Series 66 Investment Recommendations Chart
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
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📘 Series 66 Investment Recommendations Chart
Matching Client Profiles to Suitable Investments
One of the most tested concepts on the Series 66 exam is how to match investment recommendations with a client’s financial profile, objectives, time horizon, and risk tolerance. Understanding these suitability scenarios is essential not only for the test, but also for real-world advisory work.
Below is a comprehensive chart that links client types to appropriate investment strategies.
📊 Investment Recommendations by Client Profile
| Client Type | Investment Objective | Recommended Investments | Key Considerations |
|---|---|---|---|
| 📈 Young Investor (Age 25–35) | Growth | Common stocks, growth mutual funds, ETFs, Roth IRA | Long time horizon, high risk tolerance |
| 🛡️ Retiree | Income, Capital Preservation | Investment-grade bonds, bond ladders, annuities, CDs | Low risk tolerance, stable income needed |
| ⚖️ Mid-Career, Balanced Risk | Growth and Income | Balanced mutual funds, dividend-paying stocks, diversified portfolios | Mix of capital appreciation and current income |
| 💼 High Net Worth Individual | Tax Efficiency, Diversification | Municipal bonds, hedge funds, private placements, tax-managed funds | Seeks high after-tax return, tolerates risk |
| 💸 Low Income, Low Net Worth | Safety, Liquidity | Treasury bills, savings accounts, short-term bond funds | Needs capital preservation and easy access |
| 🏠 Client With Short-Term Goal (1–3 yrs) | Capital Protection | Money market funds, short-term CDs, short-term Treasuries | Liquidity and safety take priority |
| 📊 Young Professional | Long-Term Wealth Accumulation | Index funds, IRAs, employer-sponsored retirement plans | Compound growth over decades |
| 🏢 Pre-Retirement Business Owner | Stable Income, Preservation | Fixed annuities, laddered bonds, blue-chip stocks | Needs reliable cash flow and principal stability |
| 📈 Inflation-Conscious Investor | Inflation Protection | TIPS, commodities, real estate investment trusts (REITs) | Seeks to maintain purchasing power |
| 🌿 ESG-Focused Investor | Values-Based Investing | ESG mutual funds or ETFs, green bonds | Aligns portfolio with ethical or environmental priorities |
🧠 Tips for the Exam
- Focus on suitability-based scenarios with client goals.
- Understand how risk tolerance affects recommendations.
- Know when liquidity, time horizon, or tax considerations are most important.
- Recognize the difference between income vs. growth objectives.
- Watch for clients with changing needs over time—age, career stage, or family status.
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