The Client's Financial Objectives Flashcards
1
Q
Typical Client Objectives (Investment Advice / Financial Planning)
A
Protection - home / life insurance
Borrowing - obtain mortgage
Savings + Investment - invest for income, save to build capital
Retirement - specific age with specific income
Estate Planning - reduce inheritance tax
Determine Objectives - Quantify in Financial Terms
2
Q
Prioritising Objectives and Affordability
A
Affordability - constraint that means clients need to prioritise their financial goals and agree a priority order
By preparing a cash flow statement, a surplus allows savings plans, repaying mortgage debt
A deficit may cause revised priorities or timescales
