Which of the following factors is crucial for a financial planner to consider before starting an investment program for a client?

Having an emergency fund in place is a critical factor for a financial planner to consider before starting an investment program for a client. An emergency fund serves as a financial safety net that provides liquidity in times of unexpected expenses or financial hardships. By ensuring that a client has an adequate emergency fund, a planner can help protect the client from having to liquidate investments during unfavorable market conditions, which could lead to potential losses or missed opportunities for growth.

A well-funded emergency account typically covers three to six months’ worth of living expenses, offering peace of mind and allowing clients to invest more effectively without the stress of immediate financial concerns. This preparation can lead to more informed and strategic decisions about asset allocation and risk tolerance, aligning investment strategies with the client's overall financial goals without the pressure of imminent financial distress.

Furthermore, the focus on establishing an emergency fund emphasizes the importance of financial stability as a foundation for future investment success. Being financially sound allows clients to take on appropriate risks in the market, as they have a cushion to fall back on.