You are previewing The New Wealth Management: The Financial Advisor's Guide to Managing and Investing Client Assets.
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The New Wealth Management: The Financial Advisor's Guide to Managing and Investing Client Assets

Book Description

Mainstay reference guide for wealth management, newly updated for today's investment landscape

For over a decade, The New Wealth Management: The Financial Advisor's Guide to Managing and Investing Client Assets has provided financial planners with detailed, step-by-step guidance on developing an optimal asset allocation policy for their clients. And, it did so without resorting to simplistic model portfolios, such as lifecycle models or black box solutions. Today, while The New Wealth Management still provides a thorough background on investment theories, and includes many ready to use client presentations and questionnaires, the guide is newly updated to meet twenty-first century investment challenges. The book

  • Includes expert updates from Chartered Financial Analyst (CFA) Institute, in addition to the core text of 1997's first edition endorsed by investment luminaries Charles Schwab and John Bogle

  • Presents an approach that places achieving client objectives ahead of investment vehicles

  • Applicable for self-study or classroom use

  • Now, as in 1997, The New Wealth Management effectively blends investment theory and real world applications. And in today's new investment landscaped, this update to the classic reference is more important than ever.

    Table of Contents

    1. Cover
    2. Contents
    3. Title
    4. Copyright
    5. Dedication
    6. Acknowledgments
    7. Foreword
    8. Preface
    9. Chapter 1 : The Wealth Management Process
      1. The Client Relationship
      2. The Client Profile
      3. Wealth Management Investment Policy
      4. Portfolio Management, Monitoring, and Market Review
      5. Parting Comments
      6. Resources
    10. Chapter 2 : Fiduciary and Professional Standards
      1. Fiduciary Duty
      2. Professional Standards
      3. Providing Wealth Management Services
      4. Parting Comments
      5. Resources
    11. Chapter 3 : Client Goals and Constraints
      1. Goal Setting
      2. Risk Objective
      3. Constraints
      4. Evensky & Katz Cash Flow Strategy
      5. Parting Comments
      6. Resources
    12. Chapter 4 : Risk is a Four-Letter Word
      1. Risk Tolerance
      2. Behavioral Finance and Related Issues of Behavioral Psychology
      3. Heuristics and Biases
      4. Mental Math
      5. Framing
      6. Parting Comments
      7. Resources
    13. Chapter 5 : Data Gathering and Analysis
      1. Measuring Risk Tolerance
      2. Measuring Capital Needs
      3. Parting Comments
      4. Resources
    14. Chapter 6 : Client Education
      1. Mini-Educational Program
      2. The Investment Process
      3. Asset Allocation
      4. Modern Portfolio Theory
      5. Investment Risk
      6. Parting Comments
      7. Resources
    15. Chapter 7 : Mathematics of Investing
      1. Return Measures
      2. Risk Measures
      3. Covariance and Correlation
      4. Higher Moments
      5. Performance Measures—Return Relative To Risk
      6. Fixed Income Risk Measures
      7. Parting Comments
      8. Resources
    16. Chapter 8 : Investment Theory
      1. Early History
      2. Fundamentals—Graham and Dodd
      3. Modern Portfolio Theory
      4. Capital Market Theory
      5. Other Asset Pricing Models
      6. Random Walk
      7. Efficient Market Hypothesis
      8. Asset Allocation
      9. Time Diversification
      10. Chaos Theory
      11. Parting Comments
      12. Resources
    17. Chapter 9 : Asset Allocation
      1. Why Bother? Determinants of Portfolio Performance (BHB)
      2. Value of Asset Allocation Decisions (HEI)
      3. The Importance of Managing Asset Allocation—The Past Decade
      4. The Alternative To A Managed Asset Allocation Policy
      5. Asset Allocation Implementation Strategies
      6. Parting Comments
      7. Resources
    18. Chapter 10 : Portfolio Optimization
      1. Optimizer Inputs
      2. Asset Class Constraints
      3. Sensitivity Analysis
      4. Selecting An Efficient Portfolio
      5. Rebalancing
      6. Downside Risk
      7. Parting Comments
      8. Resources
    19. Chapter 11 : Taxes
      1. Tax Reduction Versus Wealth Accumulation
      2. Gains Versus Income
      3. Unsystematic Risk Versus Capital Gains Taxes
      4. Tax-Adjusted Returns and Accumulations
      5. Stocks, Bonds, and Tax-Deferred Accounts
      6. Tax Efficiency and Asset Allocation
      7. Tax-Aware Investment Decisions
      8. Variable Annuities
      9. Strategies For Deferring Gains On Low-Basis Stock
      10. Parting Comments
      11. Resources
    20. Chapter 12 : Retirement Planning
      1. Accumulation Phase
      2. Distribution Phase
      3. Parting Comments
      4. Resources
    21. Chapter 13 : Investment Policy Statement
      1. Investment Policy Statement
      2. Parting Comments
      3. Resources
    22. Chapter 14 : Portfolio Management
      1. Short-Term Asset Allocation
      2. Direct Versus Indirect Investments
      3. Strategy: Active Versus Passive
      4. Equity Analysis and Strategies
      5. Fixed Income Analysis and Strategies
      6. Alternative Investments
      7. Parting Comments
      8. Resources
    23. Chapter 15 : Performance Appraisal and Evaluation
      1. Measuring Return
      2. Composite Construction
      3. After-Tax Performance Measurement
      4. Benchmarks
      5. Risk Measures
      6. Performance Appraisal Measures
      7. Performance Attribution
      8. Parting Comments
      9. Resources
    24. Chapter 16 : Selecting Investment Managers
      1. Individual Asset Managers
      2. Pooled Investment Vehicles
      3. Mutual Fund Classifications
      4. Information Sources
      5. Screens and The Selection Process
      6. Monitoring The Manager—Evensky & Katz Policy
      7. Parting Comments
      8. Resources
    25. Chapter 17 : Philosophy, Process, and People
      1. Philosophy
      2. Process and People
      3. Parting Comments
      4. Resources
    26. About the Authors
    27. About the CFA Institute Investment Series
    28. About the CFA Program
    29. Index