New Wealth Management

HAROLD EVENSKY, CFP, is President of Evensky & Katz, a nationally recognized wealth management firm. Acknowledged by Financial Planning, Financial Planning Professional, Investment News, and Worth as an industry leader, he served as chair of the TIAA-CREF Institute Advisory Board and is a member of the American Bar Association. In 1999, he was awarded the Dow Jones Investment Advisor Portfolio Management Award for Lifetime Achievement. STEPHEN M. HORAN, PhD, CFA, manages professional education and private wealth management content for CFA Institute members. He has served as both an editorial board member and abstractor for the CFA Digest and as an ad-hoc reviewer for the Financial Analysts Journal. He holds a PhD in finance, publishes frequently in academic and professional journals, and has authored several books. Prior to joining the CFA Institute, he was a professor of finance at St. Bonaventure University and principal of Alesco Advisors LLC. THOMAS R. ROBINSON, CFA, CFP, is Managing Director in the Education Division of the CFA Institute, where he leads and develops the teams responsible for producing and delivering educational content and examinations to candidates, members, and other investment professionals, including those affiliated with the CFA Program, CIPM Program, and Lifelong Learning.

• Acknowledgments ixForeword xiPreface xiiiCHAPTER 1 The Wealth Management Process 1CHAPTER 2 Fiduciary and Professional Standards 13CHAPTER 3 Client Goals and Constraints 33CHAPTER 4 Risk Is a Four-Letter Word 55CHAPTER 5 Data Gathering and Analysis 75CHAPTER 6 Client Education 103CHAPTER 7 Mathematics of Investing 121CHAPTER 8 Investment Theory 149CHAPTER 9 Asset Allocation 179CHAPTER 10 Portfolio Optimization 193CHAPTER 11 Taxes 233CHAPTER 12 Retirement Planning 267CHAPTER 13 Investment Policy Statement 313CHAPTER 14 Portfolio Management 341CHAPTER 15 Performance Appraisal and Evaluation 373CHAPTER 16 Selecting Investment Managers 393CHAPTER 17 Philosophy, Process, and People 421About the Authors 439About the CFA Institute Investment Series 441About the CFA Program 445Index 447