- Money is in motion. “People are open to moving around their accounts,” Smith asserts. “For every one existing client, there are thousands of other well-qualified prospects; the odds of signing on some new accounts are very likely.”
- Turn growth into income. If your clients are already set with bonds, look for growth funds with a systematic withdrawal provision. Smith explains, “If you look at bar graphs and charts that mutual funds use in their sales literature, their ‘$10,000 turning into 2 million’ scenarios always begin in times like this.”
- Tout your financial conservatism. Take Smith’s colleague’s approach and say, “I was financially conservative when conservative wasn’t cool.”
- Put tax laws on your side. Smith says, “Consider using a systematic withdrawal on a tax-managed growth fund. Run a hypothetical on a tax-managed fund, plug in the tax rates and see what happens.”
- Look for bargain hunters. “There are actually some investors out there who have been saving their money for a time like this,” Smith says. “Find them and let them know that you are the person they should trust with their money.”
- Advice has risen in value. Smith points out, “After the dot.com bust, real investors would rather talk to you than call a toll-free number.”
- Look for the silver living. As people leave the industry, you pick up new accounts. “These new clients may come from a branch manager or from friends of your clients who have lost their advisor to sudden career change,” Smith says. “When the market turns, there will be more business for you.”
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