Something I have come across while doing practice tests is that sometimes I find there might be a Unique Circumstance that I find warranted to list in the IPS problems, but the answer key often lists this section with no material circumstances.
This is a very subjective area unless there are very obvious clues in the item set.
My question is how much of a trap are these questions, will you lose points for putting a potentially valid answer for a logical view but the grader’s answer key say no material circumstances?
If the correct answer is that there are no unique circumstances but you write down one then it is a wrong answer and you won’t get any marks. Leaving it blank is also wrong.The questions are carefully set up and there shouldn’t be grey areas. Not in the official mocks at least.
what are some other examples of unique for IPS? certainly socially responsible investing. What about a really long retirement? like if some trust fund baby could retire early because they’re rich at a young age. could that be considered unique?
ugh. after looking into this more, retiring early and having a very long retirement period is not a unique circumstance. i think it always has to be related to the investment. either a concentrated position and or socially responsible investing.
A strong disagreement between willingness and ability to accept risk (e.g., above average willingness and below average ability, below average willingness and above average ability) should be mentioned in unique circumstances, as some education of the investor is indicated.
