Sarah and Michael, both 35, have approached you for comprehensive financial planning. They have two young children and their primary goals are to save for their children's education, purchase a new family home in 5 years, and retire comfortably at age 60. During the initial meeting, they express concerns about their current spending habits and lack of a clear investment strategy. Which of the following activities is most crucial to perform immediately following the initial client meeting, before developing any specific recommendations?

Question: Sarah and Michael, both 35, have approached you for comprehensive financial planning. They have two young children and their primary goals are to save for their children's education, purchase a new family home in 5 years, and retire comfortably at age 60. During the initial meeting, they express concerns about their current spending habits and lack of a clear investment strategy. Which of the following activities is most crucial to perform immediately following the initial client meeting, before developing any specific recommendations?

Answer options:

• Presenting a detailed investment proposal for their RESPs and TFSAs.
• Developing a preliminary retirement income projection based on their stated age 60 retirement goal. ✅ Obtaining signed consent and clearly outlining the scope of services, fees, and responsibilities for both parties.
• Suggesting specific insurance products to cover potential risks related to their income and dependents.

Correct answer: Obtaining signed consent and clearly outlining the scope of services, fees, and responsibilities for both parties.

Explanation: Before proceeding with any financial analysis or recommendations, a clear engagement letter must be presented and signed. This document defines the scope of the working relationship, protects both the client and the planner, and is a fundamental step in the Six-Step Process.