Client and Customer Investment Recommendations and Strategies

This chapter is where Series 66 becomes a real combined-practice exam. NASAA expects candidates to connect client type, profile, strategy, taxes, retirement issues, ownership structure, trading, and performance into recommendations that make sense for both the client’s goals and the representative’s legal role.

Read this chapter as an advice workflow. Start with who the client is, then move into portfolio construction, planning, implementation, and review.

In this section

• Client Types, Profiles, and Capital Market Theory
  Review client types, profile building, behavioral factors, and the portfolio-theory concepts that shape Series 66 recommendations.
• Portfolio Strategy and Techniques
  Study asset allocation, active and passive styles, diversification, sector rotation, leveraging, and related strategy techniques on Series 66.
• Tax, Retirement, and ERISA
  Learn how Series 66 tests tax-aware advice, retirement-plan structure, and ERISA-related recommendation issues.
• Special Accounts, Estate Planning, Trading, and Performance
  Review special-account structures, ownership and estate planning, trading mechanics, trading costs, and performance measures tested on Series 66.