The stewardship of wealth : successful private wealth management for investors and their advisors /: successful private wealth management for investors and their advisors. (2012)

• Record Type: Book
• Uniform Title: Creative capital
• Further Information: Note: Gregory Curtis.
• Other Names: Curtis, Gregory, 1947-
• Contents: Preface xix Acknowledgments xxxi Part One The Importance of Private Capital Chapter 1 Wealth in America: The Indispensable Rich 3 Democracy and Capitalism 6 Capitalism and Its Contradictions 7 Providential Societies 10 Risk and Strength 12 America and Decline 13 On China 15 Addressing the Declinists 17 Conclusion: American Distinctiveness and Private Wealth 19 Notes 21 Chapter 2 Creative Capital 25 A (Brief) Moral History of Capitalism 26 The Ancients 27 Moral Arguments for Capitalism 28 Voltaire 28 Adam Smith 30 Hegel 31 Contemporary Discussions 32 The Moral Basis of Private Capital 33 Creative Capital in America 34 Higher Education: The Case of St. John’s College 37 Politics: The Conservative Resurgence 38 New Business Ideas: Venture Capital in America 39 Creative Capital and Vibrant Societies 42 Why Do Creative Capitalists Persist? 43 The Indispensable Nation 43 Conclusion: Underdogs and Bullies 45 Notes 47 Part Two The Stewardship of Wealth Chapter 3 Are We Living in a Permanent Financial Crisis? 53 The End of History (Again) 54 A Permanent Financial Crisis? 54 The Cause of the Crisis Matters 55 The Industrial Revolution and Its Aftermath 56 The Great (and Strange) Experiment 57 Seize the Means of Production! 59 The Power to Tax is the Power to Destroy—Societies 60 ‘‘Borrowing . . . the Disease is Incurable’’ 61 Now What? 63 But, First, a Note about Germany 66 Investing Capital in a (Very) Uncertain World 67 Conclusion: A World At Risk 68 Notes 68 Chapter 4 Risk 73 Families and Investment Risk 73 ‘‘Low’’-Risk Investments 74 ‘‘High’’-Risk Investments 75 ‘‘Reasonable’’-Risk Investments: Marketable Securities 76 The Law of Supply and Demand (Again) 76 Idiosyncratic Ideas about Risk 77 Real Risks: Those Embedded in the Process of Investing 78 Individual Stock Risk versus Broad Market Risk 78 Price Volatility 79 Wildness in the Tails 81 Investor Behavior 82 Making a Truly Terrible Decision 83 Variance Drain 83 Dick and Jane and Variance Drain 84 Later, at Le Cirque 85 Variance Drain Scenarios 86 Behavioral Finance: Are We Hard-Wired for Failure? 87 Professor Odean on Behavioral-Inspired Wealth Transfer 88 What Can We Do about It? 89 Edith and the Headwinds She Faces 90 The First Thing Edith Forgot: Variance Drain 91 The Second Thing Edith Forgot: Inflation 92 The Third Thing Edith Forgot: Investment Costs 92 The Fourth Thing Edith Forgot: Taxes 92 The Fifth Thing Edith Forgot: Spending 93 What Should Edith Do? 93 Conclusion: Preserving Wealth is Hard Slogging 96 Notes 97 Chapter 5 The Collapse of Ethical Behavior 101 What Caused the Crisis? 101 An Unsavory Rehash of the Ethical Failures 102 Ethical Failures in Subprime Lending 102 Ethical Failures among the Subprime Lending Banks 103 Ethical Failures in Auction Rate Securities 104 Ethical Failures among the GSEs 105 The Contemptible Public Disclosures of Financial Firms 107 Shorting the Securities You Are Selling to Your Clients 107 Paulson Bernanke & Co. and the Conspiracy of Silence 108 How Scandal Became Crisis 109 Trust 109 Customers 110 Why Such an Ethical Swamp? 111 Hedge Fund Wannabees 111 ‘‘When the Music Plays You Have to Dance’’ 112 Compensation Follies 113 Conflicts upon Conflicts 114 Where Do We Go from Here? 115 Conclusion: Fixing the Industry 116 Notes 117 Chapter 6 Finding the Right Advisor 119 Open Architecture as a Disruptive Business Model in the Advisory World 120 What is Open Architecture and Why is It So Important? 120 Open Architecture in the Financial Industry 121 The Impact on Investors 123 The Outsourced CIO Model 124 The Evolution of the Traditional, Nondiscretionary Model 125 Documenting the Trend toward the Outsourced CIO Model 126 What’s Driving the Trend toward the Outsourced CIO Model? 126 The Outsourced CIO Model Today 127 Advantages and Disadvantages of the Outsourced CIO Model 129 Is the Outsourced CIO Model Right for Your Family? 132 How to Select a Good Outsourced CIO Advisor 133 Finding the Right Advisor for Your Family 135 Dimensions of the Problem to Focus On 135 The Schulberg Family 136 Gathering Names 139 The RFP Process 139 Where is the Sample RFP? 143 Final Diligence 144 Where Does Diligence Leave Off and Psychodrama Begin? 145 Conclusion: Focusing On a Few Key Variables 146 Notes 147 Chapter 7 Making Family Investment Decisions 149 The Family Investment Committee Today 150 The Origin of the Investment Committee 150 Committee Dynamics 151 Making an Impact 152 Attempts to Deal with the Problem 152 Asset Allocation Guidelines and Investment Policy Statements 152 Using Outside Experts to Populate the Investment Committee 153 The Separate Investment Management Corporation 153 The Family Investment Committee, Tomorrow 153 The Investment Committee Operating Manual 154 Opportunity Costs: Prudence versus Returns 155 Prudence versus Returns for Trustees 155 Prudence versus Returns for Families 157 Striving for Prudence and Returns 159 Conclusion: Focusing On What Families Do Best 161 Notes 161 Chapter 8 Trusts 163 Open-Architecture Trusts 163 A Brief, Unconventional (but Wickedly Accurate) History of the Common-Law Trust from the Client’s Perspective 164 Professional Management 165 Deep Pockets 165 Perpetual Life 166 Sound Exercise of Discretion 166 Down with the Bundled Trust! Up with the Open-Architecture Trust! 166 Activities Required to Operate a Trust 167 The Nitty-Gritty of Establishing Open-Architecture Trusts 169 The Rise of Beneficiary Rights 170 If I Was a Big Trust Institution 171 Semi-Open Architecture Trusts 172 Private Trust Companies 173 Total Return Trusts 174 The Uniform Principal and Income Act 174 Unitrust Legislation 175 The IRS View 175 Total Return Trusts in States without Total Return Legislation 175 Conclusion: Let’s Get Revolutionary 176 Notes 176 Part Three The Rich Get Richer Chapter 9 Designing Taxable Investment Portfolios 183 The Markowitz Revolution 184 Problems with Mean Variance Optimization 185 Computational Power 185 Garbage In, Garbage Out 186 The Challenge of Developing Thoughtful Data Inputs 187 Multivariate Modeling 187 Taking Taxes into Account 188 Monte Carlo Simulations 189 The Problem of Fat Tails 190 Best Practices in Designing Investment Portfolios for Families 192 What Are the Objectives for the Portfolio? 192 Current Claims versus Growth Claims on a Portfolio 193 Matching Portfolio Assets to Each Type of Risk 194 Traditional Asset Allocation Modeling 195 <p&gt
• Publisher Details: Place of publication not identified : Wiley
• Publication Date: 2012
• Extent: 1 online resource (464 pages)
• Subjects: 332.02401; Investments -- United States; Wealth -- United States; Finance -- United States; BUSINESS & ECONOMICS / Finance
• Languages: English
• ISBNs: 9781118421635
• Access Rights: Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
• Access Usage: Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.