Personal Benchmark : integrating Behavioral Finance and Investment Management

“This book is an exciting advance on how behavior research can and should influence investment decision making” - It demonstrates how advisors and investors can improve their investment experience and increase returns formerly sacrificed to emotional, rather than rational, decisions. Their approach reduces investor concerns about “the economy” by shifting their focus to “my economy” by taking a goals-based investment approach.

Personal Benchmark : integrating Behavioral Finance and Investment Management

Chuck Widger, Dr. Daniel Crosby

Wiley

2014

Abstract

In Personal Benchmark: Integrating Behavioral Finance and Investment Management, Chuck Widger and Dr. Daniel Crosby outline the ways in which a program of embedded behavioral finance, fueled by what matters most to you, can be your protection against irrational financial behavior. Along the way, you'll learn how to improve your investment experience, increase returns formerly sacrificed to misbehavior, and worry less about "The Economy" as you become increasingly focused on "My Economy."

Welcome to a new way of investing, a new paradigm for conceptualizing wealth, and a system of turning emotion from your portfolio's worst enemy into its best friend!

In this new model, risk is simply the likelihood that we will underperform our dreams. Irrationality is acting in ways that thwart our ability to reach those dreams. And the optimal portfolio is not the one that generates the highest return in abstraction, it is the one that helps us meet our goals without killing our nerves before we get there.

This book gives advisors the tools needed to effectively communicate the design and execution of the Personal Benchmark solution.

TABLE OF CONTENTS

PART 1 WHY DO WE NEED TO LOOK AT INVESTING DIFFERENTLY?

Chapter 1 Freedom in the Market and Advisor Responsibility

Chapter 2 Investor Emotions and Financial Decisions

Chapter 3 Risk, This Time It's Personal

PART 2 WHAT IS THE PERSONAL BENCHMARK APPROACH?

Chapter 4 Brinker Capital's Multi-Asset Class Investment Philosophy

Chapter 5 The Power of Buckets

Chapter 6 Selection of an Active Investment Manager

PART 3 HOW CAN WE EXECUTE A PURPOSE-DRIVEN INVESTMENT STRATEGY?

Chapter 7 Using a Goals-Based Approach

Chapter 8 Pursuing Your Personal Benchmark

Chapter 9 Providing an Easy-to-Understand Explanation

Chapter 10 Leveraging a Scalable Offering for Investors and Advisors

“This book is an exciting advance on how behavior research can and should influence investment decision making”

In Personal Benchmark, Widger and Crosby define ways financial advisors can execute a program of embedded behavioral finance that is fueled by what matters most to their clients, and can protect against irrational investor behavior. The book demonstrates how advisors and investors can improve their investment experience and increase returns formerly sacrificed to emotional, rather than rational, decisions. Their approach reduces investor concerns about “the economy” by shifting their focus to “my economy” by taking a goals-based investment approach.Personal Benchmark: Integrating Behavioral Finance and Investment Management, New Book Published by Wiley, Helps Advisors and Investors Put Behavioral Finance Theory Into Practice

Investment management pioneer Chuck Widger and his co-author, psychologist and behavioral finance expert Dr. Daniel Crosby, aim to change the investment advisory conversation between advisors and clients to better align with investor goals

This book is an ode to a commonsense realization—investing is a social science rather than a physical one. Combining tried and true investment techniques with cutting-edge research on behavioral finance provides a wonderful new approach for those charged with managing other people's money.

Citation

Chuck Widger, Dr. Daniel Crosby, Personal Benchmark : integrating Behavioral Finance and Investment Management,Wiley,2014

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