Learnings Flashcards
Diego, a mutual fund dealing representative, is reviewing his notes from a recent client meeting. His client, Linda, wants to retire next year with an annual pre-tax income of $50,000. However, she does not have the financial resources necessary to do so. Before his next meeting with Linda, Diego prepares several scenarios for her to review. The first scenario requires Linda to delay her retirement for another five years. The second scenario requires Linda to accept a pre-tax income of $45,000 per year. The third scenario requires Linda to take greater investment risk with her portfolio. Diego will discuss these scenarios with Linda to determine which one is appropriate. Where are Diego and Linda in the strategic investment planning process?
Diego is currently in the process of clarifying Linda’s present status and identifying problems and opportunities. He has already identified a problem with her financial resources. Before moving onto the next step, Diego must discuss with Linda a new objective that is realistic and attainable. Once they have a reasonable objective in mind, they can move on and develop a feasible strategic investment plan.
