There are 2 Learning outcome statements and 20 pages of complicated qualititative stuff. I have been patiently trying to understand what the LOS what us to know and then read the whole chapter but I just cannot get arms around those concepts (GST , CLT…defective trusts) arghhhhh …I give up !! Can anyone give me ideas how to get through this session ? What do we NEED to know from exam stand point ? How has it been tested in the past ? Help please… Thank you !
“Luckly” I deal with this stuff everyday. My understanding is that the material is trying to show you the difference between rational finance and everyday-investor situaiton. From rational finance view, all assets are in once account to achieve multiple investment objective. However, average investor thinks that by putting asset in different accounts (location) is the same thing as asset allocation. Those different accounts are different ways for client to avoid tax consequence of their investments. I would think that all we need is a basic understand what they are for the exam. We (CFA people) worry about the investment stragtey (risk-return…ect), however, the technique of implement investment idea can be carried out using those accounts to reduce or deferr tax for individual clients. I hope this helps. Thanks
Thanks ws for that overview. Iam not going to bother about the details and will focus on having an overall understanding… Thank you