4 Year End Sales Strategies Advisors Can Implement Now

My favorite adage is that “business doesn’t slow down during the holidays, you do.” Many advisors submit to the limiting self-belief that their business has to stall in the holidays.If you think in abundance, then there will be abundance, simple as that.

Year-end production starts with the right mindset. Once you have the right mindset, there are tax planning strategies you can use to generate additional sales in Q4. As the end of the year approaches, consider contacting clients with these timely planning ideas:

1. Convert to a Roth IRA

Recommend this to your clients that are sales professionals or executives with fluctuating incomes. Why? Because, it’s possible to incur no additional taxes or penalties if you recharacterize in full or only a part of a Roth IRA conversion before the tax-filing deadline. This will ease the mind of clients who are hesitant to convert because of the potential negative tax implications.

Income for many individuals can vary substantially from year to year such as with sales professionals or employees that receive bonuses. If you work with them when their income is lower and perform a “tactical” Roth IRA conversion that can put your clients in a better position to manage their tax bill in retirement.

2. Use investment losses to their advantage

This is a great way to turn something seemingly negative such as tax-rate increases or new health-care-related taxes into a positive. It’s your opportunity to reach out to them because whenever there are tax increases smart tax planning becomes more critical. When you’re reviewing their portfolio, think about strategic opportunities to generate losses to offset other gains. Trying a tax swap strategy for mutual fund holdings is a strategy worth considering.

3. Donor-advised funds

Touch base with your clients that saw a significant spike in income this year due to financial good fortune such as the sale of their business, an initial public offering or perhaps their financial portfolio appreciated significantly.  

Donor-advised funds are an avenue advisers can explore for charitable contributions. They enable clients to front-load philanthropic donations into one calendar year but pay out over time.

Your clients, therefore, can realize the full benefit of a tax deduction in the current calendar year, which could be helpful if there is a spike in income in the new year.

4. Trusts

Taxable trusts are subject to a 3.8% Medicare surcharge tax if there’s over $12,300 this year in undistributed income.They’re taxed at a rate in the highest bracket.

If you have clients that have trusts, sit down with them and talk about possibly making some distributions from it by year-end to make it more efficient.The strategy would be to get the trust’s undistributed income below that tax threshold.

Hopefully this post opened your eyes to see that there are a lot of opportunities waiting for you as the year winds down. Don’t miss out and start reaching out to your clients today.

Eszylfie TaylorABOUT ESZYLFIE TAYLOR Eszylfie Taylor is the founder and president of Taylor Insurance and Financial Services and the Creator of The Taylor Method, his online sales system for financial advisors. He attended Concordia University on a basketball scholarship and graduated Magna Cum Laude with a Bachelor’s Degree in Business Management. Prior to founding his own brokerage, he was a standout financial advisor at New York Life, finishing his career there as the highest producing advisor in the history of the African American market.

Mr. Taylor has been a Million Dollar Round Table Top of the Table producer since 2011, which places him in the top 1% of advisors worldwide. In 2015, he was the recipient of NAIFA’s Advisor Today Top 4 Under Forty award. Today, as an active advisor, he continues to build on the sales language, concepts, and tips that contribute to the curriculum on The Taylor Method.