Registered Investment Advisors - Turning Autumn into Assets: Strategies for October’s Bounty

Executive summary:

• Autumn is a time of abundance, reflection and getting ready to end the year on a high note
• For Registered Investment Advisors, it can be a season of opportunity – a time to harvest tax losses or to review goals to position clients for future success
• By helping clients stay on course and seize October’s opportunities, you can position them for a chance at a more secure, prosperous future.

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October is when the air becomes crisper and nature begins its fall transformation, but this month isn’t just about cozy sweaters, pumpkin patches and spooky fun. For Registered Investment Advisors and others who provide financial advice, it’s the start of a season loaded with opportunity.

It can be the perfect time to help clients turn their financial goals into real, tangible assets—and for advisors and firms to finish the year on a high note. By locking in on strategic planning and seizing timely opportunities, we can work to make October’s bounty help fuel long-term success.

1. Harvesting Opportunities

Autumn is the season of abundance, a time when nature is ripe for harvest. In the financial world, it's an ideal time to encourage clients to take stock of their portfolios and "harvest" opportunities that may have been overlooked during the busier summer months. Whether it’s rebalancing portfolios, capitalizing on market gains, or harvesting tax losses to offset gains, this is a critical time for advisors to help clients make proactive adjustments that could save them significantly come tax season.

Advisors should also remind clients to assess underperforming assets or funds that no longer align with their financial objectives. October’s volatility can be an advantage when managed properly¹ — turning temporary market dips into opportunities to invest and to bank losses for future needs.

Challenging cases that present opportunity include clients who:

1. Are planning on selling a business
2. Have an appreciated stock they would love to get out of but are worried about tax implications of the gains
3. Have low-cost basis stock options
4. Planning on selling investment property or would like to but are worried about the tax impact
5. Have a foundation that would like to invest in a broad-based index but have restrictions on certain types of securities
6. Have a taxable trust, which hits the top tax rate at a much lower threshold

2. Seasonal Discipline: Reap What You Sow

Like farmers who plant, nurture, and finally harvest their crops, financial advisors must stay disciplined and focused on long-term goals. October is the perfect time to reinforce to clients that success comes from staying the course. The disciplined investor, who maintains focus on their financial plan and adjusts based on strategic advice rather than emotion, is often the one who reaps the rewards.

This is a great moment to take clients through re-discovery to gain an understanding of any change in family priorities. Encourage clients to review their financial goals and revisit the plans you’ve put in place together. Remind them that progress often comes in small, consistent steps—whether through dollar-cost averaging, consistent retirement contributions, or maintaining a well-diversified portfolio. According to our latest Value of an Advisor study, keeping their focus on the long term and avoiding distractions caused by the media can help them work toward their financial goals.

Here are some questions to ask yourself:

• Have you refined your re-discovery process?
• Do you use a roadmap to review the priorities you are working on with client?
• Have you refined your client review process so that it is consistent and concise?

3. Building Wealth for the Future

Autumn is naturally a time of reflection, making it an ideal time for clients to consider their long-term financial goals. It’s important to help them understand that their future wealth is shaped by the intentional actions they take today. Whether it’s increasing retirement account contributions, putting non-working assets to work, exploring education savings options, or even setting aside additional resources for unexpected expenses, October is a month to make sure that clients are securing their future.

Advisors can use this season to ensure that capital gains will not present a spooky surprise when distributions hit. Now may be the time to introduce or revisit more tax-efficient wealth-building strategies, including Roth IRA conversions, charitable donations, or strategies like gifting appreciated securities or even realigning those Certificates of Deposit (CDs) that may not meet long-term growth needs following recent rate decreases. These steps not only help build wealth but also contribute to helping clients live their life on their terms.

• Have you reviewed your mutual fund positions to check expected capital gains distributions? Now is the time to realign assets to avoid excessive upcoming distributions.
• Have you begun talking to your clients about putting cash on the sidelines to work or reinvesting CDs coming due?
• Are there personalized considerations that are now important to clients?

4. Positioning for Year-End Success

October also marks the beginning of the last quarter of the year, a crucial time for advisors to review progress and set the stage for a strong year-end finish. This is the time to review retirement accounts, ensuring clients have considered the opportunities to maximize contributions and taken required distributions, as well as to begin making plans for end-of-year charitable giving, estate planning, and other tax considerations.

As we approach year-end, helping clients remain focused on their long-term vision will ensure that they’re not just reacting to the market or short-term events but staying grounded in their broader financial goals. It is also time to revisit any concern clients may have about their plan or the investments they own.  For many, this can also be an opportune time to check in on financial habits and budgeting, ensuring that spending doesn’t derail long-term savings.

• Are your clients concerned about cash flow? Now may be the time to review their cash flow analysis.
• Are your clients concerned with the cost of investments? Maybe consider a combined Active/Passive approach. Utilizing passive strategies where the markets are efficient and active where they aren’t offering opportunities at a lower cost.

5. Stay Focused, Reap the Rewards

October's beauty lies not only in its changing leaves but in its opportunity for transformation. Just as the seasons change, so too should our clients' financial strategies evolve. As advisors, our role is to keep them focused on their long-term goals while helping them take advantage of seasonal opportunities. By maintaining a disciplined approach and revisiting their plans during this pivotal month, we can help clients turn autumn’s bounty into lasting financial success.

At the end of the day, focus drives success. By helping clients stay on course and seize October’s opportunities, we’re positioning them for a chance at a more secure, prosperous future. The seeds we help plant now have the potential to grow into the financial security and wealth they can harvest for years to come.

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¹ https://money.com/october-stock-market-volatility-returns/?xid=nasdaq&utm_source=nasdaq&utm_medium=rss_synd