No More Quarterly Performance Reports!


As CEO of Total Rebalance Expert®, I come in contact with many advisors. I was surprised to find out that some of them did not submit performance reports to clients. When I asked them about it, they gave me the following responses:


  • Clients get monthly and annual reports from their custodians.
  • They don’t want clients focusing on short-term performance.
  • They want their clients to value them for their advice and partnership.


Think about it. We don’t want our clients to focus on short-term returns. In fact, we’d rather they not focus on returns at all. We’d like our clients to be thinking about accomplishing their long-term goals. If we are truly wealth managers, then why does our reporting emphasize performance?



In my RIA firm, I’ve always given my clients quarterly performance reports. I don’t think I could stop doing so mid-stream. But, what if the move was gradual?



For example, what if, in addition to performance figures, I also added the following to my reports?


  • List and description of services provided (such as financial plan updates, Roth conversion analysis, insurance review)
  • Progress toward goals (such as percentage accumulated toward vacation home purchase or retirement goal)


I could then gradually move performance reporting to the back page, eventually deleting such reporting altogether.



Is this a radical idea? Or is it more in line with the services we want to be known for?

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