Assessing Your Clients’ Savings

Are your clients or prospects smart savers who are prepared for the future, or do your clients coast along with hopes that their finances will come together in due time? Many people do not know exactly how much they need to save each month toward their financial objectives. In fact, some people have not even identified their specific goals. This is dangerous because without understanding the reasons for saving, the importance of doing so disappears.

It is your role as an investment professional to help your clients understand the value of saving – whether it is for a future investment, such as a home or college, or even for retirement. But, first you need to assess a client’s savings habits. Use some of the Yes or No questions below to assess a client’s behavior and attitudes toward saving money. And keep in mind that the responses can lead into a useful discussion on the products or services that you offer.

  • Do you know your net worth (your assets minus your liabilities)?
  • Do you track your cash flow (income and expenses)?
  • Have you written down specific short-, medium-, and long-term financial goals and objectives?
  • Do you regularly measure your progress toward those goals, and update your plan periodically as you experience changes in your family or financial situation?
  • Do you pay yourself first, saving at least ten percent of your after-tax income?
  • Do you maintain cash reserves and insurance to manage the unexpected?
  • Are you saving money in a retirement account?
  • Are you building your net worth by taking advantage of the power of compound growth and reinvesting the dividends and interest on your investments?
  • Do you enrich your retirement and savings plans with raises, bonuses, and other unexpected income?
  • Are you minimizing your taxes?

Based on the outcome of your discussion, you can help your clients navigate a clear path to a secure financial future.

The information contained in these materials is believed accurate at the time of writing but is not guaranteed. 

Delta accepts no responsibility for its use whether in whole or in part.