Every time I come to writing out an IPS for an individual it seems like I want to write the same reasons for the return objective and ability to assume risk. The only difference I see is if they give you enough info to calc required return and that risk involves willingness as well. And I know you are suppose to determine these concurrently, but is anyone having the same problem? Any suggestions? -Thanks.
Welcome to LIII, my friend.
in return write the reasons why u want to earn that after tax return…write reasons like… protecting the real value of the portfolio, meet the living expenses, financing something etc
I agree with you s23dino, I felt the same in the sense that…is this all required to answer the question? But, I guess it is very subjective and requires a one line answer with a few calcs. I felt I need to answer a lot more…i don’t know if what I said makes sense!
Ok thanks, does anyone else have any insight into this? Mostly for both risk ability and return, seems like I always bring up l-t horizon, large discretionary weatlh, low spending/liquidty needs. Thanks zidane2 that does help.