HNW Prospect - how to land?
So I had a prospect come into my office Thursday who is receiving a $36m settlement. According to what her attorney told her, and what she communicated to me, it’s completely tax free.
I am a solo advisor. They are currently interviewing 5 CFPs, from what I can gather, the other firms are much larger, both AUM, avg client, and team.
Case:
Couple who are recently married. She has one child from former marriage (widow), he has 3 children from former marriage (divorcee).
The settlement process began prior to their marriage last July. Check is being received this summer.
- They walk into my office and he hands me a list of $3m in purchases they’d like to make over the next 2 years. Primarily land and farm equipment.
- they’d like to place $1m into a trust for each of their children
- $29 m left to manage.
Conversation went well - I utilized Sten Morgan’s idea of white boarding. Touched on tax efficient investments, what they should be looking for, estate protection, family dynamics and insurance. What I feel are the more pressing needs.
Husband kept pressing on returns “other advisor said we could average around 10%, what do you have” - I skirted around that topic.
Wife verbalized stress, and fear now that she has this money. So she liked the conversation we had, I don’t think I connected with him.
I made a pretty big mistake in quoting a fee ball park (40 bps) which apparently is significantly higher than other firms (how?!).
I have another appointment scheduled this coming week. But currently dealing with a lot of head trash.
- would be my single largest client but a multiple of 3
- never had a client that had an immediate estate tax issue - pretty green in that area
- I don’t have the team, although I do work with great colleagues in different fields.
What should I focus on? Am I focusing on the right things?
Any thoughts and insights would be super helpful - obviously not looking for a “how to”