Goals-Based Wealth Management: An Integrated and Practical Approach to Changing the Structure of Wealth Advisory Practices

Table of contents

1. Title Page
2. Copyright
3. Dedication
4. Acknowledgments
5. Preface
6. Introduction
7. Part One: The Integrated Wealth Management Challenge
   1. Chapter 1: Many Interrelated Disciplines
      1. Multiple Sources of Capital
      2. Expanding on the Corporate Analogy
      3. Multiple Interactions
      4. Educating Future Generations and Wealth Transfers
      5. The Make or Buy Decision
      6. The Creation of a Wisdom Council
      7. Summary and Conclusions
   2. Chapter 2: An Example of a Crucial Interaction: Tax-Efficiency
      1. The Tax Bite and Its Impact on Compound Returns
      2. A New Analysis of Capital Losses
      3. An Expanded Definition of Active Management
      4. Applicability to Both Asset and Security Decisions
      5. Abandoning the Murky Middle: The Barbell Portfolio
      6. The Potential Role and Limits of Derivative Strategies
      7. Summary and Conclusions
   3. Chapter 3: The Need for a Financial Interpreter: (Given the Complexity of the Investment Process)
      1. What Makes Markets Work?
      2. Asset Classes, Sub-Asset Classes, and Strategies
      3. Developing Reasonable Expectations
      4. Performance Analysis and Reporting
      5. Summary and Conclusions
8. Part Two: Investment Policy Formulation: Goals-Based Allocation
   1. Chapter 4: A Brief Journey through Institutional Theory
      1. Five Important Features of the Typical Institutional Investment Organization
      2. A Quick Detour via Asset Liability Management
      3. Summary and Conclusions
   2. Chapter 5: Mapping Institutional and Individual Issues
      1. The First Crucial Difference
      2. A Second Important Difference
      3. A Different Way of Defining Risk
      4. The Law of Large Numbers
      5. Implications
      6. Summary and Conclusions
   3. Chapter 6: Goals-Based Strategic Asset Allocation
      1. The Basic Principle
      2. Initial Theoretical Objections
      3. An Academic Imprimatur
      4. A Few Simple Principles
      5. It Changes Everything
      6. An Interesting Implication
      7. Summary and Conclusions
9. Part Three: Goals-Based Wealth Management Implementation
   1. Chapter 7: Dealing with the Implications of the Process
      1. Covering a Set Number of Bases
      2. Mapping Asset Classes and Strategies to Goals
      3. Understanding Limitations
      4. Dealing with Client Objections
      5. A Three-Phase Process
      6. Summary and Conclusions
   2. Chapter 8: Creating Goals Modules
      1. Developing General Capital Market Expectations
      2. Describing Sufficiently Generic and Specific Goals
      3. Creating Constraints Appropriate to Each Goal
      4. Optimizing the Composition of Each Module
      5. A Possible Example
      6. Summary and Conclusions
   3. Chapter 9: Working to Understand Client Goals and Goal Allocations
      1. Identifying Crucial Initial Client Constraints
      2. Determining Whether Any Constraint Is a Show-Stopper
      3. Time Horizon and Required Probability of Success
      4. Settling on the Appropriate Module
      5. Sizing Assets Needed to Meet Each Goal
      6. A Possible Example
      7. Summary and Conclusions
   4. Chapter 10: Finalizing a Goals-Based Policy Allocation
      1. Two Possible Approaches
      2. Working from Assets and Modules to a Whole
      3. Description of Deviation Ranges
      4. Our Original Example, Modified and Completed
      5. Summary and Conclusions
   5. Chapter 11: Managing the Portfolio Tactically
      1. The Complexity in the Absence of a Systematic Tool
      2. Introducing the Concept of a Tilt Model
      3. Five Possible Variations on the Same Theme
      4. A Major Pitfall
      5. A Possible Example
      6. Summary and Conclusions
   6. Chapter 12: Portfolio Reporting
      1. The Current Challenge
      2. A Simple Analogy
      3. Adding Taxes Makes Things Even More Complex
      4. Summary and Conclusions
10. Part Four: Managing an Advisory Practice
    1. Chapter 13: The Currently Typical Firm Structure
       1. Many Chiefs and Few Indians
       2. The Root of the Challenge
       3. Contrary Examples in the Legal and Medical Fields
       4. A Simple Illustration
       5. Summary and Conclusions
    2. Chapter 14: Teams Versus Individuals
       1. Too Many Disciplines for Anyone to Master All of Them Fully
       2. Specialists, When Left Alone, Lead to Silos
       3. The Crucial Role of the Team Coach
       4. Only One Individual Can Play That Role
       5. Summary and Conclusions
    3. Chapter 15: An Alternative Structure
       1. The Primordial Role of the Advisor
       2. The Missions the Advisor Should Not Accept
       3. The Difference Between Must and Does Not Need to Be Tailored
       4. Imagining a Different Firm and Process Architecture
       5. The Kind of Leverage That Can Be Built
       6. Dealing with Objections
       7. A Difficult Decision
       8. Summary and Conclusions
11. Conclusion
12. About the Companion Website
13. About the Author
14. Index
15. End User License Agreement