پارسی   English   العربیه

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


Family Inc. is written with the intellectual rigor of a corporate finance class but in the language of family discussion, with many examples from the author’s own family. Family Inc. is about making choices--in education, career, investments, and looking at how to make those investments durable over the long term. Family Inc. is intended for intelligent people who have the potential to become high income earners and want to develop a comprehensive, actionable, customized plan--a plan that acknowledges the relationships between job, net worth, age, consumption pattern and long-term financial objectives.

While it cannot guarantee financial security, Family Inc. will give you the tools to develop a comprehensive financial plan and fully appreciate the implications of your decisions. As a professional private equity investor, HCI Equity’s co-founder Doug McCormick has spent substantial time analyzing various businesses and evaluating the financial profile of good companies. He has become involved in all financial aspects of the businesses his company invests in¯strategic planning, financial analysis, budgeting, capital structure, capital raising, acquisitions and restructurings. During the past 15 years, McCormick has served all these businesses as an active board member or chairman of the board and in some cases as chief financial officer.  Along the way, he realized along the way that many of the financial principles employed by successful companies are also relevant to personal financial planning and management. In detail, you will learn what it takes to be “CFO” of your own family’s future.

Family Inc. provides:

•   Key principles and recommendations for creating your own financial prosperity and security.

•   How to manage a financial advisor, so he or she works for you--and so does your intellectual and real capital.

•   How to understand how your family situation may dictate that you do things differently, so that personal finance acumen aligns with your family’s situation.

•   How your principles as family CFO should sometimes differ from standard advice offered by financial advisors, and for good reason. Life is not a template, and plans must adapt to real-world situations.

•   How to build your own comprehensive road map to financial security and independence, using some powerful financial tools personally created by McCormick to help you along the way.

Table of Contents

Introduction 5

Section I: Every Family Needs a Chief Financial Officer

Chapter 1: Why Do I Need a CFO? I Don’t Even Own a Business 8

Section II: Maximize The Value of Your Single Biggest Asset--Your Labor

Chapter 2: Double the Value of Your Labor through Education 22

Chapter 3: Make Career Choices That Extend Your Possibilities 31

Chapter 4: Think Like an Investor When Making Career Decisions 34

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

Chapter 7: Your Financial Assets Serve Many Functions in Your Business 56

Chapter 8: Diversify Your Family Business With the Right Investments 60

Chapter 9: Define the Right Goals for Your Asset Management Business 75

Chapter 10: Use History to Make Reasonable Investment Assumptions 79

Chapter 11: Safeguard Your Assets from the Main Risks 90

Chapter 12: Not All Debt Is Bad! Use Debt to Purchase Assets And Maximize Your Liquidity 93

Chapter 13: Which Is Better, Active or Passive Investment Management? It Depends … 97

Chapter 14: Use Indexing for Your Low-Cost Investment Portfolio 105

Chapter 15: Understand When It Makes Sense to Pick Individual Stocks and Managers 109

Chapter 16: The CFO’s Step By Step Guide to Building the Family Investment Program 116

Chapter 17: Don’t Sweat the Details of Your Asset Management Business 121

Section IV: Your Family Businesses Does Not Manage Itself

Chapter 18: Create Tools for Monitoring and Managing Your Family Business 125

Section V: Manage Your Family Endowment in Retirement

Chapter 19: Understand How Your Family Business Changes in Retirement 153

Chapter 20: Sleep Well--Protect Your Retirement Through Insurance 155

Chapter 21: What’s Your Number? Determine When and How Much You Can Afford to Spend in Retirement 166

Section VI: Avoid the Rat Race--Change the Game by Changing the Rules

Chapter 22: Pay Yourself What You’re Worth Through Entrepreneurship 188

Chapter 23: Jump-Start Your Heirs’ Financial Security 192

Chapter 24: Develop a Succession Plan to Groom Your Replacement(s) 196

Chapter 25: Develop and Manage Your Estate or Uncle Sam Will 200

Section VII: A Call To Action

Chapter 26: “But It’s Different This Time …” 203

Chapter 27: Put Down the Book--Just Do It! 205

Appendix: How To Calculate Expected Lifetime Labor Value 208

Glossary 210

Notes 212