Asset Allocation
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Yea, based on your explanation it did seem as though you hadn't profiled. Do you really want this guy as a client? He is going to call you every time the market drops 10 points and tell you he could do better.
"It sounds like you're a terrific investment manager, Mr. Big. Tell me, what is your exit strategy when it comes time to start spending the wealth you've created?" You did not establish a problem - it's a problem in your head, but not in his. Ask him about his exit strategy and he'll have no clue what you're talking about. Then refer them to me - I'll be sure to make it worth your while.I did establish a problem. The guy thinks he can consistently jump in and out of the market at the right times. I was explaining to him why my firm and I believe in allocating assets across different investments classes and holding on to them for the long term. The entire first 30 minutes he was patting himself on the back about his market timing, I then counter with a philosophy that will serve him better over time. I see where you guys are coming from because the way I explained the situation made it seem like I didn’t do any profiling. That wasn’t the case.
Exit strategy won't be a problem for this guy because he will not make it that far. He doesn't think he has to have a strategy or a plan because he has money and will just "react to what he sees" to manage it. You can have him. He will burn himself up long before he starts to exit.
[quote=Ron 14]Newguy - As the appointment progressed I was able to uncover their goals and purpose and horizon. They were willing to answer every question I had from that standpoint. The problem was this guy just thought his market timing and investment picks were superior and he based that fact on his recent history. It was almost like he was just using me for the financial planning software to get some projections on when he could retire.
3rdyrp2 - The wife (who was real hot btw) was annoyed by his arrogance and actually told him to "hold on let him finish" when he interrupted me a few times. It is quite possible that Mrs. doesn't trust Mr. and was seeking out a professional and had to actually talk him into doing it. Not the basis for a great relationship moving forward so I guess I shouldn't really concern myself with the results. [/quote]Don't talk yourself out of what sounds like a good appointment in many ways. They answered your questions, you got them thinking about big picture things (maybe even for the first time. We ask these 'goals' questions all the time so they're old hat, but some people never consider anything past the weekend.) I think you have the marriage dynamic figured out. I would add that if the wife is as 'hot' as you say, she will get her way on this. I would blow smoke at him and then ask her to take action. ... Some of the responses in here seem designed to put the guy on the spot or make him appear foolish -- not a great way to advance the relationship, imo. And since you said they did some business or at least opened an account, that means you can get to know them further. Sometimes people surprise you in a good way.
It will be interesting to see how it plays out. She definitely has some pull because she initiated the entire meeting so hopefully Mr. Guru will increasingly move himself to the side.
[quote=Ron 14]
It will be interesting to see how it plays out. She definitely has some pull because she initiated the entire meeting so hopefully Mr. Guru will increasingly move himself to the side.
[/quote] Go find another prospect, Hack.JMO but if you’ll read the papers by T. Odean (of UC Davis and Berkley) you’ll see the reality that is our business. Men want to gamble and use their investment portfolios to prove their masculinity. When he outperforms the market it is HIS genius and when he underperforms it will be your fault.
Women on the other hand want to work with a professional and utilize the tools we have to develop a long term plan that reduces risk. In your situation it appears the wife is uncomfortable with the husbands actions and has seeked your advice. JMO but I would try and deal with her and build the relationship through her. The husband will take his play money to a discount broker and you’ll get the serious money.