Can you share how you introduce ETFs to clients for the first time?

Advisor Case Study: Gerry Klingman, CFP, Founder and President of Klingman & Associates, shares how his firm introduces ETFs to clients.

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    One of the things we've done in our practice is work with the children of our high net worth clients, and these are generally anywhere from a 14-year-old with their allowance money to a 25-year-old who's a young working professional and they're thinking about investing.

    And when we explain the principles of investing and diversification and long-term investment and owning equities, and then we describe to them that with a thousand-dollar or 5,000-dollar investment that they can own -- through an exchange traded fund -- a basket of 5,000 or 500 or 1,500 stocks; can own that with an expense ratio or less than a quarter of a percent, and be able to buy and sell it at a very low cost and not have to -- and have a very tax-efficient way to invest in it, they're literally amazed.

    We take it for granted that you can do that with $5,000. So it truly is an extraordinary development in the construction of investment portfolios.

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