@article {Boscaljon17, author = {Brian Boscaljon}, title = {Defining an Individual{\textquoteright}s Critical Wealth Level}, volume = {15}, number = {4}, pages = {17--28}, year = {2013}, doi = {10.3905/jwm.2013.15.4.017}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The author uses an expected utility function of time and wealth to define an individual{\textquoteright}s critical wealth level. Traditional asset allocation models are based on modern portfolio theory{\textquoteright}s assumptions that individuals are homogenous wealth maximizers who have the same time horizon. These assumptions are questioned beyond the critical wealth level. Individuals often retire voluntarily once a target wealth level is obtained that optimizes their desired sustainable consumption and amount of leisure time. The critical wealth level is an important reference point that provides a theoretical basis for the start of the reduction in risky asset allocations for individuals who value leisure time and wealth.TOPICS: Wealth management, portfolio theory}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/15/4/17}, eprint = {https://jwm.pm-research.com/content/15/4/17.full.pdf}, journal = {The Journal of Wealth Management} }