Short Year-End Review Checklist

Short Year-End Review Checklist

December 06, 2022
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✨Year End Review Time✨

Everyone gets busy this time of year, so as the year 2022 comes to a close, make sure you're checking off these important client review topics.

      First, general housekeeping:

Qualified Accounts (Traditional, Roth, SEP, and SIMPLE IRAs, 401(k)s, 403(b)s, Gov 457s, and profit sharing plans)

  • Required Minimum Distributions (RMDs): If not already calculated, here is an IRS RMD worksheet Roth IRAs excluded  
  • Check Beneficiaries: This is a great reason to talk to your client's family!
    • Are updates needed for wills or trusts?
    • Connect or realign with your client's estate attorney.   
    • Stretch IRAs - review the SECURE Act rules if you have clients affected by this change. 
  • If your clients are still contributing, review their plan, company match, are they saving enough? Retirement Calculator

Non-Qualified Accounts 

  • Review your client's goals and expenses as inflation is most likely having quite an impact on their lifestyle. 
  • Contact your client's tax advisor and understand if tax loss harvesting is being suggested.
  • Review gifting rules and understand 529 plans for clients that can benefit (state specific).
  • Check in on their insurance needs, or refer to an advisor that specializes. 
Risk Tolerance and Investment Review 

If you're already using RiskPro,

  • Pull up your client's Personal Risk Budget (PRB) and have them do a "gut check".
  • Use the signed PRB and proposal as their investment policy statement.
  • Make any changes that are appropriate to their PRB or investments, and help your clients that are anxious about the markets and economy.
  • Show them how staying the course in uncertain times vs. cashing out can make a huge difference in their long term success. This chart can help:
Staying fully invested in a bear market had a cumulative return of 50% a year later, 76% after two, and 83% after three. Moving into cash for one month had returns of 28%, 50%, & 57%; three months: 21%, 42%, & 50%; and six months: 14%, 34%, & 42%.
Source for table: Schwab Center for Financial Research and Morningstar. Data analyzes the five periods from 10/1974 through 03/2022 during which the S&P 500®­ Index fell by 20% or more. Market returns are represented by the S&P 500 Total Return Index, and cash returns are represented by the total returns of the Ibbotson U.S. 30-Day Treasury Bill Index. Cumulative returns are calculated using the simple average of returns from each period and scenario. Past performance is no guarantee of future results.

Wish them a Happy Holiday

Don't forget to

ASK FOR REFERRALS!