TY - JOUR T1 - Portfolio Selection in a Goal-Based Setting JF - The Journal of Wealth Management SP - 41 LP - 46 DO - 10.3905/jwm.2016.19.2.041 VL - 19 IS - 2 AU - Franklin J. Parker Y1 - 2016/07/31 UR - https://pm-research.com/content/19/2/41.abstract N2 - 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 ER -