Category: Goals-Based Investing
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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…
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How Much Can You Lose Before You’ve Lost Too Much?
I started my career in finance in 2007. For about a year I thought “this is great!” Then 2008 hit and I thought “this is terrible!” After 2008, I had one fundamental question that I wanted answered: how much can you lose in an investment portfolio before you’ve lost too much? After about five years…
Franklin J. Parker, CFA 