This paper aims to present concrete recommendations to individual investors and in- vestment advisers about what portfolios should be held by private persons and how to construct these portfolios. Starting from the theoretical foundations that are based on the “Hierarchy of Human Needs” (as proposed by A.H. Maslow in 1943), this paper suggests to segregate portfolios into multiple sub-portfolios that each cater for a specific need. This postulation is then integrated with other key observations into a comprehensive, positive and normative portfolio theory. The result is a complete framework for personal financial decision making that is natural and helpful for both advisers and investors, while it integrates financial investments in an optimization of overall well being.