ashycal

I’m really confused on this too.
With bequest preference and a total reliance on portfolio to meet living expenses
Both reduce ability to take risk.
In my opinion, risk tolerance is average.
Equally, because bequest preferences are featured in the return calculation, they should certainly be concrete enough goals to affect risk tolerance.
Yet the guideline answer says, they can simply forget about the bequest if their above-av. risk tolerance leads to excessive losses!