This idea has received considerable attention in the literature, but no broad consensus about its validity yet exists. Still, after the widespread damage done to the financial markets and the real economy in recent years, all serious proposals should be on the table for evaluation, including the one offered by Smithers. Stocks may become overvalued from time to time, but stock prices eventually tend to revert to their mean. Because financial intermediaries base most of their lending decisions on asset prices, the bursting of an asset price bubble prompts them to reduce their extension of credit much more than they do during run-of-the-mill recessions. This contractionary effect overwhelms the short-term expansionary effect of monetary easing. Therefore, the more asset prices escalate beyond their intrinsic value, the less impact monetary policy will have on them—and thus on the broader economy—once the bubble bursts.

On the strength of its timeliness and clarity, Wealth Management Unwrapped joins the ranks of distinguished writing on private wealth. Although the book is intended primarily for people of means and family foundations, it should be mandatory reading for wealth advisers who seek to grow their businesses while developing trusted relationships with clients. The FIRST book to read before you hire – or fire – your advisor, Wealth Management Unwrapped is a comprehensive guide for both the newly wealthy and the experienced investor. Her career spans 40+ years, first on Wall Street, and then as founder of the Institute for Private Investors IPI in 1992. A pioneer in social media, IPI hosted the first online community for investors when it went live in 1998. For two decades Beyer earned the trust of the 1500 UHNW investor members by protecting the safe harbor, education and community inside that private membership organization.

• These two very different valuation methodologies lead to similar results, reinforcing the validity of each.
• In the long run, Smithers finds, no stable empirical correlation exists between the level of either real or nominal interest rates and future equity returns.
• On the strength of its timeliness and clarity, Wealth Management Unwrapped joins the ranks of distinguished writing on private wealth.
• This valuable resource puts more than two decades of illuminating stories and unflinching advice at your fingertips for everyday reference.
• Wealth Management Unwrapped is like a powerful GPS, whether you’re a novice or sophisticated investor, offering you a much clearer view of how to fully realize the dreams and goals your wealth now affords you.
• For two decades Beyer earned the trust of the 1500 UHNW investor members by protecting the safe harbor, education and community inside that private membership organization.

By Charlotte B. Beyer

• Her career spans 40+ years, first on Wall Street, and then as founder of the Institute for Private Investors IPI in 1992.
• Wealth Management Unwrapped is the accumulation of Beyer’s extensive knowledge and experience observing high-net-worth investors and family offices.
• Nearly 1100 principals/families with substantial assets have attended from 52 countries and 42 states.

A Wall Street veteran and entrepreneur, Charlotte Beyer has been identifying changes in the culture and dynamics of wealth management since 1992. After selling her company and retiring as CEO in 2012, Beyer founded the Principle Quest Foundation, a 501c3 foundation whose mission is to support innovative education and mentoring programs for women with a focus on racial justice and gender equity. “Beyer’s advice is occasionally blunt—and consistently useful. You will improve your chances of success if you find an advisor who provides the brand of well-informed straight talk that characterizes this book.” CHARLOTTE B. BEYER is founder of the Institute for Private Investors (IPI) and co-creator of the first Private Wealth Management curriculum for investors at The Wharton School of the University of Pennsylvania. An Aresty Fellow at Wharton, Beyer is also the recipient of the Lifetime Achievement Award from Family Wealth Report and the J. Richard Joyner Wealth Management Impact award from the Investment Management Consultants Association® (IMCA®).

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To value residential real estate, Smithers uses the ratio of housing prices to incomes. The third gauge that he believes central banks should monitor is relative corporate credit spreads as a reflection of risk aversion and liquidity conditions in the financial markets. Charlotte is an entrepreneur and a Wall Street veteran, who knows the secret language of the financial services industry from an insider’s perspective. This valuable resource puts more than two decades of illuminating stories and unflinching advice at your fingertips for everyday reference.

By understanding how the business of wealth management works, you can ask the important questions and identify those advisors you can trust, not just the ones who tell you what you want to hear. In the long run, Smithers finds, no stable empirical correlation exists between the level of either real or nominal interest rates and future equity returns. Long-term equity returns are driven not by interest rates but, rather, by stock prices in relation to underlying corporate earnings. In the short run, however, changes in interest rates do affect stock prices, making the stock market an important transmission mechanism by which monetary policy affects the real economy. Smithers makes the case that the stock market is not perfectly efficient, but neither are stock prices entirely random.

New services or products spring up, yet impenetrable language and marketing hype leave you with precious little practical information. In two or three hours of reading made easier thanks to the bold, often amusing illustrations, you will be a far smarter investor, not by learning the jargon but by applying common sense and insisting on clearer communications from your advisor. You and your advisor can create an even stronger and long lasting partnership by reading this book together. Wealth Management Unwrapped is like a powerful GPS, whether you’re a novice or sophisticated investor, offering you a much clearer view of how to fully realize the dreams and goals your wealth now affords you. Wealth Management Unwrapped provides you with the tools and tips you need to take back control and more effectively manage your money.

The Stewardship of Wealth: Successful Private Wealth Management for Investors and Their Advisors, + Website

Reality lies somewhere in between, making the market “imperfectly efficient.” The notion that financial markets are not perfectly efficient is consistent with the more widely accepted observation that the broader macroeconomy is not perfectly efficient, either. Wealth Management Unwrapped is the accumulation of Beyer’s extensive knowledge and experience observing high-net-worth investors and family offices. She strips away industry jargon, and empowers readers to find and build partnerships with the right financial advisors.

To avoid losing control over their economies, Smithers argues, central banks should prevent asset prices from reaching levels from which they will inevitably fall in the first place. According to Smithers, one reason that central banks do not target asset price bubbles is that they believe assets cannot be objectively valued, a belief that Smithers does not share. To value equities, he uses an equity q ratio (the market value of the nonfinancial corporate sector divided by its net worth at replacement cost) and the 10-year cyclically adjusted price-to-earnings ratio (used by Robert J. Shiller in Irrational Exuberance 2000). These two very different valuation methodologies lead to similar results, reinforcing the validity of each.

From choosing an advisor and understanding the fine print, to fulfilling your responsibilities as CEO of My Wealth, Inc. this book offers all-in-one guidance for anyone ready to take charge of their finances. This revised and expanded version has been updated with NEW information, for women investors who seek the best advisor, older investors who confront investment choices, and a discussion on both robo-advisors and the impact of your wealth on your children. The companion website includes new interactive diagnostics to help you get started, assess your progress and then see how you compare to others who face similar challenges. In practice, the inability of investors to exploit asset price bubbles—assuming they can accurately recognize them in the first place—casts doubt on the notion that central banks possess the ability to deflate them. His proposal is reminiscent of the idea that the Federal Reserve could nip stock price bubbles in the bud if it curtailed stock market speculation by increasing margin requirements.

Product details

An Aresty Fellow of the Wharton School, Beyer taught in Wharton’s Private Wealth Management program, wealth management unwrapped a five-day residential curriculum she co-created with Wharton in 1999. Nearly 1100 principals/families with substantial assets have attended from 52 countries and 42 states. Reading this book will give you confidence and knowledge enough to really grasp who you are as an investor. You will be successful because you will own a unique GPS, one robust enough to see through the tempting advertisements, financial media hype and slick brochures. A London-based financial consultant who is frequently cited in the Economist, Smithers was among a handful of market observers who called the top of the equity bubble in March 2000.

That prediction is that consistently outperforming the market is extremely difficult; therefore, most investors are better off buying low-cost, index-replicating investment vehicles rather than expensive active investment management services. Smithers is correct in asserting that some intrinsic value can probably be determined, such as the value derived by discounting expected future cash flow streams. Honest analysts can disagree in their expectations of those future cash flows and on the question of which discount rates and multiples to apply. Hence, we have the phenomenon that during an asset price bubble, many credible observers argue persuasively that a bubble is forming while many other credible observers argue equally persuasively that warnings of a bubble are much overdone. To add to the confusion, credible observers sometimes argue that a bubble is forming when, in fact, it is not.

CFA Institute Research and Policy Center is transforming research insights into actions that strengthen markets, advance ethics, and improve investor outcomes for the ultimate benefit of society. Richard Joyner Wealth Management Impact award from the Investment Management Consultants Association� (IMCA�). O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Wealth Management Unwrapped: Unwrap What You Need to Know and Enjoy the Present (a review)

Wall Street veteran Charlotte Beyer conducts a tour of the wealth management industry, guiding you through the complexities and jargon with straightforward, no-nonsense expertise. From choosing an advisor and understanding the fine print, to fulfilling your responsibilities as CEO of My Wealth, Inc. this audiobook offers all-in-one guidance for anyone ready to take charge of their finances. This revised and expanded version has been updated with new information, for women investors who seek the best advisor, older investors who confront investment choices, and a discussion on both robo-advisors and the impact of your wealth on your children. The companion website includes new interactive diagnostics to help you get started, assess your progress, and then see how you compare to others who face similar challenges.