Why You Should Be a Goals-Based Investor

Imagine for a moment that you owe a violent loan shark $10,000 by tomorrow morning. But today you have only $7,000.

Now suppose you visit an economist for help. You desperately ask, “What am I to do?!”

Our economist, being highly trained, administers a risk-tolerance questionnaire to gauge your preferences about risk. As it turns out, you are pretty risk averse.

“There is nothing I can do,” our economist sadly concludes. “There just isn’t enough time for a low-fee 60/40 portfolio to earn 43% by tomorrow.”

[…continue reading at Enterprising Investor…]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s