Private Wealth Mangement 9th Ed (PB)

Auteur
G. Victor Hallman (Philadelphia, PA) is a lecturer at the Wharton School of the University of Pennsylvania.

Texte du rabat

Where financial advisors go for answers--revised and updated to address consequential legal and economic changes

From the oil crisis and stock market crash in the 1970s through deregulation into the 1990s to the 2008 financial crisis--every financial planner worth their salt turned to Victor Hallman and Jerry Rosenbloom's classic reference for answers. To maintain its iconic position in the industry, this bible of wealth development moves into its Ninth Edition to ensure today's professional investors and financial stewards have reliable guidance to the latest legislation, economic developments, and wealth management trends and techniques.

This latest edition of *Private Wealth Management*provides everything you need to operate with sophistication and savvy in today's markets--from setting financial objectives and executing the planning process to investing in equities and fixed-income securities to retirement income planning to methods for lifetime wealth transfers, and more. Written for the serious practitioner, this one-of-a-kind guide gives you a solid foundation for planning a prosperous financial future in the real world, which means it makes you an expert in:

• Major new tax legislation, including the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010" and the "American Taxpayer Relief Act of 2012"
• A variety of economic benefits and investment products
• Changes in individual annuities and retirement products with an increased focus on retirement planning
• Modifications to health and disability insurance
• The Patient Protection and Affordable Care and Health Care Reconciliation Act of 2010
• Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
• New developments in estate and marital deduction planning such as "portability"

This completely updated edition remains a wealth-building and income management tool by presenting many useful strategies, including those for dealing with the current "super-low" interest rates.

Private Wealth Management, Ninth Edition, is the cornerstone of financial planning.

Contenu

Preface xiii

Part I Introduction
1. Nature and Objectives of Private Wealth Management 3
Need for Wealth Management Services 3
Wealth Management over a Family's Economic Life Cycle 3
Focus on Objectives and Planning Strategies 4
Financial Planning Process 13
Case Example-Personal Financial Statements 15
Ethics and Wealth Management 20

2. Environment for Wealth Management 23
Institutional Environment 23
Economic Environment and Wealth Management 37
Tax Environment and Wealth Management 51

3. Valuation Concepts in Wealth Management 55
Capital Accumulation Concepts 55
Valuation Factors for Estate Planning and Wealth Transfer 62

Part II Investment Planning and Financial Management
4. Basic Investment Planning and Strategies 69
Investment Theories 69
Factors in the Choice of Investments 81

5. Common Stocks 101
Stock Valuation Concepts 101
Portfolio Development and Analysis 107
Diversifying a Common Stock Portfolio 110
Decisions Concerning Selling Common Stocks 111
Dollar Cost Averaging 111
Types of Orders in Buying and Selling Common Stocks 112
Margin Accounts 112
Selling Short 113
Investment Categories of Common Stock 114
Some Theories (Strategies) of Common Stock Investment 116
The Case for Long-Term Investments in Common Stocks 118

6. Real Estate and Other Equity Investments 123
Real Estate 123
Oil and Gas Ventures 132
Impact of Passive Activity Loss Rules 133
Put and Call Options 134
New Issues or Initial Public Offerings 136
Commodity Futures Trading 136
Gold and Other Precious Metals 137
Art, Antiques, Coins, Stamps, and Other Collectibles 138

7. Fixed-Income Investments 139
Ways of Taking Returns from Bonds 139
Corporate Bonds 141
Municipal Bonds (Munis) 142
U.S. Government Obligations 146
Other U.S. Government and Agency Securities 148
Mortgage- and Asset-Backed Securities (Pass-Through Securities) 148
Floating-Rate Bonds and Funds 149
Market Discount Bonds 149
Zero-Coupon Bonds (Zeros) 150
Preferred Stocks 150
Guaranteed Principal Fixed-Income Investments 151
Cash Equivalents (Liquid Assets) 152
Conversion Privileges in Fixed-Income Securities 153
Bond Ratings and Investment Quality 154
Strategies for Investing in Fixed-Income Securities 155

8. Investment Companies and Alternative Investments 159
Kinds of Investment Companies 159
Why Invest in Mutual Funds? 159
Limitations of Mutual Funds 160
Types of Funds and Planning Considerations 160
Unit Investment Trusts 163
Regulation of Investment Companies 163
Withdrawals from and Redemptions and Exchanges of Mutual Funds 164
Mutual Funds and Their Investment Objectives 164
Index Funds 168
Exchange-Traded Funds (ETFs) 170
Tax-Managed Funds 170
Mutual Fund Performance 171
Mutual Fund Expense Ratios 173
Factors Involved in Selecting Mutual Funds 174
Tax Aspects of Mutual Funds 175
Closed-End Companies 177
Look Out for Buying a Dividend 177
Hedge Funds and Private Equity Funds 177

9. Asset Allocation Strategies and Financial Management 181
Steps in the Asset Allocation Process 181
Financial Management 188

Part III Income Tax Planning10. Income Tax Fundamentals 199
The Federal Income Tax on Individuals 199
The Federal Income Tax on Corporations 214
Pass-Through Business Entities 217
Federal Income Taxation of Trusts and Estates 218
State and Local Income Taxes 220

11. Income Tax Reduction and Management Techniques for Individuals 221
Tax Elimination or Reduction 221
Shifting the Tax Burden to Others 226
Allowing Wealth to Accumulate Without Current Taxation and Postponing Taxation 227
Taking Returns as Capital Gains 229
Part IV Financing Education Expenses12. Education Planning 239
Importance as a Financial Objective 239
Nature and Growth of Education Costs 239
Estimating Education Costs 240
Financial Aid Considerations 241
Tax "Breaks" for Education Costs 241
Strategies in Planning for Education Costs 243
Advance Funding for Education Costs 244
Part V Retirement Planning, Stock Compensation,and Other Employee Benefits
13. Retirement Needs Analysis, Social Security,and Employer-Provided Qualified Retirement Plans 259
Retirement Needs Analysis 259
Social Security (OASDHI) 263
Characteristics of Employer-Provided Retirement Plans 269
Regulation of Qualified Retirement Plans 280
Nonqualified Retirement Plans 284
Pension Plans 285
Profit-Sharing Plans 287
Savings (Thrift) Plans 289
Cash or Deferred Arrangements-Section 401(k) Plans 290
Illustration of the Power of Tax Deferral 293
Stock Bonus Plans and Employee Stock Ownership Plans (ESOPs) 296
Hybrid Qualified Retirement Plans 297
Retirement Plans for the Self-Employed (HR-10 or Keogh Plans) 298

14. Other Employer-Provided Retirement Plans and Employee Benefits 303
Other Employer-Provided Retirement Plans 303
Other Employee Benefits 309

15. Individual Retirement Accounts and Annuities (IRAs) 313
Basic Concepts 313
Types of IRAs 313
IRA Rollovers and Direct Transfers 322
Financial Institutions That Offer IRAs 323
IRA Investments 323
Planning Issues for IRAs 323

16. Planning for Taking Distributions from Retirement Plans 329
General Considerations Affecting Planning 329
Taxation of Benefits from Qualified Plans and IRAs 332
Planning for Distributions from Qualified Retirement Plans and IRAs 348

**17. Individual Investment An…