If a client who initially wants a retirement plan projection then requests a complete financial plan, what is the appropriate next step?

If a client who initially wants a retirement plan projection then requests a complete financial plan, what is the appropriate next step?

• A. Do a complete plan
• B. Terminate the relationship
• C. Prepare a new written agreement defining the new scope of engagement
• D. Schedule a meeting

Answer: (C)

When a client moves from a simple retirement plan projection to a full financial plan, the important step is to capture the expanded scope in a new written engagement agreement. This documents exactly what services will be provided, the deliverables, the responsibilities of each party, the timeframe, and how fees will be handled. Having this written agreement protects both you and the client by ensuring there is clear consent to the broader work and avoid misunderstandings about what’s included and what isn’t. Starting the full plan without updating the scope in writing can leave the new services ambiguously defined and may raise ethical concerns about transparency and consent. Terminating the relationship isn’t necessary, and simply scheduling a meeting doesn’t formalize the change in scope. A new written agreement is the proper, professional way to reflect the expanded engagement.

When a client moves from a simple retirement plan projection to a full financial plan, the important step is to capture the expanded scope in a new written engagement agreement. This documents exactly what services will be provided, the deliverables, the responsibilities of each party, the timeframe, and how fees will be handled. Having this written agreement protects both you and the client by ensuring there is clear consent to the broader work and avoid misunderstandings about what’s included and what isn’t.

Starting the full plan without updating the scope in writing can leave the new services ambiguously defined and may raise ethical concerns about transparency and consent. Terminating the relationship isn’t necessary, and simply scheduling a meeting doesn’t formalize the change in scope. A new written agreement is the proper, professional way to reflect the expanded engagement.