We’ve all heard “timing is everything.” Advisors sometimes assume “We have all their money.” One of my first managers would make the case “There’s always more.”
Lets look at eight times the timing might be right to ask for more assets.
1. After they’ve met with their accountant. They are getting their taxes done. They owe money or will be getting money back. Their CPA has likely told them they should be doing something different in the next tax year. It might be as simple as making retirement plan contributions now.
Your action: If they mention meeting with their accountant, ask what advice they offered. How does that align with their relationship with you?
2. One of your investment ideas worked out really well. You buy and sell stocks as part of your business. Thanks to shrewd research you really picked a winner! Your client is thrilled! They can’t wait to tell their friends how they made money.
Your action: You have demonstrated you are a knowledgeable professional who is good at their job. It’s time to deepen the relationship.
3. They are approaching a threshold or breakpoint. You are working with money managers the primary component of their asset allocation. As a banker once told me: “The more you do, the cheaper it gets.” If they invest more money, they cross a threshold, meaning lower fees apply going forward.
Your action: Be sure clients are aware of breakpoints and why that’s an opportunity.
4. Following an in person portfolio review. You are sitting across your desk. Or their desk. Both parties are present. You’ve taken care to explain how they have done vs. their goals and how they have performed vs. blended averages. Youi have discussed rebalancing, bringing under and overweighted positions back into line.
Your action: You come across as knowledgeable. They feel like they are an important client. They are pleased with the results. It’s time for them to entrust you with more money.
5. You have a really good idea. You invest in stocks as part of your practice. You buy and hold, but some stocks get traded. You provide a rationale why each one is a good investment at this time. You have a sincere enthusiasm.
Your action: You know the size ticket you usually write with this client. You know what funds are available. You really like this idea. Ask for more money. Explain you like everything else they own, you don’t want to sell anything. Stop talking. The worst that is likely to happen is they will agree, but for a smaller amount.
6. Before their bonus arrives. You know this money will need to go someplace. They might have home improvements or a new car in mind. Get into the running.
Your action: You have an idea that would be a great fit for their portfolio. Explain why. Let them know this requires fresh money. See what happens. That bonus is just around the corner.
7. Just before you head out on a spectacular vacation. We know moods effect our performance. If you are down, you will likely bring other’s moods down with you. The same holds for excitement. People can hear it in your voice. Joy too.
Your action: Before you leave on that cruise of a lifetime, make one or two more calls with a really good idea. You are excited about the idea. You are exciting about your trip. It will come through in your voice.
8. After a really good lunch. From time to time you entertain clients. It might be after their portfolio review. Perhaps in recognition of a significant birthday. Assuming the server hasn’t dropped plates and service flowed smoothly, you should both be in a good mood.
Your action: Hopefully good means receptive. You have a really good idea for their portfolio. You ask for a specific amount of money.
As they say, sometimes timing is everything.
Related: Getting a Larger “Share of Wallet”