The key words or “command” words if you will, are mainly “explain”, and not so much “calculate”. Yet the EoC Q’s in both Schweser and CFAI are calculation intensive, and some of the formulas are really a pain in the ass. Anybody shed any light on this? Also a question regarding IPS… I’m not entirely sure how to diferrentiate certain time horizons from liquidity events, it appears to me intuitively that many events belong to both categories. For example, lets see you are going to receive a huge inheritance in 20 years, wouldnt that be both a.) a new time horizon as circumstances “change in a considerable enough manner to re-assess the IPS”, and b.) a positive liquidity event? Also lets say your kids are gonna go to college in 20 years, wouldn’t it also be both a negative liquidity event and a time horizon change? Thanks. I hate this subjective bullshit.
Really? Nobody knows? DO we have to know this shit or not?
I think we gots to know dis @#%^@!@#%^#@!%#@%#^%&%#!@%
Thanks dawg yo my man braw G homie home slice skittles for rizzle. This shit be whack yo.
No such thing as positive liquidity events IIRC - a liquidity event is where you need to have liquidity on hand to meet your obligations (new house, holiday etc). An inheritance may (and prob will) mark a new time horizon however. Getting your hands on extra cash is not a liquidity event.
You should know how to calculate and explain any and all tax formulas - it was tested in both am and pm last year, but they aren’t that hard, they are just variations of TVM calcs. I don’t recall the term liquidity event being heavily used in IPS sections, but a material change in wealth, income, portfolio size etc would definitely be cause to revisit the IPS as well as marking a new time horizon. Lots of nuances to IPS, this is something you need to go over and over and over with plenty of practice problems.
Newsuper- According to Pg. 118 of Book 2: regarding liquidity events: “For the sake of completeness, positive liquidity events and external support should also be noted in the policy statement.” IN the case of a multi-generational family plan, positive liquidity events might include anticipated gifts and inheritance; the advisor should note, however; that inheritance planning is a sensitive and potentially divisive topic among family members." Also, to clarify, my main question is: can you have liquidity events that also serve as time horizon changes. IE in the book negative liquidity events include charitable gifts, anticipated home repairs, or change in cash needs brought on by retirement. I would tend to think that the latter would also serve as a time horizon. Another example as mentioned above would be kids going to college, would this not be both a.) time horizon and b.) negative liquidity event???
you can has cheezburgr?
markCFAIL Wrote: ------------------------------------------------------- > Newsuper- > > According to Pg. 118 of Book 2: regarding > liquidity events: > > “For the sake of completeness, positive liquidity > events and external support should also be noted > in the policy statement.” IN the case of a > multi-generational family plan, positive liquidity > events might include anticipated gifts and > inheritance; the advisor should note, however; > that inheritance planning is a sensitive and > potentially divisive topic among family members." > > Also, to clarify, my main question is: can you > have liquidity events that also serve as time > horizon changes. IE in the book negative > liquidity events include charitable gifts, > anticipated home repairs, or change in cash needs > brought on by retirement. I would tend to think > that the latter would also serve as a time > horizon. Another example as mentioned above would > be kids going to college, would this not be both > a.) time horizon and b.) negative liquidity > event??? Ok, fair enough. But when you start doing IPS questions from past papers you won’t see positive liquidity events appearing in the liquidity section of the IPS. Unless it’s new since last year, but that would surprise me. From what I remember, most liquidity events were short-term in nature - i.e the guy needed $2 mil in 6 months to buy a house. Your kids starting college in 18 years time may be a time horizon, but probably wouldn’t be a liquidity event given how far away it is. My advice to you is not to get too hung up about this until you’ve done at least the last 5 years worth of past papers and seen how they handle the different situations (and many times they are not consistent anyway - welcome to LIII)
Point taken newsuper, I’m just being really meticulous with the details because I REALLY am sick of this program and don’t want to bonk out on the final test. Kind of a bummer really, when i started this program everyone said LII was the hurdle and LIII was the easiest, now it seems as of recent exams, LIII is in-line with LII or harder.
markCFAIL Wrote: ------------------------------------------------------- > Thanks dawg yo my man braw G homie home slice > skittles for rizzle. This shit be whack yo. you wack son mark Ciquel
mark Ciquel… i remember that from the LII forum. No clue what it means but I think i’ve been in the forums with u since LI