Whilst all Financial Advisers ascertain how much a client needs to retain in cash to cover their requirements for an initial 5 year period, it is difficult to get this amount right when there is no understanding of the real value of cash.
When a client properly understands how to manage their cash, it will often change the amount they feel they need to retain in cash.
In doing so, this changes their Capacity for Loss.
Therefore, without this understanding, the quality of the advice is always compromised.
"A client's Capacity for Loss will change when they maximise the value of their cash deposits"