Capacity for loss is determined by which 4 factors?
Level of income and wealth
Expenditure requirements
Investment timescale
Need for liquidity.
What are the 7 most common areas tested in R06, and worth approximately 35 marks in total?
Capacity for Loss
Attitude to Risk
Expected Inheritance or Gifting
Charges
Investment Performance/Risk and Investment Period (time
horizon)/Asset Allocation
Emergency Fund/Fund
Selection/Expenditure
Health Status/Longevity
Investment risk is determined by which 2 factors?
Capacity for loss
Risk tolerance (attitude to risk)
With regards to asset allocation, what are the four main types?
Cash
Fixed interest
Property
Equities
What are the main advantages of using a financial planner?
Identify problems and goals
Identify financial strategies
Set out priorities
Research the market for the best products
Get the planning done
Make and/or preserve wealth, and provide peace of mind
Avoid common financial mistakes.
