Planit:Recommending Portfolios

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There is more than one way to learn about PlanPlus Planit. Check out our other Training options, from structured tracks around planning types, to self-serve, mix-and-match topics.

In this Video you will Learn...
How do I select an appropriate portfolio for my client's risk tolerance and accounts?
• Risk tolerance for multiple risk profiles
• Default suggestion based on risk tolerance, objective questions
• Selection and validation
• Override with evidence

Keep on Track! Continue training on...
Getting Started Integrated Planning
Investment Management Life Planning
Portfolio Objectives Screen

Other Related Topics
Portfolio Mapping Introduction to the Portfolio Objectives Screen Selection and Validation
Account Portfolio Add a Portfolio Target Portfolio

The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.

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Let’s look at the “Retirement Portfolio”.

1) You’ll see that there are four accounts from the Assets screen that were associated with this portfolio. Mark’s Registered Investments, a Joint Non-Registered account and Mark and Maria's Tax Free Savings Accounts.

2) Take note that the client's risk tolerance is Average for both the client and spouse.

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3) We can also identify the goals from the Objectives screen that are associated with this portfolio.

4) We then identify some key portfolio objectives that relate to the time horizon for the use of the funds in this portfolio, the risk capacity the client has relative to the goals associated with the portfolio and if Socially Responsible investing is of importance to the client.

Selection & Validation Tab

5) We have also provided an area where you can identify any special constraints the client has relative to this portfolio.

6) Finally you’ll either retain the recommended portfolio in this case it is "Balanced" or change it if you wish. Click on Save and you are done.

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Now let’s look at how the two other portfolios we created differ relative to their portfolio objectives.

Education Portfolio

Here we see the “Education Portfolio” that is associated with the goal for David’s education.

Portfolio Education.jpg

On the education portfolio you will notice that the risk tolerance is "Average" but the you will also notice that the recommended portfolio is “All Income” not “Balanced" like the Retirement Portfolio. This is because of the shorter time horizon with the Retirement Portfolio the time horizon was 4-5 years as with portfolio the horizon is "Within the next year". These horizons were identified by the “Portfolio Objectives” questions.


Boat Upgrade Portfolio

Now let's look at the Boat Upgrade Portfolio:

Portfolio Boat.jpg

With this third portfolio, you’ll notice that again the risk tolerance was “Average” but the recommended portfolio is “Income”. Not “Balanced” like the Retirement Portfolio and not “All Income” like the Education portfolio. In this case the time horizon was from 1 to 3 years which impacted the portfolio recommendation.


Once a portfolio has been selected for each portfolio, you can progress to the Asset Allocation screen and view the resulting asset allocation for each.