This article finds that well-diversified portfolios are rare among households owning discretionary financial assets. Most households typically concentrate their portfolios in a single asset class. In 1995, two thirds had average allocations over 90% in constant dollar instruments, while 15% had portfolios dominated by a risky category. After controlling for other variables, differences were found in risk tolerance, shopping behavior, interest rate expectations, and investment goals between groups of households with dissimilar portfolio types. Financial advisors might use this information to develop educational strategies best suited for various portfolio orientations. Key Words: Household portfolios, Investment, Saving, Survey of Consumer Finances

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