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<p>Preface xi</p> <p>Introduction 1</p> <p><b>PART 1 WHY DO WE NEED TO LOOK AT INVESTING DIFFERENTLY? 7</b></p> <p><b>Chapter 1 Freedom in the Market and Advisor Responsibility 9</b><br /> <i>Chuck Widger</i></p> <p>The Financial Markets 10</p> <p>What We’ve Been Up to as Advisors 15</p> <p>What Investors Really Want and Need 18</p> <p>A New Investment Advice Delivery System 26</p> <p>Brinker Capital and Personal Benchmark 29</p> <p>Summary 45</p> <p>References 46</p> <p><b>Chapter 2 Investor Emotions and Financial Decisions 49</b><br /> <i>Dr. Daniel Crosby</i></p> <p>The Origins and Evolution of Behavioral Finance 50</p> <p>The Myths of Efficiency and Rationality 52</p> <p>A Definition and Framework for Behavioral Finance 57</p> <p>Summary 77</p> <p>References 79</p> <p><b>Chapter 3 Risk, This Time It's Personal 83</b><br /> <i>Dr. Daniel Crosby</i></p> <p>Fallacy 1: Risk and Return Are Systematically Correlated 85</p> <p>Fallacy 2: Investors Have a Single, Static Level of Risk Tolerance 90</p> <p>Fallacy 3: One Man’s Risk Is Another Man’s Reasonable Probability 96</p> <p>Behavioral Risk and You 102</p> <p>Summary 104</p> <p>References 105</p> <p><b>PART 2 WHAT IS THE PERSONAL BENCHMARK APPROACH? 107</b></p> <p><b>Chapter 4 Brinker Capital's Multi-Asset Class Investment Philosophy 109</b><br /> <i>Chuck Widger</i></p> <p>A Brief History of Investing 110</p> <p>Our Multi-Asset Class Investment Philosophy 119</p> <p>Applying Our Philosophy 122</p> <p>Implementing Our Philosophy 137</p> <p>Summary 151</p> <p>References 152</p> <p><b>Chapter 5 The Power of Buckets 153</b><br /> <i>Dr. Daniel Crosby</i></p> <p>Intentional Framing 158</p> <p>Framing with Purpose 160</p> <p>Mental Accounting for Increased Rationality 161</p> <p>Goals-Based Mental Accounts: A Case Study 164</p> <p>Summary 166</p> <p>References 166</p> <p><b>Chapter 6 Selection of an Active Investment Manager 169</b><br /> <i>Chuck Widger</i></p> <p>Passive versus Active Management 170</p> <p>The Successful Investment Firm 172</p> <p>The Successful Investment Manager 175</p> <p>An Effective Investment Management Process 176</p> <p>Monitoring and Assessing Performance 179</p> <p>Summary 187</p> <p>References 187</p> <p><b>PART 3 HOW CAN WE EXECUTE A PURPOSE-DRIVEN INVESTMENT STRATEGY? 189</b></p> <p><b>Chapter 7 Using a Goals-Based Approach 191</b><br /> <i>Dr. Daniel Crosby</i></p> <p>The Allure of Determinism in Economics and Psychology 193</p> <p>The Economy of One 200</p> <p>Our Inner Demons: A Field Guide 202</p> <p>Let Your “Why” Teach You “How” 209</p> <p>Summary 211</p> <p>References 212</p> <p><b>Chapter 8 Pursuing Your Personal Benchmark 215</b><br /> <i>Dr. Daniel Crosby</i></p> <p>The Difference a Frame Makes 217</p> <p>Limitations in Our Decision Making 219</p> <p>The Joneses, Jealousy, and Missteps 221</p> <p>The Anatomy of Better Decisions 226</p> <p>Summary 235</p> <p>References 235</p> <p><b>Chapter 9 Providing an Easy-to-Understand Explanation 237</b><br /> <i>Chuck Widger</i></p> <p>Your Best Investment 238</p> <p>Once More, with Feeling 240</p> <p>Changing the Conversation 247</p> <p>The Brinker Capital Personal Benchmark Solution 251</p> <p>Summary 258</p> <p>References 258</p> <p><b>Chapter 10 Leveraging a Scalable Offering for Investors and Advisors 259</b><br /> <i>Chuck Widger</i></p> <p>Using Personal Benchmark 259</p> <p>Reaping Benefits for Advisors 280</p> <p>Summary 282</p> <p>Conclusion 283</p> <p>The Centrality of Purpose 288</p> <p>Finding Meaning in the Mundane 292</p> <p>References 293</p> <p>About the Authors 295</p> <p>About the Companion Website 297</p> <p>Index 299</p>

<p><b>CHUCK WIDGER</b> is the Founder and Executive Chairman of Brinker Capital, an investment managment firm with $17 billion in assets under management. Chuck is currently Chair of the Villanova University School of Law Board of Consultors. Chuck is a past Chair of the Gettysburg College Board of Trustees and is chair-emeritus of the Money Management Institute's Board of Governors. The Money Management Institute is the industry association for the $3.5 trillion managed solutions industry. He served as a Lieutenant in the U.S. Navy. <p><b>D<small>R</small>. DANIEL CROSBY</b> is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby constructed the "Irrationality Index," a sentiment measure that gauges greed and fear in the marketplace from month to month. His ideas have appeared in print and online, and Daniel was named one of the "12 Thinkers to Watch" by Monster.com and a "Financial Blogger You Should Be Reading" by AARP. Dr. Crosby's well-reviewed first book, <i>You're Not That Great</i> (2012), applies elements of behavioral finance to the pursuit of a meaningful life.

<p><b>Personal Benchmark</b> <p>One of the benefits of behavioral finance is that it shines a light on the little peccadilloes that make us the flawed but lovable people we are. But irrational as we may be, we can turn the tide on ourselves and use these quirks to our personal advantage. Just as surely as irrational simplifications can lead us to focus on the wrong things, an effective system for mentally accounting for our holdings can provide us with felt security. <p>In <i>Personal Benchmark: Integrating Behavioral Finance and Investment Management</i>, 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." <p>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! <p>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. <p>This book gives advisors the tools needed to effectively communicate the design and execution of the Personal Benchmark solution.

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