Investing is deceptively simple. Until it’s not.

As investors, we want to start with the market portfolio—that is, by definition, the most efficient portfolio. But we’ll also want to customize our investments to address our specific situation.

For instance, the global bond market is substantially bigger than the global stock market, but most retirement-focused investors’ portfolios are more heavily tilted towards stocks than bonds. There are all sorts of reasons for this (some better than others).

But the basic fact is that we (and you, specifically) are different from the average investor. And that means that we want to tilt our portfolio away from the market in certain ways.

You Aren’t Average

One of the biggest ways that you are different from the average investor is that you live in America. The financial markets may be global, but individuals aren’t. So our portfolios need to account for that. We’ll want

Keep reading this article on Retirement Searcher, Wade Pfau - Blog.

Leave a Reply