As advisors consider how best to preempt concerns as clients reflect on their investments over the holidays, I've received a number of emails looking for advice on formulating a year end letter to send to clients.

In response to these requests, a model letter is posted in the upper right hand column - this letter tested well with investors. There are three components to this draft letter:

1. A reminder of your core investment beliefs, with concrete examples to support them

2. Lessons from the last 12 months that can be applied in 2009.

3. A "going forward" section that provides clients with additional information and lays the foundation for a conversation in early 2009.

A few important comments on sending a year end letter:

1. To be effective and meaningful, it has to reflect your philosophy and views - be sure to spend the time to customize the letter.

2. The more specifics you provide to support the general statements in the letter the better.

3. Many clients are looking for proactive advice on how to position their portfolios - think about using this letter to summarize your thinking going forward.

4. If you proceed with the letter, consider calling your best clients to tell them that the letter should be reaching them in the next week and to schedule a phone appointment to discuss its contents before the upcoming holidays.