BASIC INTRODUCTION TO BEHAVIOR, GOAL PLANNING AND RETURNS OF VARIOUS ASSET CLASSES

We begin the program with an overview of what to expect from the program. We are aware that financial education is often frustrating for wealthy families because the industry talks in a language that is difficult to understand. In contrast, we lay out the important issues in a non-threatening way. The class will have live Q & A to provide immediate answers to questions from the comfort of your own home. Additionally, we will have case studies and exercises to help bring home the material.

The goal of this first session is to set forth the basics of the class and establish the learning system, so you are not intimidated by the material.Ultimately, we want each participant to walk away with a better understanding of their situation, which then provided them greater control.

We will spend the second half of Class 1 discussing how goal setting generally doesn't work. People set out to do things that they want to do...but often end up somewhere else. The good news is that once people discover what gets in their way, they are free to start creating a new outcome. 

We will also introduce the concept of the "Wealth Wheel" and what it means to you. In the last hour, we go through a basic discussion of capital markets and the various returns that can be expected from different types of investments. We will include discussion on the current state of affairs during this COVID-19 crisis and why the markets are doing what they do. Understanding the key components of markets will help to control emotions during turbulent times. The specific topics of Week 1 are listed below:

Investment Experience

Behavioral Finance

Why Goal Setting is Flawed for Most People

Create Your Vision

Dealing with the Current Crisis

Behavioral Finance

Human Cycle of Emotions and Investing

Tulip Mania

Over-Confidence

Escalation Bias

Anchoring Mean Reversion

Investing Basics 

Wealth Management Process

Building Sustainable Income

Inflation and Retirement Trend

Establishing Hierarchy of Priorities

Market Returns

Cash

Fixed Income / Bonds

Stocks, Other Consideration

Inflation

Taxes

Summary of Week 1

BUILDING YOUR ASSET ALLOCATION

The main goal of Week 2 is to discuss risk/reward in a way that is easy to understand. The math of this section can get a bit complex; however, I will present it in a usable manner. Some of the key takeaways are about how risk affects the preservation of long term-family wealth. We then move into the asset allocation discussion and exploration of the importance of this single decision. We bring along the academic research on the various asset classes, how they mix together, and why.

When putting all these pieces together, we see what really matters and has an impact on future returns. Do different allocations matter and is one better than the next? Does one financial firm have an edge over another? What happens when parts of the allocation are performing poorly? We discover that losing money is never a good thing and controlling portfolio declines during distribution is more important. The specific topics of Week 2 are listed below:

Risk Tolerance

Determining Your Tolerance for Risk

What is Risk?

Relationship Between Risk and Return 

Risk Questionnaire

Types of Risk (Specific vs. Industry vs. Market) 

History of Risk

Risk of Different Asset Classes

Asset Allocation

Modern Portfolio Theory

Diversification

Correlations

What is Asset Allocation

Why is Asset Allocation Important?

Optimal Portfolio

Strategic vs. Tactical Allocation

Reduction of Risk Over Time?

Monte Carlo Simulation

Several Examples of Different Investors’ Situations 

Does Monte Carlo Really Work?

Summary of Week 2

MANAGER SELECTION

Week 3 is packed with incredible content. After establishing your allocation in Week 2, the next step is manager selection, followed by the right product. By the sheer number of choices, this process can be overwhelming, but we break it down in the order that matters.

We also debate the hotly contested topic of active vs. passive managers and what the data says. During the day, we walk through the process of manager selection and provide online tools that can help discover these manager gems. W leave students to decide for themselves what is right for themselves. With that said, we draw the parallel between the number of investment decisions and performance. We also introduce simplicity and what's called rules-based investing, which takes the emotions out of the process. The specific topics of Week 3 are listed below:

Products

Investment Expenses 

The Investor

Current Situation 

Specific Risks

Different Methods of Investing

Hierarchy of Priorities

Individual Securities

Characteristics

Ease on Management

Taxation

Cost

Control

Liquidity

Mutual Funds

Closed v.s. Open Ended Funds

Separate Account Managers

Advantages

Taxation

Cost

Control

Exchange Traded Funds (ETF)

Characteristics

Ease of Management

Manager Selection

Active vs. Passive Management

Market Timing

Beta

Examples of Beta

Contributory

Risk

Beta Rules

R-Squared

Alpha

Sharpe Ratio

Alternative Investment Products and Methods

Annuities

Variable Annuities

Life Insurance

Hedge Funds

Private Equity

Venture

Real Estate

Commodities

Summary of Week 3

MONITOR, POLICY, & PROCESS FOR HIRING PROFESSIONALS

As we begin to complete the investment process, we further debate active and passive investment and if and how they fit into the portfolio. how to control costs and taxes are the two main takeaways.

We discuss how to invest if you have a lump sum. Additionally, we dedicate a great deal of time to discussing how to hire the right financial advisor, what you should look for, what questions to ask, and what separates them from one another. We will have a panel of investment advisors to answer questions about their businesses. We will discuss investment policy—what it is and why it is important to consider. 

Lastly, we will ask the question of what family monitoring systems are in place. Monitoring systems are the single most important took that a family can have. "What can't be measured can't be managed." This is the great flaw for most people. We break down family accounting and describe why this is a super important—yet often a missing piece for most people. The specific topics of Week 4 are listed below:

Investment Professionals

Investment Managers vs. Investment Advisors

Active vs. Passive Management

Manager Evaluation

Where do Managers Add Value?

Investment Selection

Market Timing

Sector Analysis

Security Selection

Qualitative Analysis

Manager ID

Eight P's of Manager Selection

What Should I Pay for Investment Advice?

Implementation

Lump-Sum Investing

Dollar Cost Averaging

When is the Right Time to Invest During This Crisis?

Investment Policy Investment Professionals

Achieving Your Goals – A Checklist of Advisor Services

Sample Questions in Your Search for Investment Advisors 

Stages of Service

Other Members of Your Team

Assembling Your Management Team

Performance Monitoring

What is an IPS?

Why is it Important to Develop an IPS

Who’s Responsible?

7 Elements of a Well-Constructed IPS

Summary of Week 4​ 

WOMEN & MONEY

Letitia Frye, the dynamic "auctiontainer" will be our keynote speaker talking about the importance of discovering your self value and inner wealth before being able to obtain and retain financial success. Ms. Frye is now a motivational speaker and published author of her book NO RESERVE, and believes that her passion for others is the secret to success in work and life.

We understand one of the biggest issues with our clients is the spouse (usually the woman) doesn't understand what is going on, and money unfortunately is proven to be the number one cause in divorce. So we decided to hit it head on and are bringing in experts that will be discussing tips on how to keep your relationship healthy and a super divorce attorney for if things go awry. 

We also have an estate planning attorney who is an award-winning attorney, best selling author, a nationwide speaker about women and money, and a fearless cheerleader for her clients' success.

A Your money—your hard work—is a legacy. With the proper planning and forethought, your money can continue to work for your family and community for years to come.

Estate planning might seem daunting, but believe me, it is much more difficult for others to fulfill your wishes if you don't invest the time to plan ahead. Allow us to break down the terms and their implications. This day affects your spouse, your children, and your future wishes. The specific topics of Week 5 are listed below:

Women & Money

Raw Stories from Women

Couples Workshop

How to be prepared for divorce

Estate Planning for Women

Keynote speaker: Letitia Frye

Summary of Week 5

ADVANCED ESTATE PLANNING

This week we explore advanced concepts and techniques to efficiently transfer wealth to heirs.

What is important, and often lost with families, is the primary concern of wealth protection. First is the protection of income on behalf of the wealth creator. Second is the transfer to children/heirs. It is also important to consider whether or not kids and heirs will get direct access to the money or an income stream.

As kids age, there are many issues to consider: divorce, addiction, etc. Nobody likes to think that these issues could happen to their children, but it's sadly a fact of life. How will the plan function under these situations? Setting up trust structures that restrict access and effective tools are key to thwarting the opportunistic third parties. We will also discuss the use of outside trustees in the planning process and what advantages they provide. The specific topics of Week 6 are listed below:

Advanced Estate Planning

Property in Estate Planning

Forms of Property Ownership and Their Uses in Estate Planning

Types of Properties Included in the Estate

Marriage Considerations in Estate Planning

Community Property: Estate Planning Concepts 

The Marital Deduction: Marital and Non-Marital Trusts in Estate Planning

Wealth Creation and Wealth Preservation

Key Planning Concepts

Wealth Creation and Preservation Analysis

Summary of Benefits

Gifting Strategies

Giving—The Tax Advantages

CRT Consideration

Life Insurance

How to Structure During Your Lifetime

Benefits

Summary of Week 6

Week 7

TUESDAY JUNE 30th, 2020

 4pm PST | 6pm CST | 7pm EST

KIDS & MONEY

Guest Speaker and Moderator:

John Soforic, the Best Selling Author from The Wealthy Gardener will be interviewing a College Panel.

Take advantage of the bonus to dive a little deeper into some valuable content on this extra day. A financial discussion is simply incomplete if it doesn’t include the subject of children and family. We love our families, and they’re usually the most important part of our lives.

But, of course, our families are replete with different personalities, high emotions, and often competing needs. Because there are so many moving parts in a family dynamic, it’s critical to develop and implement a clear game plan about money, wealth creation, and wealth management. 

Educating your children about finances may also help you if you struggle with money or your relationship with money is unhealthy.

Think back to your first “official” part-time job and the money you earned from it. Do any financial lessons you knew at that time come to mind? Probably not! If you were in the dark about money when you were your child’s age, don’t let him or her suffer the same fate. Prepare your children for a rich life—in all senses of the word—by educating them very early on. The specific topics of Week 7 are listed below:

Kids & Money

Conversation Outline to Have with Your Kids of All Ages

Teaching Your Kids how to Endure Through Struggles

How to Avoid Being an ATM for Your Kids

Avoid "Bubble-Wrapping" Your Kids

Association with Money

Early Adoption of Financial Literacy

Learn the Five Faces of a Dollar

Summary of Weeks 1-7