DIY Financial Advisor
A Simple Solution to Build and Protect Your Wealth
Gebonden Engels 2015 9781119071501Samenvatting
DIY Financial Advisor: A Simple Solution to Build and Protect Your Wealth
DIY Financial Advisor is a synopsis of our research findings developed while serving as a consultant and asset manager for family offices. By way of background, a family office is a company, or group of people, who manage the wealth a family has gained over generations. The term ′family office′ has an element of cachet, and even mystique, because it is usually associated with the mega–wealthy. However, practically speaking, virtually any family that manages its investments independent of the size of the investment pool could be considered a family office. The difference is mainly semantic.
DIY Financial Advisor outlines a step–by–step process through which investors can take control of their hard–earned wealth and manage their own family office. Our research indicates that what matters in investing are minimizing psychology traps and managing fees and taxes. These simple concepts apply to all families, not just the ultra–wealthy.
But can or should we be managing our own wealth?
Our natural inclination is to succumb to the challenge of portfolio management and let an ′expert′ deal with the problem. For a variety of reasons we discuss in this book, we should resist the gut reaction to hire experts. We suggest that investors maintain direct control, or at least a thorough understanding, of how their hard–earned wealth is managed. Our book is meant to be an educational journey that slowly builds confidence in one′s own ability to manage a portfolio. We end our book with a potential solution that could be applicable to a wide–variety of investors, from the ultra–high net worth to middle class individuals, all of whom are focused on similar goals of preserving and growing their capital over time.
DIY Financial Advisor is a unique resource. This book is the only comprehensive guide to implementing simple quantitative models that can beat the experts. And it comes at the perfect time, as the investment industry is undergoing a significant shift due in part to the use of automated investment strategies that do not require a financial advisor′s involvement. DIY Financial Advisor is an essential text that guides you in making your money work for you not for someone else!
Specificaties
Lezersrecensies
Inhoudsopgave
<p>Acknowledgments xiii</p>
<p>PART ONE Why You Can Beat the Experts 1</p>
<p>CHAPTER 1 Are Experts Trying Too Hard? 3</p>
<p>Why Do We Rely on Experts? 6</p>
<p>What Are the Experts Incentives? 9</p>
<p>Are Experts Worthless? 11</p>
<p>The Expert s Hypothesis 13</p>
<p>Summary 14</p>
<p>Notes 15</p>
<p>CHAPTER 2 Simple Models Typically Beat the Experts 17</p>
<p>The Evidence Shows 20</p>
<p>A Study of All the Studies 21</p>
<p>What if Experts Have the Model? 23</p>
<p>But Investing Is Different, Right? 24</p>
<p>Why Experts Fail to Beat Models 26</p>
<p>Summary 28</p>
<p>Notes 29</p>
<p>CHAPTER 3 Experts Are Biased and Overconfident 31</p>
<p>The Biased Brain 33</p>
<p>Summary 47</p>
<p>Notes 48</p>
<p>CHAPTER 4 Experts Tell Us Stories, Not Facts 49</p>
<p>Story–Based Investing 52</p>
<p>Evidence–Based Investing 53</p>
<p>The Recap: Why Experts Fail 60</p>
<p>Why Not Use Models? 62</p>
<p>Summary 63</p>
<p>Notes 64</p>
<p>PART TWO How You Can Beat the Experts 67</p>
<p>CHAPTER 5 A Framework for Investment Decisions 69</p>
<p>Assessing an Advisor Is Difficult 71</p>
<p>The FACTS Framework 75</p>
<p>We ve Got the FACTS: Now What? 86</p>
<p>Summary 90</p>
<p>Notes 90</p>
<p>CHAPTER 6 A Simple Asset Allocation Model That Works 91</p>
<p>Asset Allocation 95</p>
<p>A Simple Asset Allocation Model That Works 98</p>
<p>But Which Assets Do We Choose? 103</p>
<p>Summary 104</p>
<p>Notes 105</p>
<p>CHAPTER 7 A Simple Risk Management Model That Works 107</p>
<p>A Simple Risk Management Model That Works 109</p>
<p>How Does ROBUST Work? 113</p>
<p>Summary 121</p>
<p>Risk Management Research (For Geeks Only) 121</p>
<p>Notes 129</p>
<p>CHAPTER 8 Simple Security Selection Models That Work 133</p>
<p>Value Investing 134</p>
<p>Momentum Investing 140</p>
<p>A Simple Momentum Model That Works 146</p>
<p>Combining Value and Momentum 148</p>
<p>International Stocks 151</p>
<p>Get Er Done 153</p>
<p>Summary 154</p>
<p>Notes 154</p>
<p>CHAPTER 9 The Do–It–Yourself (DIY) Solution 157</p>
<p>Exploring a Simple Equal–Weight Five Asset Class Model 159</p>
<p>Enhancing the Ivy 5 Concept 163</p>
<p>Finish Strong: The Ultimate DIY Solution 171</p>
<p>Get Er Done 175</p>
<p>Notes 176</p>
<p>CHAPTER 10 Some Practical Advice 179</p>
<p>Three Reasons We Will Not Be a DIY Investor 180</p>
<p>Three Reasons You Might Fail 183</p>
<p>But Don t Lose Hope! 185</p>
<p>Is DIY the Only Solution? 186</p>
<p>Notes 187</p>
<p>Appendix: Analysis Legend 189</p>
<p>About the Companion Website 191</p>
<p>About the Authors 193</p>
<p>Index 195</p>
Rubrieken
- advisering
- algemeen management
- coaching en trainen
- communicatie en media
- economie
- financieel management
- inkoop en logistiek
- internet en social media
- it-management / ict
- juridisch
- leiderschap
- marketing
- mens en maatschappij
- non-profit
- ondernemen
- organisatiekunde
- personal finance
- personeelsmanagement
- persoonlijke effectiviteit
- projectmanagement
- psychologie
- reclame en verkoop
- strategisch management
- verandermanagement
- werk en loopbaan