The Safety-first, Goals-based Approach to Financial Planning
Little of what is taught in traditional investment textbooks is of value in personal financial planning. Risk is not standard deviation; it is the probability and consequences of not meeting one’s goals. That real-world perspective animates a new book by Zvi Bodie and Rachelle Taqqu that implores advisors and their clients to lock in the funding of their essential expenses before worrying about their discretionary goals.
Pfau, Wade, "The Safety-first, Goals-based Approach to Financial Planning" (2012). Faculty Publications. 172.