easy · Certified Financial Planner Professional Conduct
The Farley family has just inherited $2,000,000 and immediately asks their planner for an investment recommendation.
Which action should the planner take first?
- Allocate the funds according to the existing investment policy statement written two years ago.
- Gather qualitative and quantitative data to understand the Farleys' changed circumstances.
- Recommend an immediate allocation to a diversified equity portfolio to avoid market timing.
- Purchase an immediate annuity to convert the entire windfall into a lifetime income stream.
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