Wealth management: applied workshop

Client goals and constraints

Use client goals and constraints to make decisions inspectable.

Document a fictional client’s goals, horizon, liquidity and risk constraints.

Teaching example: Tuition needed within a year has a different horizon from retirement assets.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Product structure and costs

Use product structure and costs to make decisions inspectable.

Compare funds, deposits and bonds by structure, liquidity and cost.

Teaching example: A 1% annual fee on 100000 is 1000; returns remain uncertain.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Risk capacity and willingness

Use risk capacity and willingness to make decisions inspectable.

Separate ability to bear losses, willingness and missing information.

Teaching example: Willingness to take risk does not establish capacity to lose tuition money.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Allocation foundations

Use allocation foundations to make decisions inspectable.

Check portfolio weights and liquidity against fictional constraints.

Teaching example: Cash 20%, bonds 50%, equities 30% sum to 100%.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Returns, costs and scenarios

Use returns, costs and scenarios to make decisions inspectable.

Calculate a fictional portfolio scenario net of stated fees.

Teaching example: In a simplified scenario, gross 5% less fee 1% gives about 4%.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Explain a proposal and its risks

Use explain a proposal and its risks to make decisions inspectable.

Explain volatility, exit conditions and fees in plain language.

Teaching example: State downside scenarios without promising returns.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Information checks and review

Use information checks and review to make decisions inspectable.

Build a missing-information and portfolio-review checklist.

Teaching example: A change in spending calls for reviewing liquidity needs.. Predict the result, independently check the key step, and compare these assumptions with the actual role. Do not use demonstration results as real-world advice.

Worked example · fictional

From a problem to inspectable work

Synthetic fees: assets 1,000,000; 1% on first 500,000 and 0.5% above; a separate nonoverlapping product expense of 0.2%; no other fees.

1. 500000×1% + 500000×0.5% + 1000000×0.2% = 9500. Separate tiered service fees and total cost.
2. Further judgment: The client needs some cash within a year. How evaluate a recommendation?
3. Check liquidity, loss capacity and horizon before costs and suitability

Deliver fictional client needs and allocation discussion: the calculation reference is 9500; the recommendation must respect Check liquidity, loss capacity and horizon before costs and suitability. Separate numbers, inference and unknowns.

Failure case and repair

In Allocation foundations, copy tool output without definitions, then retain the conclusion when asked: The client needs some cash within a year. How evaluate a recommendation?

Even a result of 9500 does not explain when Check liquidity, loss capacity and horizon before costs and suitability is supported.

500000×1% + 500000×0.5% + 1000000×0.2% = 9500. Separate tiered service fees and total cost. Then test assumptions in Explain a proposal and its risks.