Peter Myers' Blog

I Have Decided to Save the World Economy

I am going to bite the bullet for everyone here and save the world economy. Here's how (bear with me, because this requires some explanation).

What Will Happen to Financial Advisors and Wealth Managers Now?

I am empathizing with our financial advisor cousins today.

Bear Stearns was bought by JP Morgan in March.  Lehman was bought from bankruptcy by Barclay's.  WAMU is closed and sold to Chase (also JP Morgan).  Merrill Lynch was acquired by B of A.  Wachovia is cut up and being sold to Citi and Wells Fargo.  A chunk of Morgan Stanley was sold to Mitsubishi.  What the general public may not know is that all of these entities, without exception, have various wealth management groups, sometimes called "private client," "private banking," "private wealth management," "family office" and "private trust" groups, all of which perform more or less the same function - provide professional (sometimes expert) advice on what to do with large amounts (relatively) of capital held by individuals.  What is going to happen to this industry of advisors after all this consolidation?

Diamonds in the Rough: The Google Adwords Campaign

Fellow Blogosphere Readers:  I admit it, I succumbed to the hype and launched a Google Adwords campaign.  What is it?  Its the "pay per click" that happens when you punch in, for example "San Francisco Estate Planner" and a bunch of names come up on the right-hand side of the page.   These spots are auctioned off to bidders who pay each time someone clicks on their ad.

Initially, it worked well in bringing traffic to the site.  But here's the problem:  there is no pre-existing relationship with anyone affiliated or associated with our firm, so it is a completely anonymous view of us.  It commoditizes the particular service advertised, and when your service becomes a commodity, the only remaining determinant between your ounce of gold and someone else's ounce of gold (or whatever commodity) is . . . what?

Client vs. Adviser Loyalty: Must It Be and Adverse Relationship?

Client Loyalty: An Anecdote

Client loyalty can be difficult— on at least one occasion, I’ve had to write a client to share discovery of an investment manager’s malpractice.  In my litigation past, I have had to sue lawyers, accountants, bankers, and investment advisers for fraud, elder financial abuse, unsuitable advice, mistakes, and breaches of fiduciary duty and loyalty.  It is never pleasant to be in such a lawsuit, and there are no winners.

So how the heck do we deal with this while trying to build a referral network?  Who wants to refer a client to a lawyer who might sue them?

Know That They Care

In our position of loyalty and confidence, estate planning and probate lawyers are often asked to recommend other independent collaborative advisors – typically in the areas of financial, real estate, mortgage, and accounting.  (No one has asked me for recommendations of personal trainers, coaches or chiropractors, but I would probably have a lot more to say about that – some other time).

Throwing my thoughts about our choices into the center ring of the circus . . .