You prepared a comprehensive financial plan for your client, Elena, two years ago. The plan included an aggressive growth portfolio to meet her retirement goal. Recently, Elena's employer announced significant layoffs, and while she was not directly affected, her job security feels uncertain. She also inherited $50,000. Which of the following is the most appropriate action for you to take in the monitoring phase?

Question: You prepared a comprehensive financial plan for your client, Elena, two years ago. The plan included an aggressive growth portfolio to meet her retirement goal. Recently, Elena's employer announced significant layoffs, and while she was not directly affected, her job security feels uncertain. She also inherited $50,000. Which of the following is the most appropriate action for you to take in the monitoring phase?

Answer options:

• Wait for Elena to contact you if she wants to discuss changes or updates to her plan. ✅ Initiate a review meeting with Elena to assess the impact of these changes on her financial plan and adjust recommendations as needed.
• Automatically rebalance her portfolio to a more conservative allocation given the economic uncertainty.
• Advise her to invest the $50,000 inheritance in a high-yield savings account without a full plan review.

Correct answer: Initiate a review meeting with Elena to assess the impact of these changes on her financial plan and adjust recommendations as needed.

Explanation: Significant life events, such as job security concerns and inheritances, necessitate a review of the financial plan. The monitoring phase involves proactively checking in with clients and adjusting the plan to reflect new circumstances or goals to ensure ongoing suitability.