Member Since: May 9th 2014
Bryce Sanders is president of Perceptive Business Solutions Inc. in New Hope, Pennsylvania. He provides high-net-worth client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor, can be found on Amazon.com.
President Perceptive Business Solutions Inc.
May 6th 2022
TL, thanks for your comment. You are right. Inflation will be a big issue. It directly or indirectly affects some of the other points too.
Nov 23rd 2020
Angien, thanks for commenting. I'll keep this in mind. There's a feeling 2021 will bring an increase in bankruptcies. That's a grim thought.
Jul 24th 2020
SkinnVinny, thanks for commenting. You point out lots of red flags. Good point about "They left a competent accountant...there must be a reason." Like the part about overdraft charges, etc. Generally speaking, you don't want to take on another accountant's headache.
Nov 11th 2019
Mark, you make very good points. My point about buying a Municipal or Corporate Bond as an IPO is that it's pretty close to wholesale. If you can get them, it should be the same price as everyone else, until it breaks syndicate and the bonds trade in the secondary market.
You bring up a good point you can shop around for bonds in the secondary market. The challenge is, unlike stocks, very few are listed securities. They are bought through the trading desks and inventory held by financial services firms. The buyer of $ 25 million of a bond will get a better price (spread) than the buyer of $ 25,000 of a bond. Ideally, a financial advisor, working in their client's best interest, would seek to narrow the spread.
You bring up another point re: yield to maturity. I hesitated going there because it's a complex topic, probably beyond the scope of a basic article. When talking about municipal bonds, the issue is clouded by the portion of the return that's tax free (interest) and the portion that's taxable, ie: the discount to par value that contributes to the client's yield to maturity.
You have brought up important points people offering comprehensive advice on bonds needs to know.
Nov 11th 2019
BLTaxes, you make very good points. That's why ratings from rating agencies are important, although even that wasn't foolproof 10+ years ago when those mortgage backed bonds had serious problems. In many ways bonds are supposed to be a "shock absorber" in a balanced portfolio, to help smooth volatility. I see your point. Client should realize if something sounds too good to be true (yield) it's often a problem waiting to happen.
Jul 26th 2019
Michael, thanks for commenting. Your point is brilliant. Unfortunately, some business owners get themselves into trouble before they ask for help and advice. The lesson you are teaching (debt free, cash from growth to fund investments) becomes their goal in this situation.
Jul 4th 2019
Great points, Michael. Thanks for commenting. I think one of the greatest, if not the #1 fear of small business owners is coming to the attention of the IRS. "Criminal matter" can be very scary.
Jul 3rd 2019
Thanks for commenting. I think my unspoken message is "almost everything on the list is critical." That's a good point about employee health insurance premiums.
Nov 3rd 2018
Well done, Michael. I'm available if anything changes. You are being respectful of the current relationship which also offering yourself as an alternative.
Nov 2nd 2018
Patricka4g, thanks for commenting on my article. You have no idea how glad I am to learn accounting professionals in the UK no longer see themselves above sales and marketing. That is a sea change. From writing articles in the UK, I gradually came to the assumption UK accountants consider themselves alongside doctors and lawyers. Clients come to them, they don't go looking for clients.
You bring up an interesting scenario: Conversations at a networking event. I agree with your wording and approach. When I think of encounters, I think of them in the social/party environment where people are making small talk, which is why I suggested the low key, less probing approach. Your scenario is a more professional setting. If they are open to drilling down and giving more information, you should seize the opportunity. - Bryce