%0 Journal Article %A Franklin J. Parker %T Portfolio Selection in a Goal-Based Setting %D 2016 %R 10.3905/jwm.2016.19.2.041 %J The Journal of Wealth Management %P 41-46 %V 19 %N 2 %X Using different portfolio ratios, we illustrate the deficiencies of using only modern portfolio theory (MPT) metrics and assumptions when selecting portfolios in a goal-based setting. Through the lenses of the ratios, we show how MPT can choose the “wrong,” albeit efficient, portfolio to accomplish a goal. These facts illustrate the need for goal-based practitioners to factor in other variables, such as time to a goal and maximum loss thresholds, when managing a portfolio to a goal-oriented mandate.TOPICS: Portfolio theory, wealth management, in wealth management %U https://jwm.pm-research.com/content/iijwealthmgmt/19/2/41.full.pdf