ftwcfa
May 26, 2012, 6:51pm
#1
This should be easy points, but what are things you always look for?
For me I always looks for:
Positively related to ability to take risk: portfolio size, time horizon, flexibility, current income
Negatively related: debt, goal importance, spending needs (seems like 8-9 nominal is typically considered too high)
Any more?
Yeah I can add one I have seen as well
The ability to start back working. Person who stopped work early, say age 40 with large asset base can start back working.
itera
May 26, 2012, 7:04pm
#3
yea I don’t recall seeing a problem that had the return calc in the double digits, so maybe that’s a sanity check of sorts
the most important point for me is : even if asset base is large/horizon long, if the after tax inflows do not cover outflows, ability to take risk drops as we rely on portfolio returns to fund shortfall.
ftwcfa
May 26, 2012, 7:12pm
#5
Alladin:
the most important point for me is : even if asset base is large/horizon long, if the after tax inflows do not cover outflows, ability to take risk drops as we rely on portfolio returns to fund shortfall.
Can you explain? It seems like if the asset base is large enough, even if there are no inflows, there can still be a high ability to take risk.
tulkuu
May 26, 2012, 9:41pm
#6
Lifestyle, support family members, children’ education, mortgage, … All affect ability.
Willingness is from words and what’s in the portfolio.
tulkuu
May 27, 2012, 2:58am
#8
single & no children, healthy, stable career, govt/pension to cover healthcare expense.