Conducting a thorough, meaningful client review goes beyond portfolio performance updates —it's a moment to reinforce trust, show dedication to your clients’ life goals, and affirm your role as a lifelong, maybe even generational, partner. By prioritizing preparation and personalization, advisors can transform these reviews into valuable touchpoints that align financial strategies with clients' evolving lives.
Be prepared and personalize your approach
Before the meeting, advisors should revisit each client’s unique goals from their client discovery process, recent life developments, and portfolio performance. This prep work ensures that discussions remain relevant to the client's current financial and life situation.
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Checklist for preparation:
- Careful account review: Review past meeting notes, financial plans, and recent portfolio statements to refresh yourself before the meeting.
- Customized goal reassessment: Set aside time to compare the client’s goals from previous years to their present situation.
- Portfolio performance in context: Conduct a deep dive into how various factors, such as market shifts or interest rate changes, affected the client’s investments.
Unsure of how to personalize the meeting for your client? Give them a call in advance to ask what their needs and priorities are. They’ll appreciate your respect for their time and your effort to make the meeting as effective and efficient as possible.
Conduct a comprehensive performance review
Tailoring the conversation to clients' unique goals and circumstances is key to performance reviews. Arriving with personalized insights—not just a graph—shows preparedness, builds trust, and supports long-term retention.
Checklist for portfolio review:
- Identify underperforming and outperforming sectors/assets: Highlight specific sectors or individual assets that may not be meeting expectations. Emphasize those showing strong potential for future growth or optimization.
- Review unrealized capital gains: Discuss unrealized capital gains and the tax implications of any adjustments or rebalancing. Take a proactive approach to tax management, ensuring it is forward-looking rather than reactive.
- Demonstrate active portfolio monitoring: Reassure clients that their portfolio is being monitored closely for both performance and tax efficiency. Actively communicate the steps being taken to optimize their investments.
- Proactively address tax-saving opportunities: Identify major tax-saving opportunities, particularly for high-net-worth clients or those in higher tax brackets. Present actionable solutions to mitigate tax risks and maximize client value. Ensure clients feel confident that you are proactively spotting potential tax risks and solving them before they become an issue.
Transparency is key. Clearly presenting performance, recommending next steps, and openly addressing challenges fosters an environment where clients feel comfortable asking questions. By staying proactive, you safeguard client relationships from competitors who might highlight missed opportunities.
Plan for future scenarios
In addition to summarizing past performance, forward-looking advisors also guide clients through “what-if” scenarios. These discussions might include the potential effects of an economic downturn, major life changes (like health issues or a relocation), or shifts in the tax code. Scenario planning empowers clients by offering a glimpse into how various situations could impact their goals.
Checklist for scenario planning:
- Health challenges: If clients express concerns about future health, discuss long-term care insurance options or set aside a health-related fund.
- Market volatility: Create a “what-if” scenario for a major market dip and outline how their portfolio might perform. This demonstrates proactive risk management.
- Retirement concerns: Many clients have fears around relying on pensions, social security, or other retirement plans, particularly in times when inflation is top of mind. Planning for various scenarios can help them to feel supported and reassured.
MoneyGuidePro’s Holistic Stress Test and What If Worksheet capabilities are powerful ways to explore future scenarios with your clients. Visit https://www.moneyguidepro.com/ifa/Home/MoneyGuidePro for a quick video to learn more.
This is a great opportunity to showcase your experience as an advisor. You have seen these scenarios play out before, but your client has not. Reassure them that you are equipped to handle what may come your way.
Review and revise their financial plan
Perspective is a key ingredient in client reviews—understanding the broader life goals your clients are working towards, and recognizing that performance only matters insofar as it supports achieving those goals.
Checklist for financial plan review:
- Ask: "Have there been any major life changes this year—such as a marriage, divorce, new child, job change, or retirement plans—that could impact your financial goals?" This helps uncover significant events that may require adjustments to their financial plan.
- Ask: "Are there any new short- or long-term goals you'd like to prioritize, such as buying a second home, funding education, or planning for a big trip?" This ensures the plan remains aligned with their evolving aspirations.
- Ask: "Do you have any concerns about your current financial strategy or specific areas where you'd like more guidance, such as taxes, investments, or estate planning?" This allows advisors to address any hesitations or highlight areas where they can provide extra value.
Encourage clients to reflect on the past year, considering both financial and personal achievements or setbacks. This reflection provides a natural transition into reframing or adjusting future goals and sets clients up to feel grounded in the longer-term plan.
Client reviews set the foundation for retention
Client reviews are an opportunity to foster trust, provide tailored insights, and connect financial goals with life aspirations. Advisors who prioritize thorough preparation, transparent communication, and the use of technology can transform these touchpoints into meaningful, future-focused engagements. By making each review comprehensive and tailored, you strengthen your role as a trusted partner in every client’s journey to financial and personal success.
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