4 minute read
*Updated: 2024
As the year comes to a close, financial advisors should be prioritizing annual client reviews. These meetings are a perfect opportunity to:
- Assess portfolio performance and adjust allocations
- Set financial goals for the year ahead
- Prepare clients for tax changes and estate planning updates
Your clients rely on you to help them with market shifts, tax regulations, and long-term financial strategies.
Here are six essential discussion topics for your annual client review meetings.
1. Year-End Investment Portfolio Review: What’s Working & What’s Not?
Key Questions to Ask:
- Did your client’s portfolio meet their investment targets for the year?
- Do any underperforming assets need rebalancing?
- Have market conditions changed that might require adjustments?
Clients nearing retirement may want to adjust their risk exposure, while others may be looking to take advantage of interest rate trends. Make sure their portfolio aligns with their evolving financial goals.
2. Setting Financial Goals: What’s Next for Your Clients?
After reviewing their investment portfolio, you can work together to set goals for the upcoming year. Perhaps they want to set aside some money for their grandchildren’s college funds, a lengthy trip they are planning, or a substantial purchase such as a home or real estate. Some clients may want to begin dedicating a certain amount of their wealth annually to charitable giving. Discuss your client’s personal goals for the upcoming year to see how you can adjust their finances accordingly.
3. Tax Planning: Key Changes & Strategies
What to Cover:
- IRS tax bracket updates
- Capital gains tax strategies to minimize liabilities
- Retirement contribution limits and required minimum distributions (RMDs)
- Gifting and estate tax planning
Clients may not be aware of new tax laws affecting retirement accounts, deductions, or estate taxes. Ensure they maximize tax efficiency while staying compliant with regulations.
4. Estate Planning Check-Up: Keeping Beneficiaries & Documents Updated
Estate planning is often overlooked, but it’s a crucial part of wealth preservation. Use the annual review to check for necessary updates, including:
- Reviewing beneficiary designations on retirement accounts & life insurance
- Ensuring wills and trusts are up to date
- Discussing charitable giving strategies
- Helping clients reduce estate tax exposure
Encourage clients to review their trusts, power of attorney documents, and healthcare directives every year to ensure their estate plan aligns with their current wishes.
5. Retirement Readiness: Are Your Clients on Track?
Whether your client is years away from retirement or already retired, it’s important to evaluate:
- Are they maximizing 401(k) and IRA contributions?
- Should they consider converting a traditional IRA to a Roth IRA?
- Do they need to adjust their withdrawal strategy to optimize income and minimize taxes?
For clients nearing retirement, discuss strategies to mitigate sequence-of-returns risk, ensuring they don’t withdraw too much too early in retirement.
6. Lock In Client Meetings for the Year Ahead
The best way to keep clients engaged is to schedule periodic check-ins throughout the year.
What to Ask:
- Do they have travel plans that might impact meeting availability?
- Would they prefer quarterly, semi-annual, or annual reviews?
- Are there big financial events on the horizon (home purchases, business sales, inheritances)?
Setting up regular meetings in advance keeps clients proactive, engaged, and well-prepared for financial changes.
Final Thoughts: Strengthening Client Relationships Through Annual Reviews
Annual reviews are more than just a financial check-in - they are a chance to reinforce trust, provide guidance, and ensure your clients stay on track with their financial goals.
Want to make your client meetings even more effective?
Disclosure: This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.