@article {Crook18, author = {Michael Crook and Matt Baredes}, title = {Total Wealth Allocation: Liquidity, Longevity, and Legacy }, volume = {18}, number = {3}, pages = {18--26}, year = {2015}, doi = {10.3905/jwm.2015.18.3.018}, publisher = {Institutional Investor Journals Umbrella}, abstract = {In general, households use old technology for asset allocation decisions. Target-risk portfolio models are pervasive across the industry, and risk-profile questionnaires continue to form the foundation for strategic asset allocation decision-making. Better technology would utilize liability relative optimization and a holistic balance sheet and incorporate behavioral finance considerations. However, these concepts have not been integrated into most practitioners{\textquoteright} businesses, even though the core work on each was completed 20{\textendash}30 years ago. The authors propose a scalable, total wealth model for integrating liability relative optimization into households{\textquoteright} portfolios. The basis for the model is an asset segmentation approach that refl ects the nuances of a households{\textquoteright} balance sheet and future objectives and enables liability relative optimization and total wealth considerations to be applied appropriately.TOPICS: Portfolio theory, wealth management, in portfolio management, performance measurement}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/18/3/18}, eprint = {https://jwm.pm-research.com/content/18/3/18.full.pdf}, journal = {The Journal of Wealth Management} }