Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Inflation risk, or purchasing power risk, means an investment's nominal return may not outpace rising costs, leading to a negative real return. - The Series 65 exam tests inflation risk through suitability scenarios where conservative, fixed-income investments jeopardize a client's long-term financial goals. - Liquidity risk is directly measured by the bid-ask spread; a wider spread signals difficulty in selling an asset quickly without a significant price reduction. - A common exam trap involves recommending illiquid investments like non-traded REITs or limited partnerships to clients with stated short-term cash needs. - Opportunity cost is the potential return missed by choosing one investment over another, often tested as an adviser's failure to recommend a more suitable, higher-returning alternative to holding excess cash. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep