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Dan Richards

A central challenge advisors face are is clients who need mid- to high-single-digit returns to achieve their long-term goals, but who have an overweight position in cash.  A recent luncheon with a group of highly successful advisors highlighted this challenge and illuminated a way to overcome it.

Clients know that they’re earning next to nothing in money market funds and savings accounts; locking up funds in five-year CDs or government bonds doesn’t do much better. The issue is how to present alternatives in a fashion that motivates clients to act.

Ready for the adventure of a lifetime?

The Kilimanjaro Climb for Amani

Last year, seven advisors climbed Mount Kilimanjaro and experienced the adventure of a lifetime.

They did this to raise funds for Amani Children’s home in Tanzania; this four minute video  describes their experience. The next Kilimanjaro climb will take place next August, for details and info on an upcoming information call, email admin@clientinsights.ca

The advisors around the table shared four approaches they’d tried with little or no success:

  • One advisor had sat down with clients to review their financial plans, in some cases updating them, to drive home how staying in cash is jeopardizing clients’ financial futures.
  • Another advisor showed clients charts and graphs demonstrating that stocks are reasonably valued by historical standards.                                                                                                                 
  • Still another had used material from a fund company demonstrating how quickly markets could move once they began to bounce back – and the risks of missing that move if in cash.
  • The last advisor had built an extensive case for owning a group of high-profile multinational consumer packaged goods and pharmaceutical stocks.   He focused on the yield available from a diversified basket of these companies, pointing out that their dividend payout is comparable to owning a bond yielding almost 5%.  He also emphasized the fact that most of these companies have not cut dividends in recent memory.