title: Stand by Your Standards description: [AFW M.1.51] Michael's Epiphany #51 published: true date: 2026-06-30T08:08:52.778Z tags: editor: markdown dateCreated: 2021-05-17T19:03:20.688Z

This Epiphany is closely related to Epiphany #2 What Would I Do and Epiphany #46 The Messenger is the Message.

For specific scripts on how to disengage from troublesome clients visit AFW S.12.34.

You are the reason they do business with you, and they should take your advice simply because you give it. However, with this comes a great responsibility to always to do what's right and to stand by your standards.

Read Nick's ATY 035 February 04 - Buffet's 1^st Client PDF

Read Nick's Around the Year, August 23 - Three Possible Outcomes PDF

Read Ryan Holiday's The Daily Stoic Book, October 9 - SET THE STANDARDS AND USE THEM PDF

Read Nick's This Time Isn’t Different - #29 - Part 2.11 - Caution: Your Reserves of Time and Energy Are Finite PDF

Don't Be an Enabler - Don't "Help" your Clients to Hurt Themselves¶

"If the client wants you to recommend a product or strategy that you disagree with... taking money from people in exchange for enabling them to do things that you know are wrong is immoral, and how do you look at yourself in the mirror and all your doing is postponing the inevitable. If you're helping people do the bad things they want to do that's going to be a train wreck. And they'll turn around and blame you. If the only alternative is losing the account, they so be it." -Nick Murray

“The superior man understands what is right; the inferior man understands what will sell.” —Confucius

"Letting a client invest in what he wants instead of what he needs, and thereby setting him up (in all probability) to fail financially, is impermissible regardless of how happy it will make your compliance department, or even the client." -Nick Murray

"We must always be prepared to walk away from someone who to do something we believe may be financially suicidal." -Nick Murray, Scripts #26

"In matters of style, swim with the current; in matters of principle, stand like a rock." -Thomas Jefferson

Read Nick's ATY 079 March 20 - No Excellence Without a Philosophy PDF

Read Nick's ATY 137 May 17 - When the Serpent Strikes PDF

Refuse to be complicit in helping someone do something you're sure will ultimately harm him. - Index and fixed products. - High-frequency trading. - Withdrawing funds in a down market. - Cash-value insurance.

Client Standards¶

Both Spouses, or None
Don't Deal With the "Shadow Expert"
Disengaging from PITA and non-cooperative clients
Client Wants to Act Against Your Investment Advice
Prospective Client Doesn't Want to Break-Up with Former Advisor

Add PACs to all Small Accounts¶

Watch Add PACs to Small Accounts VIDEO

We suggest you adopt a only-open-"small"-accounts-with-PACS-attached standard. Any combined accounts that don't meet the $25k-breakpoint must have a monthly automatic draft attached.

Benefits of PACs¶

$4,200 in monthly PACs gives you the equivalent residual income as $1M in AUM. That’s approximately four “fully-funded” families.
Opportunity. It’s easier to find clients to add/increase $4,200 in PACs than to add new $1M in assets.
PACs are paid-out 12 times a year! Make sure to spread out your clients’ draft days.
Standard. Recommended standard to employ: Any combined accounts that don’t meet the $25k-breakpoint must have a monthly PAC attached."

Minimums for Continued Advice¶

If you find yourself with many small accounts (which is okay!), but many of them "bug" incessently with questions or concerns you can establish "minimum for continued Advice" based upon invested assets and/or monthly drafts (PACs).

"John, though I pride myself in helping investors with any account size, due to time contrainsts, I do have minimums for providing ongoing advice (though I will always service your accounts). They are either $250,000 invested with me or at a minimum of $1,000 in monthly drafts."

Don't Apologize for Your Commissions¶

You deserve your fee. Remember, our cost is fixed; there is no haggling.

But, Be Flexible...¶

Be impatient with yourself, but patient with others.