medium · Certified Financial Planner Tax Planning
The Nguyen family has just inherited a 2,200,000 brokerage account following a sudden death in the family. They meet with a CFP certificant to ask for an immediate recommendation on which aggressive growth funds to purchase to maximize their long-term wealth.
According to the Mindset Hierarchy, what is the certificant's best next step?
- Clarify the family's financial goals and gather data on their current cash flow and risk tolerance.
- Analyze the tax basis of the inherited assets and recommend a tax-efficient liquidation strategy.
- Explain that the fiduciary duty of care requires a balanced portfolio rather than an all-equity approach.
- Recommend an immediate 3-month emergency reserve allocation before selecting any growth funds.
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