This question is designed to ask for a dollar value which the FP will use to develop the portfolio and IPS. The FP needs to know how this investment portfolio fits within the overall framework of the client’s assets; hence the second part of question 4 is followed up.
If this portfolio is part of the larger portfolio (i.e. client answers “20%”), the FP should think through how this portfolio can compliment the client’s overall wealth. If client answers 100%, then it is important to determine whether plans have been made to provide for emergency reserves and short term cash needs.
(This will form the “Present value of capital” in the IPS)
If this portfolio is part of the larger portfolio (i.e. client answers “20%”), the FP should think through how this portfolio can compliment the client’s overall wealth. If client answers 100%, then it is important to determine whether plans have been made to provide for emergency reserves and short term cash needs.
(This will form the “Present value of capital” in the IPS)
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