The Taxable Investor's Manifesto. Stuart E. Lucas. Читать онлайн. Newlib. NEWLIB.NET

Автор: Stuart E. Lucas
Издательство: John Wiley & Sons Limited
Серия:
Жанр произведения: Личные финансы
Год издания: 0
isbn: 9781119692027
Скачать книгу
management; doing it right will help you grow your assets faster and with less effort.

      In this book, I explore both the straightforward and the more complex path. Fortunately, any family investment office, business owner, successful career builder, or young professional, regardless of the size of their wealth, can achieve success using either path. They simply need to match skill with strategy, build the right support structure, and follow the guideposts in this manifesto. Either path creates multiple ways to add value and does so with high odds of success; neither one embraces the traditional “holy grail” of “beating the market,” upon which most wealth advisors market their wares.

      For those readers who are interested, the manifesto cites academic and other well-researched literature to supply you with supporting data for key concepts. There is good research about taxable investing out there, but it is diffuse and hard to find. This manifesto aims to provide a single, comprehensive, accessible guide that taxable investors and their advisors can use to sharpen their own thinking, align interests, and improve results over decades, even generations, by millions of dollars.

      The Taxable Investor's Manifesto is organized in a straightforward manner. Chapters 1 to 7 describe seven value drivers that pertain to everyone and that are straightforward to execute. They should be approached as a coordinated strategy, not something from which to cherry-pick one or two ideas. Each component adds value. Collectively, they are at their most powerful and profitable; if one component fails, you still have multiple ways to win. One can sum up this advice as a Hippocratic Oath for taxable investors: First, do no harm.

      Chapters 10, 11, and 12 integrate the business, financial, and cultural elements of managing a complex, potentially multigenerational, family enterprise. At their core, family enterprises require values and vision that support a strong economic engine and a flourishing family. They also must navigate complex estate taxes and the evolution of control and ownership from one generation to the next. Building and managing all this in the face of change, uncertainty, and timeframes that can approach 50 years or more is no small challenge, but it can be done, and the results are powerful.

      Chapter 13 is a reminder to everyone that investing involves risk. I explore the key risks to investing in this way, at least the ones I can foresee. It's important to process the risks to be alert to them and to not be distracted by the inevitable ups and downs of market movements that are unavoidable parts of the landscape.

      Many wealth owners reading this manifesto are mulling over whether to manage their financial assets themselves or to hire an advisor to help them. Having read it, I believe that most will be convinced that choosing a skilled advisor is instrumental to long-term success. You will also have increasing conviction to identify the right advisor, hold them accountable, and compensate them appropriately. The right talent comes at a price but pays for itself many times over. In Chapter 14, I discuss how to choose the advisor you need to help you accomplish your objectives. The answer varies depending on your scale, the complexity of your circumstances, and your time horizon. The challenge is to find a person or team who offers what you need, has the mindset and skills to deliver on their promise, and whose interests are aligned with yours.

      This manifesto illuminates a path out of this bind, to the benefit of both wealth owners and their advisors. There is so much value creation that goes into comprehensive, strategic, after-tax wealth management that has largely gone unrecognized, undelivered, unmeasured, and unpaid for. Looking forward, we can change this. Taxable investors deserve to get good advice and advisors deserve to get paid fairly for delivering it.

      Note

      1 1 One of my favorite quotes from John “Jack” Bogle, the founder of Vanguard Group, comes from his April 13, 2004, “Gary M. Brinson Distinguished Lecture,” where he speaks about why it was taking so long for indexing to catch on: “The problem faced by low cost no-load