6 Steps To Take In An Annual Financial Review

Your best clients are your competitor’s best prospects.  If you don’t explain their performance, your competitors will do it for you. It will not be pretty.

Considering this background, portfolio reviews are an incredible opportunity to gather additional client assets and get referrals.  Here are six steps to take:

1. Show Them How They Are Doing – In 2015 the DJIA declined about 2.23 percent after six previous years of positive returns.  These first few weeks of January have been difficult.  Clients know that.  They will admire your courage in initiating the meeting and getting them to focus on their portfolio.
2. Talk About Their Goals – Investing is an ongoing process.  From 2009 through 2014 the DJIA delivered positive returns.  How are they doing?  Considering the rate of return they need to reach their goal, they may still be ahead.  You are focusing on what’s important to them, not the indexes.
3. Is Something Working Out? – Many investors are optimists.  If you report on all their investments, often something is doing well.  This lifts their spirits.
4. Have Specific Good Ideas – Market volatility often delivers buying opportunities.  Present them.  Explain you don’t want to sell anything in the portfolio to fund the purchase because prices are down.  Can they provide additional assets?  Clients often have additional money you don’t know about?
5. Has Your Other Advisor Done a Review? – Many clients have more than one financial advisor.  Perhaps their other one(s) is in hiding because of market volatility.  You are planting the seed they should consider consolidating those assets with you because you are being proactive.
6. Who Do You Know That is Unhappy with Their Advisor? – You have initiated a review meeting in a difficult market climate.  You have stood behind your recommendations, provided your firm’s analysis and suggested steps going forward.  They likely know people who can’t get their advisor on the phone or provide no leadership.  With they introduce you?

   The annual or periodic portfolio review is the client’s “report card.”   They respect accountability.  In my experience, it’s rare for a client to “fire you” when you take the initiative to report on your recommendations.

   Bryce Sanders had more than 20 years’ experience as a financial advisor and is now president of Perceptive Business Solutions, providing high-net-worth client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor, is available on Amazon. Bryce can be reached at bryce.sanders@innfeedback.com.

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