Would you ever consider someones personal residence in the asset base? This came up in a past exam. How the fuck could this even be considered???
I would never consider that as part of their portfolio. The only time I’d make a reference to it is in unique circumstances if they plan on donating their residence to charity.
only include it in the IPS if the client has told you they consider it part of their investments - eg if they plan to sell it to free up cash or downsize or maybe bequest to a charity or something like that. So the clue will be in the facts given. If you include it in the assets, then must also include it in the liquidity constraint as an illiquid asset. + possibly “unique circumstances” as well (as pass… said^)
yeah, i never include it and that’s one of the few things i was right about.