Financial Advisor Asset Allocation Review Letter
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Write a client letter explaining and recommending asset allocation changes.

Client details (placeholders):
- Current allocation: [% stocks/% bonds/% other]
- Recommended allocation: [new percentages]
- Reason for change: [age/goal change/risk tolerance/rebalancing]
- Client risk profile: [conservative/moderate/aggressive]
- Time horizon: [years]

ASSET ALLOCATION REVIEW LETTER

Dear [Client],

OPENING
- Annual review of asset allocation
- Why allocation matters
- Your specific situation

CURRENT ALLOCATION REVIEW
- Current mix: [%] stocks / [%] bonds / [%] other
- Original target: [%] / [%] / [%]
- Drift from target: [describe how market moves caused drift]
- Why this happens: [winning assets grow to oversized position]

RECOMMENDED ALLOCATION
- New target: [%] stocks / [%] bonds / [%] other
- Reason for change: [one of below]

IF REBALANCING TO TARGET
"Market performance has caused your portfolio to drift.
We recommend rebalancing back to your target allocation
to maintain your intended risk level."

IF AGE-BASED CHANGE
"As you approach [milestone], we recommend gradually
reducing equity exposure to better protect your
accumulated wealth while maintaining growth potential."

IF RISK TOLERANCE CHANGE
"Based on our recent discussion about your comfort
with volatility, we recommend adjusting your allocation
to better reflect your current preferences."

WHAT THIS MEANS IN PRACTICE
- Selling: $[amount] of [asset class] to [asset class]
- Estimated tax impact: $[if taxable account]
- New expected return: [%]
- New expected volatility: [%]
- How this positions you for your goals: [describe]

HISTORICAL CONTEXT
- Your proposed allocation historical return: [% annualized]
- Worst year historically: [% loss]
- Recovery time typically: [years]
- Probability of meeting goal: [if modeled]

NEXT STEPS
- Your approval needed: [yes — we will implement upon approval]
- Timeline: [once approved]
- Tax considerations: [harvesting opportunities]
- Questions: [encourage them to call]

Required disclosure: Asset allocation does not guarantee profit or protect against loss.
Past performance does not indicate future results.

Source: https://promptzyo.com/prompt/financial-advisor-asset-allocation-review-letter