3. Describe the main components of wealth allocation
process and explain the significance of each to the
success of wealth planning.
• One of the most important aspects of successful
wealth planning is the process of wealth allocation.
– Establishment of objectives
– Identifying potential opportunities
– Determining risks and constraints
– Potential investment channels
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4. Financial planners should be aware of two major
components
• Investment Policy statement
• Portfolio Management Process
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5. Investment Policy Statement
i. Return Objectives
• Stability of Principal
• Income
• Growth of Income
• Capital appreciation
ii. Risk Objectives
iii. Identifying Constraints
• Internal
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