The following is in response to Dan Richard’s article, The Wrong Way to Ask for Referrals, which appeared last week:
Dear Editor,
I just finished reading the post from Dan Richards and I have to say: Spot on!
It’s laughable the number of people and companies that have developed “techniques” to ask for referrals, forgetting that if we keep treating this profession as a sales one, we will be perceived by the market as mere salesmen.
We are professionals. When has your doctor ever told you the old, “you know, there are two ways in which I get paid…” or the asked classic, “who are your five friends you think my services would be helpful to?”
Those conversations, especially when had with your best clients, only erode their trust in you, their advisor. What kind of professional needs to ask for others to provide him with clients?
Well said, Dan. You’re fighting the good fight. Let’s hope more advisors start seeing themselves as true professionals instead of salespeople.
If only the salespeople in the industry stopped positioning themselves as advisors. A lot of people in the industry are clamoring to be treated like true professionals and, yet, they continue to have the kind of behavior that makes us look like used-car salespeople.
Miguel Gomez
The following is in response to Bob Veres’ article, The Profession's Faulty Assumptions: A Top Ten List, which appeared on August 21:
Dear Editor,
Many years ago it was stated that one’s Social Security-taxed withholdings would be tax free at retirement. Not true! All the congressmen that advocated for that law have long since died or retired. Newer congressmen saw all that money coming in tax free. So, guess what, they taxed that money. Do you really think the Roth IRAs will be any different? I won’t be here, but it is a cinch to say they will tax the money.
Charles Hundley
San Antonio, TX
Bob Veres replies:
I agree that we should factor in the possibility that Roth income will be taxed at a future date into our decision to do a conversion today--and I wish I had said that at the time. (The article was already a bit long, and you don't want to know how many garbage items I intentionally left out.)
But the interesting question is: What are those odds? And over what time frame? I have no idea how to determine if a 70-year-old client will be paying taxes on Roth withdrawals, but I suspect the odds are somewhat lower, or the tax burden will be lower, than for a client in his/her 50s.
It makes for a very interesting discussion, as it always is when you're speculating about the future behavior of the essentially irrational process of deciding how to tax our citizens.
Dear Editor,
Thank you for the valuable information. I always emphasize the importance of medical costs with my clients. Considering all the complexities of implementing a financial strategy, determining medical costs is always the cornerstone of my recommendations. My practice is comprised of mostly pre- and post-retirees and more than 85% are Medicare beneficiaries. It is important to offer a healthcare solution that is suitable for client needs, whether it be a supplement with a Part D plan, original Medicare with Part D, Medicare Advantage or MAPD. Most of my clients are on a fixed income and research I have conducted within my practice shows that my clients spend on average 22% of their total income towards some sort of medical related costs.
Thanks for emphasizing the importance of affordable, responsible healthcare solutions for our senior community. This primary component of risk management is often under-funded and overlooked.
Jon Hoyle
