According to CFP Board guidelines, a financial planning engagement may exist when a client requests which of the following?

According to CFP Board guidelines, a financial planning engagement may exist when a client requests which of the following?

• A. Health insurance
• B. Comprehensive retirement plan
• C. Simple budgeting
• D. Tax filing alone

Answer: (B)

The idea being tested is that a financial planning engagement exists when a client seeks an integrated, comprehensive plan rather than a single service. A comprehensive retirement plan fits this because it requires coordinating multiple aspects of a person’s finances—investments, income strategies, taxes, insurance or risk management, and estate considerations—to meet retirement goals. It represents an overarching plan that integrates these areas, which is what CFP Board defines as a financial planning engagement. In contrast, requesting health insurance is about obtaining a specific product, not an integrated plan. Simple budgeting is a narrow service focused on expenses and savings rather than a coordinated, long-term plan. Tax filing alone is a compliance service, not a planning engagement.

The idea being tested is that a financial planning engagement exists when a client seeks an integrated, comprehensive plan rather than a single service. A comprehensive retirement plan fits this because it requires coordinating multiple aspects of a person’s finances—investments, income strategies, taxes, insurance or risk management, and estate considerations—to meet retirement goals. It represents an overarching plan that integrates these areas, which is what CFP Board defines as a financial planning engagement.

In contrast, requesting health insurance is about obtaining a specific product, not an integrated plan. Simple budgeting is a narrow service focused on expenses and savings rather than a coordinated, long-term plan. Tax filing alone is a compliance service, not a planning engagement.