The first part of the question is designed to prepare client’s expectation realistically, and emphasize the benefit of the quarterly review. Client can monitor daily or weekly, the FP could schedule a formal review quarterly. The quarterly review is to objectively compare the goal with current portfolio performance.
The second part of the question is designed to help client sees the bear market in an objective perspective. In an unplanned situation, client will be fearful in a bear market. The purpose of this question is to allow FP to help link the client’s goal to the market performance.
The second part of the question is designed to help client sees the bear market in an objective perspective. In an unplanned situation, client will be fearful in a bear market. The purpose of this question is to allow FP to help link the client’s goal to the market performance.
If the current timeline to planned time horizon is still very far, a re-balancing decision could be triggered to expose more onto the equity portfolio.
If the current timeline to planned time horizon is very near, then a re-balancing decision could be triggered to expose more onto the fixed-income portfolio.
If the current timeline to planned time horizon is very near, then a re-balancing decision could be triggered to expose more onto the fixed-income portfolio.
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