Liquidity - Individual IPS

[wouldratherberiding]

Do we list current annual expenses as a liquidity need or do we ignore thi in the liqudity section of the IPS?
Also, if a individual receives a sudden increase in wealth, would this be mentioned at all in ability or willingness to tolerate risk? Would it indicate lower abilitiy since it was acquired passively?

 

[hei.so]

http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91351037
In regards to your first question, annual expenses is included in liquidity.
In regards to your second question, I would assume that it would increase ability to take risk but not necessarily willingness. I’m not 100% sure though.

 

[jahid_107]

In regard to the first question,any cash flows which will be taken out of your portfolio investment income must be included in the liquidity section.
In second question, inheritance would increase the ability to take risk. But it wont have any direct impact.