Tax season is a busy time. But as a CPA, it offers you a unique chance to uncover clients' financial needs beyond compliance.
Being able to recognize opportunities to provide wealth management services can be a significant differentiator for you and your firm, transforming your practice in the long run. But sometimes it’s something that isn’t top of mind.
The following questions could assist in identifying areas of financial concern that could be addressed in future, adding value to your services, all while deepening your relationships with your clients.
Investment Management
Upon reviewing your clients’ investment income on their tax returns, capital gains, interest or dividends, you can assess their needs by asking:
- How satisfied are you with your investment performance?
- What is your strategy, and do you know your asset allocation?
- Have your investments been objectively reviewed recently?
- Do you know your fee structure?
- Are you fully utilizing tax savings opportunities like dividends and capital gains vs. interest income and TFSAs, etc.
- Are you comfortable with the appropriate level of risk in your portfolio?
Estate Planning
This is an area that can be a quite confusing for most and requires a lot of professional support. When considering any trust, Will or Poa requirements, some questions to ask your clients could be:
- Do you have wills and powers of attorney? Do they reflect your current desires?
- Do your executors and powers of attorneys for personal care and property know their duties?
- Have you reviewed your estate plan for tax efficiency?
- Are you satisfied that your executor has the capabilities to fulfill their responsibilities?
Risk Management
Milestones and life events are great identifiers for client support and are also important stages to manage risk. Some questions to consider are:
- Do you have insurance policies? If so, do they still fit your needs, and have they been objectively reviewed recently?
- Do you have a process in place to review risk?
Some Key Life Events To Be Aware Of Are
- Marriage
- Divorce / separation
- Death of spouse
- Recently retired
- Birth of a child / grandchild
- Sale of asset, property, or business
- Clients approaching 65 who are unsure whether to take CPP/OAS
- Clients turning 71 in 2023. Born 1952
You Don’t Have to Do This Alone
By asking the right questions and identifying these critical areas, you can provide invaluable support. Collaboration with other professionals can also help ensure that your clients receive comprehensive wealth management guidance, benefitting your practice and leading your client toward their financial success.