Jean L. P. Brunel

Goals-Based Wealth Management (eBook, ePUB)

An Integrated and Practical Approach to Changing the Structure of Wealth Advisory Practices

• Format: ePub

Produktbeschreibung

Take a more active role in strategic asset allocation Goals-Based Wealth Management is a manual for protecting and growing client wealth in a way that changes both the services and profitability of the firm. Written by a 35-year veteran of international wealth education and analysis, this informative guide explains a new approach to wealth management that allows individuals to take on a more active role in the allocation of their assets. Coverage includes a detailed examination of the goals-based approach, including what works and what needs to be revisited, and a clear, understandable model that allows advisors to help individuals to navigate complex processes. The companion website offers ancillary readings, practice management checklists, and assessments that help readers secure a deep understanding of the key ideas that make goals-based wealth management work. The goals-based wealth management approach was pioneered in 2002, but has seen a slow evolution and only modest refinements largely due to a lack of wide-scale adoption. This book takes the first steps toward finalizing the approach, by delineating the effective and ineffective aspects of traditional approaches, and proposing changes that could bring better value to practitioners and their clients. * Understand the challenges faced by the affluent and wealthy * Examine strategic asset allocation and investment policy formulation * Learn a model for dealing with the asset allocation process * Learn why the structure of the typical advisory firm needs to change High-net-worth individuals face very specific challenges. Goals-Based Wealth Management focuses on how those challenges can be overcome while adhering to their goals, incorporating constraints, and working within the individual's frame of reference to drive strategic allocation of their financial assets.

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 272
• Erscheinungstermin: 20. Februar 2015
• Englisch
• ISBN-13: 9781118995938
• Artikelnr.: 42372183

Autorenporträt

JEAN BRUNEL, CFA, is the managing principal of Brunel Associates, a firm that serves ultra-high-net- worth individuals and their advisors. Formerly he was the chief investment officer of J.P. Morgan's global private bank and a director and member of the Executive Committee of J.P. Morgan Investment Management, Inc. He has been the editor of the Journal of Wealth Management since 1998 and the author of Integrated Wealth Management: The New Direction for Portfolio Managers, as well as many peer-reviewed articles. He received the C. Stewart Shepard award from the CFA Institute in 2011, the Multi-Family Office CIO of the year award from the Family Office Review in 2012 and the inaugural Investments & Wealth Management Institute J. Richard Joyner Wealth Management Impact award in 2015.

Inhaltsangabe

Acknowledgments xiii Preface xv Introduction 1 PART ONE The Integrated
Wealth Management Challenge CHAPTER 1 Many Interrelated Disciplines 11
Multiple Sources of Capital 11 Expanding on the Corporate Analogy 13
Multiple Interactions 16 Educating Future Generations and Wealth Transfers
18 The Make or Buy Decision 20 The Creation of a Wisdom Council 21 Summary
and Conclusions 22 CHAPTER 2 An Example of a Crucial Interaction:
Tax-Efficiency 23 The Tax Bite and Its Impact on Compound Returns 24 A New
Analysis of Capital Losses 25 An Expanded Definition of Active Management
26 Applicability to Both Asset and Security Decisions 27 Abandoning the
Murky Middle: The Barbell Portfolio 29 The Potential Role and Limits of
Derivative Strategies 31 Summary and Conclusions 33 CHAPTER 3 The Need for
a Financial Interpreter 35 What Makes Markets Work? 36 Asset Classes,
Sub-Asset Classes, and Strategies 38 Developing Reasonable Expectations 39
Performance Analysis and Reporting 42 Summary and Conclusions 45 PART TWO
Investment Policy Formulation: Goals-Based Allocation CHAPTER 4 A Brief
Journey through Institutional Theory 49 Five Important Features of the
Typical Institutional Investment Organization 50 A Quick Detour via Asset
Liability Management 55 Summary and Conclusions 56 CHAPTER 5 Mapping
Institutional and Individual Issues 57 The First Crucial Difference 59 A
Second Important Difference 61 A Different Way of Defining Risk 62 The Law
of Large Numbers 63 Implications 64 Summary and Conclusions 65 CHAPTER 6
Goals-Based Strategic Asset Allocation 67 The Basic Principle 67 Initial
Theoretical Objections 70 An Academic Imprimatur 71 A Few Simple Principles
72 It Changes Everything 74 An Interesting Implication 76 Summary and
Conclusions 77 PART THREE Goals-Based Wealth Management Implementation
CHAPTER 7 Dealing with the Implications of the Process 81 Covering a Set
Number of Bases 81 Mapping Asset Classes and Strategies to Goals 85
Understanding Limitations 87 Dealing with Client Objections 88 A
Three-Phase Process 90 Summary and Conclusions 91 CHAPTER 8 Creating Goals
Modules 93 Developing General Capital Market Expectations 93 Describing
Sufficiently Generic and Specific Goals 95 Creating Constraints Appropriate
to Each Goal 98 Optimizing the Composition of Each Module 103 A Possible
Example 107 Summary and Conclusions 109 CHAPTER 9 Working to Understand
Client Goals and Goal Allocations 111 Identifying Crucial Initial Client
Constraints 111 Determining Whether Any Constraint Is a Show-Stopper 114
Time Horizon and Required Probability of Success 115 Settling on the
Appropriate Module 120 Sizing Assets Needed to Meet Each Goal 122 A
Possible Example 123 Summary and Conclusions 127 CHAPTER 10 Finalizing a
Goals-Based Policy Allocation 129 Two Possible Approaches 129 Working from
Assets and Modules to a Whole 131 Description of Deviation Ranges 132 Our
Original Example, Modified and Completed 136 Summary and Conclusions 145
CHAPTER 11 Managing the Portfolio Tactically 149 The Complexity in the
Absence of a Systematic Tool 150 Introducing the Concept of a Tilt Model
153 Five Possible Variations on the Same Theme 156 A Major Pitfall 159 A
Possible Example 161 Summary and Conclusions 169 CHAPTER 12 Portfolio
Reporting 173 The Current Challenge 173 A Simple Analogy 178 Adding Taxes
Makes Things Even More Complex 180 Summary and Conclusions 181 PART FOUR
Managing an Advisory Practice CHAPTER 13 The Currently Typical Firm
Structure 187 Many Chiefs and Few Indians 188 The Root of the Challenge 189
Contrary Examples in the Legal and Medical Fields 191 A Simple Illustration
193 Summary and Conclusions 195 CHAPTER 14 Teams Versus Individuals 197 Too
Many Disciplines for Anyone to Master All of Them Fully 197 Specialists,
When Left Alone, Lead to Silos 199 The Crucial Role of the Team Coach 200
Only One Individual Can Play That Role 203 Summary and Conclusions 204
CHAPTER 15 An Alternative Structure 205 The Primordial Role of the Advisor
205 The Missions the Advisor Should Not Accept 207 The Difference Between
Must and Does Not Need to Be Tailored 209 Imagining a Different Firm and
Process Architecture 212 The Kind of Leverage That Can Be Built 217 Dealing
with Objections 218 A Difficult Decision 222 Summary and Conclusions 225
Conclusion 227 About the Companion Website 233 About the Author 235 Index
237