Life Risk

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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Professor McKee's Things and Stuff uses Accessibility Checker to monitor our website's accessibility.