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Episode Info: I think they even recorded this on video. This guy's up there as a financial planner saying he hates talking to people about financial stuff that are not going to become a client. Okay, that's kind of rude. I don't know?  But then they asked him, "Okay, fine. What do you do right now?" I mean, they didn't want to judge him, right? So they're like, "Okay fine, what do you do now to get clients?" So he said that he and his partner, they held free informational seminars. So they have a lunch, they pay for lunch, and they invite people and people come and they talk about finances and this and that. And that they were getting a lot of people to come to the seminars, but none of those people were becoming clients. So then you gotta ask, hey what type of clients does he want? To which he replied, and I'm going to quote him here, okay? This is his words. He wants clients that are, "Really rich ones. I don't want to deal with low level people, I want clients with over a million dollars to invest." That's actually what he said. And he wasn't even ashamed to say it in front of all these people. I was like, my God! So people who don't have a million dollars are low level people? And they're not worthy of getting financial advice? You can't help them? Huh. With that kind of attitude, I mean, no wonder he wasn't getting any clients. Geez! And then somebody from the audience, they raised their hand and they asked him, so how much does he charge? And he said that he charges a percentage or a flat fee. He could do both. But mostly he charges ... No actually, sorry, they asked him how he charged. Was he a percent guy or was he a flat fee guy? Because lately more and more people are going towards the flat fee brokers, the flat fee advisers, because it's better for the customer. It's better for the client, right? So he said that he was a percentage guy. He charges a percentage of assets under management. Just guess how much that this fellow charges. Now knowing a little bit about his mentality you might already ... you might get close. He charges 5% of assets every single year. So if you give him $100,000 he's gonna take $5,000 out of that as his fee for just dealing with you, okay? And then the investments that he will put you in, the funds or whatever he puts you in, those are probably gonna charge you 1 to 2% or more every year as well. So just to break even, his clients have to get a 7% return, just to break even, right? I mean, listening to this guy made me want to throw up. I was nauseous. I was like, this guy, he can't even get 8, 9%. The stock market averages 8%, this guy is nothing special. This guys another bumpkin off the boat or whatever and he wants to make ... he wants to charge 7% in fees so that his clients get like 1 to 2% a year. The sad part is, that nobody else in the room was nauseous. Nobody else was offended. Nobody else was upset. They were looking at him like that was normal, because it is normal. I mean, 5% is really high, but the sad fact...
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