Freedom from Wealth: The Experience and Strategies to Help Protect and Grow Private Wealth
Charles A. Lowenhaupt, Don B. Trone
Format: PDF / Kindle (mobi) / ePub
The conventional wisdom is that the ultra wealthy get and stay that way by being smart about their money. In fact, families of significant wealth often neglect the simplest but most profound question in managing the family fortune: What is the wealth for?
Freedom from Wealth provides a detailed road map for managing fortunes across generations. Charles Lowenhaupt, one of the world's most respected experts on family wealth, and Don Trone, one of Investment Advisor's "30 most influential people in financial services," bring to life the wealth management lessons learned by some of the world's richest individuals and families.
Drawing on decades of experience, the authors offer an insider's perspective and share best practices to help you manage your or your family's wealth. Rich in detail and insight, Freedom from Wealth offers a thorough, step-by-step process that individuals and their advisors can apply to investment management, governance, succession planning, education, and philanthropy.
Written in an accessible, conversational language, Freedom from Wealth shows private wealth holders, their families, and their professional advisors how to:
Develop clear principles to outline the purposes of wealth across every aspect of life and across generations
Formulate a set of standards—a "business plan"—based on family principles
Select and work with a Standards Director who can effectively create, implement, and monitor the standards
Protect wealth by carefully executing due diligence
Implement the same processes and infrastructure that institutional investors—the smart money— have always used
Freedom from Wealth comes with valuable tools such as a model Private Wealth Policy Statement and a Self-Assessment Instrument that allow you to measure the success of your wealth...
ago. That is family philanthropy as well as corporate philanthropy. It strategically reinforces the family’s identity and legacy. Fifteen years ago, wealth holders in Hong Kong told me that philanthropy was not a part of their culture. Then I learned of many Hong Kong wealth creators who returned to their Chinese villages of origin to build schools, found hospitals, and provide other social services. Without foundations, tax benefits, and organizational infrastructures, these contributions to
her cash needs. But in today’s world, we must start by asking, what is cash? Cash is fundamentally currency, and deciding what currency or currencies should be seen as “cash” requires strategic analysis of needs and purposes. An individual based in the United States would likely consider the U.S. dollar cash and the Thai baht a speculative investment. Would the Thai resident apply the same analysis? And what should a family with residents in both the United States and Thailand treat as cash?
can be monitored, assessed, and modified over time, and professionals running the family wealth can be evaluated objectively by the wealth holder or others. Today each wealth holder, family, or family office is an island independently struggling to gather wisdom and process. The islands are surrounded by a sea of service providers who have developed systems and processes (generally compliant with governing law) to serve not only customers but also the employees and owners of the service
initiatives or solutions that will positively contribute to the goals and objectives of the wealth holder Champion new initiatives and identify opportunities or issues requiring change without prompting Introduce and implement solutions through spheres of influence A Standards Director who has weak “exemplary” skills has a tendency to: Leave “good enough” alone and conform to established rules and principles Wait for negative situations to settle over time or to correct themselves Be
publisher. ISBN: 978-0-07-177762-9 MHID: 0-07-177762-8 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-177763-6, MHID: 0-07-177763-6. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this