R14, Indiv. Investor

Here’s LOS 14a: - Discuss how source of wealth, measure of wealth, and stage of life affect an individual investors’ risk tolerance. The 4th stage of life is distribution (transfer to wealth/other entities). So, how does this affect investor’s risk tolerance from the benefactor’s view? Does it have any? Thanks

If the IPS states the grantor’s desire to leave a large amount to his heirs, then it has a material effect on risk tolereance.

Thanks. I guess I think of a bequest desire as somewhat less important than asset size, stage of life etc. In some problems, the bequest desire is jettisoned because it’s not realistic given the rest of the financial picture… Of course, this doesn’t mean it has no effect on risk tolerance. p.s. Spinal Tap, great movie