RT Journal Article
SR Electronic
T1 Comparing Risks Among Adaptive Investment Planning Strategies
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 50
OP 56
DO 10.3905/jwm.2015.17.4.050
VO 17
IS 4
A1 Steven Cosares
YR 2015
UL https://pm-research.com/content/17/4/50.abstract
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