Health and age should be factors in determining asset allocation from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
As we consider how best to allocate our assets, it's important to take into account factors such as health and age. These two variables can have a significant impact on our financial goals and risk tolerance, and therefore should be carefully considered when developing an asset allocation strategy. Health plays a vital role in determining asset allocation because it directly impacts our ability to earn and save money. If we are in good health and expect to continue working for many more years, we may be able to take on more risk in our investment portfolio. On the other hand, if our health is poor or we are approaching retirement, it may be wise to shift towards more conservative investments to protect our savings. Age is another important factor to consider when deciding how to allocate assets. Younger individuals typically have more time to recover from market downturns and can afford to take on higher levels of risk in pursuit of higher returns. As we get older, however, it becomes increasingly important to prioritize capital preservation and income generation over aggressive growth. By taking into account both health and age when developing an asset allocation strategy, we can create a portfolio that is tailored to our unique circumstances and goals. This personalized approach to investing can help us achieve a balance between risk and reward that is suitable for our current life stage and financial situation.- Health and age should be key considerations when determining how to allocate assets. By carefully assessing these factors and adjusting our investment strategy accordingly, we can build a portfolio that is well-suited to our individual needs and objectives.
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