Purposeful Wealth Management (eBook)

Tom Warburton (Autor)

eBook Download: EPUB

2015 | 1. Auflage
176 Seiten
Yorkshire Publishing (Verlag)
978-1-942451-05-1 (ISBN)

Infos

What if there were a way to think purposefully about the major wealth management decisions each of us must make? Wouldn't it be great if someone could explain to us - in plain and simple English - the basics we must know to implement purposeful wealth management? At last, here's good news. Written for every person that wants to 'make work optional and maintain that status,' Purposeful Wealth Management reveals a process for ascertaining your uniquely personal goals, values, needs, resources, and obligations, then purposefully orchestrating the five key elements of wealth management - investments, taxation, estate planning, insurance, and charitable intent. Purposeful Wealth Management is the one and only book you'll need to have a successful wealth management experience.

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What if there were a way to think purposefully about the major wealth management decisions each of us must make? Wouldn't it be great if someone could explain to us - in plain and simple English - the basics we must know to implement purposeful wealth management? At last, here's good news. Written for every person that wants to "e;make work optional and maintain that status,"e; Purposeful Wealth Management reveals a process for ascertaining your uniquely personal goals, values, needs, resources, and obligations, then purposefully orchestrating the five key elements of wealth management - investments, taxation, estate planning, insurance, and charitable intent. Purposeful Wealth Management is the one and only book you'll need to have a successful wealth management experience.

Textauszug

INTRODUCTION

 

Our mission at Warburton Wealth Management is simple: We help our clients make work optional and maintain that status.

We believe every investor is benefited by ascertaining if their goals, values, needs, resources, and obligations are realistic by reviewing the current status of their wealth management.

Sometimes things look fine—that’s terrific! Some times things need work.

If you want to make work optional—and maintain that status—this book might be useful to you.

Life has been good to me, and now, for me, work is optional. My financial affairs are arranged such that, absent economic disaster, my wife and I are, as I like to say, “Wealthy to 100” and we will be able to maintain that status. Further, there will be money left over for our children, grandchildren, and for our Warburton Family Foundation.

So why do I work?

The answer is easy: Because I love it.

I love interacting with people who are fun, smart, and interesting. I love helping clients clarify their life goals, understand their financial options, and coordinate the moving parts of their financial lives. Helping people use their wealth to accomplish what’s important to them brings me joy.

This is probably not something your friendly neighborhood stockbroker, insurance salesperson, banker, or attorney does daily. He or she may be charming and may offer excellent service, but few of them attempt or aspire to coordinate all the moving parts of their client’s financial life.

I have seen wealth happen many times. I’ve met people who have won the lottery. I’ve worked with people who inherited wealth, who have grown a company and sold it for millions, who own land that sits atop newly proven oil and gas (or coal or water) reserves. There are surprisingly many people who have been magically transformed, generally as a result of their risk taking and hard work, from treading water to having millions.

Just because you are fortunate enough to reside in this seat in the stadium—having wealth—does that mean you’re prepared for the responsibilities?

Just because you’re wealthy, have you been trained to manage wealth? Skills are developed through lots of practice, learning, and experience over time. Managing wealth is a skill, like becoming a world-class athlete or a successful business owner.

Now that you are on the path to making work optional, will you take advantage of the tools and opportunities used by well-informed wealthy families?

Life can get in the way. Day-to-day obligations may be distracting. Is it obvious where to turn? Are you aware of the many tools and opportunities that exist?

With this book, I hope to heighten your awareness. If your goals, values, needs, resources, and obligations are in balance and you want to make work optional, this book is for you.

This book is also for you if, like many Americans, you have a sneaking suspicion that your retirement savings are inadequate. You might be concerned that work is never going to be optional.

Whatever your station in life, the investment and wealth management principles outlined herein will apply.

CAREER ODYSSEY

I’ve been an entrepreneur all of my life.

I started my first personal service business when I was eight years old and several others before I graduated from college.

After college, I worked in a business founded by my father in Coffeyville, Kansas. We had three employees and four customers. Our gross revenues were about $200,000 annually. We had clients in Oklahoma and Kansas.

I welded, drove the forklift, became a machinist, kept the books and, generally, did everything necessary to run a small business. Once I had a grip on the production, administrative, personnel, and finance elements of our enterprise, I hit the road as a salesman.

Over the next twenty years our company grew to become one of the largest industrial valve sales and service companies in the central states and the Rockies.

As our success grew, I began to live large. At one point, my monthly lifestyle burn rate (the amount of money I spent to maintain my standard of living) was well in excess of the annual earnings of most households.

Then I had a realization. I no longer wanted to be a slave to hotel rooms and airports. I wanted a sustainable rhythm for my life. So I sold everything. At age forty-seven, I was the president of nothing. I enthusiastically decided I would never work again.

I did what I thought any red-blooded American would do—I went to the golf course. I played over eight hundred rounds of golf in three years. But something unexpected happened. I discovered that this newfound life of leisure wasn’t very satisfying. Heck, it wasn’t satisfying at all!

Then one day, like a bolt from the blue, as I was standing on the practice tee mindlessly launching golf balls toward the horizon, I had a vision. I saw my grave. My lifelong best friend stood over me, saying, “There goes Tom. He came into this world with a lot of energy and quite a few skills, and he just hacked it around the golf course the last half of his life.”

I resolved that “hacking it around the golf course” would not be my legacy.

I knew I needed something to do. During this “golfing phase,” I happened to be the client of private banking groups in some prominent financial institutions. Their work had always fascinated me. Now, I discovered a new purpose: that of being employed by those same private banking groups that had been of service to me.

DISILLUSIONED WITH TRADITIONAL WEALTH MANAGEMENT

So, I went back to work.

After nineteen months in the trust department of a prominent super-regional bank, I was recruited by a globally prominent firm (“GPF”) to help manage the wealth of high net worth individuals. Incidentally, when I worked at the super-regional bank in the trust department, our target client was a widow or orphan with one-half to two million dollars to invest. Then, when I worked for the globally prominent financial services firm, our target client was liquid for $25 million or more. (If you had $20 million, they referred to you as “almost wealthy.”)

I did well with both of these firms. But eventually I faced an ethical dilemma. It turned out that no well-informed person could believe in the products they wanted me to sell.

Objective academic data proved to me that the GPF was selling “clever shiny things,” but not offering the financial instruments that would enable investors to most efficiently achieve their goals.

I took a long, deep look at the historical evidence and concluded that it is impossible to beat the market. (I’m convinced that over the long haul, no one can beat the market, “time” the market or consistently pick “winning” stocks.) But the GPF that employed me was asking me to “sell” their ability to beat the market.

As I studied the discipline, these experts made the most sense:

•  Eugene Fama, widely recognized as the father of modern finance and the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago;

•  Kenneth French, co-creator of the Fama/French Three-Factor Model and the Roth Family Distinguished Professor of Finance at Dartmouth College;

•  Harry Markowitz, widely recognized as the father of modern portfolio theory, a Nobel Laureate and Adjunct Professor of Finance at the University of California in San Diego;

•  And legions of other academicians espousing the virtues of financial science.

I’ll have much more to say about what financial science tells us about investing later in the book. For now, I want you to know what I believe.

1.  Unless you have access to the best passively managed funds in the world, you should invest in broad-based index funds. (Index funds are superior to active management but inferior to the products offered by Dimensional Fund Advisors. More on that later.)

2.  You should own the market and abandon efforts to beat the market. Never, ever buy a single stock, no matter what you’ve heard.

That’s a very quick summary of the investment piece of this book. But there is something else I learned at the globally prominent financial services firm and the super-regional bank: wealth management has many moving parts, and unless those parts are coordinated, the entire plan may collapse in rubble.

That means looking at investments, taxes, estate planning, insurance, charitable intent—everything. That’s the comprehensive coordination I believe is critical.

This is a book created for all investors. The goal of this book is to offer a wake-up call that says, “If you’ve got wealth now or plan to have it in the future, these are the factors you need to address.”

While I cannot direct every reader to an appropriate wealth management firm in his or her area, I can give advice regarding the questions you should ask, the questions a wealth manager should ask you, and the qualities to look for in a wealth manager. I hope you find that this book is interesting and useful, that it conveys the above referenced information, and that it helps you achieve your financial...

Produkt-Details

• Erscheint lt. Verlag: 24.2.2015
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft ► Geld / Bank / Börse
• ISBN-10: 1-942451-05-9 / 1942451059
• ISBN-13: 978-1-942451-05-1 / 9781942451051