Customizing financial plans for your clients is especially important in unstable environments.

- Executive Vice President, Aneri Jambusaria, Head of LPL Services Group

Financial planning can help remind clients why you’re a great advisor

In this episode of Executive Exchange, Aneri Jambusaria, executive vice president and head of LPL Services Group, details why offering comprehensive financial planning to clients amid volatility is key to your continued success. By customizing a written financial plan based on the unique financial goals and life milestones of your client, you can help raise your clients’ awareness of their entire financial picture and inspire them to take a more active part in helping you assist them in pursuing their goals.

2022 could be the first time your clients have experienced a negative impact to their portfolio. Understandably, clients are, at least, anxious. Some may be very worried. In an emotional time, clients will look to their financial advisors for proactive reassurance and a strategy for getting through the down times – or they may seek advice elsewhere.

LPL Financial believes you can demonstrate your value to your client by building, enhancing, or expanding your financial planning services.

According to a Hearts and Wallets survey, Americans who have a financial plan enjoy increased savings, better asset allocation, more confidence, and a higher degree of overall financial wellness. More than half of households with written plans save 10% of their income verses 36% of those who wing it.1 That confidence and understanding of money and markets can help clients remain calmer during volatile markets and reduce the risk of them summarizing that you – their financial advisor – simply aren’t doing enough or doing your job correctly.

And during this time of heightened volatility, the LPL Services Group offers additional tools to consider as you customize a financial plan for clients, including:

  • Roth IRA conversions – Roth IRAs allow for tax-deferred growth potential and qualified tax-free distributions in retirement. They also allow for penalty-free and tax-free distributions for education expenses. If a client’s traditional IRA has lost value, their tax bill could be lower when converting to a Roth IRA.
  • Tax-loss harvesting – If your client’s investment has dropped this year, selling that investment at a loss could defer the taxes and they can purchase similar investments to help offset gains. Tax harvesting is only appropriate for certain clients, so please review with a tax professional.
  • Executive compensation – For clients receiving bonuses in the form of stock options and wishing to exercise those options, a market where the stock price is depressed may allow your client to start the holding period for a qualifying disposition, and then exercise more options while paying less in alternative minimum taxes when the stock is sold. Your client can then reallocate the proceeds into a diversified portfolio.
  • Estate planning options – It’s always wise to update a client’s estate plan and the current environment may also present unique opportunities:
    • Gifting of depreciated assets could allow clients to bequeath portions of their estate to heirs at a possibly reduced tax liability through a trust
    • Loaning estate assets to heirs can provide a loan to their clients’ heirs beyond the $16,000 yearly gift maximum. These loans are provided with a low applicable federal rate. Heirs would pay back the loan over time as well as the low amount of interest – which, in theory, should be low tax-wise. Clients should consult a tax professional and be aware that applicable federal rates are subject to change by the Internal Revenue Service (IRS).

With any of these considerations, please encourage clients to consult with their tax professionals so they can understand their unique tax liability with these financial planning concepts.

Remember also that financial planning is not a once-a-year-review but should be based on changes to a client’s goal or milestones, large and small. Schedule regular check-ins with clients to ensure financial plans are on track and what strategies might help if a client’s circumstances change. To help with efficiency, consider segmenting your book of business by clients who have no financial plan, are on similar financial plans, or who you believe would benefit from a more in-depth approach.

LPL Services Group is also available to help answer your questions and the paraplanning group will actually work with you to create financial plans for your clients. Find out how our paraplanning team can help you build, enhance, or expand your financial planning practice, providing a holistic approach to financial advice. Tap into resources below.

Paraplanning Benefits

Learn how one LPL financial advisor increased revenue via Paraplanning Services

LPL Business Solutions

Streamline your operations and elevate your client experience with this LPL partnership.

More Services. More Choice

Learn more about LPL offerings in this talk with LPL senior vice president, Kraleigh Woodford.

Aneri Jambusaria:

What a year it has been! Hello, I’m Aneri Jambusaria and I want to take a moment to talk to you about the importance and value of guiding your clients with long-term, comprehensive financial planning.

2022 has featured dramatic market volatility and, for the first time in years, many investors have seen their portfolios shrink – and they’re anxious about what that means when it comes to their financial goals.

We’ve also heard from many financial advisors like you that this is the first time you’ve have had to deal with guiding clients through their financial plans during an extended down market.

So to ease your clients’ minds and take the opportunity to demonstrate your value, consider leaning into financial planning. If you have clients that don’t have a financial plan today, this is a great time to start. And for your clients that do have a financial plan, it’s a great time to showcase your value with a comprehensive review.

Why financial planning? It provides a great foundation for your relationship with your clients and helps reinforce good habits to make you and your client more successful.

Research also shows that clients who stick to their plans in tough times – like the ones we’re in now – are better positioned to reach their goals… and that can translate into a long-lasting relationship with you, their trusted advisor.

Depending on your client’s unique situation and financial goals, you could approach their financial plan differently, but let’s review some of the common ideas.

First, let’s talk process. Every financial plan starts with understanding your client’s goals and analyzing their situation. This can include their assets, liabilities, and cash flow. From there, it’s important to take each goal – whether it’s saving for college or retirement – and build a pathway for how they can get there.

They say that execution eats strategy for breakfast – the same goes for financial planning. The most important part of the plan is implementing and monitoring the recommendations. As the advisor, you’ll be on the hook for some of this; but your client has accountability too, to ensure their savings and spending habits support the plan. And you’ll also need to evolve the plan as conditions change.

The topics you’ll need to understand in order to provide comprehensive financial planning are growing, and include retirement savings, tax planning, estate planning, and insurance planning. You don’t need to be a pro in all of these areas, but in areas where you don’t have as deep expertise, it’s helpful to have a trusted partner on speed dial.

Now, for clients who already have a financial plan, times of market volatility – like the ones we’re in right now – are a great time to execute on some unique and timely planning strategies.

The first is Roth Conversions. Many clients who have a traditional IRA and expect to be in a higher tax bracket in the future could benefit from converting to a Roth IRA. This is a great time to do Roth conversions, especially for clients whose IRAs are lower in value due to market volatility. They’ll benefit form a lower tax liability during that conversion, and the remaining funds could grow tax-free.

Tax-loss harvesting is another important planning strategy for down markets. It’s a great time to harvest losses in your clients’ accounts without meaningfully changing their investment strategy. And those losses could translate into lower capital gain taxes, this year and into the future.

Lastly, take this opportunity to review your clients’ estate plans. For clients who are planning on making gifts to their heirs, doing so in a down market when those assets have depressed value can be beneficial. This will limit the amount of the client’s gift tax exemption used and might even reduce gift taxes owed.

Of course, you should encourage your clients to talk with their certified public accountant for details on the tax implications of these strategies. And we here at LPL are also available to help you and your clients wherever you are in your financial planning journey. 

Our advisors complete over 70K financial plans annually, and many of them receive support from our Paraplanning Services team. In fact, our team has helped LPL Advisors complete 750 plans year-to-date. That translates into more than 2 years of advisor time saved, not to mention the impact on all of the families with even more confidence in their financial futures.

That’s why at LPL, we’re all-in on planning, no matter the market environment. Thank you for watching and happy planning. 


1 Having a Written Financial Plan Improves Savings and Asset Allocation,, February 8, 2022.

The content is designed for licensed financial professionals. There is no assurance that the strategies discussed are suitable for all investors or will yield positive outcomes. To determine which investments are suitable for you, please consult your financial professionals prior to investing.

The views and opinions are express by LPL Financial representatives are not indicative of future performance or success LPL Financial cannot be held responsible for any direct or incidental loss incurred by applying any of the information offered.

LPL Financial does not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.

Investing involves risk, including possible loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Qualified withdrawals of Roth IRA earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

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