[quote=Greenbacks]I worked in a large CPA firm years ago.

Goodness knows that I don’t get NEAR the referrals from my PA/CPA contacts that all the books say I should, but one thing that I consistently do when I’m meeting a new one is to take along a sample realized gain/loss end of the year statement and an IRA annual distribution statement. My message is "See this? This is what you get from me at the end of the year when I’m working with you and Mr. Jones. Is this the format you prefer, or would you prefer the actual trade confirmations instead?"



PS. Make sure it’s one of the really clean, straight-forward, easy to read gain/loss statements, not one that has a bunch of AMCAP from 1986 with N/A listed as cost basis. That is, unless you would like to regale this CPA with tales of daring do in making up cost basis by seeing how far back you can get your quote screen to track. Not that anyone here has ever done that…

Okay… so I had my meeting with 7 figure prospect’s and CPA today and wanted to give you the happy ending.

Called the CPA prior to our meeting and made up some BS question “Is client subject to AMT”  - already knew the answer since I’ve reviewed their tax returns but he had no idea. CPA started ranting about inflation and how long term bonds were the devil. Good info to know.

Sold the client 50k in 5 yr BABS before meeting and a stock position.

Went into meeting without any specific investments, just strategy (nothing long term at this moment). CPA tried to vet me, side stepped it but answered his questions. CPA started talking about inflation. I ended up giving some crazy rant about inflation, pulling some paul volcker and the velocity of money references right out of my arse. Ended my rant by saying none of us had a clue what was going to happen and although we should mitigate risk we can’t let fear paralize us. CPA for some reason agreed with it, I honestly had no idea what I was talking about. 

CPA talked about some local bank offering a MM with a 2% rate … that cost me 250k. damn

Got account in the end, all but 250k and maybe some 100k CD.  CPA was a tool. My faliure to close the deal early in the process cost me 350k but it’s still a healthy 7 figures.

Thanks for the suggestions.

[quote=voltmoie]

Okay… so I had my meeting with 7 figure prospect’s and CPA today and wanted to give you the happy ending.

Called the CPA prior to our meeting and made up some BS question “Is client subject to AMT”  - already knew the answer since I’ve reviewed their tax returns but he had no idea. CPA started ranting about inflation and how long term bonds were the devil. Good info to know.

Sold the client 50k in 5 yr BABS before meeting and a stock position.

Went into meeting without any specific investments, just strategy (nothing long term at this moment). CPA tried to vet me, side stepped it but answered his questions. CPA started talking about inflation. I ended up giving some crazy rant about inflation, pulling some paul volcker and the velocity of money references right out of my arse. Ended my rant by saying none of us had a clue what was going to happen and although we should mitigate risk we can’t let fear paralize us. CPA for some reason agreed with it, I honestly had no idea what I was talking about. 

CPA talked about some local bank offering a MM with a 2% rate … that cost me 250k. damn

Got account in the end, all but 250k and maybe some 100k CD.  CPA was a tool. My faliure to close the deal early in the process cost me 350k but it’s still a healthy 7 figures.

Thanks for the suggestions.

[/quote]

Good for you.  You’ll get that money market and CD someday as you build credibility and trust with your client.  So he agreed to sign ACAT forms or was this money in MF and VA that you took representation on or a rollover or cash he agreed to invest with you?

They have accounts and CDs all over the place.  Signed ACAT forms for the three largest brokerage accounts.  Mostly in CDs and stocks. About 500k to invest now.  It was a pretty big rush when they signed those documents!

We’ll meet next week to start getting the rest moved over. 

[quote=voltmoie]They have accounts and CDs all over the place.  Signed ACAT forms for the three largest brokerage accounts.  Mostly in CDs and stocks. About 500k to invest now.  It was a pretty big rush when they signed those documents!

We’ll meet next week to start getting the rest moved over. 

[/quote]

I smell a nice fixed annuity sale for that non-qualified CD money!

be bless to post here…



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Fixed annuity now that would be a great way to loose  a  client.  

Fixed annuity now that would be a great way to loose  a  client.  

Let me weigh in; my father in law to be is a very well respected CPA in his community and the state. 
I think there are a few kinds of CPAs; some which are trying to masquerade as financial advisors, some which just focus on taxes (those are the ones you want to sell yourself and your process to).

What I have done successfully is, sit down and share process.  Give them access to you 100%.  I usually give them my cell number and give them a few scenarios-ask them, ‘do you think this makes sense?’, because, you know the cpa is going to be all over everything you do. Let them act like a know it all-ask them questions.  “How do you see this…”   Frankly, and I know I am biased, but I think it should be illegal for these people to be wearing several hats; my argument is, you don’t have the time to do all things well.  Especially during tax season.  What if September 2008 happened in March of 08?  Then what?  My grandmother is with one of these monkeys, and it’s painful for me.  But, she is too stubborn to do anything about it. 

My best clients have a cpa who is masquerading as an fa, using the HDVest (Wells) platform.  She sold my clients a bunch of Oppy funds, before we started working together, and, through time,  they hated them.  They transferred over to me :) 

It’s kind of a no-win; you’re going to be vetted, so good on you if you can sidestep it, or at least just come off as a decent, non-threatening person. 
That stuff about the MM is suspicious–does your client’s cpa also try to sell investments? 

Tell the CPA about how accurate the P/L reporting is…And how everything will be sent to him in one neat excel file.

F’n CPAs from an account at Merrill had me run P/Ls on every goddamn portfolio some bastard had. Its annoying because the guy owned every stock in the S&P. What I think the client is looking for is cooperation between the advisor and cpa… so that everything works in tandem.

My best friend is a CPA. They’re all alike. Masters of the calculator world.

Congratulations, Volt.