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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning

In the personal financial planning process, which step comes immediately after gathering the client's data and determining the client's goals and expectations?

After gathering client data and goals, the planner analyses and evaluates the client's financial status. Only once the current position is understood can recommendations be developed, presented, implemented and later monitored, so analysis is the next step in the process.

  1. AAnalysing and evaluating the client's financial statusCorrect
  2. BMonitoring the implemented plan
  3. CImplementing the recommendations
  4. DPresenting the financial plan to the client

Explanation

The standard financial planning process runs: establish the relationship, gather data and determine goals, analyse and evaluate the financial status, develop and present recommendations, implement them, and then monitor. Analysis of the client's financial position therefore follows data gathering. Presenting, implementing and monitoring all come later.

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