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Don’t Skip Your Annual Business Review

Keeping new year’s resolutions is hard. If you can add one to your list, we recommend not skipping your advisor’s annual business review.

As 2021 gets underway, you are probably trying to keep some new year’s resolutions. Here’s one that’s probably not on your list but should be: Don’t skip your advisor’s annual business review.

Every year your financial advisor will try and schedule a meeting with you – don’t blow him or her off. The point of the meeting is to help you stay on track towards your financial goals. Just like it’s important for your clients to get their teeth checked and cleaned regularly, we want to review and update your goals, along with your strategies for achieving them.

Here are 7 topics it’s important to discuss:

  1. Health of Your Practice – Once a year you should stop and evaluate the performance of your business. We look at things like cash flow, overhead expenses, and a variety of key performance indicators. The purpose is to make sure your business is profitable and growing.
  1. Tax Planning– Are you optimizing every deduction you’re legally entitled to? If you have employees, it’s important to confirm that your payroll withholding taxes are accurate. Because tax laws change, an annual review will ensure your strategies are up to date and there are no missed opportunities.
  1. Retirement Plan – Whether you’re drawing near to retirement or just beginning your career, an annual check-in will track progress towards your retirement goals. A well-designed plan requires occasional calibration, including adjustments to your portfolio allocation.
  1. Insurance – As life changes, so does your need for coverage. Maybe you got married, had another child, or perhaps you made significant capital investments in your business this year. Whatever is going on in your life, it’s worth taking the time to be sure you have adequate insurance to protect your family and your business.
  1. Wealth Transfer Strategy – Maybe it takes a pandemic to remind us that we can’t take our own mortality for granted. All business owners deserve the peace of mind that comes with knowing what will happen to their business if they become ill or pass away. It’s a standard part of our annual business review.
  1. PPO Analysis – In a volatile healthcare market, an annual review will help confirm that you’re getting the full value from your PPO membership. Our partners at PPO Advisors can conduct a cost-benefit analysis and will negotiate with PPO’s on your behalf.
  1. Alignment with Current Goals – Because life’s not static our needs and priorities can change over time. An annual business review provides the perfect opportunity to take stock of current objectives and see if they still apply.

When your advisor wants to schedule this year’s business review, take that call. If you want to learn more about how Engaged Advisors can help you reach your business goals, our tax and financial planning professionals are ready to take your call. Schedule an appointment with us today.