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?
Action: Do they have children they would like to introduce to investing?
6. Send holiday cards.
Surface mail is so “out” that it’s now “in.” Holiday cards have staying power. They are often put on display.
Action: A manager once explained: “People remember who sent the first holiday card they received that season.” Could that be yours?
7. Accept every invitation.
You need to be comfortable pandemic protocols are being observed. Assuming that’s the case, how about attending every family gathering your clan organizes? What about high profile community events like charity holiday galas?
Action: You want every family member to see your face and know what you do. You want to raise your visibility in the HNW community.
8. Give gifts.
If you invited to someone’s home, arriving with a gift is a way of saying thank you. Giving friends who have become clients a gift that fits within compliance guidelines is a good way to show respect for the relationship.
Action: Gift giving means gift delivery. You can do this personally. Make sure your name is attached.
9. Start booking annual reviews.
When Jan. 1 rolls around, people get retrospective. How did I do last year? You want to take the lead in that conversation, not a competitor asking: “When was the last time you heard from your advisor?”
Action: Use December as the time to start getting January appointments on the calendar.
There’s lots you can do to stay on your client and prospect’s radar screen.