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Family Capital: Working with Wealthy Families to Manage Their Money Across Generations

Family Capital: Working with Wealthy Families to Manage Their Money Across Generations

Gregory Curtis

ISBN: 978-1-119-09393-0

Jan 2016

352 pages


The lifelong guide to effective family wealth management strategy

Family Capital provides a unique and practical lesson on wealth management. Instead of lectures and dry discussion, this engaging book follows an archetypal wealthy family through several generations and collateral family units to show you what effective family capital management looks like long-term. You will actually listen in on meetings between the family and its wealth advisor as they grapple with the many challenges family investors face. Expert wealth advisor Gregory Curtis provides advice and insight along the way, explaining why each strategy is effective, and how you can put it to work for you. You'll learn how to find an advisor you can trust, how to evaluate their performance, and how you can take the lead role in managing your wealth with the right advisor by your side. Estate planning and portfolio design are explored thoroughly to help you understand what makes sense for your family, and the companion website provides important forms and additional resources that help you put your plan into action.

You've worked hard and done well, but the work isn't over. It's important to protect your wealth and make the right decisions to ensure that your family capital remains strong enough to benefit future generations. This book gives you a lifelong guide to effective wealth management, with expert insight to answer your most pressing questions.

  • Find your ideal wealth advisor
  • Design and build your investment portfolio
  • Monitor your investments and your advisor's performance
  • Utilize trusts and other estate planning vehicles to your fullest benefit

The best way to learn something new is to hear lived experiences alongside expert commentary. Family Capital provides real-world perspective balanced by professional context, so you can tailor your next move to best suit your own situation.

Preface ix

The Titan Family x

Organization of the Book xi

A Note to Middle-Income Investors xiii

Acknowledgments xv

Prologue: The Titan Family in America xvii

Preparation and Use xvii

The Extended Titan Family xxii

The Titan Family Tree xxvi

Summary xxvi

Note xxvi

CHAPTER 1 George Titan III and His Catastrophic Mistake 1

Preparation and Use 1

How Not to Manage Your Family’s Money 1

The Mistakes George Made 9

What a Good Advisor Could Have Done for the Titans 12

Summary 17

Notes 17

CHAPTER 2 Ned and Rose Succeed Jake as Co-Heads of the Family 19

Preparation and Use 19

Ned and Rose React to George III’s Decision to Sell Equities 19

Jake Picks Ned and Rose as Co-Heads of His Branch of the Titan Family 21

What the Regional Brokerage Firm Could Have Done Better 35

Summary 38

CHAPTER 3 The Titans Search for and Engage a New Financial Advisor 39

Preparation and Use 39

How the Titans Conducted Their Search 39

Concluding the Search 46

Summary 50

Notes 51

CHAPTER 4 First Meeting: Governance, Investment Strategy, and Other Introductory Matters 53

Preparation and Use 53

First Meeting with the Titans’ New Advisor 53

Summary 62

Note 62

CHAPTER 5 The Titans Create an Investment Policy Statement 63

Preparation and Use 63

The Titan Family Meeting 65

Summary 91

Notes 95

CHAPTER 6 Establishing the Titan Family’s Investment Objectives 97

Preparation and Use 97

The Titan Family’s Version of Their Investment Objectives 97

Summary 121

Notes 122

CHAPTER 7 The Titans Grapple with Asset Allocation 125

Preparation and Use 125

The Asset Allocation Meeting 126

Summary 164

Notes 165

CHAPTER 8 The Manager Search Meeting 167

Preparation and Use 167

The Manager Selection Meeting 168

Summary 206

Notes 207

CHAPTER 9 Reviewing the Performance of the Investment Accounts 209

Preparation and Use 209

The Performance Reporting Meeting 210

Summary 244

Notes 245

CHAPTER 10 Miscellaneous Investment-Related Discussions 247

Preparation and Use 247

Family Investment Education 247

Adding Value to the Titan Family Portfolio 256

Investment Committees 263

Socially Responsible Investing 266

Summary 270

Notes 272

CHAPTER 11 Miscellaneous Non-Investment Discussions 275

Preparation and Use 275

Hiring a Custodian 275

Family Limited Partnerships 280

Family Philanthropy 281

The Family Office 290

How Much to Leave the Kids 292

Inequality and Wealth 295

Summary 307

Notes 308

About the Website 311

About the Author 313

Index 315