Archive | Portfolio Theory

The Retirement Income Showdown between Safety First and Probability Planning

In Dr. Wade Pfau’s February 2017 article in the Journal of Financial Planning titled “Retirement Income Showdown: Risk Pooling vs. Risk Premium,” he references Modern Retirement Theory as the example of the safety-first philosophy of retirement income planning.  This research concluded that the safety-first approach to retirement income planning supports spending goals and preserves assets for contingencies […]

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MRT appears in Forbes article: “39 Modern Retirement Income Planning Techniques”

Read Now: 39 Modern Retirement Income Planning Techniques  Source:

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MPT or MRT? Contrasting retirement income models

Originally post: BY ED MCCARTHY, CFP, RICP The “safety-first” approach continues to draw attention as a retirement-income planning model and as an alternative to modern portfolio theory (MPT). Modern retirement theory (MRT) is an example of safety-first strategy. The concept was first described in a December 2010 Journal of Financial Planning article by Jason K. Branning, CFP […]

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The Yin and Yang of retirement income philosophies

A new paper released by Challenger in Australia, The Yin and Yang of retirement income philosophies, was written by Dr. Wade Pfau and Jeremy Cooper. Modern Retirement Theory principles are summarized nicely in this piece. Challenger – The Yin and Yang Source:

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2 Schools of Thought on Retirement Income

2 Schools of Thought on Retirement Income  Source: Originally Posted April 2014   by Wade D. Pfau, Ph.D., CFA Wade D. Pfau, Ph.D., CFA, is a professor of retirement income at The American College and the 2011 recipient of the Journal’s Montgomery-Warschauer Award. He hosts the Retirement Researcher blog at (   Dueling paradigms and contrary views […]

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MarketWatch Article mentions Modern Retirement Theory

On January 31, 2013, MarketWatch Journalist, Robert Powell’s article, Retirees and stocks: Sell now or hold on? includes citations from MRT’s Jason Branning.

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Has “Portfolio Selection” been mis-applied?

Harry Markowitz’s paper “Portfolio Selection” published in the 1952 Journal of Finance and subsequent works that have built on these ideas by Markowitz and others, has had a profound effect on the investment philosophy of advisors, foundations, endowments and individuals.  The seed of Portfolio Theory set forth in 1952 has indeed become a full grown tree at this […]

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Grow Assets or Maximize Utilization?

Retirement is the ultimate consumption phase of life rather than an accumulation phase.  The dilemma perceived through the Modern Portfolio view is that the retirement portfolio must continue to grow. MRT believes that retirement is mostly about maximizing the utilization of accumulated assets in ways that do not jeopardize the main goal of retirement, which is to […]

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