CFP® Practice Question of the Week: Retirement

During an annual review with Anna and Lawrence Harvey, a CFP^® professional discusses their retirement objectives. Because of weak market performance over the past few years, it appears that they are no longer on track for retirement. How should the CFP^® professional best direct discussion of this situation?

Tell the Harveys that they must increase their monthly savings
Recommend no changes since the market is likely to recover in the long term
Discuss alternatives currently available to increase their likelihood of success
Suggest that they postpone their retirement date until the economy recovers

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This question appeared on a previous CFP Board examination and the Board’s explanation of the correct answer appears below. The Board indicates that the question was intended to address the CFP applicant’s understanding of “Job Task Domain 7 – Monitoring the Recommendation(s).” Specifically, it addresses “7.B – Review the Performance and Progress of the Plan with the Client.” The Board indicates that you can expect to see 5% of Board exam questions on this Domain.

Turning to the question, “C” is the correct answer. As the Board explains it, “It is important to explore all available alternatives in order to revise their retirement expectations.”

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