We had a discussion where the stock market could go down by 40% or more. I cannot recommend books they will not read them. They seemed to understand the idea of loss so far.This relative is going to blame you when stocks go down by 30-40%. I would have this relative take some of those allocation risk tests. They may be a bit dumb and not all that realistic but at least the family member will be making a choice. Take into account the need to take risk, willingness and ability to take risk. Some of Larry Swedroe's books have a good explanation but I am sure you can find an in depth discussion of this on youtube or somewhere else. At one time Rick Ferri suggested starting some one at a lower risk level because just about the worst mistake we can make is bailing on stocks once they have gone down by 40%.
Statistics: Posted by gavinsiu — Sat Jul 06, 2024 12:58 am — Replies 13 — Views 2802
