Holidays in December Can Lead to Business in January

Best Practices December 27, 2022 at 09:18 AM Share & Print

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Remember learning about “money in motion” when you were in training?

Presumably the money has to stop somewhere.

Events that happen in the lives of your clients and prospects at the end of the year can lead to writing new business in the start of 2023.

You can plant the seeds for January sales now.

For five ideas, see the gallery above.

(Image: 24Novembers/Shutterstock)

Bryce Sanders

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1. Do not assume clients will remember they need to take required minimum distributions by year end.

Our advisor called my wife on Tuesday to set up the distribution.

I thought setting up the RMD was done automatically. I worked in the business. I should know better!

My wife told me our advisor was selling this and that to raise cash for the distribution before year end.

Regardless of if the distribution is in cash or securities, there are no capital gains issues if the shares are sold immediately. How should that money be put to work?

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2. Cash is always the perfect fit.

Christmas involves the exchange of presents.

Hanukkah gelt is another form of gift.

In Asia, presenting red envelopes is traditional.

Although my wife and I prefer to buy and wrap actual presents, many people give cash. If your client has very young children, the aunts and uncles might hand over checks to the parents.

Do the children have college savings accounts established? When very young children are involved, gift money can be put to work for a long time.

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3. Let’s get that 2023 IRA contribution out of the way.

OK, your client could wait until April 15, 2024, to get this done.

If your client made the contribution at the start of the year instead of waiting to the very last minute, the client could have about 15 extra months of potential growth.

Assuming the money just earned interest at the same rate in either place, the money contributed at the last minute earns 15 months of taxable interest, the money contributed in early January of that tax year earns 15 months of tax deferred interest.

Which kind of interest would your client prefer?

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4. Remind me, when do you get your bonus?

Year-end bonuses usually appear in the first months of the year, according to Indeed.

If you wait for your clients to call and say, “I just got my bonus,” you might be waiting a long time.

They might have vacation plans or a renovation project in mind.

Putting the money to work and building their wealth makes sense. Learn the bonus payment date in December. Call a few weeks before the payment date and share some attractive suggestions.

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5. Who in your office is retiring next year?

You say, “I would be interested in meeting them. Maybe we can get together for a drink in the next few weeks.”

This would be casual and low key.

Some people plan their retirement years in advance; others wait until the last minute.

If they have this covered, that’s great.

If they haven’t thought about it much, you might be able to help or offer some advice.

Simply meeting them gets you on the radar. They will likely check you out by asking your client about you. It’s a start.

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