Many financial advisors overlook the Annual Review with their clients making the mistake of thinking, “well, if they wanted a review they would request one.” Annual Reviews should be a part of the personalised, hands-on service you offer each client, allowing you to deepen your relationship with them and strengthen their trust in you.
Here are a few more reasons why the Annual Review is so important:
Measure Progress against Plan
The Annual Review allows you to analyse your client’s portfolio and present them with feedback on the data, resources, and improvements their portfolio has achieved throughout the year. It allows you the opportunity to show that your suggestions and planning have paid off for them. If things haven’t gone according to plan, it will allow you to do some research beforehand and present the client with alternatives to consider going forward.
Review the Client’s Status Quo
A lot can happen in people’s lives in a year, especially things that can affect or interrupt their current financial portfolio. The Annual Review allows you to get feedback from you client on a number of issues, namely:
- A change in personal situation – have there been births or deaths in their family? Has the client changed jobs? Downscaled their home or bought a bigger one? Any other large assets they’ve added or lost?
- A change in lifestyle or financial goals – has there been a divorce or marriage in the client’s life? Is the client in need of a change of focus in their financial goals, do they want to be more conservative or perhaps more aggressive in the coming year?
- A change to their needs – is there a need to review their tax rebates, estate plans, insurance needs etc?
Update on Legislative Changes
The Annual Review allows you to update your client on potential legislative changes or updates to financial legislation in the country and globally that could affect them and their portfolio. Discuss changes and pre-plan for suggested solutions to offer your client.
Not only is the Annual Review a chance to celebrate long-term wins that you’ve helped your client accrue over the past year, but it’s also a chance to plan ahead and create a new year-long plan that will be robust, positive and most of all, lucrative for your client and his/her future.
A word of advice from us at DFC Greater Gauteng, don’t wait for your client to ask for an annual review, make sure you book it with them first.
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