Advisors: 3 Ideas to Get the Whole Kit and Caboodle

Advisors: 3 Ideas to Get the Whole Kit and Caboodle

Growing up my grandmother used a term to emphasize the entire situation or everything as: The Whole Kit and Caboodle
 

Successful consultants and advisors understand that their primary goal is to get The Whole Kit and Caboodle, meaning we get our entire client’s business and ideally work with them for life.  When our strategy is designed to attract and retain clients for life, business becomes easy and we get to a point where we simply have to maintain our current clients.

Recently, I attended a personal growth workshop with my daughter.   If I found the workshop helpful, I planned to enroll my children and family in 5 of their programs. The total cost would have been over $5,000, and I was prepared to spend it!  The program was a combination of strategies and techniques on steroids! By the end of the workshop I, as well as many of the other affluent attendees, were left in a “wait-and-see” mode.

The reality is that the mistakes the workshop coordinators made are similar to ones advisors and consultants make every day with their clients. The workshop coordinators would have had The Whole Kit and Caboodle if they had remembered these critical insights:

Identify the Goal
 

The attendees were asked a few questions before the workshop, but there was no time or discussion about the answers.  They also didn’t dive deep or ask any more questions during the event. They didn’t take the time to find out the goal of the attendees and many participants voiced their frustration.  Many of the participants including myself were there to make a great life better! The coordinator’s focus came not from how to make a great life better but how to fix a broken life.  This idea worked well for the attendees whose lives needed transforming but failed to connect with the people who were looking to take their already great lives to the next level.  In turn, I felt I was not gaining what I wanted and needed from the program.

When we don’t ask our clients about they goals,  we assume which is very dangerous. What’s worse, some even make the mistake of telling clients what their goal is.  This can be a fatal error, making achieving “the whole kit and caboodle” difficult if not impossible.

Related: The Power of Your Subconscious Mind

Understanding Our Clients
 

The next step is to listen and understand empathetically.  When we really want to learn what a person thinks and wants, it requires empathy.  Empathy allows us to understand what our clients feel and to see the world as they see it.  Empathizing doesn’t mean that we agree with the client, or even sympathize with them, but we understand what they are feeling.  By practicing empathy we are able to connect on a deeper level and solidify our relationship with the client. Listening empathetically also helps the client feel more positive and become open to sharing their inner most feelings with us.

Getting It
 

One of the most important aspects of “getting it”, requires that we put our clients wants and needs above ours.  This requires emotional intelligence, which can take years to develop.  When we take the time to really find out what our clients want, versus going in with an agenda of what we are going to sell them, amazing things can happen!  We truly solve their biggest challenges and end up selling so much more than we ever would have by simply focusing on an agenda to sell more!

Annette Bau
Human Performance
Twitter Email

Annette Bau, CFP®, a Certified Financial Planner practitioner and the author of numerous products and four books including 101 Insider Secrets for Marketing to Affluent Women ... Click for full bio

Do Valuations Matter?

Do Valuations Matter?

Written by: David Lebovitz

The S&P 500 has had an impressive start to the year, rising over 4% year-to-date with only three days of negative performance.


However, as the equity market has moved higher, investors have become increasingly concerned about valuation. While it is difficult to ignore the fact that the S&P 500 forward P/E ratio currently sits at 18.5x, well above its 25-year average of 16.0x, we believe elevated valuations may be justified for three reasons. First, 2018 earnings growth is expected to come in around 15%, suggesting investors will be compensated for paying a higher price, and second, inflation and interest rates are both below their long-term averages. In an environment of low rates, low inflation, and healthy earnings, perhaps it is appropriate for stock market valuations to be above average?

Finally, valuation is not a great predictor of short-term returns. As we show on page 6 of the Guide to the Markets, valuation tells you very little about what will happen over the next year, but a decent amount about what to expect over the next five years. For those who are still skeptical about equities given current valuations, it is important to remember that bull markets tend to go out with a bang, rising by an average of 26% during their final 12 months. This makes sitting on the sidelines expensive, particularly in a world of low interest rates.

Related: Will Companies Reinvest or Repurchase Due to Tax Reform?

So are valuations concerning? They have our attention, but we remain cautiously optimistic that equities can continue to push higher. However, late cycle markets require a more nuanced approach to investing, meaning active management will be essential. As such, we continue to see opportunity in the more value-oriented sectors of the market, with energy and financials being two of our favorite ideas.

Low inflation and yields can support higher multiples
 

Z-score

 

Related: Will Companies Reinvest or Repurchase Due to Tax Reform?

Learn more about alternative beta and our ETF capabilities here.


Opinions and statements of market trends that are based on current market conditions constitute our judgment and are subject to change without notice. These views described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. Past performance is no guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. ETF shares are bought and sold throughout the day on an exchange at market price (not NAV) through a brokerage account, and are not individually redeemed from the fund. Shares may only be sold or redeemed directly from a fund by Authorized Participants, in very large creation/redemption units. For all products, brokerage commissions will reduce returns.

J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC.
J.P. Morgan Asset Management
Empowering Better Decisions
Twitter Email

See how ETFs differ from other investment vehicles, learn how to evaluate them, and discover how ETFs can be used effectively to achieve a diversity of investment strategies. ... Click for full bio