P1246990956vLEKa - PowerPoint PPT Presentation

Title: P1246990956vLEKa


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(your Client thinks)
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Why Clients Think The Sky is FALLING

• Bad News from . . .
• Media

• Friends

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Why Clients Think The Sky is FALLING
Bad News from. . . You!
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Why Clients Think The Sky is FALLING
Bad News from. . . You
You are now Worth 682,324.45 315 AM

• Real-Time Portfolio Values

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What Happens?
Effect of Good News
Effect of Bad News
Irrational Exuberance
Unreasonable Fear
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What You Can Do BAD Choice

• Freeze Up
• Stop communicating
• Ignore client fears
• Avoid tough conversations
• Hope itll all go away
• Left on their own, clients assume the worst!
• Ill never be able to Retire!
• Im going to run out of money!
• I cant take this anymore!

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What Can You Do GOOD Choice

• Be Proactive
• Communicate, communicate, communicate
• Guide their thinking
• Restore confidence

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Be Practive

• From their short-term Portfolio Values

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Be Proactive

• To their long-term Goals

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Be Proactive

• Then show them how they can still obtain a
  Satisfactory Retirement

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Be Proactive

• Address their Greatest Fear

But, you ask, how can I do that after theyve
lost so much money?
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Makes it Possible (and relatively easy)
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Example
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What Are Their Goals?
Single-Point One Value
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What Are Their Goals?
Single-Point One Value
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Can They Reach Their Goals?
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EXPAND the Sweet Spot
Sweet Spot
Sweet Spot
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What Happens?
Effect of Bad News
Risk Tolerance
Goal Expectations
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What Are Their Goals?
BIG Sweet Spot
Total Spending for Life of Plan 2,615,000
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What Are Their Goals?
BIG Sweet Spot
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Their Home Can Provide Downside Protection
Ask one more question . . . If it would help you
meet your Goals, would you consider using
some cash from your home if it didnt
require you to sell it?
You must take pressure off their Investment
Portfolio by considering the value of ALL THEIR
ASSETS.
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Results
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Your New Recommended Plan
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Results SECURITY CHECK
Deal with the Dog Food
How much money could you lose tomorrow and still
be in your Confidence Zone?
Your Portfolio could decline by 30, which is a
loss of 155,000
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What if Acceptable Still Doesnt Work?
Here are a few options . . .

• Review Goal Acceptable values particularly
  Wishes
• Consider Part-Time Work
• Reconsider Extra Savings
• Consider Portfolio Allocation