There is a prevalent myth in wealth management of a “summer lull” — a period where both clients and financial advisors are supposedly enjoying nothing but the sun at the beach or a leisurely round of golf.
But life’s milestones don’t take a vacation, and neither does the demand for sound financial advice. Summer months not only bring longer days and warmer weather but a plethora of opportunities for financial advisors to engage with clients.
Let’s start with an interesting fact: The distribution of birthdays throughout the calendar year is far from uniform. Surprisingly, August and September hold the record for the highest number of birth dates, a pattern that inevitably results in numerous age-based milestones that occur in the summer.
These milestones represent pivotal life moments that require thoughtful planning and often complex decision-making. When a client turns 50, for example, they gain the ability to make catch-up contributions to retirement accounts, an important consideration for clients seeking tax-savvy ways to enhance their financial security in retirement.
Another significant transition occurs at 65, when clients must navigate intricate Medicare decisions and potentially adjust retirement income streams. Similarly, six months after their 70th birthday, clients can leverage qualified charitable distributions (QCDs) to their advantage. Each of these moments poses unique sets of financial implications and opportunities, often requiring a tailored strategy and the trusted guidance of a financial advisor.
Wedding bells are another significant — and pleasantly loud — feature of the summer months. About half of all weddings in the U.S. take place from June to September. Financial advisors who place their clients at the center of their service model understand the necessity of advising on these important life events, which often require detailed discussions around money management goals, behaviors and strategies.
Nuptials may involve merging assets, setting up joint accounts, revising insurance policies, adjusting tax filings and establishing new investment strategies that take into account the couple’s shared financial goals. This period may also be the right time to discuss longer-term financial planning, such as buying a house, planning for children, retirement savings and estate planning.
Advisors can guide couples through these complex decisions, helping them create a financial plan that is not just about immediate wedding-related expenses, but also about establishing a strong foundation for their shared financial future.
Summer is also a hot season for real estate transactions, which often represent the largest single financial decision clients will make. Buying or selling a home encompasses wider financial implications such as taxes, estate planning and retirement considerations. From navigating suitable mortgage options to handling closing costs, insurance needs and potential renovation expenses, clients often find themselves navigating a web of decisions. For sellers, the considerations extend to tax implications and strategies for the reinvestment of sale proceeds.
The role of financial advisors in this context becomes critical. They provide personalized wealth management guidance, aiding clients in understanding and mitigating potential risks such as over-leveraging, unexpected costs and market fluctuations. Moreover, these real estate decisions frequently present substantial opportunities. A home purchase might prompt a reassessment of a client’s overall financial plan, ensuring that mortgage payments align with long-term financial goals.
Meanwhile, selling a home could lead to a significant influx of capital, providing opportunities for strategic reinvestment. Advisors help clients incorporate these major decisions into their overall wealth management strategy, ensuring that their real estate transactions align with their long-term goals.
Such summer moments can also serve as a reminder to financial advisors to stay proactive, agile and ready to seize opportunities to guide clients toward informed decisions, regardless of the season.