The document discusses various strategies for managing wealth over long periods of time. It shows how the range of outcomes can widen over decades for investments. Different investment allocations and strategies are compared over a 90-year period, showing returns, risk levels, and ending wealth amounts. The optimal strategies combined stocks and bonds, diversified globally, and rebalanced periodically to control risk. They illustrate how working with a wealth manager can produce better long-term outcomes than going it alone.

1. bg

2. THE WEALTH
MANAGEMENT
PARADOX

3. MYTH:
RISK GOES DOWN WITH TIME

4. RANGE OF OUTCOMES
(NARROWS OVER TIME)
%
1 10 15 20
YEARS

5. RANGE OF OUTCOMES
(WIDENS OVER TIME)
$
1 10 15 20
YEARS

6. WHICH ONE CAN YOU
EAT?

7. INVESTMENT
VS.
INVESTOR
(IS THERE A DIFFERENCE?)

8. INVESTMENT SEARCH RESULTS
INVESTMENT A B C
AVERAGE
RETURN 8.5 8.0 7.5
GROWTH
OF $117.30 $116.65 $115.50
$100

9. INVESTMENT A B C
STARTING VALUE $1,000 $1,000 $1,000
RETURN % 15% 8% 5.0%
RETURN $ $150 $80 $50
YEAR 2
CONTRIBUTION $1,000 $1,000 $1,000
STARTING VALUE $2,150 $2,080 $2,050
RETURN % 2% 8% 10%
RETURN $ $43 $166 $205
ENDING VALUE $2,193 $2,242 $2,255
AVERAGE RETURN 8.5% 8.0% 7.5%

10. WEALTH
MANAGEMENT
(FINANCIAL PLANNING)

11. 8.5%

12. MODELING REALITY

13. PERSONAL
PENSION

14. RISK
ENDING VALUE
WITHDRAWALS
CONTRIBUTIONS
RETIREMENT DATE

15. 60
MPH

16. CASE STUDY
1926

17. COPY OF FUTURE WALL STREET JOURNAL
STOCK RETURN RISK GROWTH
ALLOCATION CHOICE
% % % $100
#1 - RISK TOLERANCE 38% 8.29 9.55 58,505
#2 - AGE BASED 41% 8.42 14.43 64,172
#3 - STOCKS 100% 10.36 20.20 265,707
#4 - SUPERIOR SELECTION 38% 9.80 9.55 176,612
#5 - WEALTH MANAGER 38% 8.58 14.39 72,460

18. RESULTS
ALLOCATION CHOICE INVESTMENT INVESTOR
GROWTH
RETURN RISK
$100
#1 - RISK TOLERANCE 8.29 9.55 58,505 BROKE @ 51
#2 - AGE BASED 8.42 14.43 64,172 BROKE @ 50
#3 - STOCKS 10.36 20.20 265,707 BROKE @ 55
#4 - SUPERIOR SELECTION 9.80 9.55 176,612 $1,072,678
#5 - WEALTH MANAGER 8.58 14.39 72,460 $4,878,522

19. ?

20. THE
WAY
FORWARD

21. “DEMOCRACY IS THE WORST
FORM OF GOVERNMENT EVER
CREATED BY THE MIND OF
MAN...
EXCEPT FOR ALL THE OTHERS”
---CHURCHILL

22. FOLLOW MY RESEARCH AT:
WWW.BEHAVIORGAP.COM
A SPECIAL THANKS TO FINACEWARE AND DIMENSIONAL FUND ADVISORS FOR RESEARCH
AND INSPIRATION