A client calls demanding to buy the penny stock his cousin is touting. The investment is completely unsuitable. How do you persuade him not to buy it?
Succession planning is essential to a business’s survival. Once your client’s ready to talk about letting go, help him identify his successor. This allows an aging owner to retire on short notice; for instance, if a sudden health issue arises.
Your clients have been approved for a mortgage, but you’re not sure they’re ready.
Discuss emergency funds and contingency plans. Emergency funds should cover between three and six months of living expenses.
Your clients have been approved for a mortgage. Everything looks good on paper, but you’re not sure they’re ready.
Some questions to ask before you hire a family member
You suspect your client has money in multiple places, but you’re afraid to ask outright.
The definition of capable differs from province to province. Having capacity to manage a stock portfolio is a decision for the client to make along with his power of attorney and a qualified third party (usually a healthcare provider). You must always assume clients are capable of making a decision.
Divorce, death of family members, serious health issues and aging parents are tough family situations you need to be prepared to discuss with clients.
Asking the right questions means you’ll get real answers that help you build a productive advisor-client relationship-or sidestep a potential landmine.