How should a CFP professional handle a client's unrealistic return expectations?

• A. Provide a redacted summary without risk discussion.
• B. Ignore client concerns about returns.
• C. Provide a clear, realistic assessment; discuss risks; document discussions; update the plan if needed.
• D. Promise higher returns to satisfy the client.

Answer: (C)

When a client holds unrealistic return expectations, the essential move is to engage in transparent, risk-aware communication and align the plan with the client's goals and risk tolerance. Provide a clear, realistic assessment of what returns are reasonably achievable given the time horizon and asset mix, and openly discuss the risks and potential losses involved. Document that conversation and any decisions, and update the financial plan or investment strategy if needed to reflect the new understanding. This demonstrates prudent stewardship, informed consent, and a commitment to the client’s best interests. Providing a risk-disguised summary, ignoring concerns, or promising higher, guaranteed returns would mislead, neglect the client’s needs, or violate ethical duties.