1.    Are your cash flow needs still the same? Cash flow needs tend to evolve over time. Unexpected medical costs pop up or, with tuitions continuing to spike, a client could decide to step in and fund their grandchild’s college education. On the other hand, it’s also possible that cash flow needs could diminish more than previously anticipated, potentially giving client’s the opportunity to focus on more growth-oriented strategies in the near future. Regardless of each individual's unique needs, at the end of the day, cash flow is what gives many clients security in times of turbulence. An advisor who has worked together with their clients on cash flow planning will have an upper hand on long-term planning

2.    Are you still on track for retirement? By having a plan for retirement, advisors are often able to calm clients’ emotions during times of volatility.  When storm clouds emerge, many investors with an eye on retirement seek shelter from the storm by choosing to exit their investments abruptly. Guiding clients with behavioral finance decisions is an important part of an advisor’s role with clients. While tempting to make short-term moves, these could affect their cash flow during retirement or possibly their ability to retire on time. Indeed, being able to withstand the inherent ups and downs of the market is one of the principal reasons to craft a financial plan in the first place. By revisiting the plan when anxieties are high, the advisor can more readily show his or her clients how it makes no sense to abandon the plan's approach when near-term trouble begins to brew.

3.    Is your plan still tax-savvy? Life is dynamic and tax strategies that have been implemented in the past may not be appropriate this year. Now is the perfect time to suggest a review of your client’s 2016 tax plan. The current fluctuations in the market may allow for the opportunity to rebalance portfolios with a lessened tax impact for non-qualified accounts. In addition, when working with clients who have income that fluctuates from year to year, you may have an opportunity to review Roth conversion as a way to benefit their retirement strategy. 

4.      Are you allocated properly?  Over the last year, many advisors have been having tough conversations about capital market performance. The U.S. market has been relatively flat, and international equities have continued to underperform domestic equities. On the fixed income side, yields have moved lower, providing positive returns but implying lower returns moving forward. This market has many clients asking about their overall allocation. This is a perfect time for a financial advisor to reach out to clients and re-evaluate their risk profile and time frame to make sure clients' investment assets are properly allocated. Many clients may need to be re-educated on capital markets and how asset allocation works over the long term.

With the proliferation of new technology-based retail investment solutions, notably robo-advisors, the need to contextualize and manage client expectations is potentially more important now than ever before. Certain clients may not understand that robo-advisors and other digital solutions became more commonplace over the last five years, when the markets were both rising and fairly predictable—and that those times have now vanished.