Today on the pod, a book review of Asset Dedication by Stephen Huxley and Brent Burns. Asset Dedication, is an alternative to the 60/40 model discussed in the review of Phil Huber’s book Allocators Edge. Time and valuation matter. Each dollar is invested to optimize expected return over the investment horizon for that dollar, up until it is needed. Moreover, long-term returns are relatively predictive, according to Keith Ambachtsheer. I call this combination Time and Return-Weighted Allocation, or TWRA. Risk is not short-term volatility. Risk is permanent loss of capital, and failing to achieve your return objectives. Both Asset Dedication and TWRA address this. The pod also brings in William Green's new book, Richer, Wiser Happier. You can't eat risk-adjusted returns. www.ktdpod.com Sign up for blog and email notifications.