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

by Jean L. P. Brunel (Author)

Take a more active role in strategic asset allocation

Goals-Based Wealth Management 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.

The 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.

• Understand the challenges faced by the affluent and wealthy
• Examine strategic asset allocation and investment policy formulation
• Learn a model for dealing with the asset allocation process
• Learn why the structure of the typical advisory firm needs to change

High-net-worth individuals face very specific challenges. Goals-Based Wealth Management 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.

Front Jacket

If 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? Goals-Based Wealth Management 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.

As 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.

The 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.

High-net-worth individuals face very specific challenges. Goals-Based Wealth Management 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.

Back Jacket

Praise for Goals-Based Wealth Management

"When in 2002 I wrote the foreword to Jean Brunel's groundbreaking first book, Integrated Wealth Management, I noted how Jean 'was known for telling it like it is but shouldn't be... [and] inventing the way it could be.' In Goals-Based Wealth Management, Jean is once again 'ahead of the pack, ' incorporating the best of the past decade's lessons by devoting his laser-like intellect to capture new and innovative ways to manage wealth--and wealth management firms! This book will be a valuable reference for professionals for many decades to come."
--Charlotte B. Beyer, Founder, Institute for Private Investors and author, Wealth Management Unwrapped

"Already one of the deans of the private wealth field, Jean Brunel has written the definitive book on goals-based wealth management. He clearly outlines the rationale for this highly sensible and effective approach to investing and then takes great pains to show how it can actually be implemented in the real world. It is a brilliant and muchneeded piece of work which should be required reading for all true wealth advisors and, I dare say, many wealth owners themselves."
--Tom McCullough, Chairman and CEO, Northwood Family Office; Adjunct Professor, Rotman School of Management; and co-author, Family Wealth Management

"Good financial advisors are competent, conscientious, and compassionate guides. They guide clients to their goals as no robo-advisor can. Jean Brunel has been such a guide for decades. In this wonderful book, founded on behavioral portfolio theory, he helps fellow advisors do the same."
--Meir Statman, Glenn Klimek Professor of Finance, Leavey School of Business

"The uniqueness of the book is that it marries deep investment process knowledge with the experience of dealing with family clients for decades. Brunel's wisdom is particularly insightful in the role of the advisor."
--Maria Elena Lagomasino, Managing Partner and CEO, WE Family Offices

"You'd be forgiven if you thought Jean Brunel's most significant contributions to the profession were behind him, but in this tome he has drawn on his wisdom accumulated over 40 years in practice to synthesize his work and others' to develop a definitive goals-based practice management framework for those serving the wealthy. Rather than replicate and rehash technical details, he draws on unassailable principles of wealth management, such as wealth being a responsibility for both the wealth manager and the wealth owner as well as the government sharing in both returns and risk with the taxable investor, to guide the wealth manager's practice. In doing so, he humbly defines an operating framework for the practitioner."
--Stephen M. Horan, PhD, Managing Director and Co-Lead, Education, CFA Institute

"Goals-Based Wealth Management is a provocative concept and a must read for individual wealth holders and their professional service providers. Wealth owners view their wealth individually and this concept gives a platform to achieve financial and non-financial goals. I recommend Jean Brunel's latest book to creators of wealth and the beneficiaries of that wealth creation. It is a responsible way to look at financial wealth in the context of individual and family integrated goals. We have been clients of Jean for more than a decade and have benefited from his ability to truly understand the objectives of his clients. I am so glad other families and professionals will now be exposed to this proactive approach."
--Jesse Fink, Managing Member, Marshall Street Management

Author Biography

JEAN BRUNEL, CFA, 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 Journal of Wealth Management since 1998 and the author of Integrated Wealth Management: The New Direction for Portfolio Managers, 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 & Wealth Management Institute J. Richard Joyner Wealth Management Impact award in 2015.