The first step involves thoroughly understanding the investor’s financial situation, goals, and risk tolerance. Conduct a detailed financial assessment to gather information about their income, expenses, assets, liabilities, and existing investments.

Engage in discussions with the investor to establish their specific financial objectives, whether it’s retirement planning, wealth accumulation, education funding, or other goals.

Determine the investor’s risk tolerance through questionnaires, interviews, or risk profiling tools. This step is crucial in shaping the investment strategy.