A suitable portfolio is...

Investment suitability in everyday terms is a recommendation that's likely to meet a client's goals in good times and bad. So how might an adviser go about showing one investment recommendation is more suitable than another? Creating a financial plan for a client is far from a scientific endeavour. Nevertheless, there are processes that should be followed to ensure that the advice is suitable. Fundamentally, advisers need to be able to show that the recommendation will have resolved any conflicts between the asset allocations consistent with risk required, capacity for loss and risk t...