Which question is essential for a financial advisor to assess a client’s financial condition?

Understanding what a client owns and what they owe is fundamental for a financial advisor assessing their financial condition. This information provides a clear snapshot of the client's net worth, which is a critical determinant of financial health. The assets represent what the client has accumulated, such as cash, investments, properties, and any other valuables, while liabilities represent obligations such as loans, credit card debt, and mortgages.

This balance of assets and liabilities helps the advisor gauge the client's overall financial stability, identify potential risks, and formulate appropriate financial strategies. It serves as the basis for any discussions around budgeting, goal setting, and planning for long-term financial success. Without this foundational understanding, it would be challenging to build a comprehensive financial plan tailored to the client's needs.