2019 Annual Review Update
By Kevin Rigg
It’s hard to believe, but we are already hard at work preparing for the 2019 annual review meetings. In early January we will be sending all clients a data gathering form meant to provide us with annual cash flow information as well as year-end values of non-portfolio assets and loans.
The annual review meeting at SoundView Advisors has several distinct purposes. First and foremost we will assess your current financial situation and we will track your progress towards meeting your long-term goals. In order to do this well, we need timely and accurate financial data. For example, we ask for year-end bank account balances in order to provide a complete net worth and cash flow statement. While we already track flows within investment accounts, we don’t see that activity in personal bank accounts. Gathering year-end balances from those accounts allows us to track changes from the prior year and produce more accurate reports.
Here's another way to look at it. Think of it like the annual physical exam you get at your doctor's office. The physician takes your temperature and blood pressure, checks your reflexes, and conducts several other tests. Your doctor then uses that information, as well as your feedback, to give you an overall picture of your physical health. That's basically what we do too, but instead of your physical body, we run a myriad of tests on your financial health. The data gathering and report preparation process are like lab work, where we check to see if the key indicators, like spending and savings rates, are where they need to be.
Armed with that information, we sit down with you and gather more qualitative information about changes in your life and plans. Then we put the two together and discuss changes you might make that would increase your chances of achieving your goals. The annual review meeting brings the focus back to your long-term plan while keeping our eyes on the path you're on today. That way, we don’t miss important changes that could have a big impact down the road.
We realize data gathering takes time and appreciate that the annual review meeting isn’t always pleasant as we dig into the details of your financial life. However, without knowing the symptoms, there is no way that we can provide a helpful diagnosis of what might be causing pain in your financial world.