What is the fourth step in the financial planning advisory process?

• A. Identifying financial needs.
• B. Factfinding.
• C. Devising a strategy to meet the consumer's needs.
• D. Make suitable recommendation.

Answer: (D)

Understanding the sequence of actions in a financial planning engagement is being tested here. After you identify the client’s financial needs, gather detailed information (factfinding), and then develop a strategy to meet those needs, the next step is to present and make a suitable recommendation. This is the point at which analysis becomes actionable advice tailored to the client, translating the plan into concrete steps, instruments, and actions the client can approve and implement. The following phases—implementation and ongoing monitoring—come after the recommendation, so describing the fourth step as making a suitable recommendation correctly places it just after identifying needs, factfinding, and devising a strategy.