SESSION OVERVIEW:

In this module you will understand why it's important to engage in the portfolio risk management discussion with your clients on a regular basis and gain a better understanding of the impact of investment decisions on capital retention and growth. An especially important client profile is the business owner client, who often has all his/her eggs invested in one asset: the business, which recently may have suffered significant impacts as a result of the pandemic. This client will want to know how to diversify away risk with a risk-managed portfolio, and requires your advice and perspective on how to move forward despite the Black Swan events.

APPROACH:

Assessing portfolio risk to your client's profile should be an ongoing event. It is particularly important when economic events beyond the control of the business owner dramatically change the financial planning horizon.

WHAT YOU WILL LEARN:

• A realistic view of after-tax cash income
• An understanding of the impact on capital
• The need to manage tax risk

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.