In the movie, The Good, the Bad, and the Ugly, Lee Van Cleef plays Angel Eyes: The Bad, a ruthless, unfeeling, and sociopathic mercenary who always finishes a job he is paid for (which is usually finding—and killing—people).
Likewise, when many good client / broker / advisor relationships or a specific deal "goes bad" it is often the result of someone placing money ahead of the people.
And things can go bad in a hurry!
No one is above it. Everyone is susceptible. Unfortunately too many examples of bad yacht brokers and bad advisors are publically documented and probably everyone has their own personal examples. (In fact, we have our opinions on some brokers and advisors for those that care to inquire.)
The recent chronicles of Goldman Sachs selling both ends of transactions against their large and sophisticated clients and Bernie Madoff with his Ponzi scheme exploiting some of the most sophisticated and astute investors and their advisors for years are prime examples. But what the public knows is only a small fraction of bad broker and advisor behavior.
A chilling account of what advisors really think of their clients is the actual recordings caught on tape of what the brokers and financial advisors at Bankers Trust were actually saying, scheming and plotting against their clients - some of the largest and most sophisticated individuals and institutions in the world, including Proctor & Gamble:
According to the tapes secured by P&G: ``Fraud was so pervasive and institutionalized that Bankers Trust employees used the acronym `ROF'--short for rip-off factor, to describe one method of fleecing clients.'' An internal document about a proposed derivative for Federal Paper Board allegedly says that Bankers would make $1.6 million on the deal, including a ``7 [basis point] rip-off factor.''
In a different instance, two Bankers employees are discussing a client's loss on a trade. One then tells the other: ``Pad the number a little bit.'' P&G quotes another Bankers Trust employee saying to a colleague: ``Funny business, you know? Lure people into that calm and then just totally f--- 'em.''
So if this is how the most respected advisors treat their largest and most sophisticated clients, how can you maintain good relationships with good advisors?
Sort of makes you wonder what your Rip Off Factor may be?
One way we prevent good people, good relationships, and good deals from going bad is to assure economic viability and prosperity from legitimate sources sufficient for everyone by properly designing and implementing profitable strategies so that no one has an incentive to be dishonest.
Our ability to provide proprietary programs and customized, comprehensive & coordinated solutions for the unique economic and financial objectives of each individual yacht owner – enables us to offer substantial long-term value to yacht owners - long after the enthusiasm of the initial yacht transaction has waned.
Considering the status quo of yacht transactions, it would not be unrealistic to consider that some “advisors” may not always have long term interests that are 100% in sync with those of the prospective yacht owner’s.
YES is different. Exactly the opposite in fact. We can even help other advisors.
Rather than fee or transaction based as are most brokers and advisors, our compensation is largely determined by our clients’ long term financial success. In this case, minimizing any adverse impacts that yacht ownership may have on a client’s net worth. Our goal is for yacht ownership to be net worth neutral or even profitable.
We take more of an investment banking philosophy when working with our clients, strategic partners, yacht owners, brokers, and advisors. Not only do we help structure and facilitate transactions that can get to that immediate YES and closed – but we maintain long term mutually beneficial relationships.
But it is not just greed and dishonesty that can turn a good relationship ugly over time.
So can fear and slothfulness.
We live in a volatile, dynamic, and uncertain economic and regulatory environment. Clients with brokers and advisors that are too complacent and content with the status quo to look for new ways to better serve their clients or that may be afraid of letting their clients learn new things that might reflect negatively upon the advisor can quickly find themselves in an ugly situation.
That if your current advisors knew, surely they'd have told you already- wouldn't they?