The Money Scope Ep 7 Cases: Big Decisions With Real Money

investment portfolio case studies

In the main episode, we covered asset allocation over the lifecycle with considerations for financial and behavioral risk. These cases walk through the hypothetical experiences of two investors to highlight how real life and real money interact with asset allocation decisions.

The idea is that you will consider how the situations apply to you. It is not specific advice, but hopefully, you can relate to aspects of them and use that in your own thinking or with your advisor.

Case 1: A plastic surgeon in 1997 with a high risk tolerance who, in addition to a busy practice, offers consulting to the medical technology industry.

Case 2: A business owner in 2019 who sold their company for a large sum recently and doesn’t want to mess up their windfall.

“Tax deferral can end up being neutral, beneficial, or harmful, depending on the difference between your current and future tax rate.”


“You are possibly going to make adjustments to your asset allocation as you move through life, but you [don’t want to] do that reactively. It has to be a deliberate, specified choice.”


“Everyone’s going to be different in terms of what [risk] they can handle.”


“The only real failure from rebalancing into the storm is this descent into anarchy.”


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