easy · Certified Financial Planner Investment Planning
The Parnell household has just inherited 2,000,000 in cash from a distant relative. They immediately call their planner to ask which aggressive growth stocks they should purchase.
According to the Financial Planning Process, what should the planner do first?
- Identify the clients' updated goals and gather relevant quantitative data.
- Recommend a diversified portfolio of S&P 500 index funds.
- Explain the tax implications of the inheritance and the potential step-up in basis.
- Advise the client to place the cash in a high-yield savings account until a full plan is developed.
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