hard · Certified Financial Planner Investment Planning

The Pfeiffer household recently experienced the death of a spouse. Mrs. Pfeiffer, age 56, inherited a $2,400,000 portfolio and expresses extreme anxiety about market volatility, requesting to liquidate all equity positions immediately.

According to the CFP Mindset hierarchy, what is the professional's first step?

  1. Identify the quantitative and qualitative impacts of the bereavement and clarify her new financial goals.
  2. Implement a partial liquidation of 25% to cash while deferring the remainder for 90 days.
  3. Provide a detailed Monte Carlo analysis showing the long-term cost of moving to an all-cash position. in this case
  4. Execute the liquidation as instructed to fulfill the fiduciary duty to follow client instructions.

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