Plancraft Blog

Top 10 Client Conversations Advisors Should Have Before Year-End

Written by Ben Coleman | September 26, 2024 3:26:30 PM Z


The end of the year is the perfect time to connect with your clients, check in on their goals, and make sure they're on track for success. It’s also an opportunity to strengthen relationships and show your value as a proactive advisor. Here are 10 conversations you should be having with your clients to help them finish the year strong and start the new one on the right foot.

1. Year-End Tax Moves

As the year wraps up, tax planning becomes crucial. Walk your clients through strategies like tax-loss harvesting—selling underperforming assets to offset gains—or charitable donations, which can lower their taxable income. For clients who haven’t maxed out their retirement contributions, now’s the time to discuss last-minute additions to IRAs, 401(k)s, or other tax-deferred accounts. Make sure your clients also review flexible spending accounts (FSAs) that may require spending down balances. These small steps can make a big difference when tax season arrives.

2. Portfolio Tune-Up

Throughout the year, market shifts may have thrown client portfolios out of balance, making this a perfect time to revisit asset allocation. For clients who haven’t rebalanced recently, explain how this can prevent overexposure to risk and ensure alignment with their long-term goals. Ask about any changes in their financial or life situation that might warrant an adjustment—perhaps they’re approaching retirement, or maybe they’re more risk-tolerant than they were a year ago. A well-balanced portfolio isn’t just about investment returns—it’s about keeping your clients’ goals and risk tolerance in sync.

3. Retirement Contribution Check-In

With the year winding down, this is a great opportunity to ensure clients are taking full advantage of tax-deferred retirement accounts. Discuss their contribution limits and explore catch-up contributions for clients over 50. Remind them that maxing out contributions not only boosts their retirement savings but also provides significant tax benefits now. Help them assess if Roth conversions make sense for their situation or if increasing retirement plan contributions can lower their tax burden.

4. Time for an Estate Plan Update?

Estate planning isn’t always top of mind for clients, but year-end is a great time to remind them of its importance. This is especially relevant if there have been major life changes like marriage, the birth of a child, or divorce. Encourage clients to review and update their wills, trusts, and beneficiaries to ensure their legacy is protected. Discuss opportunities for wealth transfer strategies, such as gifting to family members to take advantage of annual exclusions. Regular estate plan updates ensure that your clients’ wishes are reflected accurately.

5. Charitable Giving Conversations

For many clients, charitable giving is both a personal value and a financial strategy. Year-end provides the perfect moment to talk about tax-efficient giving options. Discuss strategies like donating appreciated assets to avoid capital gains taxes or setting up a donor-advised fund for future giving. Explain the tax benefits of charitable gifts, whether they’re donating cash, securities, or even using required minimum distributions (RMDs) for charitable contributions if they’re 70½ or older. This conversation highlights how clients can support the causes they love while also reducing their tax burden.

6. Revisiting Financial Goals

The end of the year is a time for reflection, making it the ideal moment to sit down with clients and assess how far they’ve come in reaching their financial goals. Ask them about any personal milestones they’ve hit—whether they’ve paid down debt, saved for a major purchase, or taken that dream vacation. Celebrate these wins and identify areas for improvement. Discuss adjustments to their financial plan if needed, setting new goals for the upcoming year. By revisiting goals, you keep clients engaged in their financial journey and motivated for the future.

7. Health Savings Accounts (HSAs)

HSAs are a powerful, often overlooked, financial tool that can offer clients triple tax benefits—contributions are tax-deductible, the account grows tax-free, and withdrawals for qualified medical expenses are also tax-free. Talk to clients with high-deductible health plans (HDHPs) about contributing the maximum to their HSAs before year-end. For those who haven’t tapped into their accounts, remind them that unused balances roll over, making HSAs an excellent long-term savings strategy for healthcare in retirement. Clients nearing retirement can also use this time to strategize future healthcare costs.

8. Looking Ahead to Major Life Events

Life events like getting married, having children, buying a home, or retiring can significantly impact your clients’ financial plans. Checking in at year-end provides the perfect opportunity to anticipate these changes and plan accordingly. For example, a client planning to retire may need to adjust their income strategy, while a client expecting a baby might want to increase their life insurance coverage. Discuss how these milestones will affect their budget, taxes, and investment goals. Preparing for major life events in advance ensures smoother transitions and greater financial stability.

9. Insurance Coverage Check-Up

Insurance needs change over time, but clients may not always think to review their policies. Use year-end as a chance to help them assess whether their current coverage—life, health, disability, or homeowners—still meets their needs. Have their dependents changed? Do they need more coverage as their income grows, or perhaps less as they near retirement? Ensuring clients have the right coverage protects them from life’s unexpected events, reinforces their financial security, and demonstrates that you’re looking out for them in every aspect of their financial life.

10. 2025 Financial Preview

Looking ahead to 2025 gives clients a chance to start the new year with clear financial goals and excitement. Discuss trends or changes in the market that could impact their investments, explore new opportunities, and revisit their risk tolerance. Encourage clients to think about what they want to achieve in 2025, whether it’s paying off a large debt, increasing their savings rate, or investing in new opportunities. Show them that you’re forward-thinking and committed to their long-term success by laying out a plan to help them meet those goals in the year to come.

Wrapping Up the Year with Confidence

Having these key conversations before the year ends will show your clients that you’re on top of their financial needs and ready to help them transition into the new year with confidence. By addressing everything from taxes and portfolio balance to major life events and upcoming goals, you’re reinforcing your value as a proactive, engaged advisor.

Let me know if you'd like to add more details or sections!