If a client is moving, which area can be planned for future change?

• A. Change in zip code
• B. Future tax changes
• C. Change in advisor
• D. Change in market risk

Answer: (B)

Anticipating changes in tax policy is what this item is probing. Tax laws aren’t fixed and can shift over time at federal and state levels, altering marginal rates, brackets, deductions, credits, and how investments are taxed. Modeling future tax-change scenarios lets you see how different tax environments would affect withdrawals, conversions, and after-tax income, helping you adjust the plan now so goals stay on track regardless of tax moves. A zip code change is a personal relocation event with potential tax effects, but it isn’t a planning variable you typically model as a policy scenario. A change in advisor is a relationship change, not a financial condition. Market risk is addressed through the investment strategy and ongoing risk management, not as a discrete future tax-policy scenario.