What if the amount they already pay just for AUM is more than the Predictable Minimum Annual Recurring Revenue?

Article ID: 359

Last updated: 20 Nov, 2019

They will be very happy to receive even more value for less money than they have been paying in the past. This will likely increase their loyalty to you and your refer-ability.

Also listed in

Miscellaneous

« Do we set a fee and then reduce it for what we collect in...

Clients agree to pay for their plan (and pay at the end of the... »

Others in this category

Can I, after looking through a client documents on the spot decide what to charge? Meaning, if they have one million in assets that I could manage, do I not charge them a planning fee? I could recoup the cost for the plan from the management fees?

I would like clarification on the use of the Financial Road Map® in Progress Meetings. My understanding is that you are to prepare a new Financial Road Map® with the updated Goals and Current Value of Funds in the All the Money section. We are looking at whether there is a more efficient way of doing this, such as using soft copy that is updated at every progress meeting, given that the Goals and All the Money section are the only areas that are changed. Can you please set the record straight on how this is to be prepared for the meeting? We are trying to reduce any unnecessary work.

I am having trouble with clients who seem to have no goals. So they are trying to answer questions they seem to have no idea about. I was thinking of creating a slide show similar to the one you did with us. "i.e. if you can see it you can be it" I myself found that truly inspirational and for me was then far easier to think big and open up properly. I was thinking of doing it before the values conversation to really get them in the right frame of mine about creating their ideal life. What are your thoughts?

I am struggling not discussing an ongoing fee in Financial Road Map® Meeting. During this conversation the clients ask me how much? The Financial Road Map® Meeting has been around 45 minutes so far and going well. I say $5,000 for the initial plan. They say what do you get? I then run through my 2 page letter of engagement which outlines upfront and ongoing service offering and takes another 45 minutes. After 1.5 hours I feel like the clients are tired and the "would you like to proceed” has lost its presence because of the meeting time. How do I avoid this? I would love to skip the letter of engagement all together, should I just briefly talk about deliverables team (which I have) best-in-class Subject Matters Experts. I am also struggling to understand in the Implementation Meeting how to address the ongoing fee is $1k-$3k per month and not go over the plan in any detail.

I recently had a conversation with a (self-referred) successful business owner who had talked with me a couple years earlier (before I was in the program) about investing, insurance, and financial planning in general. He expressed an interest in having me take a look at his finances. According to the process, I sent him a book and conducted a Phone Consultation, which went well, and he seemed very interested in having me complete their Financial Road Map®. I scheduled a tentative appointment for when he thought his wife might be available, and asked him to let me know if the time wasn't going to work for her. I also sent him the list of documents to bring when they come. A few days later, I got the following email: "I am not sure this is going to work out. My wife cannot meet at the time we proposed. She is leaving for DC that day. I am leaving the next day. It is going to be hard to get her down to your neck of the woods [45 minutes away] and I am not wanting to go down there either. I understand that you want us both to be there for the financial planning but she is not involved in the finances in our family and that is partially by design. I understand the values based investing part of what you do but I would like to know more about your strategy in investing and what your track record is. I have been working with a company to do some financial planning mostly insurance and things of that sort. (They always come to my office to meet otherwise I don’t think we would be doing any business) Let’s keep in touch and see where it goes." He apparently views me as a wealth manager, but is currently unaware of what we really do (fully-comprehensive financial services). How would you respond?

» More articles