Back on the Phone
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[quote=AllREIT][quote=drewski803]Hey AllREIT, I understand your points but I don’t think the same investors would be continually buying closed-ends at the IPO if they didn’t feel they were receiving a benefit for it. [QUOTE]
They buy them because their "advisor" recomends them, and doesn't explain the downside risks. Anyone who is knowledgeable about CEF's would never buy them at IPO.
[QUOTE]I, too, have reservations about those "high yield" equity CEFs, but really just because I'd bet 25% of the people who own them were sold them without fully understanding the risks involved.[/quote]
I think they are dumb since the various strategies are going to erode NAV(income potential) and thus the dividend will eventually be cut. Between the two issues, I think its stupid to own them.
The options overlay results in gradual NAV erosion and puts a downward ratchet on fund NAV.
[/quote]
Hey Asshole, you criticize everything that everyone does. What is it that YOU do? Are you in that Garret Planning Network? Be honest. What do you DO?
If you are looking to offer high yield Investments to prospects, you might try looking at High Yield Investing Newsletter. I have been a subscriber since 2006.
Out of all the ideas they currently have in their portfolio , I have used three and they have done pretty good. They currently yield around seven to nine percent.
I have also used Bryan Perrys service . He calls it the 25% Cash Machine. I have found that prospects are more interested in hearing about things than the usual blue chip stock /mutual fund that gets pitched all the time.
Just do your own homework on the company and go from there .
BTW ,
Please insert "other" between the words things and than in paragraph two.
Sorry I just woke up a half hour ago!!!
[quote=blarmston]
As long as you disclose that typically CEF IPO's trade down about 6 months or so after the first trading day, I dont see a huge problem there... I have been pitching high-dividend paying CEF's to some prospects, and they dont mind the decline in NAV because they know the yield is upwards of 10%.
As these are long-term investments, I position it as this. "Typically the share price will appreciate in the next coming months. Once the demand for this idea begins to tail off, you may see some decline in value on paper. The good thing is you continue to receive the div. yield and any appreciation in the first year is a bonus."
I look for CEF companies that historically have funds that have stood up well in the secondary markets. Alpine comes to mind, as well as a couple from Eaton Vance and so on...
[/quote]
I've been calling on CEFs for a little bit now and basically have come up with this:
"Hello, Mr. Prospect, this is Snaggletooth with XYZ in Po Dunk. Given the recent sell off in the market as I'm sure you're aware, we're finding opportunities which are at a substantial discount right now yielding north of 10.5%. How would that kind of yield fit into your portfolio?
Then I just see where it goes. I might ask if their current broker is calling them with tactical strategies or not. I tell them about the qualified dividend income to find out where they be in terms of tax bracket and throw in the possibility of long term capital appreciation.
Any suggestions from those of you pitching yield right now as a way to at least get money in your client's pockets? What would be the best way to pitch a CEF?
Myself and another FA just landed an 8 million dollar account off of a cold
call.
It does work people. Just keep dialing. If you know someone has a lot of
money differentiate yourself by leaving messages after hours:
10:00 p.m. Monday -three days after the first brutal rejection:
“Mr. Smith this is Dirty Delta down at Hook & Cook Securities. Today the
market lost about 250 points and I am still in the office finishing up for
the day. We have got to discuss this volatility. I will reach you later this
week”
Thursday morning 5:45a.m- the following week:
“This is Dirty Delta. The market has gained some of its momentum back.
Rates are stable but I think we are going to see more movement in the
next three days. I will call next week”
From this point, if you have called him enough you know when he will be
at his desk. Call him and don’t hang up until he says yes….
DirtyDelta
[quote=DirtyDeltaBro]Myself and another FA just landed an 8 million dollar account off of a cold
call.
It does work people. Just keep dialing. If you know someone has a lot of
money differentiate yourself by leaving messages after hours:
10:00 p.m. Monday -three days after the first brutal rejection:
“Mr. Smith this is Dirty Delta down at Hook & Cook Securities. Today the
market lost about 250 points and I am still in the office finishing up for
the day. We have got to discuss this volatility. I will reach you later this
week”
Thursday morning 5:45a.m- the following week:
“This is Dirty Delta. The market has gained some of its momentum back.
Rates are stable but I think we are going to see more movement in the
next three days. I will call next week”
From this point, if you have called him enough you know when he will be
at his desk. Call him and don’t hang up until he says yes….
DirtyDelta
[/quote]
Hey Dirty D, just for inspirational purposes, how long were you prospecting this guy for? What, besides your willingness to call at extreme hours, was his motivation for moving his accounts? I can't imagine anyone neglecting $8MM accounts, so was it performance related? I always appreciate a good story that makes me want to dial more...
The idea behind calling at extreme hours is that is shows a strong work
ethic. Think about it. This guy sits down at his desk, cordially starts
sipping coffee and listens to his messages. He hears me calling at 5 a.m.
He thinks one of two things:
A. This guy is nuts.
B. This guy has an exceptional work ethic.
Either way you have his attention.
Granted I did not land the first appointment after leaving three
messages- l failed to mention there were a series of short conversations
and hang ups. Overall, chances are he is going to go with option B.
When the prospect was starting his small business, as a rookie, he
worked ungodly hours. He will totally identify with that. If he admits to
remembering the grueling hours you can leverage that fact to land the
appointment. When you are actually in the door you have tune the
aggressive switch from a 10 down to a 1.
I started calling on this account in November of 06 and paperwork was
signed in June 07. We sold him on alternative investments.
DirtyDelta
[quote=Analyst]
Prospecting really does seem like meeting women, and Bobby Hull's approach reminds me of advice my brother gave me when I had about a 0.00 batting average with them (okay, it was exactly a 0.00 average, there was no about involved).
He said not to be an a**hole when talking to women, but contrary to popular belief, it's about overconfidence, not just confidence.
When I took his advice my average went way up.
I still remember when he gained about 40 lbs one year, and wasn't looking his best, and still met this beautiful girl when we went out. I also remember one of the ridiculous things he said to her, but he did it with overconfidence and she laughed. He told her, "I'm the coolest fat guy you'll ever meet". He kept going with goofy things like, "I maybe fat, but the rest of the guys in this place are ugly. I can diet."
I didn't know it at the time, but maybe I was getting a lesson in prospecting.[/quote]
That's AWESOME!! ROTFLMAO.......
[quote=DirtyDeltaBro]The idea behind calling at extreme hours is that is shows a strong work
ethic. Think about it. This guy sits down at his desk, cordially starts
sipping coffee and listens to his messages. He hears me calling at 5 a.m.
He thinks one of two things:
A. This guy is nuts.
B. This guy has an exceptional work ethic.
Either way you have his attention.
Granted I did not land the first appointment after leaving three
messages- l failed to mention there were a series of short conversations
and hang ups. Overall, chances are he is going to go with option B.
When the prospect was starting his small business, as a rookie, he
worked ungodly hours. He will totally identify with that. If he admits to
remembering the grueling hours you can leverage that fact to land the
appointment. When you are actually in the door you have tune the
aggressive switch from a 10 down to a 1.
I started calling on this account in November of 06 and paperwork was
signed in June 07. We sold him on alternative investments.
DirtyDelta
[/quote]
Wow, and you didn't need sage advice from Devil's Advocate, or DA2? How did you manage?
Here’s one that got me a couple appointments; I recently took (and passed thank God) the CRPC as a reward for exceeding my training goals with AGE. One day I will get my CFP so I can say this and my conscience feels A OK. I use this on the high net worth prospects I have build good rapport with..
Mr X … As I told you I had to go to the home office and take the final exam for the CRPC. Thanks to the big guy upstairs I passed. Next stop is the CFP. One thing I’m going to be doing is submitting 25 case studies that are complex and extensive financial plans. I’ll be happy to use you in one of these case studies. The information you will receive can quantify your goals down to the penny and the best part is it wont cost you a single cent. Get our your shoe box, put your recent statements and any insurance policies you have in it and lets get together next X or X
I don’t really script this one. I kind of just introduce it when it seems like it have a good flow.[quote=Gaddock]
Here’s one that got me a couple appointments; I recently took (and passed thank God) the CRPC as a reward for exceeding my training goals with AGE. One day I will get my CFP so I can say this and my conscience feels A OK. I use this on the high net worth prospects I have build good rapport with..
Mr X … As I told you I had to go to the home office and take the final exam for the CRPC. Thanks to the big guy upstairs I passed. Next stop is the CFP. One thing I’m going to be doing is submitting 25 case studies that are complex and extensive financial plans. I’ll be happy to use you in one of these case studies. The information you will receive can quantify your goals down to the penny and the best part is it wont cost you a single cent. Get our your shoe box, put your recent statements and any insurance policies you have in it and lets get together next X or X
I don’t really script this one. I kind of just introduce it when it seems like it have a good flow.[/quote]
LOL!!!
[quote=Gaddock]
Mr X … As I told you I had to go to the home office and take the final exam for the CRPC. Thanks to the big guy upstairs I passed. Next stop is the CFP. One thing I’m going to be doing is submitting 25 case studies that are complex and extensive financial plans. I’ll be happy to use you in one of these case studies. The information you will receive can quantify your goals down to the penny and the best part is it wont cost you a single cent. Get our your shoe box, put your recent statements and any insurance policies you have in it and lets get together next X or X.[/quote]
This reminds me of an old joke about training at Merrill Lynch. It costs the firm $75,000 and the clients about $500,000.
True story: I told my biggest prospect (at the time) to call me on a Friday night at 11 pm. I informed him that I was unbelievable serious about building a successful business for myself and for the clients' that chose to work with me. Keep in mind that this was someone I cold called yet (knew) they were worth 8 figures.
The phone rang at 11:05 pm. I answered it in all seriousness. In the backround I could hear the TV as well as the ice cubes clinking. The prospect laughed and we spoke for about 60 seconds. They called back the following week (at a reasonable hour) and today they are one of my largest accounts'. Yeah- sometimes it pays to be a little bit crazy. Make it happen....
An American College designation 'lite' IMHO = Chartered Retirement Planning Counselor.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
I was told it was a "reward" for a job well done. I tried to take a pass on it and the 100 hours of study for it but was told I had no choice. The information was all good and pertinent but I still would have rather spent the time prospecting instead of tossing cold water on a three-month head of steam. But, that's just me.
We were told that the American College will probably allow it as one section for the CFP in the future. If that turns out to be the case I’ll take it.
[quote=Gaddock]
An American College designation 'lite' IMHO = Chartered Retirement Planning Counselor.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
I was told it was a "reward" for a job well done. I tried to take a pass on it and the 100 hours of study for it but was told I had no choice. The information was all good and pertinent but I still would have rather spent the time prospecting instead of tossing cold water on a three-month head of steam. But, that's just me.
We were told that the American College will probably allow it as one section for the CFP in the future. If that turns out to be the case I’ll take it.[/quote]
A transcript review would have taken 10 minutes, and maybe you could have tested out of 3 sections........:)
[quote=AllREIT][quote=Gaddock]
Mr X … As I told you I had to go to the home office and take the final exam for the CRPC. Thanks to the big guy upstairs I passed. Next stop is the CFP. One thing I’m going to be doing is submitting 25 case studies that are complex and extensive financial plans. I’ll be happy to use you in one of these case studies. The information you will receive can quantify your goals down to the penny and the best part is it wont cost you a single cent. Get our your shoe box, put your recent statements and any insurance policies you have in it and lets get together next X or X.[/quote]
This reminds me of an old joke about training at Merrill Lynch. It costs the firm $75,000 and the clients about $500,000.
[/quote]
Pretty big talk from a guy who charges clients a fee for guaranteed underperformance and buys 2.25% yielding TIPs for "income investors". <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
[quote=DirtyDeltaBro]
We sold him on alternative investments.
[/quote]
GS quant fund... doh!