Performance reviews function as report cards. According to Financial Advisor News, they show a financial advisor's accountability to the client.
Financial Advisor News reports that a well-run portfolio review does more than revisit past performance. It opens the door to meaningful conversations that can deepen relationships and expand services.
One opportunity involves the addition of new money. Advisors often introduce fresh ideas that complement an existing portfolio and reinforce a broader investment theme.
Rebalancing presents another opening. Asset allocation models reflect a client's risk tolerance. When market movement pushes a portfolio out of alignment, advisors can recommend trimming overweight positions and reallocating capital.
Consolidation of assets also arises naturally during reviews. Advisors can offer comprehensive reporting that captures a client's entire financial picture. Clients already encounter similar promises in advertisements, but in-depth, personalized reporting carries greater weight. Financial Advisor News notes that portfolio review season also coincides with tax preparation, making it an ideal time to suggest bringing outside accounts in-house.
Insurance discussions often follow. Advisors may not sell property and casualty coverage, but they frequently address life insurance, annuities, and disability coverage, either directly or through referrals. A review can reveal gaps in protection, outdated policies, or missed opportunities for tax-deferred savings.
Asset-based lending provides another avenue. Financial Advisor News reports that clients may hold substantial investment assets while carrying high-interest credit card debt. Advisors can explain alternative lending options, compare costs, and outline a plan to eliminate expensive consumer debt while preserving investment flexibility.
Charitable planning often surfaces during these conversations. Clients with fluctuating charitable commitments may benefit from donor-advised funds or charitable trusts, especially when they hold low-basis securities. These vehicles can provide immediate tax benefits even if distributions occur years later.
Some clients also maintain "play money" accounts at discount brokerages, as reported by Financial Advisor News. Advisors often learn about those trades only after the fact. By offering research, insights, and oversight—without eliminating the client's autonomy—advisors can household those accounts while adding value to the decision-making process.
Finally, Financial Advisor News adds that reviews set the stage for referrals. Investors tend to focus on long-term progress, not short-term volatility. They appreciate advisors who review outcomes honestly and remain engaged. As confidence grows, clients think about friends and family who lack that level of service. Advisors should ask for introductions.
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