Client Profile Development: Rapid Fire
Chapters in this video
- 0:00 The two profiles: CIP identity check versus suitability
- 1:07 Risk capacity versus willingness and the most-restrictive-factor rule
- 3:28 Horizon traps, guaranteed income as bonds, and ESG
- 4:34 Fiduciary versus suitability, UPIA, and life-event sequence
- 5:48 Numbers to lock in: retirement ages, accredited investor, loss aversion
- 6:38 Rapid-fire exam recap
What this video covers
- Why Customer Identification Program (CIP) is an anti-money laundering identity check, not a suitability profile, and what four data points satisfy USA PATRIOT Act rules
- How risk capacity (math-based ability to absorb loss) and risk willingness (emotional comfort) interact, and which wins under the most-restrictive-factor rule
- Why guaranteed income like a defined benefit pension or Social Security acts like a bond allocation and permits more equity exposure in the investable portfolio
- The exam trap of equating age with time horizon: a 65-year-old retiree faces a 25 to 30 year distribution phase, and longer horizons allow greater equity risk
- The fiduciary duty of investment advisers versus the suitability or Regulation Best Interest standard of broker-dealers, and which is the higher legal bar
- How the Uniform Prudent Investor Act (UPIA) requires judging trust-account investments in the context of the total portfolio, not in isolation
- Why a credit-card payoff from savings leaves net worth unchanged, and the exact sequence after life events: beneficiaries first, then profile and Investment Policy Statement (IPS), then portfolio changes
Read the full lesson, free
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