@article {Parker41, author = {Franklin J. Parker}, title = {Portfolio Selection in a Goal-Based Setting}, volume = {19}, number = {2}, pages = {41--46}, year = {2016}, doi = {10.3905/jwm.2016.19.2.041}, publisher = {Institutional Investor Journals Umbrella}, abstract = {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 {\textquotedblleft}wrong,{\textquotedblright} 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}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/19/2/41}, eprint = {https://jwm.pm-research.com/content/19/2/41.full.pdf}, journal = {The Journal of Wealth Management} }