By Jeffrey R. Kosnett
There's a whiff of economic recovery in the air, and investors have been feeling frisky as of late. Just another bout of irrational exuberance, you ask, to be followed by another bust?
One thing that's certain, however, is that the Great Recession, the credit crisis and the past year's meltdown in financial markets will change how you handle your finances. In many ways, your money will never be the same.
1. Investments: Less risk
In the old days -- before 2008, that is -- an aggressive portfolio had 80% or more of its assets in stocks.
No matter how well you're doing now or how well you or others think stocks will do in the years ahead, investors are so shell-shocked from their bear-market losses that it will be a long time before they will be confident enough to justify that high a proportion of stocks within their total portfolio.
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