Today we conclude our series on how best to make asset allocation decisions. It’s an easy decision when the analysis of your ability, willingness and need to take risk leads to the same conclusion. For example, one can have a high ability and willingness to take risk but little need. In that case, the answer is simple: Because the marginal utility of additional wealth is likely low, the need to take risk should dominate the decision.
However, conflicts often get in the way, making the choices more difficult.
Read the rest of the article at CBS News