Having a hard time understanding the section 4.7 “Issues Related to Goals-Based Asset Allocation”
Could anyone summarize the main issues?
Thanks
Hi
This is what I highlighted for myself in this section:
* “goals-based asset allocation applies best to individuals who have multiple goals, time horizons, and urgency levels”, thus it is less appropriate for individuals with single goal.
* “be cautious to ensure that there is no “hidden” goal”
* “the more complex the nature of the investment problem, the more diverse the list of investment structures, and the more one should expect a client-focused approach to offer useful benefits”
* “using goals-based wealth management must contend with a considerably higher level of business management complexity”
* “the usual regulatory requirement that all clients be treated in an equivalent manner”