May 19


Top 4 Strategies Financial Salespeople Use to Get Your Money

When serving and helping people like you get the most life out of their money, not only am I competing with the hysterical financial news media, but I am also often fending off other financial advisors who try to distract my clients.

Remember that for the past fifteen years I have attended countless seminars, training sessions and conferences.  I have an intimate understanding of how the financial advising industry works.  In fact, I have been trained, extensively, on how to “steal away” a client from another financial advisor.

So, today, I am going to pull back the curtain and show you the strategies and techniques  financial guys like me use to get you as a client.  Why am I doing this?  I don’t want you to get sidetracked.  Don’t let some sales tactics derail a perfectly crafted plan.



Here is the Scenario:  You are sitting down with a financial advisor for the first time.  Let’s just assume that you are currently working with a different advisor at a different firm.  How have I been trained to get you to sign over your finances to me?

Strategy #1

Tell them their current portfolio is way too risky.

If you sit down with anyone who has any money invested in the stock market, say something along the lines of, “Hmmmm… that’s strange.  We don’t usually see people at your age with this much money in the stock market.  Do you understand the incredible risk you are exposing yourself to?”

My Commentary: I have written extensively on this subject.  To read my past articles about the power of a diversified portfolio of stocks and bonds, please click here. In short, stocks have an incredibly consistent and successful 200-year track record.

Strategy #2

Tell them they have too much money in bonds.

If you sit down with anyone who has any bond investments, say something along the lines of, “Hmmmmm…that’s a lot of money in bonds.  Did you know that when interest rates rise, bonds lose money?  Do you understand that we are in a historically low interest rate environment?  This is practically a guaranteed loser!”

My Commentary:  First of all, you are not getting the whole story.  While rising interest rates could adversely affect some bond prices, it does not apply to every kind of bond.  In addition, when rates do rise, bonds are “self-healing.”  Rising interest rates translate to increasing yields.  The yield of your bond investments will go up because newly issued bonds placed inside the portfolio will be paying the new, higher interest rates.

Strategy #3

Tell them they need GUARANTEES.

When sitting down with a new prospect, simply ask them, “Are guarantees important when it comes to your money?”

Of course, everyone says, “Yes!!!”

“Well then,” I continue, “your current retirement portfolio has no guarantees.  If the investments go down and you live too long you could run out of money.  You need guarantees on your retirement portfolio. I can’t believe your current advisor doesn’t have any of this money in guaranteed vehicles.”

My Commentary:  I have written extensively on this subject as well.  To read my past articles about the power of a diversified portfolio of stocks and bonds, please click here.   In short, often times putting “guarantees” on your money results in poorer performance and restricts access to your funds.    Not to mention “guarantees” are only as safe as the company backing the guarantees.  Really, nothing in life can be literally “guaranteed.”  Well, I guess besides death and taxes…

Strategy #4

Tell them that your investment research team is second-to-none.

When sitting down with a new prospect make sure they understand the size and stature of the brilliant financial minds you have in your corner.  “If you were to work with us, we will be able to increase your alpha and diversify your beta.  Our investment managers are able to mitigate most of the risks associated with investing.  We have won many awards.”

My Commentary:   Nobody knows when the stock market is going to go up or down.  There is no super-smart-analyst-man sitting in a secret office at your local bank that has insights or information to which other advisors do not have access.  It’s all smoke and mirrors.  Most advisors have access to the same products and investment solutions.  In fact, it is patently illegal to possess information to which no one else has access (it’s called “insider trading”).

The bottom line:  You want to find an advisor (one person) who knows you and understands your goals and desires.  90% of your success is predicated on the advisor with whom you have a personal relationship.  You need an advisor who is going to advocate for you best interests, and steer your financial ship through the rest of your life.

Be Blessed!


P.S.- Speaking of ships, here is a cool idea I heard from a client recently.  A repositioning cruise is a way to get an extremely inexpensive luxury vacation.  Look it up!  Whenever a ship needs to be moved due to seasonal changes (i.e. Alaskan cruise ships act as Caribbean cruise ships in the winter), you can jump on board as they “reposition” the ship.  Here’s more info:  Click Here.


David Kennon



The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities.

 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Indexes are unmanaged portfolios and individuals cannot invest directly in an index.  Actual results will vary.

This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel.


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