Wealth of Wisdom

CHAPTER 22Is Your Infrastructure Resilient?

Natasha Pearl

Mr. Bluebird (not his actual name) sold his successful operating business some years ago. He owns estates in three different locations. Upon arriving at his Colorado ranch for a much-needed vacation, he confronted three unpleasant surprises. First, he discovered that the dishwasher, motorized shades, and heating system were broken. He texted his estate manager, but she was on vacation (not visible on his calendar). Second, the pool and landscape vendors called Mr. Bluebird on his cell phone (how did they get his number?), stating that their unpaid invoices were more than 90 days past due. Third, he received an urgent e-mail (fourth request) from a private equity fund manager stating that 24 hours remained to wire substantial funds (which exceeded his cash on hand) for a capital call.

Mr. Bluebird serves as his own chief investment officer, selecting investment managers as well as making direct investments in private companies. He is planning to create a consolidated investment statement where he can view the cost basis and current valuation of his investments, but he hasn't gotten around to it just yet. In addition, he hasn't created an investment policy statement (IPS) and spends considerable time evaluating myriad opportunities that range from commodities, to tech start-ups, real estate, and cybercurrency. Tax season brings a flurry of K-1s and other documentation, which sometimes arrive at the wrong physical or e-mail ...