From the May 2006 issue of Investment Advisor • Subscribe!

May 1, 2006

In His Own Words

How does Greenbaum and Orecchio handle new clients? Tom Orecchio walks us through a client's first year, in his own words.

"The first thing we do is schedule a 'Get to know you' meeting. We are only looking for relationships that are long term, so we want to make sure that we're the right answer for the clients but also that they're the right answer for us.

We spend time up front getting to know their goals, their needs, and the way they view the world of investing and finance. If we think after that meeting it's a good fit and they think it's a good fit, then we move to the next level. Sometimes it takes more than one meeting and a few phone calls before we're all on the same page.

Once there, we send them our agreement so their attorneys can review it and we tell them what information we're looking for. After we clean up all the data, [the firm and the client] agree to all the assumptions that will go into the planning. Then together we start running the different analyses.

At the end of that session we send them home with a couple of printouts to review. They can then call us with any adjustments. When they come back, we get to do some of the fun stuff--the 'what if' scenarios.

Then we look at what they want to do with their money. Once we're done with that, we come up with a recommended plan and a series of recommendations in each of the disciplines of financial planning--retirement, estate, tax, insurance, debt consolidation, college education, planning for business owners, all of it. At the next session we go through investor education and with them we design a portfolio and agree on the terms of the implementation. After that, we have follow up-sessions.

Then we meet as often as they would like, but we require them to come in annually to update their investment policy statement and to review their cash flows and other financial planning issues."

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