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: Jim Pasztor, MS, CFP®

Jim Pasztor, vice president of Academic Affairs at the College for Financial Planning is also involved with several of the College’s investment courses and the white paper series. He is a CFPM® practitioner, and has an MS degree in personal financial planning and an MSF degree in financial analysis, both from the College for Financial Planning. Jim was the recipient of the Edward D. Baker III Journal Award from IMCA in 2014 for his article Endogenous Risk and Dangers to Market Stability. You can reach Jim at

Complexity Level: Advanced