Peter Lazaroff on The Perfect Portfolio

The 'perfect portfolio' is defined by decades-long stickability, not maximum expected return, according to Lazaroff.

• No inheritance planning: Lazaroff says advisors at his firm never bake pending inheritances into financial plans since circumstances (remarriage, health costs) can eliminate them; younger investors should invest as if it doesn't exist.
• Behavior over questionnaires: Risk tolerance has two parts—objective 'ability' (time horizon, human capital) and subjective 'willingness'—and past actions during 2008, COVID, and 2022 reveal willingness better than surveys, which shift with market conditions.

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