September Week 3: Checklists for retirement assets

September’s agenda: Uncovering retirement assets with client reviews The challenge: Over the past two weeks we have focused on putting a foundation in place for year-end client reviews. As we discussed, your top-level, platinum clients will receive in-person reviews while your gold and silver clients will receive a mix of phone and in-person help. Reviews help uncover retirement assets, but how do you identify retirement assets and track them? The solution: Create a checklist for each client review. These checklists don’t have to be complicated, but each client must have one that’s customized just for them. The goal is to identify all the various retirement plans each client may have and keep track of them starting now. Your clients’ retirement accounts may be held within 401(k) plans or other programs out of your control, but the funds in those plans represent the future of your practice. You want to be aware of the funds and exert some control over them before corporate plan administrators — which include the biggest money managers in the business — use their marketing muscle to retain the assets through rollovers. Don’t assume clients are going to roll their retirement investments into their account with you. You must make that happen by positioning your practice as a retirement resource and by creating a retirement checklist to review and update during client reviews. This week: Create a basic retirement checklist. (If you want a more in-depth client review checklist, visit www.connectedadvisor.com. Below is a simple layout and the questions to ask during reviews. Suggest that your clients bring all their tax forms to their annual review, including tax returns, so your check-up is complete. We are not suggesting that you give tax advice; the overview will help you make sure your clients’ investments meet their goals and objectives. Since your team’s in-person reviews will be with your top clients, have your assistant or partner do the same with your remaining clients. When it comes to retirement savings and stock options, you are likely to discover that some of your lowest level clients have vast amounts of savings. Retirement Checklist Client name Name/contact info for CPA Name/contact info for attorney Name/contact info for insurance agent Family information: Address, phone numbers, birthdays/anniversaries Life-changing events (marriage, divorce, deaths, illnesses) Investment review and planning Verify assets and liabilities; recalculate net worth and review tax returns Goals and investment review Mortgages Performance assessment, risk tolerance and asset allocation Tax strategies and investment implications Insurance coverage review, including updating beneficiary designations on all retirement plans and insurance policies. Retirement planning Review retirement savings goals, including target retirement date and amount Review plan contributions Review stock options, including amount and exercise dates Review 401(k) plan totals and allocations. Identify all plans and check statements. Review any defined benefit pension plans, including start dates and amounts. Review distribution planning, including minimum distributions. Below is a sample e-mail or letter you can send to clients to prepare them for their retirement review: Date Name/Address Dear Mrs. Smith, In my financial practice I strive to help my clients achieve their financial, professional and personal goals. In order to provide the highest level of service to my most valued clients, and to be sure we are on target to meet both your year-end and long-term financial goals, I would like to schedule a year-end financial review with you for October 10 at 2 p.m. The review will give us an opportunity to discuss any changes in your financial situation, prepare for your planning with your tax advisor and conduct a complete retirement check-up. I will contact you next week to confirm our review meeting. In the meantime, please consider any financial questions or life-changing events that we should discuss. It would also be helpful if you would gather any financial information and retirement plan statements that you would like included in the review, such as your tax returns or statements from retirement investments not managed by our firm. I value you as one of my most important clients and look forward to meeting with you for our review. Best regards, (Signature) Your name Title Now that you have the blueprint, start scheduling your client reviews this week. Remember, the goal is to have all reviews completed before Thanksgiving, so your team can host a client-centered charity event at the end of the year and celebrate the holidays stress free. This checklist approach works. One top adviser we helped went through his top-40 clients and did a complete retirement assessment/check-up. The average client had about $600,000 in a variety of retirement plans. The real surprise was the number of clients with stock option plans that the adviser did not know about. One client had almost $900,000 in options awarded to him over a period of 30 years. Next week: Following up and tracking retirement assets (and gaining top client referrals).