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DIY Financial Advisor: A Simple Solution to Build and Protect Your Wealth by David P. Foulke, Jack R. Vogel, Wesley R. Gray

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Preface

This book is a synopsis of our research findings developed while serving as a consultant and asset manager for large family offices. By way of background, a family office is a company, or group of people, who manage the wealth a family has gained over generations. The term family office has an element of cachet, and even mystique, because it is usually associated with the mega-wealthy. However, practically speaking, virtually any family that manages its investments—independent of the size of the investment pool—could be considered a family office. The difference is mainly semantic. For example, the term individual investor is often a reference to the head of a household who manages a family's assets. This “individual investor” is a de facto family office—no matter whether this individual investor manages a $10,000 portfolio or a $5,000,000,000 portfolio. The goal is the same as for even the largest family office.

There are benefits and costs to being a family office. The key advantage a family office or, by extension, any individual investor, has over so-called “institutional” investors, is the ability to make long-term investment decisions that maximize after-tax, after-fee risk-adjusted performance, without fear of a misalignment of incentives—those who own the money are the best stewards of the money. By contrast, a professional institutional investor, or “hired gun,” is crippled by a misalignment between the incentives of the owners of capital and those of the investment ...

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