Question

You have been getting to know a new client, Jane Fong, and are determining how knowledgeable she is about investments. Janine is 25 years old, and works for Degency Mortgage Corporation as a cash flow analyst. Janine has an MBA in finance, and also holds the Chartered Financial Analyst (CFA) designation. She has been investing on her own for about ten years. Would you consider Jane’s investment knowledge a resource or a constraint?

1. Neither

2. Resource

3. Both

4. Constraint

Answer 1

3. Both

From an Investment advisors’ point of view Jane Fong knowledge of finance will be both a resource and constraint.

Since Jane Fong has high knowledge in the field of finance then it would be easier for him to communicate easily in financial terms and he would not have to get into every details be Jane would understand those things but with such high knowledge people do have pre-conceived opinion about how things have worked for them in the past and how they want it to work and if investment advisor wants to choose a different approach then it would have a difficult time persuading it to him.