Sch bk 1, LOS 14g, PG 392
Scenario 2 and 3
Sc 2: A young investor with uncertain future income. Also the income is highly correclated with the economy and stock market making for risky, euqity like HC…’
Sc 3: A young investory with uncertain fturue income but the income is uncorrelated witht he econominy and stock market making for risk but non equity like HC…’
Has anyone in the forum have further information as to what could profession/occupation which identifiable for Scb 2 and 3.
How about a lawyer who works as an consultants for firms (variable salary and no fixed salary). By 45 yrs he/she has considerable FC.
Where would we categorise him/her as?
Depends whether he works for stock listed companies. If yes, then his assignments are likely to decline in market slowdown because companies cut cost.
IMHO, when no info given, I would guess that his income is un certain based on no fixed salary and consulting style (demand-based) job. High allocation to safe assets appropraite.
So does it fit Scn 2 or 3?
in my honest (humble) opinion