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We are hurdling towards Christmas. The festivities get louder and louder. Clients have their minds elsewhere. Investing often takes a back seat. There might be a frantic last minute rush after Christmas, but making investment decisions is not top of mind. This is an ideal opportunity for advisors to be proactive. Call them up and get an annual review scheduled in January.
Why? Can’t I wait until January 2nd when everyone’s mind is clear? No. You want to get this done now. Here are five reasons:
1. Momentum. Years ago, the sales manager in our office observed: “Advisors who end the year strong, start the New Year strong.” You want to be lining up future business, although you won’t be talking about it until after the holidays.
2. Their bonus is coming. Many businesses pay performance bonuses in January and February. They need the year closed out to determine the size of the bonus pool. You want to be talking with your client about the best way to put their bonus to work before they receive it.
3. The new year is a time for introspection. This is the logic behind New Year Resolutions. You intend to do something better this year. It might be losing weight or managing your finances better. This is an ideal time to get them thinking about their portfolio, where they want it to go and how you can help them get there.
4. The new year is a time of reflection. Let us say this another way: The newspapers will report how the stock market did for the year. They will cherry pick industries and companies that made huge gains. Clients will look at their own portfolios, wondering how they measured up. You want to be initiating that conversation.
5. This is a time to make changes. Lets get back to resolutions. Let us assume “firing my advisor” is not one of those resolutions. You want to be seen as proactive. Maybe they did day trading on an online platform elsewhere. If they did poorly, maybe they would bring that money in house. Are they happy with the performance with their other advisor elsewhere? If you meet early, you can ask these questions.
6. Their accountant has a vote. Who would you like to analyze the client’s 2025 performance, you or their CPA? You can imagine questions like: “Do you know what you made in 2025” followed by “Do you know what it cost you in fees to make that amount?” You want your client to know the answers beforehand and articulate your value.
7. You want to show you are on top of the situation. By having a meeting setup for January and answers to their likely questions prepared in advance, you are showing they are an important client. You are “emotionally invested” in their success. They know you are not treating them as just a number. You consider this an important relationship.
You do not want to start the year wondering “Where will business come from now?” You want to have a series of reviews setup in advance, so you can hit the ground running.