Clients

• “Probably the biggest thing that all client-centered advisers share is a particular quality of client.  These clients are very intelligent, successful, multi-dimensional individuals who demand custom-designed service in all areas of their lives.  For that reason, only a certain kind of adviser will be acceptable to them.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page XV
• “I know many of these advisers and here’s what they tell me their clients want:  First of all, an approach that enables them (the clients) to think about all of their problems and issues- not just those related to their finances.  Next, they want a greater sense of direction, confidence, and capability in all areas of their lives.  Because of this, they want financial strategies to be part of much larger lifetime solutions.  When it comes to solutions, they want everything based on their issues and concerns, not on the adviser’s need for commissions.  It’s very important to these clients that the advisers are independent of bureaucratic dependencies.  They want someone whose loyalty and commitment is to them, not to a corporation.  It reassures them to know that the advisers are personally successful and confident.  They place great value on long-term relationships.  For this reason, they want financial advisers who can help them construct a lifetime plan and then be there continually to help them implement it.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page XV
• “Net Worth Brackets:  Based on our personal experiences in working with wealth holders and the experiences of the thousands of advisers we have trained across the United States and Canada, we believe the marketplace behaviors can be segmented into four categories:  1.  Emerging Affluent:  Under $1 million or $150,000 in annual household income.  2.  Affluent:  $1 to $3 million or $150,000 – $250,000 in annual household income.  3.  Emerging Wealthy:  $3 to $10 million or $250,000 – $500,000 in annual household income.  4.  High Wealth:  $10 million or more or $500,000 or more in annual household income.  Source:  Paul G. Schervish, Ph. D, Director, Center on Wealth and Philanthropy, Professor of Sociology, Boston College.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page 13
• “The Trust Formula:  C + R + I / SO….where C= Credibility.  Credibility represents accuracy and completeness.  It also accounts for the ability to anticipate needs and articulate insights.  R= Reliability.  Reliability represents repeated links between promise and action.  It also includes communicating in the client’s preferred medium of communication, and the frequency of contact.  I= Intimacy.  Intimacy represents a willingness to discuss tough topics, and the ability to do so in a manner that is palatable and even welcome.  SO= Self-orientation.  Self-orientation represents anything that draws focus away from the client and toward the planner.  It quantifies the adviser’s underlying motivation for being in the relationship.  It includes a verbal tendency to spend too much time relating the client’s stories in your own stories.  Note that self-orientation is the denominator and is therefore significant to the total score.  It has the ability to break down successful ratings in other elements of trust.  In this category, a low score means the adviser is not self-oriented.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page 15 – 16
• “The Planning Horizon represents a metaphoric horizontal line.  Conversations that take place above the horizon surround the wealth holder’s deepest and most personal intent for their wealth.  Why are they planning in the first place?   Conversations that take place below the horizon surround the strategies and products that can influence the achievement of the wealth holder’s goals as identified above the horizon.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page 19
• “Example of Questions to Your Best Clients:  What has been the most positive aspect of planning you’ve done, either with my firm or another adviser?  What has been the most frustrating?  How would you describe my role in your financial situation?  Given what you know about me, what do you think I should do more of or less of in my business model?  What remaining doubts do you have about your wealth or its impact on your family?  Where would you turn to resolve the doubts?  If one thing could change about the complexity that wealth has created in your life, what would it be?”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page47
• “Advisers have seen similar pain in so many families; they quickly arrive at what looks like the best fix.  Not only did they fall short of a full diagnosis, they borrowed a diagnosis from the illness of a different family.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent? By Scott Fithian and Todd Fithian.  Page59
• “Consider the path the wealth holder has been on before they get to the planning table.  When self-made people begin to achieve affluence, everything changes in their friendship dynamics.  They find themselves with little safe haven to let their guard down about life, wealth, and family; about personal progress or demons.  Their friends can’t afford to do the things they do and they can’t empathize with the wealth holder’s family or business issues.” The Right Side of the Table:  Where do You Sit in the Minds of the Affluent?By Scott Fithian and Todd Fithian.  Page72
• “I have also come to realize that the key for any financial planner desiring to build and serve an affluent clientele is knowledge and credentials indicating that he/she has an appreciation and knowledge of the tools for philanthropy that can be helpful to more affluent prospects far more than most people realize.”  Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club.  Bill Walace, CLU®, ChFC® JUNE 13, 2008
• “For the Washington DC area, it is estimated that 1.604 million estates will occur during the 55 year period from 2001 through 2055. These final estates will be valued at 1.260 trillion (2005dollars) at the time of death if wealth grows in the area at an average rate of 2%. If historical patterns hold, $47 billion will be distributed in estate fees, $321 billion to the government, $169 billion to charity, and $723 billion to heirs. The $169 billion of potential charitable bequests constitutes 13% of the $1.260 trillion value of final estates. In a 4% growth scenario, $1.175 trillion or 25% of a total of $4.665 trillion at the time of death will go to charity. Finally, the study indicates that the 1.935 million households in the metropolitan area in 2001 will contribute $207 billion before their deaths and $169 billion in charitable bequests during the 55 yr period of simulation. WHAT AN OPPORTUNITY THIS REPRESENTS FOR EVERYONE IN THIS ROOM”  .”Remarks to The 2008 Annual Membership Meeting Society of Financial Service Professionals, Bethesda Country Club.  Bill Walace, CLU®, ChFC® JUNE 13, 2008
• “If you would sell what John Smith buys, you must see through John Smith’s eyes.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent?  By Scott Fithian and Todd Fithian.  Page XVI
• “Advisers have seen similar pain in so many families; they quickly arrive at what looks like the best fix.  Not only did they fall short of a full diagnosis, but they also borrowed a diagnosis from the illness of a different family.”  The Right Side of the Table:  Where do You Sit in the Minds of the Affluent?  By Scott Fithian and Todd Fithian.  Page 59
• “Advisers go into planning thinking the client is looking for a solution.  In reality, they’re not even sure what the problem is. They’re simply overwhelmed with symptoms, a particular point of pain they want exorcised from their lives.  What they really need is clarity about what’s bugging them, what they want fixed, and why, so they can confidently select a solution. They need help figuring out the shape of the hole before they can even consider what kind of peg will offer a snug fit.” Where do You Sit in the Minds of the Affluent?  By Scott Fithian and Todd Fithian.  Page 59
• “Most important, he focused intently on the nearly seven thousand patients who would submit to his scalpel. “The duty of a doctor, primarily, is to teach,” Dr. Nelson explained. “A doctor is really functioning at his highest level when he is teaching his patient what is wrong and what can be done about it” (Condie, Russell M. Nelson) Insight’s from a Prophet’ Life, Page 60
• “The 2014 Dalbar report specifically stated that: “Attempts to correct irrational behavior through education have proved to be futile. The belief that investors will make prudent decisions after education and disclosure has been totally discredited.” In plain English, Dalbar is simply stating the obvious heuristic behavior of herding: consumers invest when the market is high and sell when it is low.” Investor Education Is ‘Futile,’ ‘Totally Discredited’: Dalbar, Gil Weinreich