This module covers working with clients including gathering data, establishing financial goals, determining risk tolerance and suitability, establishing trust, and managing expectations. Different investor types and personalities and how to do business with the different types is also covered. Establishing an effective investment policy statement (IPS) and dealing with change and future challenges round out this module.

11-1 Describe a statement of financial position or a cash flow statement, and analyze statements using financial ratios.
11-2 Explain client needs, constraints, or unique circumstances that are pertinent in understanding the client’s financial situation.
11-3 Distinguish among correctly formulated and incorrectly formulated financial goals.
11-4 Identify considerations in building a business relationship with a given investor type or personality.
11-5 Identify key attributes of a sound investment policy statement and the role of both the adviser and the client in developing an investment policy statement.
11-6 Identify how particular market changes can affect the client’s financial situation and create the need for adjustments in the asset management process.
11-7 Analyze various challenges facing advisers managing investment portfolios.

Author: Craig Kinnunen, MS, CFP®

Craig Kinnunen, MS, CFP® is an associate professor at the College for Financial Planning. Prior to joining the College, Craig enjoyed a long and successful career in personal financial planning and wealth management. Craig’s enthusiasm for financial planning extends beyond the classroom, as he also spends time providing pro bono financial education and individual financial counseling to members of the Colorado National Guard. Craig earned a bachelor of science degree in accounting from Northern Michigan University and followed that up with a master of science degree in finance from the University of Colorado in Denver. You can contact Craig at craig.kinnunen@cffp.edu..

Complexity Level: Advanced