Question
When ability and willingness to take risk conflict, what risk tolerance should an advisor recommend?
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Answer
The lower of ability and willingness.
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Question
A client needs funds for a home purchase in two years. Which IPS constraint category does this primarily affect?
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Answer
Time horizon.
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Question
A client must keep enough cash available for tuition payments each semester. Which TTLLU constraint is this?
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Answer
Liquidity requirements.
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Question
If a portfolio is held in a taxable account, which IPS constraint category becomes especially important?
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Answer
Taxes.
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