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

355 Pages·2016·2.17 MB·English

by  Gregory Curtis

(cid:2)
(cid:2) (cid:2)
(cid:2)
(cid:2)
Family Capital
(cid:2) (cid:2)
(cid:2)
(cid:2)
(cid:2) (cid:2)
(cid:2)
(cid:2)
Family Capital
Working with Wealthy Families to
Manage Their Money across
Generations
GREGORY CURTIS
(cid:2) (cid:2)
(cid:2)
(cid:2)
Copyright©2016byGregoryCurtis.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
PublishedsimultaneouslyinCanada.
Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedin
anyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,or
otherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyright
Act,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthrough
paymentoftheappropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222
RosewoodDrive,Danvers,MA01923,[phone],fax[phone],orontheWeb
atwww.copyright.com.RequeststothePublisherforpermissionshouldbeaddressedtothe
PermissionsDepartment,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,
[phone],fax[phone],oronlineathttp://www.wiley.com/go/permissions.
LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbest
effortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttothe
accuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied
warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreated
orextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategies
containedhereinmaynotbesuitableforyoursituation.Youshouldconsultwitha
professionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforanyloss
ofprofitoranyothercommercialdamages,includingbutnotlimitedtospecial,incidental,
consequential,orotherdamages.
Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please
contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outside
theUnitedStatesat(317)572-3993orfax(317)572-4002.
(cid:2) (cid:2)
Wileypublishesinavarietyofprintandelectronicformatsandbyprint-on-demand.Some
materialincludedwithstandardprintversionsofthisbookmaynotbeincludedine-booksor
inprint-on-demand.IfthisbookreferstomediasuchasaCDorDVDthatisnotincludedin
theversionyoupurchased,youmaydownloadthismaterialathttp://booksupport.wiley.com.
FormoreinformationaboutWileyproducts,visitwww.wiley.com.
LibraryofCongressCataloging-in-PublicationData:
Names:Curtis,Gregory,1947-author.
Title:Familycapital:workingwithwealthyfamiliestomanagetheirmoney
acrossgenerations/GregoryCurtis.
Description:1|Hoboken:Wiley,2016.|Includesbibliographicalreferences
andindex.
Identifiers:LCCN2015036772(print)|LCCN2015045963(ebook)|ISBN
9781119094135(hardback)|ISBN9781119094111(ePDF)|ISBN9781119094128
(ePub)
Subjects:LCSH:Finance,Personal.|Wealth—UnitedStates.|
Investments—UnitedStates.|Finance—UnitedStates.
Classification:LCCHG179.C8482016(print)|LCCHG179(ebook)|DDC
332.02400973—dc23
LCrecordavailableathttp://lccn.loc.gov/2015036772
CoverDesign:Wiley
CoverImage:goldtree©Marinamik/iStockphoto
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
(cid:2)
(cid:2)
Contents
Preface ix
TheTitanFamily x
OrganizationoftheBook xi
ANotetoMiddle-IncomeInvestors xiii
Acknowledgments xv
Prologue:TheTitanFamilyinAmerica xvii
PreparationandUse xvii
TheExtendedTitanFamily xxii
TheTitanFamilyTree xxvi
(cid:2) (cid:2)
Summary xxvi
Note xxvi
CHAPTER1
GeorgeTitanIIIandHisCatastrophicMistake 1
PreparationandUse 1
HowNottoManageYourFamily’sMoney 1
TheMistakesGeorgeMade 9
WhataGoodAdvisorCouldHaveDonefortheTitans 12
Summary 17
Notes 17
CHAPTER2
NedandRoseSucceedJakeasCo-HeadsoftheFamily 19
PreparationandUse 19
NedandRoseReacttoGeorgeIII’sDecisiontoSellEquities 19
JakePicksNedandRoseasCo-HeadsofHisBranchofthe
TitanFamily 21
WhattheRegionalBrokerageFirmCouldHaveDoneBetter 35
Summary 38
v
(cid:2)
(cid:2)
vi CONTENTS
CHAPTER3
TheTitansSearchforandEngageaNewFinancialAdvisor 39
PreparationandUse 39
HowtheTitansConductedTheirSearch 39
ConcludingtheSearch 46
Summary 50
Notes 51
CHAPTER4
FirstMeeting:Governance,InvestmentStrategy,andOther
IntroductoryMatters 53
PreparationandUse 53
FirstMeetingwiththeTitans’NewAdvisor 53
Summary 62
Note 62
CHAPTER5
TheTitansCreateanInvestmentPolicyStatement 63
PreparationandUse 63
TheTitanFamilyMeeting 65
Summary 91
(cid:2) (cid:2)
Notes 95
CHAPTER6
EstablishingtheTitanFamily’sInvestmentObjectives 97
PreparationandUse 97
TheTitanFamily’sVersionofTheirInvestmentObjectives 97
Summary 121
Notes 122
CHAPTER7
TheTitansGrapplewithAssetAllocation 125
PreparationandUse 125
TheAssetAllocationMeeting 126
Summary 164
Notes 165
CHAPTER8
TheManagerSearchMeeting 167
PreparationandUse 167
TheManagerSelectionMeeting 168
Summary 206
Notes 207
(cid:2)
(cid:2)
Contents vii
CHAPTER9
ReviewingthePerformanceoftheInvestmentAccounts 209
PreparationandUse 209
ThePerformanceReportingMeeting 210
Summary 244
Notes 245
CHAPTER10
MiscellaneousInvestment-RelatedDiscussions 247
PreparationandUse 247
FamilyInvestmentEducation 247
AddingValuetotheTitanFamilyPortfolio 256
InvestmentCommittees 263
SociallyResponsibleInvesting 266
Summary 270
Notes 272
CHAPTER11
MiscellaneousNon-InvestmentDiscussions 275
PreparationandUse 275
(cid:2) HiringaCustodian 275 (cid:2)
FamilyLimitedPartnerships 280
FamilyPhilanthropy 281
TheFamilyOffice 290
HowMuchtoLeavetheKids 292
InequalityandWealth 295
Summary 307
Notes 308
AbouttheWebsite 311
AbouttheAuthor 313
Index 315
(cid:2)
(cid:2)
(cid:2) (cid:2)
(cid:2)