UniFi by CAIA Crossing the Threshold - 19

ASKING IMPORTANT QUESTIONS
Determining Client Appropriateness
Fran Kinniry, CFA
Principal, Head of Vanguard Investment
Advisory Research Center, Vanguard
In the realm of investment management, determining the suitability of alternative
investments for clients is a crucial task that demands careful consideration and informed
decision-making. This starts with shedding light on the importance of asking pertinent
questions when evaluating the appropriateness of such investments. By delving into
key areas like client objectives, investment characteristics, liquidity needs, access to
top investment managers, and the advisor resources and capabilities to execute on all
these critical areas, we aim to equip financial professionals with the knowledge and tools
necessary to make well-informed choices that align with their client's best interests.
Most importantly, we emphasize the significance of client-centered decision-making and
transparent communication in fostering trust and ensuring successful client outcomes.
Building Personalized Investment Plans
Identifying client goals, preferences, and constraints is the cornerstone of determining
sound investment plans for your clients. This critical step involves understanding the client's
risk tolerance, investment objectives, liquidity needs, and investment horizon, as some of
the more critical factors and should form the foundation for the selection and weighting of
the investments. Furthermore, it is crucial to consider the client's tax situation and estate
planning goals, ensuring that the chosen investments align with their overall financial
objectives and that the risk and return expectations are evaluated on an after-tax basis.
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UniFi by CAIA Crossing the Threshold

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