What is the difference between goals-based investing and BPT? Seems both construct portfolios in layers. Is the only difference that for Goals-based they mention 3 specific buckets: Personal, market and aspirational risk bucket?
This annoyed me a bit on first pass. Behavioral said it is a bias to bucket wealth or goals = assume it is bad. Private refers to goal-based investing buckets as a tactic.
I don’t think BPT is commenting on how to invest, just on psychology. ALM is just a form of bucketing, after all.
I think you can link the two – goal-based investing as a solution to mental accounting bias.