody do it for them--like T. Rowe Price.

yep got my first ACAT in 5 years.... put that in your pipe and smoke it!<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Thought of jumping of the roof lol, don’t get me wrong I have had people move away, lose their job, die, etc I don't consider them a true ACAT.

It was a text book fowl up client money hit the books 2ond week of May and we lost about 6 % ….90 days later…. no call and vavoom  here is the kicker portfolio performance shows he gained it all back plus 2% by the time the funds got moved….to an annuity.

Nice

Fowl up?  Is that something the cook yells when he's dumped a new load of breasts and wings for the counter staff to sell?

If you have a client leave you, you were not doing your job of keeping them informed and talking about what is happening.

Among the most difficult taks of an advisor is to talk to the client when things are not going well.

They leave because they feel alone.

[quote=BabyFat]

yep got my first ACAT in 5 years.... put that in your pipe and smoke it!<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Thought of jumping of the roof lol, don’t get me wrong I have had people move away, lose their job, die, etc I don't consider them a true ACAT.

It was a text book fowl up client money hit the books 2ond week of May and we lost about 6 % ….90 days later…. no call and vavoom  here is the kicker portfolio performance shows he gained it all back plus 2% by the time the funds got moved….to an annuity.

Nice

[/quote]

That's why I LOVE annuities.

Among the most difficult taks of an advisor is to talk to the client when things are not going well.

They leave because they feel alone.

[quote=bankrep1]

Yesterday I had a client come in and ask about being more aggressive, I told him if he was happy with 8% a year the portfolio he is in will get him there....

[/quote]

If you make a statement like, "...happy with 8% a year...." you are a liar and should be drummed out of the business.

Have you never heard that you cannot make statements like that?

Oh wait, I know.  You're the guy with the line that goes, "Earnings always go up so the stock market will always go up."

[QUOTE]

If you make a statement like, "...happy with 8% a year...." you are a liar
and should be drummed out of the business.

Have you never heard that you cannot make statements like that?

Oh wait, I know. You're the guy with the line that goes, "Earnings always
go up so the stock market will always go up."

[/quote]

"The blame has to fall on those who are fleeced" KWS

Newbie why are you always avoiding questions that might cause you to think? When the call an expert witness they call people liike me not you