I am starting over. I slid way down the Dunning-Kruger curve and hit rock bottom.
So I’m starting an IPS with step 1, creating an asset allocation : Equities % vs Fixed income %
I understand it is based on need, ability, and willingness to take risk. I understand conceptually what these mean. But I can’t quantify any of them. And AA, ultimately, is quantitative. % equities vs % fixed income
Need: I don’t know what my future expenses are or retirement date. Or my portfolio rate of return. Which depends on my AA, so circular logic.
Ability: No clue. How I’ll react when losing 20% of a $100 portfolio is different than losing 20% of a $10,000 portfolio.
Willingness: don’t even know where to begin.
I’m dumb as toast. Please help.
So I’m starting an IPS with step 1, creating an asset allocation : Equities % vs Fixed income %
I understand it is based on need, ability, and willingness to take risk. I understand conceptually what these mean. But I can’t quantify any of them. And AA, ultimately, is quantitative. % equities vs % fixed income
Need: I don’t know what my future expenses are or retirement date. Or my portfolio rate of return. Which depends on my AA, so circular logic.
Ability: No clue. How I’ll react when losing 20% of a $100 portfolio is different than losing 20% of a $10,000 portfolio.
Willingness: don’t even know where to begin.
I’m dumb as toast. Please help.
Statistics: Posted by Hot Sauce — Mon Oct 14, 2024 10:39 pm