This question is designed purposely to mirror that of Q8. It is important to reinforce the time horizon of the portfolio, so FP asks the same question in a little different way.
It is not unusual to find client answered Q7 and Q8 with a “No”, only to answer Q10 with the choice of 3 years. Such contradictory responses bring the client’s concerns out into the open.
In order to facilitate the FP-client discussion, the client is requested to describe when the fund will be needed if anything less than 10 years is selected. FP can then educate to client that the time horizon is a crucial parameter in investment portfolio planning.
The issue of time horizon in pre-retirement and post-retirement planning will be a separate module to be trained to FPs.
It is not unusual to find client answered Q7 and Q8 with a “No”, only to answer Q10 with the choice of 3 years. Such contradictory responses bring the client’s concerns out into the open.
In order to facilitate the FP-client discussion, the client is requested to describe when the fund will be needed if anything less than 10 years is selected. FP can then educate to client that the time horizon is a crucial parameter in investment portfolio planning.
The issue of time horizon in pre-retirement and post-retirement planning will be a separate module to be trained to FPs.
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