Wealth Management in the New Economy

A practical guide to managing wealth in modern times

Wealth Management in the New Economy addresses a wide array of wealth management topics and established financial theories. Author Norbert Mindel has successfully advised his clients for more than three decades in the business. Now, with this new book, he shares the wisdom he has acquired and offers valuable insights into successful wealth management in an economy that has changed dramatically over the past year. Along the way, Mindel explores the essential aspects of this discipline, including the keys to wealth creation, properly managing risk, asset protection, planning for a prosperous retirement, and many other issues that you need to understand in order to survive and flourish in today's economy. While market forces are far too complex to be fully predicted or exploited, it is still possible to protect and grow your-or your client's-wealth. Wealth Management in the New Economy will show you how to achieve this important goal.

• Reveals how you can reduce market risk by using proven theories of portfolio management
• Written by accomplished financial advisor, attorney, and CPA Norbert Mindel
• Lays out strategies wealth managers and investors both can use to protect and grow wealth in the new economy

For practical financial guidance you can count on, look no further than Wealth Management in the New Economy.

Preface vii

Acknowledgments xiii

Introduction 1

Part I Evolution of a Wealth Manager: My History, World, Experience, Clients, and Company 11

Chapter 1 Starting Out 13

Chapter 2 A Decade of Active Management 31

Chapter 3 Working with Individual Investors 53

Part II Investments and Managing Risk 75

Chapter 4 The Futility of Active Management 77

Chapter 5 The Academic Background 91

Chapter 6 Implementing the Strategy 125

Part III Managing Your Retirement 163

Chapter 7 Planning for Your Retirement and Creating Income for Life 165

Chapter 8 Using Annuities as an Income Tool 171

Chapter 9 Using IRAs and Company Retirement Plans 191

Part IV Wealth Protection: Facing a World of Risk 213

Chapter 10 Best Uses for Life Insurance 215

Chapter 11 The Importance of Long-Term-Care Insurance 241

Part V Transferring Wealth and the Next Generation 251

Chapter 12 Transferring Wealth with Estate Planning 253

Chapter 13 Transferring Wealth within the Family: Inheritance Issues for Family Businesses 281

Epilogue 293

Notes 295

About the Authors 303

Index 307

NORBERT (NORM) MINDEL has been an attorney, asset manager and adviser to individuals and businesses for over twenty-five years. He is the co-founder of Forum Financial Management, LLC, and Terra Securities, which was later sold to GE and then became Genworth Financial through an IPO. Mindel is a noted national speaker on many topics, including wealth and asset management for individuals and practice management for financial advisers. His many speaking engagements have included being a frequent guest of CNBC's Power Lunch and CNNfn's Your Money. He has been quoted in the ChicagoTribune, Los Angeles Times, SmartMoney, the New York Times, and Crain's Chicago Business, as well as many other industry publications.

SARAH E. SLEIGHT is a financial writer who has spent her career working in the financial services industry in a wide variety of positions, including marketing, product management, and institutional sales on a bank trading floor. She is coauthor of Reinventing the Retail Bank, ghostwrote a book on a specialized securities strategy, and edited a number of financial books for Probus Publishing. Sleight has written articles for numerous publications in the financial services world.

Wealth Management in the New Economy addresses a wide array of important issues in this dynamic field. Author Norbert Mindel—an accomplished financial adviser, attorney, and CPA—has successfully guided his clients for more than three decades in the business. Now, with this new book, he shares his story and the wisdom he has acquired, and offers valuable insights into managing wealth in an economy that has changed dramatically over the past few years.

Along the way, Mindel explores the essential aspectsof this discipline, including the keys to creating and managing wealth, the importance of accepting and managing risk, planning for a long and prosperous retirement, understanding the role of insurance, and much more. His own story, along with the stories of his clients, bring this book to life and make it both interesting and compelling reading.

While market forces are far too complex to be fully predicted or exploited, it's still possible to protect and grow your—or your client's—wealth. Wealth Management in the New Economy will show you how to achieve this important goal. Divided into five comprehensive parts, this practical guide:

• Outlines a proven investment philosophy that both wealth managers and investors can use to protect and grow wealth in the new economy
• Reveals the most efficient way to turn wealth into a stream of income to last the rest of your life—no matter when you retire or how long you live
• Offers ample examples of the myths, errors, illusions, and delusions that can trip up investors, advisers, and money managers
• Addresses how to organize an entire estate so that you can enjoy your assets during life, but pass them on as you wish after death
• And much more

For practical financial guidance you can count on, look no further than Wealth Management in the New Economy. With it, you'll discover how to manage and protect your money for the rest of your life.