Family Wealth Management: Seven Imperatives for Successful Investing in the New World Order
"Family wealth management is as much about family and its individual members as it is about finance and individual investments."—from the PrefaceThe successful management of family wealth has always been a challenge, even in the best of times. And it has become even more difficult in this new world order where income and capital growth are hard to generate, where the old rules of the game no longer provide reliable guidelines, and the careful balance of both family and financial considerations is more important than ever.Family Wealth Managementprovides a fully integrated and family-centric approach to wealth management, addressing the family's philosophy of wealth and the development of its goals, its approach to structuring and allocating financial assets, and the importance of engaging and educating family members along the way.It provides a practical review of the harsh lessons learned by many families over the past years and practical advice on how to avoid the failures and costs of outdated approaches to financial management.Authors Mark Daniell and Tom McCullough also provide helpful direction on the integration of a family business into family wealth management plans, actionable insights on the differences between private and institutional investing, and practical advice on how to manage family wealth on a principled basis in turbulent times.While there is no single playbook that will guarantee consistent, long-term investment success, the authors believe there are some basic common elements required for successful investing.The seven imperatives outlined in this book serve as both a guide to the critical insights necessary for successful family investing, and also offer a step-by-step process to help families develop and implement their own unique investment strategies, and achieve their overall objectives. The authors provide clear guidance on how to master each component.How to establish clear family vision, values, and goals as a critical foundation to a sound wealth management strategyHow to establish a practical, integrated investment framework that will ensure a consistent, disciplined approach in all environmentsHow to set a long-term family wealth strategy and define an asset allocation model that will produce the desired resultsHow to draft an annual investment policy statement and refine investment tactics based on capital markets trends and any changes in a family's economic situationHow to monitor performance against both internal goals and external benchmarksHow to select and manage an ecosystem of experienced, trusted financial advisors who will provide critical guidance through the challenging period aheadHow to engage and educate the family to preserve and enhance the family's financial wealth and human capital over generationsThe pursuit of the long-term goals of family wealth preservation and growth requires family leaders to manage both family and finance successfully and to avoid the many traps and pitfalls along the way. This is a balancing act that requires the simultaneous mastery of both change and continuity in the constantly evolving world of family wealth management.Comprehensive, practical, and easy to apply, this book will serve as an important reference guide for family members and their wealth managers in the current challenging environment—and for many years to come.