Family Inc. - Using Business Principles to Maximize Your Family''s Wealth

Actionable, intelligent CFO training for the Chief Family Financial Officer
 
Family Inc. is a roadmap to financial security for the family CFO. Too much personal wealth management advice essentially boils down to goal-setting, which isn't helpful or effective in terms of overall financial planning. This book takes a different track, giving you a crash course in corporate finance and the tools to apply the field's proven, time-tested principles in the context of your family's financial situation. You'll learn the key principles of wealth creation and management, and learn how to make your intellectual and real capital work for you. Your family situation is unique, and your principles must sometimes differ from the standard financial advice--and that's okay. Life is not a template, and even the best strategy must be able to adapt to real-life situations. You'll learn to chart your own path to financial security, utilizing the author's own tools that he developed over 15 years as an active board member, chairman of the board, or chief financial officer of multiple companies.
 
Oversimplified wealth management advice does not leave you equipped to manage your real-world finances. This guide is written with intellectual rigor, but in the language of family discussion, to give you a real, practical guide to being an effective family CFO.
* Create your own financial prosperity and security
* Align financial acumen with your family's specific situation
* Adapt to real-world situations and make your financial advisor work for you
* Utilize powerful financial tools to help you build financial independence
 
Every family needs a CFO to manage wealth, and the principles of corporate finance apply from the boardroom to the living room. Family Inc. delivers actionable advice in the form of CFO training to help you plot a real-world family financial plan.

List of contents

Foreword ix
 
Acknowledgments xiii
 
With Appreciation for America's Armed
 
Forces Service Members xv
 
Introduction xvii
 
Section I Every Family Needs a Chief Financial Officer 1
 
Chapter 1 Why Do I Need a CFO? I Don't Even Own a Business 3
 
Section II Maximize the Value of Your Single Biggest Asset--Your Labor 17
 
Chapter 2 Double the Value of Y our Labor through Education 19
 
Chapter 3 Make Career Choices That Extend Your Possibilities 29
 
Chapter 4 Think Like an Investor When Making Career Decisions 33
 
Chapter 5 Don't Overlook Retirement Benefits Just Because They're Not Imminent 45
 
Chapter 6 Complement Your Career Decisions with Insurance 49
 
Section III Manage Your Assets Like a CFO Manages a Business 55
 
Chapter 7 Your Financial Assets Serve Many Functions in Your Family Business 57
 
Chapter 8 Diversify Your Family Business with the Right Investments 61
 
Chapter 9 Define the Right Goals for Your Asset Management Business 75
 
Chapter 10 Use History to Make Reasonable Investment Assumptions 81
 
Chapter 11 Safeguard Your Assets from the Main Risks 97
 
Chapter 12 Not All Debt Is Bad! Use Debt to Purchase Assets and Maximize Your Liquidity 101
 
Chapter 13 Which Is Better, Active or Passive Investment Management? It Depends. . . . 105
 
Chapter 14 Use Indexing for Your Low-Cost Investment Portfolio 113
 
Chapter 15 Understand When It Makes Sense to Pick Individual Stocks and Managers 117
 
Chapter 16 The CFO's Step-by-Step Guide to Building the Family Investment Program 125
 
Chapter 17 Know Yourself--Understand the Psychological Factors That Can Torpedo Your Goals 131
 
Chapter 18 Don't Sweat the Details of Your Asset Management Business 135
 
Section IV Family Inc. Does Not Manage Itself 139
 
Chapter 19 Create Tools and a Reporting Dashboard for Managing Family Inc. 141
 
Section V Manage Your Family Endowment in Retirement 165
 
Chapter 20 Understand How Your Family Business Changes in Retirement 167
 
Chapter 21 Sleep Well--Protect Your Retirement through Insurance 169
 
Chapter 22 What's Your Number? Determine When and How Much You Can Afford to Spend in Retirement 179
 
Section VI Avoid the Rat Race--Change the Game by Changing the Rules 201
 
Chapter 23 Pay Yourself What You're Worth through Entrepreneurship 203
 
Chapter 24 Jump-Start Your Heirs' Financial Security 209
 
Chapter 25 Develop a Succession Plan to Groom Your Replacement(s) 213
 
Chapter 26 Develop and Manage Your Estate or Uncle Sam Will 217
 
Chapter 27 Maximize Your Charitable Legacy 221
 
Section VII A Call to Action 225
 
Chapter 28 "But It's Different This Time. . . ." 227
 
Chapter 29 Put Down the Book--Just Do It! 229
 
Appendix: How to Calculate Expected Lifetime Labor Value 231
 
Glossary 233
 
Notes 237
 
Index 243

About the author

DOUGLAS P. MCCORMICK has a lifetime of experiences that provide the foundation for the framework, principles, and tools in Family Inc. As a professional investor, he has spent two decades managing money for institutional clients such as insurance companies, pension funds, entrepreneurs, and high net worth families. Unlike Wall Street money managers who seek to generate paper profits through passive investing, Doug partners with families and entrepreneurs to build and grow their businesses to create sustainable value. Holder of a BS in Economics from West Point and an MBA from Harvard, he is a cofounder and a Managing Partner at HCI Equity Partners. His motivation for writing this book started with his own challenges finding good personal finance advice as a young adult and his belief that financial literacy is one of the largest problems facing Americans today. He is optimistic this problem can be solved through awareness, education, and hard work.

Summary

Actionable, intelligent CFO training for the Chief Family Financial Officer

Family Inc. is a roadmap to financial security for the family CFO. Too much personal wealth management advice essentially boils down to goal-setting, which isn't helpful or effective in terms of overall financial planning. This book takes a different track, giving you a crash course in corporate finance and the tools to apply the field's proven, time-tested principles in the context of your family's financial situation. You'll learn the key principles of wealth creation and management, and learn how to make your intellectual and real capital work for you. Your family situation is unique, and your principles must sometimes differ from the standard financial advice--and that's okay. Life is not a template, and even the best strategy must be able to adapt to real-life situations. You'll learn to chart your own path to financial security, utilizing the author's own tools that he developed over 15 years as an active board member, chairman of the board, or chief financial officer of multiple companies.

Oversimplified wealth management advice does not leave you equipped to manage your real-world finances. This guide is written with intellectual rigor, but in the language of family discussion, to give you a real, practical guide to being an effective family CFO.
* Create your own financial prosperity and security
* Align financial acumen with your family's specific situation
* Adapt to real-world situations and make your financial advisor work for you
* Utilize powerful financial tools to help you build financial independence

Every family needs a CFO to manage wealth, and the principles of corporate finance apply from the boardroom to the living room. Family Inc. delivers actionable advice in the form of CFO training to help you plot a real-world family financial plan.

Product details

• Authors: Douglas P. Mccormick, DP McCormick, McCormick Douglas P.
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 28.02.2019
• EAN: 9781119577416
• ISBN: 978-1-119-57741-6
• No. of pages: 272
• Subjects: Guides > Law, job, finance > Money, bank, stock market; Social sciences, law, business > Business > Business administration; Kapitalanlage, Finance & Investments, Finanz- u. Anlagewesen, Kapitalanlagen u. Wertpapiere, Investments & Securities