Personal Financial Planning and the Allocation of Disposable Wealth

Authors

  • Amy v. Puelz Department of Management Information Systems and Decision Sciences, and Department of Finance, Insurance, and Real Estate, Fogelman College of Business and Economics, Memphis State University, Memphis, TN 38 152.
  • Robert Puelz Department of Management Information Systems and Decision Sciences, and Department of Finance, Insurance, and Real Estate, Fogelman College of Business and Economics, Memphis State University, Memphis, TN 38 152.

DOI:

https://doi.org/10.1016/1057-0810(91)90026-U

Abstract

In the process ofpersonalfinancial planning individuals are confronted with a time dependent wealth allocation problem. Oftentimes the solution involves selectingjnancial products based on objective criteria, for example, product cost and expected return. While objective criteria are important to the selection process, an individual’s subjective valuation of all criteria, objective and subjective, relevant to the decision plays the crucial role. A goal programming model parameterized by the analytical hierarchy process is presented to determine the allocation of an individual 5 disposable wealth to present and future consumption bundles and investable assets, conditional on the preference ordering of the individual.

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Published

1991-12-30

How to Cite

Puelz, A. v., & Puelz, R. (1991). Personal Financial Planning and the Allocation of Disposable Wealth. Financial Services Review: The Journal of Individual Financial Management, 1(2), 87–99. https://doi.org/10.1016/1057-0810(91)90026-U

Issue

Vol. 1 No. 2 (1991): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1991 JAI Press Inc.

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