PT  - JOURNAL ARTICLE
AU  - Peter Mladina
TI  - Optimal Lifetime Asset Allocation with Goals-Based, Lifecycle Glide Paths
AID  - 10.3905/jwm.2016.19.1.010
DP  - 2016 Apr 30
TA  - The Journal of Wealth Management
PG  - 10--22
VI  - 19
IP  - 1
4099  - https://pm-research.com/content/19/1/10.short
4100  - https://pm-research.com/content/19/1/10.full
AB  - 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