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No. of Recommendations: 8
22 year client with 16.6% returns (you do math - 8.6% for SP500) and he hired
a bank wealth manager cause he was a neighbor for some house proceeds

my sin
I mused about my own retirement one day (I'll own this - no one accused me of being a competent business person, and I should have just kept my mouth shut)
I said I thought he should take his latest house proceeds and pay off the mortgage on his new house cause he was retirement and shouldn't have debt (he asked, I answered; this answer wasn't in my best interests; I figured he could figure that, but he got mad at me; again, he asked my opinion and I was foolish enough to give it to him; honestly don't understand his reaction)

it is the client's money
but this one almost made me despair
and yep, last 5 years have lagged index by about 1% a year
but geez...the bank manager won't have ANY goal or ANY accountability PERIOD

intensely frustrated
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No. of Recommendations: 4
No good deed goes unpunished. Tough job on many levels.

I wouldn't let it bother you. No need for dispair. It doesn't affect you does it? Whether he paid off the house or gives the proceeds to the poor or to this new manager it doesn't change the outcome you expected, right?

It would have been nice if he gave the proceeds to you to manage or followed your advice but that's just pride messing with you. :^) He diversifies (diworsifies more likely). He makes a new friend. And maybe he will get payback from the neighbor in other ways. And, he might grow to value your abilities a great deal more with a new comparison.

With 22 years of 16.6% returns and you protecting the nest-egg he probably isn't overly worried about outlasting a bear market and making his mortgage payment. That's how I would look at it. You've given him nice options. Feel good.
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No. of Recommendations: 2
but that's just pride messing with you. :^)

bingo!

my wife tells me, in polite terms, I am an idiot...maybe this is the last time I'll moan about this in my misery tour

(obviously a 1st world problem)
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No. of Recommendations: 3
1) Kudos for always being honest. There is no other way.

2) Surely you can beat tax-advantaged mortgage rates, sir! Ask, always ask -- if you want the proceeds that is.
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No. of Recommendations: 0
Surely you can beat tax-advantaged mortgage rates, sir!

I think it is the engineering mindset in that I've ALWAYS given that response (and walk the walk, having paid of my mortgage many years ago) with the implication that a client can also view my returns over a series of periods to make their own determination of what they want to do.

But it doesn't work that way all the time, but it works often enough to not use any other approach. I NEVER solicit anyone for funds beyond the first visit anyway, so if I'm asked questions like this what other approach should I use but what I believe.
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No. of Recommendations: 0
course, that reads sanctimonious, but...
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