Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review.
Broadly a sample I got as follow,
Similarly for Investment, there are a lot of psychology involves in how we manage Greed and Fears. This can be classify by level of risks individuals willing to take but with the the ratio (equivalent to assets) adjusted as one progress on asset levels below.
This is depicts from Left to Right as one net-worth increases. A simplified model. In reality, asset between classes may have situation could not flow freely such as if one introduces Pensions or CPF layer which could limits.
The logic that we fulfilled the basic minimum on cash holding which could increase with changing circumstances but nevertheless small in area in the triangle but the absolute figures likely larger. Follow by different level of investment risks.