Using the Financial Plan to Frame Investment Decisions Stephen Huxley and Brent Burns, Asset Dedication
Traditional investment strategies and benchmarks only have a loose relationship to the goals laid out in the financial plan. Mean-variance optimization and other approaches developed for institutions, not individuals, are not best suited to the financial planning process. Learn how the Critical Path approach ties the financial plan to the portfolio and turns the financial plan into the benchmark that drives decision-making. In this webcast, you will hear:
· How to use the financial plan to drive portfolio construction in a more “functional” way
· How the latest research on goals-based investing helps strengthen some of the soft spots of Modern Portfolio Theory
· How time plays a unique role in the investment process for managing risks at different horizons