Bond Ladders Individual Retirement Planning Investing Liability-driven Investing Portfolio Theory Retirement Decision Making Retirement Income

Cracking Modern Portfolio Theory’s Enigma Code with Dedicated Portfolios for Individual Retirees

In investing, modern portfolio theory often appears to investors like an encryption machine. Most portfolio managers use modern portfolio theory to build their models, yet assumptions made by each adviser lead to widely varied models about how successful investing portfolios should be constructed. Over 70 years after Harold Markowitz’s Nobel prize-winning Portfolio Selection, there remains a plethora of interpretations by Wall Street and Main Street firms of modern portfolio theory. These interpretations range from a simplistic 2 Funds for Life approach to David Swenson’s famed Yale Model.

So, which interpretation is the right one for retirees?

By Jason Branning

Jason K. Branning, CFP®, RICP® is co-founder of Modern Retirement Theory.