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

A FIRSTHAND PERSPECTIVE ON FAMILY WEALTH MANAGEMENT BEST PRACTICES

Family Capital is the refreshing new guide to managing wealth for the very rich. Instead of lectures and dry discussion, this vividly engaging book follows an archetypal wealthy family through several generations of fortune and misfortune to show you what effective family capital management looks like long term in the real world. You sit in on actual meetings between the family and its wealth advisers as they grapple with the many common challenges family investors face. Expert wealth adviser Gregory Curtis interjects revealing advice and insight along the way, explaining why each strategy is effective, and how you can put it to work for you. By the time the family′s destiny has played out, you will be able to:

Find your ideal wealth adviser Design and build your investment portfolio Monitor your investments and your adviser′s performance Use trusts and other estate planning vehicles to your fullest benefit

Family Capital provides you with an exclusive skill set of knowledge and online resources for guiding families out of the shirtsleeves–to–shirtsleeves cycle of wealth.

Preface

The Titan family

Organization of the book

A Note to Middle Income Investors

Acknowledgments

Prologue

The Titan Family in America

Preparation and Use

The Extended Titan Family

The Titan Family Tree

Summary

Note

Chapter 1 George Titan III and His Catastrophic Mistake

Preparation and Use

How Not to Manage Your Family s Money

The Mistakes George Made

What a Good Advisor Could Have Done for the Titans

Summary

Notes

Chapter 2 Ned and Rose Succeed Jake as Co–Heads of the Family

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

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

What the Regional Brokerage Firm Could Have Done Better

Summary

Chapter 3 The Titans Search for and Engage a New Financial Advisor

Preparation and Use

How the Titans Conducted Their Search

Concluding the Search

Summary

Notes

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

Preparation and Use

First Meeting with the Titan s New Advisor

Summary

Note

Chapter 5 The Titans Create an Investment Policy Statement

Preparation and Use

The Titan Family Meeting

Summary

Notes

Chapter 6 Establishing the Titan Family s Investment Objectives

Preparation and Use

The Titan Family s Version of Their Investment Objectives

Summary

Notes

Chapter 7 The Titans Grapple with Asset Allocation

Preparation and Use

The Asset Allocation Meeting

Summary

Notes

Chapter 8 The Manager Search Meeting

Preparation and Use

The Manager Selection Meeting

Summary

Notes

Chapter 9 Reviewing the Performance of the Investment Accounts

Preparation and Use

The Performance Reporting Meeting

Summary

Notes

Chapter 10 Miscellaneous Investment–Related Discussions

Preparation and Use

Family Investment Education

Adding Value to the Titan Family Portfolio

Investment Committees

Socially Responsible Investing

Summary

Notes

Chapter 11 Miscellaneous Non–Investment Discussions

Preparation and Use

Hiring a Custodian

Family Limited Partnerships

Family Philanthropy

The Family Office

How Much to Leave the Kids

Inequality and Wealth

Summary

Notes

About the Author

About the Website

Index

GREGORY CURTIS is the chairman and founder of Greycourt & Co., Inc., an open–architecture wealth advisory firm serving substantial families and select endowments on a global basis. He is the author of Creative Capital and The Stewardship of Wealth, as well as numerous white papers on a variety of investment topics.