Please take the time to become acquainted with the events that are expected to occur over the many years that we hope to be together. Some tasks require action on the client's part, and we will contact by email as required. If a client anticipates a life-changing event, it is critical that we are contacted immediately. For example, if a client's job is at risk, we need to be kept informed as this will often result in a recommended increase in cash reserve, and the reassessment of the portfolio volatility tolerance. Consider adding the calendar events on a personal calendar as a double check.
Calendar of Events
Items that Contour Financial will provide:
- Monthly (middle of each month) 1 — You should receive a Charles Schwab statement by email or mail if there was any activity in your accounts. This brokerage report will provide you with account activity information pertaining to the previous month. If there is no activity, then the statement will be emailed or mailed quarterly instead.
- Monthly — You should receive our newsletter by email. This useful newsletter will help keep you abreast on current topics relating to financial planning and investments. Newsletters can also be accessed through the Contour Financial website at Resources > 1. Cindy's Newsletters.
- Quarterly (middle of January, April, July & October) — A quarterly report will be sent providing you with Client Return Summary1 (account value changes from periods ranging from 3 months to 5 years), Performance Summary1 (Beginning Market Value, Additions, Withdrawals, Gains/Losses, Interest, Dividends, Management Fees and Ending Market Value), Security Performance1, Current Holdings (coming soon)2, Billing Statement, and Morningstar Quarterly Commentary.
- Semiannually (six months from the last review) — Your assets will be rebalanced by us twice per year. Based on your program as outlined in your previously approved "Client Confirms Volatility Tolerance and Investment Policy Statement (IPS)" document, your current holdings will be compared to the IPS. Recommended changes will be submitted to you by email unless otherwise requested. For those accounts opened through us at Charles Schwab, we will implement the changes for you. For all other accounts, the recommended changes will need to be implemented by you.
- Annually (end of January)1 — Preparing for the tax man is not fun, but we will try to make this unpleasant situation go as smooth as possible for you. Charles Schwab will send a 1099 form, which lists interest, dividends, realized gain/loss, capital gains distributions, foreign taxes paid, and fees paid to Contour Financial. If fees to Contour Financial were not paid through a retirement account, they may be deductible on your tax return. Consult with your tax advisor. In recent years there have been problems with mutual fund companies sending Charles Schwab corrected information after 1099s have been issued. It is recommended to wait a few weeks after receiving your 1099 forms to see if corrected ones will follow.
- Annually (December or early January) — A Retirement Update Report is provided. If employed, this report determines whether or not a client is on track to have a successful retirement. If retired, this report determines whether or not a client is set to have sufficient funds through projected mortality. If there is a shortfall, multiple options will be provided showing what needs to be done. Insurance scenarios will also be presented. Please review closely upon receipt and advise us of any changes. A revised document will then be sent to you.
- Starting three months after our relationship is established and every five years thereafter — We will review your current situation, goals, and reexamine your volatility tolerance. Specific topics such as insurance, estate, beneficiary designations, Social Security & pension strategies, required minimum distributions from retirement plans, mortgage refinancing, credit reporting & identity theft, and record retention policies will be covered. You will receive forms designed to help you with these tasks.
- Periodically — Cindy is occasionally quoted in the media. We will email you a copy of the article when this happens. These articles are also available on our website under Resources > 2. Cindy's Interviews.
Items you will need to initiate:
- Semiannually — Updated investment information will be needed for the semiannual portfolio review. An email will be sent outlining what is required. If the requested information is not received in a timely fashion, the portfolio reallocation will be done using the latest information we have, which may not be accurate. If there are any changes to the investment accounts, such as new retirement plan options being added, please contact us.
- Annually (March 15) — If interested in having us prepare your personal (non-business) federal and state tax returns, this is the cutoff date to get us your tax information.
Periodically — In addition, please contact our office for any events that have a reasonable certainty of occurring in the next few years. For example:
- Do you anticipate a large expenditure such as a new car, home, legal judgment against you, etc. in the foreseeable future?
- Has there been a change in your annual living expenses?
- Has anything changed with your employment (laid off, pay raise, new sources of income, starting or terminating a business interest)?
- Are you getting married or divorced?
- Do you have new children or dependents under your care?
- Have you recently inherited any investments?
- Do you plan on gifting to charities or family members?
- Have there been any modifications to your insurance coverage?
- Has there been a change in the health of you or any of your family members?
1 This is applicable only if you have opened an account through us at Charles Schwab.
2 This is applicable only if you have not opened an account through us at Charles Schwab.