Have a client w over a million in IRAs and NQ account. Invested in a combo of ETFs and dividend paying stocks. Now bitching abt performance. Should I stick to my strategy or offer alt to placate him?

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Stick to your plan. He's testing you and show him you are a believer in the strategy you recommended. In my experience, if you make changes they will likely make him worse off.I had a new client recently who was unhappy with his performance (complained back in mid February at market lows). I called him, reassured him why our strategy was the right one, and asked for patience. He's up quite a bit over the last 45 days and happier now. He said he respected my stance of not making changes and admitted to being to impatient.

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If you believe in what you are doing keep your strategy as the core but perhaps slice off 10-20% for an SMA, FIA, Structured product, whatever. You are going to lose this guy eventually anyway but maybe this can help you keep him for a few years longer.

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What's the asset allocation? In other words, how much of his portfolio is in some bond ETFs that you're billing 1.25% on. That's an area that likely needs work where you can make a positive change. Use the 10 year T as your trigger for making the move of some of that money to a fixed annuity. No fees. No interest rate risk. Lower's his AUM fee. You "did" something...and you did something that likely boosts his fixed income net return over the coming years.

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I would stick with your guns if you believe in the strategy you originally recommended. Otherwise, it will seem like you are caving. The guy will leave you eventually as already stated. Just a matter of time.

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This is simple stuff. Make the client complete a risk tolerance assessment. If it is the same as the first one your risk adjusted performance is likely on track. Show him both assessments. Tell him if more risk was appropriate it would show up. He can hardly deny his own assessment.

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