When Rolling $$$$ from Mutual Funds

[0b1kanobee]

How many hear encourage the client when rolling money from mutual funds to take the monies and put them into something like a money market account with their broker till the rollover actually happens?

Reason why I ask is because yesterday we had a big drop in the market and on Monday of this week I told the client it wouldn't be a bad idea and they just figured they would see what happens.

Well today I get a call about why didn't we move the money, which I explained we could have but it was their decision not to. (I'm dealing with someone on dissability with brain surgery so it isn't helping any). All is good but just wondering how some others handle this.
Thanks

 

[Norwayguy]

How many hear encourage the client when rolling money from mutual funds to take the monies and put them into something like a money market account with their broker till the rollover actually happens?

Reason why I ask is because yesterday we had a big drop in the market and on Monday of this week I told the client it wouldn't be a bad idea and they just figured they would see what happens.

Well today I get a call about why didn't we move the money, which I explained we could have but it was their decision not to. (I'm dealing with someone on dissability with brain surgery so it isn't helping any). All is good but just wondering how some others handle this.
Thanks

Depends on the client...If the client was disillusioned with the market and moving to fixed or indexed annuity I would recommend the MM account..If just rolling to another fund family or variable annuity then I probably would leave in the current funds. But then again if I felt really strongly about how bad the current funds are then I might move to MM right then even though the client will eventually be moved to another market position.

 

[TRSecurity]

Nothing worse than getting blamed for something out of your control.

I always make a point to explain the time-lag associated with moving money. I let them choose where they want to keep it during the transition. If they are unsure - I recommend moving it to a money market account.

I usually make a comment like - I'm a hero or a villain depending on the market move, so I'll let you decide what to do. I also tell them that if I knew what the correct move is, I wouldn't be talking to them, but retired on a beach somewhere.

Even still, people tend to find a reason to complain to me about the move. I always put the blame back on the logistics involved in the transaction between the companies.

 

[HarryRenard]

I use things like TR said above but most of time I do push moving it over to the money market because it also shows some commitment on their behalf and they are safe.
If they are moving the money over its because thats what they want, safety.

 

[0b1kanobee]

I did go through the hero and villain speech but I think she missed it or rather was more interested in Obama than that. I had to hear more about Obama than anything else and I thought my brother-in-law was bad. Oh, and it was Obama's fault the stock market dropped so she didn't blame me for that.

At least I was right when I told her this morning it should bounce back up somewhat. I agree though, the reason we are moving the funds is for safety along with the idea to get them committed. I was a little nervous inside when I brought up the idea though as they were going to have to call their broker who they have been working with for several years.

 

[HarryRenard]

I was a little nervous inside when I brought up the idea though as they were going to have to call their broker who they have been working with for several years.

Just call the company direct via the 800#, go straight to the source cut out the middle man.

 

[0b1kanobee]

Just call the company direct via the 800#, go straight to the source cut out the middle man.

The account is in the husbands name (in this situation) so he would have to make arrangements to make the call to the company. Apparently he can't use a phone at work. She can call the broker and do different stuff but not the company number.

Every time she or he talks with the broker, when their account is going down, he tells them not to worry. Don't quite understand why the broker has their whole little nest egg in high-risk accounts?

 

[xrac]

.......Don't quite understand why the broker has their whole little nest egg in high-risk accounts?

Because he doesn't understand risk!