A New Approach to Goals-Based Wealth Management

@article{Das2018ANA,
  title={A New Approach to Goals-Based Wealth Management},
  author={Sanjiv Ranjan Das and Daniel N. Ostrov and Anand Radhakrishnan and Deep Srivastav},
  journal={Behavioral & Experimental Finance eJournal},
  year={2018}
}
We introduce a novel framework for goals-based wealth management (GBWM), where risk is understood as the probability of investors not attaining their goals, not just the standard deviation of investors' portfolios. Our framework is based on a foundation of developments in behavioral economics and finance and is consistent with modern portfolio theory. Using a simple geometric analysis, we determine a specifi c portfolio that matches each individual investor's stated goals. Our approach requires… Expand
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