Questions Great Financial Advisors Ask... and Investors Need to Know

by Parisse, Alan; Richman, David

• ISBN13: 9781419526800
• ISBN10: 1419526804
• Format: Hardcover
• Copyright: 2006-06-01
• Publisher: Kaplan Business

Summary

A financial advisor recounts an interview with a recently retired physician who planned an enjoyableand costlyretirement. The doctor wanted his entire portfolio in bonds, which was far too conservative to maintain the lifestyle he and his wife had planned. In the advisor's words:"This fellow was a bit of a know-it-all, and I wasn't getting through. Finally I asked him, 'Doctor, how will it feel for you when you have to go back to work?' That got his attention, and I was able to lay out a strategy that would allow him to retire and stay retired."InQuestions Great Financial Advisors Ask...and Investors Need to Know, coauthors Alan Parisse and David Richman have compiled the questions great advisors ask that lead to the probing and personal conversations necessary to diagnose and understand clients'and potential clients'deep-seated feelings about money. That's how great advisors help clients wring the emotion out of investing and set them on the rational road to achieving their financial goals.Throughout this book are questions, suggestions, and stories from some of the world's top financial advisors, including a chapter of "great questions to ask" organized by topic.

Author Biography

Alan Parisse During his twenty year career in the investment business, Alan Parisse gained extensive experience in both the investment banking and distribution and sales sides of the business. Over the last decade he has become a renowned speaker and commentator on dealing with change and turbulent times. In December of 1999, Successful Meetings Magazine named him one of the "Top 21 Speakers for the 21st Century". He is also the only person to come out of the investment business to be inducted into the National Speaker's Association Hall of Fame. Alan received his BS from SUNY Buffalo and his MBA from the University of Arizona. He resides in Boulder, Colorado.

David Richman has been in the investment business for over twenty years. He has extensive experience in marketing and sales and has been a senior member of the sales team for the oldest independent provider of managed money consulting services in the country. He is a friend and partner to scores of financial advisors who have leveraged his skills through thousands of seminars and joint calls with affluent investors. David is a member of the Connecticut Bar and has sat on numerous civic boards over his career. He holds a BA and MA from the University of Rochester and a JD from the University of Connecticut. David resides in Connecticut with his spouse of 26 years and their children.

Table of Contents

Introduction	xi
Prologue	xv
1. What Makes a Great Financial Advisor?	1	(22)
Client Focus	3	(3)
The Advisor's Motivation	6	(2)
The Fallacy of Questionnaires	8	(1)
Client Connections	9	(4)
Ask the Right Questions	13	(4)
The 80-20 Rule	17	(2)
Forget the Lecture	19	(1)
Remove Emotions from Investing	20	(2)
The Takeaway	22	(1)
2. What Should Your Clients Expect from You?	23	(28)
Where's the Real Advice?	23	(1)
The Media's Version	24	(3)
Recognize the Distortions	27	(1)
Get the Emotion Out	28	(3)
Use Plain English	31	(2)
Ask Deep Questions	33	(1)
Understand How to Listen	34	(2)
Know the Details	36	(2)
More on Listening	38	(2)
Recognize the Unspoken Message	40	(1)
Beyond the Facts	41	(1)
Step Back	42	(2)
Establish Trust	44	(2)
Walk Your Talk!	46	(1)
Pay Attention to Family Matters	47	(2)
The Takeaway	49	(2)
3. Can You Recognize a Client's Investment Wiring?	51	(38)
Investment Wiring Up Close	52	(1)
Getting Beyond the Facade	53	(2)
Familiar Personalities	55	(2)
Mr. Cocky a.k.a. Mr. Know-It-All	57	(3)
The Cynic	60	(3)
The Putterer	63	(1)
The Hobbyist	64	(4)
Paul Perfect	68	(2)
Amy Amiable	70	(3)
The Analytic	73	(3)
The Controller	76	(4)
Ms. Pennywise	80	(3)
Beyond the Personality	83	(1)
Your Role: Eliminate Emotion from Investing	84	(3)
Risk Tolerance	87	(1)
The Takeaway	88	(1)
4. What's the Purpose of Money?	89	(22)
A Difficult Conversation	91	(1)
Purpose Versus Goal	92	(4)
Beyond Simple Answers	96	(4)
Understanding Priorities	100	(5)
Family Matters Make a Difference	105	(1)
The Role of Time	106	(2)
Who Is Your Real Client?	108	(1)
The Takeaway	109	(2)
5. What Role Does Risk Play?	111	(30)
Today's Dynamic	112	(1)
Essential Risk	112	(3)
Perceptions of Risk	115	(2)
Tolerance for Risk	117	(2)
Changing Tolerances	119	(1)
Risk of Lost Opportunity	120	(1)
Absolute Versus Relative Returns	121	(2)
Personal Measures of Risk	123	(4)
Long-term Goals and Risks	127	(1)
Conservative Versus Aggressive	128	(3)
Family Matters II	131	(1)
The Portfolio Issue	132	(1)
Importance of Educating Clients	133	(6)
The Takeaway	139	(2)
6. Great Questions to Ask	141	(18)
Getting the First Appointment	141	(2)
Starting the Relationship	143	(1)
The Surface Essentials	143	(3)
Going Deeper	146	(4)
Family Matters	150	(3)
Taking a Stand	153	(6)
Index	159