Comments on: How your life affects asset allocation and risk tolerance http://www.thickenmywallet.com/blog/wp/2009/12/02/how-your-life-affects-asset-allocation-and-risk-tolerance/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Plan B Economics http://www.thickenmywallet.com/blog/wp/2009/12/02/how-your-life-affects-asset-allocation-and-risk-tolerance/comment-page-1/#comment-20073 Plan B Economics Sat, 12 Dec 2009 22:59:20 +0000 http://www.thickenmywallet.com/blog/wp/?p=1367#comment-20073 Thanks for posting this. So many people forget to consider one's source of income as part of their portfolio. Thanks for posting this.

So many people forget to consider one’s source of income as part of their portfolio.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/12/02/how-your-life-affects-asset-allocation-and-risk-tolerance/comment-page-1/#comment-20010 admin Wed, 02 Dec 2009 17:58:03 +0000 http://www.thickenmywallet.com/blog/wp/?p=1367#comment-20010 Michael- that is a good addition as well. Thanks. Michael- that is a good addition as well. Thanks.

]]> By: Michael James http://www.thickenmywallet.com/blog/wp/2009/12/02/how-your-life-affects-asset-allocation-and-risk-tolerance/comment-page-1/#comment-20009 Michael James Wed, 02 Dec 2009 16:57:31 +0000 http://www.thickenmywallet.com/blog/wp/?p=1367#comment-20009 I couldn't agree more that you're better off thinking than blindly using some 120 minus age formula. One other factor to consider is your expected future spending profile. While most people may have steady spending habits year-to-year, what about the guy who currently rents, but plans to buy a cottage by a lake the day he retires? This big bump in the spending profile should be taken into account. He should have a larger than normal allocation to fixed income leading into retirement. After the cottage is paid for (out of the fixed-income investments), his allocation will go back to something more "normal". I couldn’t agree more that you’re better off thinking than blindly using some 120 minus age formula. One other factor to consider is your expected future spending profile. While most people may have steady spending habits year-to-year, what about the guy who currently rents, but plans to buy a cottage by a lake the day he retires? This big bump in the spending profile should be taken into account. He should have a larger than normal allocation to fixed income leading into retirement. After the cottage is paid for (out of the fixed-income investments), his allocation will go back to something more “normal”.

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