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Financial Planning > Behavioral Finance

Know when to say "no"

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Some clients make for a rich working relationship while others are just bad business. Mary Rowland talks with advisor Ross Levin in her book “Best Practices for Financial Advisors” to identify the four main types of clients you may encounter and how to deal with them.

The Greedy Client – These clients are hard to please and may expect the impossible. If your client has moved around a lot in his professional career, you may be dealing with a greedy client.

The Relationship Client
– These clients want to build a relationship with you and will spend most of your meetings with them talking about their lives. It can be difficult to determine boundaries with these clients. Take the time to summarize meetings in writing so you both have something to look back on.

The Fear-based Client – These clients either have very little or very bad financial experiences, and it may be hard to gain their trust. They don’t stay in this category long, however, either because they give up on investing altogether or because they move past their fear to another catagory. Educate them properly and you may be able to keep them as clients.

The Curious Client
– Curious clients have their own ideas and opinions about investing. To maintain control of the investment process, support your ideas with articles.

Source: Mary Rowland, “Best Practices for Financial Advisors”


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