hard · Certified Financial Planner General Principles
Mr. Bergstrom, a CFP® professional, is meeting with a new client, Ms. Chen, who just inherited $3.5 million in highly appreciated tech stocks. Ms. Chen is anxious about market volatility and wants to know if she should sell everything immediately to move into cash.
According to the Mindset hierarchy, what is the most appropriate next step for Mr. Bergstrom?
- Inquire about Ms. Chen's other assets, her current tax bracket, and her specific long-term financial goals.
- Recommend selling 50% of the position now to reduce risk while documenting her refusal to fully diversify.
- Advise Ms. Chen that selling the stocks would trigger a massive capital gains tax and suggest a charitable remainder trust instead.
- Inform Ms. Chen that as a fiduciary, he cannot allow her to hold such a concentrated position and must insist on immediate liquidation.
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