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© 2020 Brickley Wealth Management
Learn the secrets of Burton Malkiel's investment strategies for high-net-worth individuals with Brickley Wealth Management.
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Why Burton Malkiel's Blueprint for High-Net-Worth Individuals Works

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It is not hard to make money in the market. What is hard to avoid is the alluring temptation to throw your money away on short, get-rich-quick speculative binges. It is an obvious lesson, but one frequently ignored.

– Burton G. Malkiel

Understanding the complexities of financial markets is no simple feat. Burton Malkiel, a distinguished economist, author, and Princeton University professor, offers enduring insights that have shaped the investment landscape. Best known for his seminal book "A Random Walk Down Wall Street," his principles are relevant not just for the average investor but also for high-net-worth individuals. With our help and this blog you don’t have to read the book to find out how key investment strategies by Malkiel can be specifically tailored to meet the financial goals of high-net-worth individuals.

Key Concepts by Burton G. Malkiel

  1. The Random Walk Theory: Malkiel argues that stock price movements are essentially unpredictable, making the act of stock picking and market timing mostly futile.
  2. Index Investing: In line with his view on the unpredictability of stock movements, Malkiel is an advocate for index investing, which offers a low-cost way to gain broad market exposure.
  3. Asset Allocation: Malkiel emphasizes the importance of diversifying across asset classes such as equities, bonds, and real estate. This diversification mitigates risk and provides some level of protection against market volatility.
  4. Rebalancing and Tax Efficiency: Regularly rebalancing portfolios and considering the tax implications of investment decisions are also points Malkiel stresses, especially relevant for high-net-worth individuals.

Tailoring Investment for Affluent Investors

For high-net-worth individuals and families, Malkiel's investment philosophy offers specialized applications:

  1. Customized Asset Allocation: The general principle of asset allocation holds true for all investors, but its implementation can be finely tailored for affluent clients. A diversified portfolio could include a mix of U.S. and international stocks, corporate bonds, and even tax-advantaged municipal bonds.
  2. Tax-efficient Investing: Malkiel's focus on tax efficiency is especially relevant for those in higher tax brackets. Strategies such as placing tax-inefficient assets in tax-advantaged accounts or employing tax-loss harvesting techniques can result in considerable tax savings.
  3. Regular Portfolio Rebalancing: For affluent families with substantial assets, regular portfolio rebalancing becomes even more critical. This exercise can help prevent asset drift and realign the portfolio with current financial goals and risk tolerance.
  4. Holistic Financial Planning: Malkiel’s principles also align well with the more complex financial planning needs typical among high-net-worth individuals, such as estate planning, succession planning, and charitable giving.

By carefully applying Malkiel’s principles, investors can more effectively safeguard their assets, grow their wealth in a tax-efficient manner, and align their investment strategies with broader financial and lifestyle goals. Given the complexities involved, the expertise of a professional wealth manager becomes indispensable in implementing these principles.

Burton Malkiel’s academic and practical contributions offer a robust foundation for those interested in responsible wealth management. His principles continue to shape the strategies of those seeking a secure financial future.

At Brickley Wealth Management, we provide the integrated services of CPAs and financial advisers to address your financial needs holistically. Reach out to us and discover the advantages of a streamlined approach to managing your wealth.

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Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are only offered to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure. The information throughout this website is solely for informational purposes. The content is developed from sources believed to provide accurate information, and we conduct reasonable due diligence review however, the information contained throughout this website is subject to change without notice and is not free from error. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. No investment or tax advice may be rendered by Brickley Wealth Management or Brickley & Company unless a client service agreement is in place. We are not providing any personalized investment advice through this website. Please consult your investment, tax, or legal advisor for assistance regarding your individual situation. Brickley Wealth Management does not provide legal advice, and nothing in this website shall be construed as legal advice. For more information on our firm and our advisers, please see the latest Form ADV and Part 2 Brochures and our Client Relationship Summary https://adviserinfo.sec.gov/firm/summary/287487. For a copy of our Privacy Notice, please go here.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

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Key Financial Terms 
Related to this Post:

This is some text inside of a div block.

Asset Allocation

The mixture of investments that you hold inside of your investment portfolio.
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Diversification

Spreading investments across different assets to reduce risk.
This is some text inside of a div block.

Index Funds

A type of mutual fund or ETF designed to track a specific market index, such as the S&P 500.
This is some text inside of a div block.

Rebalance

Adjusting an investment portfolio to realign with the portfolio’s intended allocation.
This is some text inside of a div block.

Tax Loss Harvest

A strategy that involves selling an underperforming investment to offset capital gains and reduce taxes.

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Contact@brickleywealth.com
(650) 638-0111

Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are only offered to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure. The information throughout this website is solely for informational purposes. The content is developed from sources believed to provide accurate information, and we conduct reasonable due diligence review however, the information contained throughout this website is subject to change without notice and is not free from error. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. No investment or tax advice may be rendered by Brickley Wealth Management or Brickley & Company unless a client service agreement is in place. We are not providing any personalized investment advice through this website. Please consult your investment, tax, or legal advisor for assistance regarding your individual situation. Brickley Wealth Management does not provide legal advice, and nothing in this website shall be construed as legal advice. For more information on our firm and our advisers, please see the latest Form ADV and Part 2 Brochures and our Client Relationship Summary https://adviserinfo.sec.gov/firm/summary/287487. For a copy of our Privacy Notice, please go here.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

2020 Brickley Wealth Management. All rights reserved.
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