Book description
Discover the best ways to build, protect, and sustain family and business wealth across generations! Wealth is the world's most valuable guide to wealth management for individuals, families, business owners, and the "upwardly affluent." In the six years since Stuart Lucas first wrote this book, however, the financial world has changed dramatically. Throughout the financial crisis and beyond, Lucas has led the University of Chicago's Private Wealth Management program, teaching more than 500 members of the world's wealthiest families. Now, he brings together extraordinary insights and constructs informed by this experience. Wealth, Updated and Revised Edition retains its core advice, which has been tested and proven by the worst financial crisis since the Great Depression. However, Lucas has updated his exclusive Strategic Wealth Management Framework to help even more individuals, families, and entrepreneurs aspiring to wealth or seeking to protect it. Lucas highlights key value drivers - family purpose, the economic engine, and leakage management - that mark the difference between family enterprises that succeed for generations and those that fail. He offers updated, sage advice on making financial decisions, evaluating "expert" advice, running a family business office, tax/estate planning, philanthropy, wealth preservation, and more. Since developing a family's human capital is the best antidote to Wall Street excess, this edition adds even more robust and actionable guidance for building a culture of Entrepreneurial Stewardship: one that enables and encourages all family members to flourish, and improves the odds that families can sustain wealth. This book is for all successful business owners and anyone who possesses (or aspires to own) substantial financial assets, whether earned or inherited. It will also be of keen interest to investment advisors, business consultants, business brokers, wealth industry practitioners, lawyers, accountants, tax advisors, and others who counsel the wealthy (and upwardly affluent) about wealth management.
Table of contents
- Title Page
- Copyright Page
- Praise for the Previous Edition of Wealth
- Dedication Page
- Contents
- Foreword to the Second Edition
- Foreword to the First Edition
- Acknowledgments
- About the Author
-
Introduction
- Good Idea, Bad Start
- When Opportunity Comes Face to Face with Hard Work and Preparation
- End of an Era
- No Strategic Approach to Wealth Management
- Alarm Bells
- It’s Hard to Grow Assets AND Enjoy the Fruits of Success at the Same Time!
- Our Wealth Represented More Than Cash
- We Needed to Get a Handle on Our Investment Portfolio
- Introducing Strategic Wealth Management
- We Are Stewards, Not Owners, of Our Wealth
- Taking Control for the First Time
- The Power and Purpose of Entrepreneurial Stewardship
- Philanthropy Has Emerged as a Shared Interest Among Many Family Members
- Closer Family Ties
- The Value of Family Lore
- How My Dad Taught Me the Value of Money
- A Book About Strategic Wealth Management
-
1. Protecting and Growing Your Wealth
- Transitions
- How the Wealth Management Industry Works
- Classic Approach to Wealth Management
- Strategic Wealth Management of Your Family Enterprise
- The Eight Principles
- The Family as a Cultural System
- Taking Control of the Wealth Management Process
- The Nature of the Wealth Strategist’s Role
- Conclusion
- Chapter 1: Issues to Discuss with Your Family
- Endnotes
-
2. Eight Principles of Strategic Wealth Management
- Principle #1: Take Charge and Do It Early
- Principle #2: Align Family and Business Interests Around Wealth-Building Goals and Strategies
- Principle #3: Create a Culture of Accountability
- Principle #4: Capitalize on Your Family’s Combined Resources
- Principle #5: Delegate, Empower, and Respect Independence
- Principle #6: Diversify but Focus
- Principle #7: Err on the Side of Simplicity When Possible
- Principle #8: Develop Future Family Leaders with Strong Wealth Management Skills
- How to Use the Eight Principles in the Strategic Wealth Management Framework
- Conclusion
- Chapter 2: Issues to Discuss with Your Family
- Endnotes
-
3. Start with Your Family Purpose
- Question #1: What Do You Want to Accomplish with Your Wealth?
- Question #2: What Is the Role of Family Business in Your Family Enterprise?
- Question #3: When It Comes to Investing, Would You Rather “Eat Well” or “Sleep Well”?
- Question #4: What Talents Within Your Family Can You Tap Into to Further Expand Your Family’s Productivity and Wealth?
- Question #5: Are You Committed to Creating a Culture of Accountability in Your Family and with Your Wealth Advisors?
- Question # 6: Are You Bullish or Bearish on the Global Economy, Business, and Investing?
- Question #7: To What Extent Are Your Assets Under Threat?
- Question #8: How Should My Family Communicate About Its Wealth?
- Question #9: Do You Plan to Build Family Leadership to Grow Your Wealth over Multiple Generations?
- Question #10: How Important Is It to You to Maximize Tax Efficiency? Will It Change in Future Generations?
- Pulling the Ten Questions Together: Translating Your Family Purpose into Financial Goals
- Conclusion
- Endnotes
-
4. Defining Your Financial Objectives
- The “Distribution-Driven” Category of Financial Management
- The “Growth-Driven” Category of Financial Management
- Different Plans—Different End Results
- Two Market Forces That Affect Any Wealth Management Approach
- Putting Numbers to the Different Approaches
- Finding the Right Financial Objective for the Lucas Family
- Benefits of a Unified Wealth Management Approach
- Adjusting for Tax-Deferred Assets
- Growing Wealth While Spending It Is Hard to Do
- Pulling It All Together
- Where the Rubber Meets the Road—Making Your Financial Objectives Work for Your Family
- What Do You Do?
- Conclusion
- Chapter 4: Issues to Discuss with Your Family
- Endnotes
-
5. The Enchanted Forest, the Secret Society, and the Capital Kibbutz
- Regulation
- The Four A’s
- The Mutual Funds Industry: Open Architecture Comes to Private Investors
- Should I Use a Retail Brokerage?
- Trust Bank Services
- The Gap in the Individual Investment Process
- How Can You Distinguish Among Wealth Advisors?
- The Enchanted Forest
- The Secret Society
- The Capital Kibbutz
- A Travelogue: Helping a Friend Get Out of the Enchanted Forest and Into the Secret Society
- Mutual Fund Indexing: Why It’s the Investment Path for Most Individuals
- A New Perspective on the Wealth Management Industry
- Traveling the Investment Landscape
- Conclusion
- Chapter 5: Issues to Discuss with Your Family
- Endnotes
- 6. Picking Your Investment Strategy
- 7. Making Your Most Important Hire
-
8. Taxes Can Be Your Ally!
- Where Do You Begin?
- Takeaway #1: U.S. Taxing Authorities Are Your Investing Partners
- Takeaway #2: Be a Long-Term, Equity-Oriented Investor
- Takeaway #3: Improve Investment Results Through Tax Management
- Takeaway #4: Don’t Overcommit to Retirement and Deferred-Compensation Plans
- Takeaway #5: Don’t Put After-Tax Income into Variable Annuities and Retail Life Insurance Savings Plans
- Conclusion
- Chapter 8: Issues to Discuss with Your Family
- Endnotes
-
9. Promoting Entrepreneurial Stewardship
- Entrepreneurial Stewardship
- Udders and Herds
- “Fly First-Class; Your Children Will”
- You Have to Take Risks
- Think Twice Before Selling
- Reorienting Yourself
- Growing Up In Privilege
- Education and Entrepreneurial Stewardship
- Family
- Parenting
- Family Meetings
- Entrepreneurial Stewardship in Families
- Nepotism
- Fairness
- Conclusion
- Chapter 9: Issues to Discuss with Your Family
- Endnotes
- 10. Making Philanthropy Part of Your Strategic Wealth Program
-
11. Putting It All Together: Multigenerational Planning and Wealth Transfer
- The Estate Planning Road Map
- Step #1: Anticipate and Communicate About Your Eventual Demise
- Step #2: Focus on Defense; Let Your Heirs Worry About Offense
- Step #3: Deal with Family Houses and Other “Legacy Assets”
- Step #4: Perpetuate the Family’s Economic Engine
- Step #5: Prepare Estate Plans to Create Income Streams
- Step #6: Accomplish the Must-Dos
- Conclusion
- Chapter 11: Issues to Discuss with Your Family
- Index
- Financial Times Press
Product information
- Title: Wealth: Grow It and Protect It, Updated and Revised
- Author(s):
- Release date: December 2012
- Publisher(s): Pearson
- ISBN: 9780133132847
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