What You Need to Know
- Surface mail is now so out it may be in.
- Charity galas can be places to shine.
- Clients should schedule their 2022 financial checkups now.
Thanksgiving is almost here. December follows. Everyone gets busy. You have clients and prospects who say: “Talk to me in the new year.” How can you get them to focus while we are still in 2021?
1. Tax loss selling.
Hopefully your clients had a good year and made money in the stock market. As of Oct. 31, the DJIA was up about 17% year to date.
Action: Does your client have any tax losses that could be harvested before year end to offset realized capital gains in their portfolio?
2. Horses at the starting gate.
Your prospect is almost ready to invest. You need a compelling reasons to take action now.
Action: Stock market performance is measured year to date. Doesn’t it make sense to have your money already in the market on New Years Day? When we look at performance vs. averages, it’s a fair comparison.
3. Year-end charitable contributions.
Many Americans make their gifts to charities in December. According to Neon One, 31% of annual giving happens in December, 12% in the last three days! Your client probably follows the pattern.
Action: Instead of writing a check, how about transferring some appreciated securities instead? It makes sense from a capital gains standpoint.
4. Contributions to college savings plans.
Many people reduce their estates by taking advantage of the $ 10,000 gift tax exclusion. Gifts to the grandchild’s college education fund is a logical destination.
Action: Have your clients taken advantage of this opportunity? The new year resets the clock, so if they intend to do it, it needs to happen now.
5. Does stock make a nice gift?
They might have grown children they would like to introduce to the stock market. (Thanks to online trading, they might need no introduction!) Is setting up an account and gifting them some stock a holiday gift they will remember?