For Advisors with Celebrity Clients, Service Takes on a New Meaning
By Morey Stettner
If you're looking for high-net-worth clients, consider celebrities. They're rich, famous and often easygoing about money.
Some advisors build a niche around professional athletes, entertainers and other high-profile figures. And once they start signing on a few luminaries, word-of-mouth referrals can lead to many more.
The stereotype of the egomaniac prima donna who makes irrational demands, harbors unrealistic expectations and treats professional service providers with disdain rarely exists in the real world. In fact, advisors who work with celebrities seem downright smitten with them.
"They give me hugs," said Bert Geiger, an Atlanta-based advisor. "They thank me all the time. They're great to work with."
Even if their portfolio has dropped 10%, Geiger says that they usually understand and appreciate his efforts. Like many nonfamous clients, they place more value on making sure their advisor keeps them informed and proactively manages their finances in a prudent manner.
A former professional baseball player, Geiger spent eight years in the minor leagues. Some of his teammates advanced to the majors.
He launched his career as an advisor in 1986 and signed up his first client, a professional athlete. The October 1987 market crash soon followed, but Geiger retained his client.
"And he's still a client today," he said. "That's how it works. And then come the referrals. You get a client on a major league team, he's shagging balls in the outfield and he says to a teammate, 'You should talk to my guy.'"
Deliver Bad News Now, Not Later
Great service comes naturally to top advisors. But celebrities may put you to the test.
"They know they can call me on Sunday night at 2 a.m. and I'm here for them," Geiger said.
It helps to hire staffers equally devoted to client service — and who are not star-struck. Geiger's daughter, 31, works with him and is not fazed by famous folks.
Over the years, Geiger has added a roster of top musicians as clients. Through keen observational skills, he learns how to connect with each of them.
"One of my clients is very successful in the music business," he said. "I'll be talking to him about his investments, and he's playing his guitar the whole time. If he's playing slowly, he's OK with everything."
But Geiger can sense the client is rattled if he starts playing guitar faster or more aggressively. When that happens, Geiger will seek to mollify any concerns.
"You've got to stay in front of any kind of problem and tell them what's happening and why," he said. "Don't surprise them. They don't want to hear about it from anybody else or read it in the newspaper."
Find Business Managers With Integrity
While many advisors adopt a conservative approach when investing client funds, it's especially important to manage risk with celebrities. Fame is fickle, and their wealth can fluctuate once their time in the spotlight fades.
"The best thing I can do is educate clients," he said. "You're only as good as your last at bat or last album."
He adds that one of the hardest aspects of his work is dealing with spendthrifts. Reining in their extravagant spending requires tact.
"Don't be the guy who buys a Tesla every year," he likes to tell them. "Be the guy who buys a Tesla every five years."
He also serves as a gatekeeper to help celebrities fend off requests for money. They direct such inquiries to Geiger, who might reply, "Sorry, but he has his money locked up." That can lead to rancor from disappointed friends in search of cash, but it's part of Geiger's job.
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