Asset Allocation – Part 1: Risk Assessment

The premise of this article is that “Risk Assessment” is designed by the financial industry, and does not provide any useful indicator for the individual investor. I’ll argue that “Risk Assessment” has no bearing on proper Asset Allocation. Rather, your age is what should determine your investment risk. What is Risk Assessment? Mutual fund and insurance companies understand “risk assessment” very well.  In fact they have it down to a calculated science, highly correlated ...

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