Investors do not often consider “life factors” such as job security, family matters, family health, and the amount of debt you owe as factors in an asset allocation decision, but they terribly important. Making an emotional decision to change your portfolio when other factors are stressing you typically does not lead to a better outcome. Ignoring outside risk factors when setting a portfolio asset allocation strategy can lead to too much “life” risk, and that can produce behavioral mistakes down the road.
[ Back | Contents | Next ]
Last Updated: 6/25/2018