Question

why would an investment adviser perform a capital needs analysis for a client? a to determine how much income the client will need at retirement b to determine how to best reduce the client's tax liability c to determine how much disposable income the client has available to purchase insurance d to determine how much insurance the client needs in order to fund future financial goals

Answer 1

An investment adviser performs a capital needs analysis for a client to determine how much insurance the client needs to fund future financial goals.

Step-by-step explanation:

An investment adviser would perform a capital needs analysis for a client to determine how much insurance the client needs in order to fund future financial goals.

This analysis helps the adviser assess the client's financial situation and identify the appropriate amount of insurance coverage required to achieve their desired objectives. The adviser considers factors such as the client's income, expenses, financial goals, and risk tolerance to determine the appropriate insurance coverage.

For example, if a client's goal is to save for their child's college education, the adviser would evaluate the potential costs of college tuition, living expenses, and other related expenses. Based on this analysis, the adviser can recommend an appropriate insurance policy that will provide the necessary funds to achieve the client's financial goal.