{"product_id":"goals-based-wealth-management-isbn-9781118995907","title":"Goals-Based Wealth Management","description":"\u003cb\u003eTake a more active role in strategic asset allocation\u003c\/b\u003e \u003cp\u003e\u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eThe 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.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstand the challenges faced by the affluent and wealthy\u003c\/li\u003e \u003cli\u003eExamine strategic asset allocation and investment policy formulation\u003c\/li\u003e \u003cli\u003eLearn a model for dealing with the asset allocation process\u003c\/li\u003e \u003cli\u003eLearn why the structure of the typical advisory firm needs to change\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eHigh-net-worth individuals face very specific challenges. \u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One The Integrated Wealth Management Challenge\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Many Interrelated Disciplines 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMultiple Sources of Capital 11\u003c\/p\u003e \u003cp\u003eExpanding on the Corporate Analogy 13\u003c\/p\u003e \u003cp\u003eMultiple Interactions 16\u003c\/p\u003e \u003cp\u003eEducating Future Generations and Wealth Transfers 18\u003c\/p\u003e \u003cp\u003eThe Make or Buy Decision 20\u003c\/p\u003e \u003cp\u003eThe Creation of a Wisdom Council 21\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 An Example of a Crucial Interaction: Tax-Efficiency 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Tax Bite and Its Impact on Compound Returns 24\u003c\/p\u003e \u003cp\u003eA New Analysis of Capital Losses 25\u003c\/p\u003e \u003cp\u003eAn Expanded Definition of Active Management 26\u003c\/p\u003e \u003cp\u003eApplicability to Both Asset and Security Decisions 27\u003c\/p\u003e \u003cp\u003eAbandoning the Murky Middle: The Barbell Portfolio 29\u003c\/p\u003e \u003cp\u003eThe Potential Role and Limits of Derivative Strategies 31\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Need for a Financial Interpreter 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Makes Markets Work? 36\u003c\/p\u003e \u003cp\u003eAsset Classes, Sub-Asset Classes, and Strategies 38\u003c\/p\u003e \u003cp\u003eDeveloping Reasonable Expectations 39\u003c\/p\u003e \u003cp\u003ePerformance Analysis and Reporting 42\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Investment Policy Formulation: Goals-Based Allocation\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 A Brief Journey through Institutional Theory 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFive Important Features of the Typical Institutional Investment Organization 50\u003c\/p\u003e \u003cp\u003eA Quick Detour via Asset Liability Management 55\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Mapping Institutional and Individual Issues 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe First Crucial Difference 59\u003c\/p\u003e \u003cp\u003eA Second Important Difference 61\u003c\/p\u003e \u003cp\u003eA Different Way of Defining Risk 62\u003c\/p\u003e \u003cp\u003eThe Law of Large Numbers 63\u003c\/p\u003e \u003cp\u003eImplications 64\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Goals-Based Strategic Asset Allocation 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Basic Principle 67\u003c\/p\u003e \u003cp\u003eInitial Theoretical Objections 70\u003c\/p\u003e \u003cp\u003eAn Academic Imprimatur 71\u003c\/p\u003e \u003cp\u003eA Few Simple Principles 72\u003c\/p\u003e \u003cp\u003eIt Changes Everything 74\u003c\/p\u003e \u003cp\u003eAn Interesting Implication 76\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Goals-Based Wealth Management Implementation\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Dealing with the Implications of the Process 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCovering a Set Number of Bases 81\u003c\/p\u003e \u003cp\u003eMapping Asset Classes and Strategies to Goals 85\u003c\/p\u003e \u003cp\u003eUnderstanding Limitations 87\u003c\/p\u003e \u003cp\u003eDealing with Client Objections 88\u003c\/p\u003e \u003cp\u003eA Three-Phase Process 90\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Creating Goals Modules 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDeveloping General Capital Market Expectations 93\u003c\/p\u003e \u003cp\u003eDescribing Sufficiently Generic and Specific Goals 95\u003c\/p\u003e \u003cp\u003eCreating Constraints Appropriate to Each Goal 98\u003c\/p\u003e \u003cp\u003eOptimizing the Composition of Each Module 103\u003c\/p\u003e \u003cp\u003eA Possible Example 107\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Working to Understand Client Goals and Goal Allocations 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIdentifying Crucial Initial Client Constraints 111\u003c\/p\u003e \u003cp\u003eDetermining Whether Any Constraint Is a Show-Stopper 114\u003c\/p\u003e \u003cp\u003eTime Horizon and Required Probability of Success 115\u003c\/p\u003e \u003cp\u003eSettling on the Appropriate Module 120\u003c\/p\u003e \u003cp\u003eSizing Assets Needed to Meet Each Goal 122\u003c\/p\u003e \u003cp\u003eA Possible Example 123\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Finalizing a Goals-Based Policy Allocation 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTwo Possible Approaches 129\u003c\/p\u003e \u003cp\u003eWorking from Assets and Modules to a Whole 131\u003c\/p\u003e \u003cp\u003eDescription of Deviation Ranges 132\u003c\/p\u003e \u003cp\u003eOur Original Example, Modified and Completed 136\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 145\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Managing the Portfolio Tactically 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Complexity in the Absence of a Systematic Tool 150\u003c\/p\u003e \u003cp\u003eIntroducing the Concept of a Tilt Model 153\u003c\/p\u003e \u003cp\u003eFive Possible Variations on the Same Theme 156\u003c\/p\u003e \u003cp\u003eA Major Pitfall 159\u003c\/p\u003e \u003cp\u003eA Possible Example 161\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 169\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Portfolio Reporting 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Current Challenge 173\u003c\/p\u003e \u003cp\u003eA Simple Analogy 178\u003c\/p\u003e \u003cp\u003eAdding Taxes Makes Things Even More Complex 180\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 181\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four Managing an Advisory Practice\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 The Currently Typical Firm Structure 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMany Chiefs and Few Indians 188\u003c\/p\u003e \u003cp\u003eThe Root of the Challenge 189\u003c\/p\u003e \u003cp\u003eContrary Examples in the Legal and Medical Fields 191\u003c\/p\u003e \u003cp\u003eA Simple Illustration 193\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Teams Versus Individuals 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eToo Many Disciplines for Anyone to Master All of Them Fully 197\u003c\/p\u003e \u003cp\u003eSpecialists, When Left Alone, Lead to Silos 199\u003c\/p\u003e \u003cp\u003eThe Crucial Role of the Team Coach 200\u003c\/p\u003e \u003cp\u003eOnly One Individual Can Play That Role 203\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 204\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 An Alternative Structure 205\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Primordial Role of the Advisor 205\u003c\/p\u003e \u003cp\u003eThe Missions the Advisor Should Not Accept 207\u003c\/p\u003e \u003cp\u003eThe Difference Between Must and Does Not Need to Be Tailored 209\u003c\/p\u003e \u003cp\u003eImagining a Different Firm and Process Architecture 212\u003c\/p\u003e \u003cp\u003eThe Kind of Leverage That Can Be Built 217\u003c\/p\u003e \u003cp\u003eDealing with Objections 218\u003c\/p\u003e \u003cp\u003eA Difficult Decision 222\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 225\u003c\/p\u003e \u003cp\u003eConclusion 227\u003c\/p\u003e \u003cp\u003eAbout the Companion Website 233\u003c\/p\u003e \u003cp\u003eAbout the Author 235\u003c\/p\u003e \u003cp\u003eIndex 237\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eJEAN BRUNEL, CFA,\u003c\/b\u003e 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 \u003ci\u003eJournal of Wealth Management\u003c\/i\u003e since 1998 and the author of \u003ci\u003eIntegrated Wealth Management: The New Direction for Portfolio Managers\u003c\/i\u003e, 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 \u0026amp; Wealth Management Institute J. Richard Joyner Wealth Management Impact award in 2015.    \u003c\/p\u003e\u003cp\u003eIf individual investors do not have a target asset or strategy allocation that is designed to meet their goals over time, what are the odds they will, in fact, meet them? \u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e offers a hands-on guide for protecting and growing client wealth in a way that transforms both the services and profitability of financial firms. Written by Jean Brunel—a noted veteran of international wealth education and analysis—this informative resource outlines an innovative approach to wealth management that gives individuals the power to take a more active role in the allocation of their assets.  \u003c\/p\u003e\u003cp\u003eAs the author explains, financial institutions and advisors need to help individuals clearly understand the relationship between their wealth and what it does for them. This important resource contains a detailed examination of the current goals-based approach to wealth management, and reveals what works and what needs to be revisited. Brunel then suggests a clear, understandable framework that allows the advisor\/investor relationship to prosper and develop. This approach contains the necessary feedback loops so that individuals can avoid the most common investment pitfalls. Finally, the author suggests much-needed changes in the way the financial industry structures itself so that clients can be effectively served while other stakeholders can earn the rewards they deserve.  \u003c\/p\u003e\u003cp\u003eThe companion website includes readings that help secure a deep understanding of the key ideas and a spreadsheet with models to experience the goals-based asset allocation process.   \u003c\/p\u003e\u003cp\u003eHigh-net-worth individuals face very specific challenges. \u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e focuses on how those challenges can be overcome while adhering to the individual's goals, incorporating constraints, and working within the investor's frame of reference to drive strategic allocation of their financial assets.   \u003c\/p\u003e\u003cp\u003eIf individual investors do not have a target asset or strategy allocation that is designed to meet their goals over time, what are the odds they will, in fact, meet them? \u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e offers a hands-on guide for protecting and growing client wealth in a way that transforms both the services and profitability of financial firms. Written by Jean Brunel—a noted veteran of international wealth education and analysis—this informative resource outlines an innovative approach to wealth management that gives individuals the power to take a more active role in the allocation of their assets. \u003c\/p\u003e\u003cp\u003eAs the author explains, financial institutions and advisors need to help individuals clearly understand the relationship between their wealth and what it does for them. This important resource contains a detailed examination of the current goals-based approach to wealth management, and reveals what works and what needs to be revisited. Brunel then suggests a clear, understandable framework that allows the advisor\/investor relationship to prosper and develop. This approach contains the necessary feedback loops so that individuals can avoid the most common investment pitfalls. Finally, the author suggests much-needed changes in the way the financial industry structures itself so that clients can be effectively served while other stakeholders can earn the rewards they deserve. \u003c\/p\u003e\u003cp\u003eThe companion website includes readings that help secure a deep understanding of the key ideas and a spreadsheet with models to experience the goals-based asset allocation process. \u003c\/p\u003e\u003cp\u003eHigh-net-worth individuals face very specific challenges. \u003ci\u003eGoals-Based Wealth Management\u003c\/i\u003e focuses on how those challenges can be overcome while adhering to the individual's goals, incorporating constraints, and working within the investor's frame of reference to drive strategic allocation of their financial assets.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989301706981,"sku":"NP9781118995907","price":60.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118995907.jpg?v=1761783581","url":"https:\/\/k12savings.com\/products\/goals-based-wealth-management-isbn-9781118995907","provider":"K12savings","version":"1.0","type":"link"}