Personal Benchmark Integrating Behavioral Finance and Investment Management [Hardcover]

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.

Preface xi

Introduction 1

PART 1 WHY DO WE NEED TO LOOK AT INVESTING DIFFERENTLY? 7

Chapter 1 Freedom in the Market and Advisor Responsibility 9
Chuck Widger

The Financial Markets 10

What We’ve Been Up to as Advisors 15

What Investors Really Want and Need 18

A New Investment Advice Delivery System 26

Brinker Capital and Personal Benchmark 29

Summary 45

References 46

Chapter 2 Investor Emotions and Financial Decisions 49