Economist Kotlikoff (progenitor of planning software ESPlanner) advocates that living standard risk must be taken into account when determining appropriate portfolio risk (which I happen to agree with :-).
Those whose Social Security and other pensions provide the majority of their living expenses, can afford to take more risk in their investment portfolio. While those whose living standard is supported mostly from their investment portfolio need to take significantly less risk.
This entry was posted by David on November 21, 2006 at 1:50 pm, and is filed under Investing. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.