TY - JOUR T1 - Optimal Lifetime Asset Allocation with Goals-Based, Lifecycle Glide Paths JF - The Journal of Wealth Management SP - 10 LP - 22 DO - 10.3905/jwm.2016.19.1.010 VL - 19 IS - 1 AU - Peter Mladina Y1 - 2016/04/30 UR - https://pm-research.com/content/19/1/10.abstract N2 - Assets should serve a purpose: to fund a lifetime of financial goals. If assets serve the purpose of funding lifetime goals, it naturally follows that optimal lifetime asset allocation should be goals-based and multi-period, requiring customization according to goals, human capital, and risk preference. Ideally, risk preference is defined intuitively for private investors. We present a dynamic asset allocation method based on an intertemporal capital asset pricing model that incorporates these features to produce a goals-based lifecycle glide path—an asset allocation roadmap that optimally funds lifetime consumption goals while adapting to evolving conditions.TOPICS: Wealth management, in wealth management ER -