Solution-Realigning the investments to better match cartman

Realigning the investments to better match cartman

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Reference no: EM132354916

Cartman was just left half of his grandmother's estate after she died. Since he isn't really sure what to do with his newfound wealth, he decides to work with a financial planner. As a part of the financial plan, the advisor recommends adjusting his inherited portfolio of C.D.'s and T-bills into an investment policy that more closely resembles Cartman's goals, risk tolerance, and time horizon. Although Cartman sees how this would normally make sense, he told the advisor he preferred to keep things "as is," because this money was his grandmother's, and she seemed to do ok. Or in Cartman's words, she did "cooo." So, instead of realigning the investments to better match Cartman's situation, he just kept things the way they were.

1) What behavior/bias is present?

2) Why is this behavior detrimental?

3) What could have been done differently, or what could be done differently next time to avoid this result?

Reference no: EM132354916

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Realigning the investments to better match cartman

Reference no: EM132354916

Reference no: EM132354916

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