This thesis presents a comparative study investigating the performance of two investmentstrategies, focusing on portfolio value and consumption, by applying control theory and realworlddata from Swedish financial markets. Specifically, we compare the Merton OptimalInvestment-Consumption Model and a simple realistic investment strategy. The portfolioconsists of risky assets (Volvo, Telia, Nordea, and Electrolux stocks) and a risk-free assetrepresented by a bank account with a fixed annual interest rate.The Merton Optimal Investment-Consumption Model provides a framework for dynamicoptimization, balancing the trade-off between investment and consumption. In contrast, thesimple realistic strategy involves an equal allocation of initialwealth between risky and risk-freeassets, with periodic rebalancing based on a simple rule-based strategy. The analysis examinesterminal wealth, consumption patterns, and portfolio performance under constraints. Byutilizing real-world data, this study highlights how factors such as asset returns, volatility, andinterest rates influence portfolio outcomes and underscores the trade-offs between consumptionand investment decisions.While the thesis provides a comprehensive exploration of portfolio dynamics, future researchcould expand the scope by incorporating stochastic volatility models, such as the Hestonmodel, for advanced portfolio optimization. This study offers practical insights for investorsby comparing the effectiveness of advanced optimization techniques with simpler rule-basedstrategies that include re-balancing.