A life cycle approach to Islamic wealth management and risk tolerance

This paper examines a holistic, life cycle approach to Islamic wealth planning and management in relation to risk tolerance. In determining asset allocation, Islamic wealth planning must consider more than the risk-return trade-off of financial assets and take into account life cycle financial advi...

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Main Author:	Abdullah, Adam
Format:	Article
Language:	English
Published:	IIUM Press 2018
Subjects:	HG179 Personal finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/67295/ http://irep.iium.edu.my/67295/ http://irep.iium.edu.my/67295/7/67295-life%20cycle%20approach%20to%20Islamic%20wealth%20management%20and.pdf

id	iium-67295
recordtype	eprints
spelling	iium-672952018-11-02T05:53:34Z http://irep.iium.edu.my/67295/ A life cycle approach to Islamic wealth management and risk tolerance Abdullah, Adam HG179 Personal finance HG3368 Islamic Banking and Finance This paper examines a holistic, life cycle approach to Islamic wealth planning and management in relation to risk tolerance. In determining asset allocation, Islamic wealth planning must consider more than the risk-return trade-off of financial assets and take into account life cycle financial advice. This paper adapts a life balance sheet accounting approach that reflects both explicit and implicit Shari’ah compliant items in determining core capital, non-discretionary and discretionary wealth. The significance is that a Muslim wealth manager can objectively determine risk tolerance from implied leverage within the discretionary wealth framework of life cycle financial advice that better reflects the private client’s emotional goals and provides more flexibility in asset allocation. This contrasts with traditional net worth analysis of product-orientated personal financial planning that includes a subjective risk tolerance function derived from a questionnaire in determining asset allocation. This paper proposes a more holistic, sophisticated, goal-orientated approach, thereby enhancing the delivery of Shari’ah compliant Islamic wealth management services. IIUM Press 2018-11-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/67295/7/67295-life%20cycle%20approach%20to%20Islamic%20wealth%20management%20and.pdf Abdullah, Adam (2018) A life cycle approach to Islamic wealth management and risk tolerance. Journal of Islamic Finance, 7 (2). pp. 1-13. ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/index
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG179 Personal finance HG3368 Islamic Banking and Finance
spellingShingle	HG179 Personal finance HG3368 Islamic Banking and Finance Abdullah, Adam A life cycle approach to Islamic wealth management and risk tolerance
description	This paper examines a holistic, life cycle approach to Islamic wealth planning and management in relation to risk tolerance. In determining asset allocation, Islamic wealth planning must consider more than the risk-return trade-off of financial assets and take into account life cycle financial advice. This paper adapts a life balance sheet accounting approach that reflects both explicit and implicit Shari’ah compliant items in determining core capital, non-discretionary and discretionary wealth. The significance is that a Muslim wealth manager can objectively determine risk tolerance from implied leverage within the discretionary wealth framework of life cycle financial advice that better reflects the private client’s emotional goals and provides more flexibility in asset allocation. This contrasts with traditional net worth analysis of product-orientated personal financial planning that includes a subjective risk tolerance function derived from a questionnaire in determining asset allocation. This paper proposes a more holistic, sophisticated, goal-orientated approach, thereby enhancing the delivery of Shari’ah compliant Islamic wealth management services.
format	Article
author	Abdullah, Adam
author_facet	Abdullah, Adam
author_sort	Abdullah, Adam
title	A life cycle approach to Islamic wealth management and risk tolerance
title_short	A life cycle approach to Islamic wealth management and risk tolerance
title_full	A life cycle approach to Islamic wealth management and risk tolerance
title_fullStr	A life cycle approach to Islamic wealth management and risk tolerance
title_full_unstemmed	A life cycle approach to Islamic wealth management and risk tolerance
title_sort	life cycle approach to islamic wealth management and risk tolerance
publisher	IIUM Press
publishDate	2018
url	http://irep.iium.edu.my/67295/ http://irep.iium.edu.my/67295/ http://irep.iium.edu.my/67295/7/67295-life%20cycle%20approach%20to%20Islamic%20wealth%20management%20and.pdf
first_indexed	2023-09-18T21:35:34Z
last_indexed	2023-09-18T21:35:34Z
_version_	1777412796939501568

A life cycle approach to Islamic wealth management and risk tolerance

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