This book is not about making money. It is about helping clients accomplish goals. Making money is how they accomplish the goal; it is not the goal itself. It is also not about how to time the market or pick winners in the stock market. As the book cover suggests, it is a framework for constructing portfolios based on other people's theories that we tested at the Pension Research Institute
. The focal point of the construction process is the Desired Target Return™ (DTR™), 1
which links the cash inflows (assets) to the cash outflows (liabilities). The basic framework is to maximize the potential to exceed the DTR subject to the risk of falling below the DTR.