Optimized Portfolios

An Optimized Portfolio Plan involves the use of modern portfolio theory to find the best combination of asset classes to fulfill a client's income or wealth transfer goals. Expected returns for desired asset classes are entered into a mean variance optimization program to determine possible combinations along an efficient frontier. After choosing possible proposed portfolios, planners can run Monte Carlo analyses to examine the likely future returns from the proposed portfolio vis-à-vis the current portfolio. In this way, advisers can determine which trust portfolios are most likely to produce the desired after tax returns over the recommended timeframe.