Five Simple Steps to Help Avoid Sleepless Nights

Five Simple Steps to Help Avoid Sleepless Nights - Five...

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Five Simple Steps to Help Avoid Sleepless Nights By Katherine Vessenes With the wonderful success we enjoy from time to time, it’s easy to believe that all of our clients love us. In actuality, lawsuits, arbitrations and complaints track the market. The key event that triggers a trip to an attorney’s office is a client losing money. Now, clients cannot sue you just because they lost money, as our investments have no guarantees. A client merely alleging they lost money will not succeed in court, meaning investors must have some other legal ground to succeed in their suit. Although there are many grounds investors can use to sue, the main ones are: Unsuitable investment Failure to disclose risk Failure to disclose sales charges To help avoid sleepless nights in the future, here are five practice management rules to “litigation-proof” your office: Rule No. 1: Happy clients don’t sue you My years in this business have taught me that clients are amazingly forgiving if you communicate with them. Clients will stay happy, even if their investments have taken a loss, if their expectations are met and exceeded. My research has shown that clients are far less interested in performance than ethical trust. Trust is built by asking clients what they want from the relationship. Some open-ended questions are: After one year, what will make our relationship a successful one? What will make our relationship worth your money and my time? What are the most important qualities you want in a financial advisor?
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Five Simple Steps to Help Avoid Sleepless Nights - Five...

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