4. Understanding investing. Advisors might only talk about ETFs, mutual funds and managed money. They don’t have an interest in stocks or even understand them. You do.
Client benefit: They feel you aren’t a salesperson for investment products.
Advisor benefit: You show your knowledge of the markets and can explain why stocks (should) go up under certain circumstances.
5. Trend spotting. People talk about a handful of stocks driving the market. Anyone can buy them. Investors want to know “the next big thing.” Warren Buffet said: Someone’s sitting in the shade today because someone planted a tree a long time ago.” They want to get behind a great idea in its early stages.
Client benefit: They feel they are getting in early with a trend or technology they believe will take off.
Advisor benefit: Using the firm’s research, you can identify trends the firm finds promising.
6. Referrals. They will talk up their new stock with their friends. People will ask questions they can’t answer. The easiest answer they can give is “Talk to my advisor. He can tell you all about it. Here’s his card.”
Client benefit: They have bragging rights.
Advisor benefit: They might be sending people with questions in your direction.
You aren’t abandoning sound investment practices like risk tolerance, asset allocation and managed money. You are putting fun back into investing, the “fun” in fundamentals! You are demonstrating some of the value you bring to the relationship.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.