Kimble Johnson • Louisville, KY
LPL Financial
When I first started as a financial advisor in 1981, financial plans could be 50 to 60 pages long—so long that they were essentially useless since few clients took the time to read them. You can imagine how long a meeting might be to review such a document.
As computer-generated documentation came of age, financial plans only got more unwieldy in terms of complexity and length. Financial plans were beginning to look like government budget books.
While having detailed back-up information is important, for client meetings and reviews the simpler the better. In fact, I tell all of my clients that I can put all of their essential financial information on one page. And that is exactly what I do for client review meetings, creating a “report card” on the state of their financial health.
Even for a client that might have millions in assets, this can be captured in an easily digested and understandable format—especially important for retirees. I include a basic income statement; an overview of taxable versus non-taxable income; insurance; and, of course, all of the various components of their investments. What is especially important is the consolidated income statement, as clients can see at a glance what they can expect to receive every year in retirement.
I explain to clients that this in no way replaces all of the formal documentation and statements of their “full” financial plan, but it really provides a service to have things condensed in this way. It has generated some very positive feedback over the years.
Disclosure: Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA & SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a nondiversified portfolio. Diversification does not protect against market risk. Investing involves risk, including loss of principal.
Photography by Chris Cone
