You are going to hear more and more about ‘gamma’. This is what a family office does. This article featured in the Journal of Retirement by David Blanchett and Paul Kaplan of Morningstar provides excellent detail on the concept.
“[I]nvestors arguably spend the most time and effort on selecting ”good” investment funds/managers—the so called alpha decision—as well as the asset allocation, or beta, decision. However, alpha and beta are just two elements of a myriad of important financial planning decisions for the average investor, many of which can have a far more significant impact on retirement income. [Gamma] is designed to quantify the additional value that can be achieved by an individual investor from making more intelligent financial planning decisions.”
Click here to read the article.