PT  - JOURNAL ARTICLE
AU  - Steven Cosares
TI  - Comparing Risks Among Adaptive Investment Planning Strategies
AID  - 10.3905/jwm.2015.17.4.050
DP  - 2015 Jan 31
TA  - The Journal of Wealth Management
PG  - 50--56
VI  - 17
IP  - 4
4099  - https://pm-research.com/content/17/4/50.short
4100  - https://pm-research.com/content/17/4/50.full
AB  - The author presents a scheme that will help investors and financial advisers compare adaptive strategies for maintaining a robust financial plan over a time horizon. The article describes some methods for setting reasonable and attainable financial goals and suggests a schedule of investment allocation decisions designed to meet those goals. Monte-Carlo simulation provides data regarding the potential long-term outcomes associated with an adaptive plan. With this model, a number of different metrics for investment risk can be calculated to help the investor achieve an appropriate trade-off between minimizing investment risk and maximizing the probability of meeting or exceeding a portfolio target.TOPICS: Wealth management, simulations, portfolio construction, performance measurement