well as family birthdays, anniversaries, and more. Best of all, you can preschedule your client events, meetings, and portfolio reviews. It will force you to plan your year in advance with the added benefit of getting in on your client’s calendar early.
Financial activities necessarily revolve around the calendar. To assist your
clients in 2010, consider providing them with a personalized calendar of tax and
retirement plan dates, as well as other key dates (such as family birthdays and
anniversaries) that are important to their financial planning activities.
Below you will find standard dates that can be plugged into a 2010 calendar
template and printed off for all clients. Adding client-customized dates
requires some fact-finding on your part, and then customizing a unique calendar
for each client. (If you don’t have time to do this for everyone, just make it
part of your platinum service for A-level clients.) Following these general
dates are some guidelines for developing personalized calendars for clients.
2010 federal holidays and market closings
- April 2. Good Friday (not a federal holiday, but markets
are closed) - May 31.Memorial Day
- July 5.Independence Day (observed)
- Sept. 6.Labor Day
- Oct. 13.Columbus Day (market open)
- Nov. 11.Veterans Day (market open)
- Nov. 25.Thanksgiving Day
- Nov. 26.Market early close at 1 p.m. ET
- Dec. 24.Christmas Day (observed)
Note about New Year’s Day 2011: New Year’s Day (Jan. 1) in 2011 falls on a
Saturday. The rules of the
applicable exchanges state that when a holiday falls on a Saturday, the
preceding Friday is observed, unless the Friday is the end of a monthly or
yearly accounting period. In this case, Friday, Dec. 31, 2010 is the end of both
a monthly and yearly accounting period; therefore, the exchanges will be open
that day and the following Monday.
Tax deadlines
Most of the usual tax deadlines
fall on a weekday this year, so there are few changes from the standard tax
calendar. If you have doubts about anything to do with taxes or the appropriate
deadlines, check with a tax advisor.
- March 1. Deadline for submitting 1099s to IRS.
- April 15. Tax filing deadline.
- Tax returns are due, and balance of tax for the previous year must be paid.
U.S. citizens working out of the country have an automatic extension to June 15.
All others can request an automatic six-month extension to Oct. 15 using Form
4868, although the tax balance is still due on this date. - First installment of 2010 taxes due (see IRS Publication 505, “Tax
Withholding and Estimated Tax”). - Last day to file an amended tax return for 2006.
- Tax returns are due, and balance of tax for the previous year must be paid.
- April 30. Last day to purchase a house and qualify for the
first-time
homebuyer credit ($8,000) or long-time homebuyer credit ($6,500). - June 15. Second installment of estimated taxes due. Tax
returns due for U.S. citizens working outside the country (may request
four-month extension to Oct. 15). - June 30. Last day to close on a house qualifying for the
first-time homebuyer credit or long-time homebuyer credit. - Sept. 15. Third installment of estimated taxes due.
- Oct. 15. Tax returns due for those who requested an
extension. - Dec. 31. Last day to:
- Pay expenses for itemized deductions (items charged on credit cards count,
even if paid later). - Invest in energy-efficient
products and claim a tax credit for 2010.
- Pay expenses for itemized deductions (items charged on credit cards count,
IRAs and retirement plans
The IRS gives little leeway for late contributions or withdrawals. Be sure to
notify your clients in plenty of time—even multiple times—to take the required
action.
- April 1. Normally, this would be the last day of the grace
period for the first IRA required
minimum distributions for clients who turned 70½ in 2009. However, 2009 RMDs
were waived by the Worker, Retiree, and Employer Recovery Act of 2008. IRA
holders who turned 70½ in 2009 are required to take their second RMD (the first
is considered waived) by Dec. 31, 2010. - April 15. Last day to contribute to:
- Roth or traditional IRA for 2009.
- Keogh plan or SEP for 2009 (unless tax filing deadline has been
extended). - Health Savings Accounts (HSAs) for 2009.
- Sept. 30. Last day for plan sponsors to:
- Establish a new SIMPLE IRA for 2009.
- Issue summary annual reports to participants (or nine months after last day
of plan year).
- Oct. 15. Last day to:
- Recharacterize a converted IRA from 2009 if extension was filed.
- Contribute to SEP or Keogh for 2009 if extension was filed (note:
contribution must be made before tax return is filed).
- Dec. 31. Last day to:
- Establish a Keogh plan for 2010 (contribution is due by the date tax return
is filed or no later than Oct. 15, 2011, if extension is requested). - Establish and fund a solo 401(k) for 2010.
- Complete 2010 contributions to employer-sponsored 401(k) plans.
- Correct excess contributions to IRA, Coverdell, and qualified plans to avoid
penalty. - Take required minimum distributions from IRAs for 2010 (unless waived again
by Congress—watch the news).
- Establish a Keogh plan for 2010 (contribution is due by the date tax return
Investing and tax planning
Tax planning for investments should be a year-round activity, but certain
deadlines occur near the end of the year. Make sure you and your clients review
portfolio holdings a good two months or so before these deadlines and think
through potential strategies.
- Oct. 1. Mutual fund year-end distributions begin. Watch
dates and defer purchases until after capital gains distribution. - Nov. 30. Last day for doubling up to avoid the wash-sale
rule. - Dec. 31. Last day to sell stock and realize
gain/loss.
College planning
College-bound students live by the calendar and must pay close attention to
application deadlines and SAT test dates. Here are the key dates for the
financial side of college.
- Jan. 1 to March 1. FAFSA filing period. Estimated data may
be used if all tax information has not been received (early filing is
recommended, ideally by Feb. 15). - April 15. Last day for Coverdell ESA contributions for
2009. - Dec. 31. Last day for:
- College expenses to qualify for the American
Opportunity credit or Lifetime Learning Credit; consider prepaying next
year’s expenses to claim full credit. - 529 plan contributions and take state tax deduction (if
applicable).
- College expenses to qualify for the American
Charitable/gift planning
It’s always best to budget in charitable gifts throughout the year, but
year-end tax planning may require some last-minute transactions.
- Dec. 31. Last day to:
- Make tax-deductible contributions to charities.
- Make annual tax-free gifts of $13,000 per person.
- Make $100,000 tax-free direct contribution to charity from IRA if 70½ or
older (if extended by Congress to 2010).
Economic data release dates
If you are interested in knowing economic data the minute it becomes
available, mark your calendar with the following release dates for Federal Open
Market Committee meetings, and announcements for gross domestic product (GDP),
the Consumer Price Index (CPI), and employment numbers. You can now subscribe
to the BLS calendar and synch it with a number of software programs.
| Economic Meetings and Announcements |
|||
| FOMC meetings | GDP | CPI (for previous month) |
Employment (for previous month) |
| March 16March 26 (4Q 2009 3rd est.)March 18March 5 | |||
| April 27-28 | April 30 (1Q 2010 adv.) | April 14 | April 2 |
|
—
|
May 27 (1Q 2010 2nd est.) | May 19 | May 7 |
| June 22-23 | June 25 (1Q 2010 3rd est.) | June 17 | June 4 |
|
—
|
July 30 (2Q 2010 adv.) | July 16 | July 2 |
| Aug. 10 | Aug. 27 (2Q 2010 2nd est.) | Aug. 13 | Aug. 6 |
| Sept. 21 | Sept. 30 (2Q 2010 3rd est.) | Sept. 17 | Sept. 3 |
| Nov. 2-3 | Oct. 29 (3Q 2010 adv.) | Oct. 15 | Oct. 8 |
|
—
|
Nov. 23 (3Q 2010 2nd est.) | Nov. 17 | Nov. 5 |
| Dec. 14 | Dec. 22 (3Q 2010 3rd est.) | Dec. 15 | Dec. 3 |
Customized client calendars
Customized client calendars may be integrated with monthly financial planning
themes. These themes enable you to cover all areas of a client’s financial life
in one-year cycles. In other words, even if there’s not a specific date
compelling a specific action, there is still plenty to schedule each month to
keep your clients’ financial lives humming. For client-specific calendars,
consider the following:
- Birth dates of all family members. From their birth dates,
determine the age of each member in a client’s family in 2008. Make a note on
the calendar that it’s time to address the appropriate issues when each person’s
birthday comes up:- Under 18. Start college savings plan as soon as
possible. - Age 18. Contributions may no longer be made to Coverdell ESA
after beneficiary turns 18. Investment income no longer taxed at parents’ tax
rate under “kiddie tax” rules unless child is a full-time student. - Age 19-24. Children may no longer be covered on parents’
health insurance policies unless in school. Check the laws in your state and the
individual health plan. Kiddie tax still in effect for full-time students under
24. - Age 30. Coverdell beneficiary must withdraw assets within 30
days unless considered a special-needs beneficiary. Account may be extended if
owner changes beneficiary or rolls assets to a different beneficiary’s ESA. - Age 50. Catch-up contributions may be made to IRAs and
qualified retirement plans. - Age 55. Penalty-free distributions may be taken from 401(k)
plans if retired. Catch-up contributions may be made to HSAs. - Age 59½. Penalty-free distributions may be taken from IRAs
and qualified plans and from Roth IRAs if account has been open at least five
years. - Age 60. Application may be made for early Social Security
benefits by widows or widowers claiming benefits under spouse’s earnings
record. - Age 62. Application may be made for early Social Security
benefits under own earnings record; amount will be reduced. - Age 65. Application should be made for Medicare
benefits. - Age 66. If not already receiving Social Security,
application should be made for Medicare. - Age 70½. Required beginning date (RBD) begins the following
April.
- Under 18. Start college savings plan as soon as
- Dates of expected life events. When you talk with clients,
ask if any of the following events are expected to take place in the coming
year. Make a note in their file, put them on the client’s customized calendar,
and schedule a discussion at the appropriate time.- Birth of a child or grandchild
- Beginning of college
- Marriage
- Divorce
- Retirement
- Job change
- Investment-related dates. Investment activity cannot always
be predicted in advance, of course, but certain investments are time-specific.
Make a note on the client’s calendar of the following:- Maturity dates. Note bonds, CDs, Treasury bills, and
anything that matures or may be called. - Portfolio review dates. Decide now when you want to review
portfolios, and mark these on the client’s calendar. - Asset sales. Ask clients if they plan to sell a home or
other real estate, a business, or other major asset within the next year. Even
if the actual sale date is unknown, mark the calendar with a note to check back
to see if there’s anything you can do to help. - Stock option exercise dates. Ask clients for information on
their stock option grants so you can assist them when the time comes to exercise
and/or sell. - Mortgage and other liability dates. These might include ARM
interest rate resets, balloon payments, and other events that force refinancing
decisions.
- Maturity dates. Note bonds, CDs, Treasury bills, and
Creating your calendar
Creating a calendar for your clients is a very personalized way to show that
you are on top of events and their particular circumstances. You can create one
on your computer using free calendar templates from such websites as Hewlett-Packard
and Microsoft.
The most time-consuming work is setting up a basic template you can use with
all clients. After that, it is easy to plug in personalized dates for each of
your best clients. Dig into your contact manager files to find your clients’
birthdays, anniversaries, and other important dates that pertain to the entire
family. Don’t forget fun holidays like St. Patrick’s Day and Halloween as well,
particularly if you schedule client events around them or know they are family
favorites.
As you create your customized calendar, start scheduling social events and
portfolio reviews. You may have to change meetings as you come across conflicts,
but at least you’re getting on your clients’ calendar way in advance. Plus, it’s
a task that will push you to plan your own year as well.
Once you have your calendar completed, you can either send it to clients by
e-mail or, better yet, print it out on a heavier paper that will make it easy to
hang on a bulletin board and remember you by. Production of this calendar—with
oversight from you—is a good task to delegate to your customer relationship
manager, sales assistant, or even an intern.
Calendars can be powerful financial planning and marketing tools when you
incorporate your clients’ individual needs and goals on them. Even when they
don’t see you, clients know you’ve been thinking about them and will continue to
do so throughout the year. And with one date or another coming up, you always
have reason to stay in touch, cement those relationships, and provide excellent
client service.
