Popcorn, pie and cocoa: Advisors weigh in on holiday gift giving

'Tis the season to thank clients for their business, and that means financial advisors must decide on that perfect gift — should they choose to give one at all.

Perhaps it’s because they're generous souls, or maybe it’s due to a slight pang of guilt because their investment selections failed to outperform the benchmarks, but some wealth managers simply don't see a holiday card to clients as being sufficient to show their appreciation. They want to give something tangible, memorable and, at the very least, something not entirely disposable.

But without breaking the yearly entertainment budget, of course.     

For example, Daniel Lash, financial advisor at VLP Financial Advisors, has been sending his clients a real wreath for the past decade. He says many of his clients email him pictures of the wreaths on their doors, so it’s become somewhat of a tradition.

“Many have come to expect them since we have been sending for so many years. We budget this and all other client appreciation into our annual budget every year,” Lash said.

Laurie Humphrey, financial advisor at Granite Financial, part of Osaic, rewards her clients for two weeks each holiday season with a trip to the bar. The cocoa bar, that is.

“Clients stop in for some social time and to bring in supplies for the drive we host each year for a local charity.  For our top-tier clients, we also send a gift. In the past, we’ve delivered meat and cheese gift packs, chocolates, charcuterie boards and blankets,” Humphrey said.

There are few things in the world that top hot cocoa, but Nina Lloyd, president of Opus Financial Advisors, part of Osaic, believes she may have the gift that does it: a Southern Baked Pie.

“We hope to effectively communicate our gratitude for client partnership many times throughout the year,” Lloyd said. “Holiday gifts are one part of that ongoing effort. This year, we plan to send an assortment of goodies from Southern Baked Pie Company.”

Hot cocoa and pie are surely tough to be beat come holiday time. However, Shane Moore, financial planner with Quartz Financial, says good old popcorn is certainly a contender, even for the wealthiest of clients.

“Given our high-net-worth clientele, we surveyed our clients a few times to see if a more 'elevated' gift would be preferred. Surprisingly, the response is always something like ‘Don't change. We look forward to kicking off the season with your popcorn every year!’” Moore said, adding that although it's not expensive per client, all that popcorn adds up, so “it's one of the first budget items earmarked at the beginning of each year.”

Brian Hartmann, partner at Granite Bridge Wealth Management, also part of Osaic, spends a significant amount of time each fall brainstorming an end-of-year client gift. In choosing a gift, Hartmann says his team purposefully tries to support a small business and highlight the story behind the individual or business. In years past, for example, he had a local artist hand-make holiday ornaments for clients from sweet grass. This year, he'll be distributing a cookbook created by his clients. 

“Throughout the year, we shared that we were working on a ‘secret mission’ and asked our clients from around the country to share their families’ favorite recipes. The books will include multigenerational recipes, and the stories behind them will be delivered to our clients just in time for the upcoming holiday season,” Hartmann said. “Who knows? Maybe they even talk about their wonderful relationship with the advisors at our firm with the guests at their tables.”

On the other hand, Carol Fabbri, financial planner with Fair Advisors Institute, is not on board with holiday gift giving at all. Not that she’s a Grinch. She simply believes that any gifts or meals that are given to clients are taken from the fees clients are paying her.

“As a fee-only advisor, my clients prefer lower fees to a fruit basket,” Fabbri said. “Having said that, I will always keep an eye out for information that will help my clients and will send it to them whenever I can.”

Then again, there's another way — and another season — to reward loyal clients. And it’s a true contrarian approach, said Kara Brockmeier, certified financial planner at Premier Financial Partners.  

“We send our clients a summer gift to show our appreciation so it doesn't get lost in the holiday shuffle!” Brockmeier said.