Personal Benchmark: Integrating Behavioral Finance and Investment Management 1st Edition

Overall, I found this book to contain useful information. However, I think it could have been a much better book. The topic of "goals based wealth management" is evolving and I had hoped to further both my theoretical and practical knowledge as the book was co-authored by an investment executive and a psychologist. The chapters authored by Dr. Daniel Crosby were excellent. His discussion of the behavioral failings of Modern Portfolio Theory and how a goals based strategy could overcome some of those shortfalls was very beneficial. On the other hand, the chapters authored by Chuck Widger read like an "infomercial" for his company, which he mentioned in at least every other sentence. Quite frankly, I am surprised that an editor at Wiley allowed the book to be published this way. It was very tireing and completely subtracted from what he had to say. If he could have talked about his concept of the "Personal Benchmark" without trying to sell his company's program it would have been much more informative and readable. Also, you would think that his company invented the idea of multi-asset class investing and is the only company pracicing it. More likely, his company copied a major investment firm like Morgan Stanley.Bottom line: a useful book that could have been much better.

The idea for this book originated during a discussion of investments. The author's friend of some 55 years, Rick, saved and invested for his whole adult life---but wasn't happy with the end result. As most investors, he wanted low volatility with a high return. In August of 2010, the author advised to go with Brinker Capital Destinations Defensive at 70 percent and Destinations Moderate at 30 percent. In May of 2011, though, chuck advised his friend to change to Destinations Conservative at 35 percent, Destinations Moderate at 30 percent and Crystal Strategy I at 35 percent.This is more than a story of two long time friends, however. Much investment advice is shared. The section on " A Behavioral View of Finance puts investing in a whole new realm., looking at it from a behavioral standpoint.

As a wealth advisor and CFP®, I truly believe the next evolution of the financial planning and advice business is understand and addressing the "why" behind the decisions that we and our clients make. Personal Benchmark is one of the first works I've come across that not only explains the biases that we have, but also provides some tangible solutions to addressing them.If you're a fan of behavioral finance (and even the emerging field of financial therapy) Dr. Crosby is probably someone you've read and followed for a while. If you haven't spent much time reading through his work, Personal Benchmark is a great introduction to not only the theory and and psychology behind the most impactful biases we have, but also to the solutions that can help advisors and investors harness them for the better.

Personal Benchmark is strong on the why and weak on the how. It makes a very compelling case for why you should not measure your portfolio against the market, but rather against your ability to reach your goals. But, when it comes to how to implement the strategy, the book gets awfully self-promotional. Not a book with much meat do the do-it-yourself types.

I must admit that I didn't read the entire book because it seemed like the author's real purpose was to promote his business and his proprietary system - not to provide useful information. There may be some good information buried somewhere in the book, but I didn't want to wade through the self-promotion to find it.

Dr. Crosby's chapter's were very useful. The balance of the book was largely a commercial for Brinker Capital.

Personal Benchmark focused on helping me manage the emotions of investing. As an investor, it helped me take the focus away from the emotions of the moment and focus on My goals.

Thank you. Prompt service and delivered what was expected!