Ipi search for the financial administrator


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  • Not us
  • People still say” why don’t you just go to Goldman?”
  • BREAKDOWN BETWEEN REPORT CARD AND MISSION. Thanks to Kristi. Where are the customers yahcts?Have I beaten up on the industry enough yet?
  • Simon excellent presentation…..the problem with wealth that grows in a linear fashion and a family that grows geometrically. Wealth, Lucas: 17% return required. Jpmorgan
  • Also, 50 Best Practices. What key roles must or should be performed by 9 family member?
  • Kristi. Prefer Complexity. Trust issues. Succession. Wide dispersions of sophistication.
  • Did we need someone who was formerly our currently a trader? Tax aware investing can add 2-2.5%. Quarterbaack 1202 tax treatment small company example.
  • A journey. Hard to find comprehensive materials.
  • History of attempts to collaborate.
  • Ipi search for the financial administrator

    1. 1. RAMESES III<br />Whither Perpetuity?<br />A Family Office Redefines its Mission and Searches For the Right Advisor to Make it Happen<br />
    2. 2. “Not hiring me will be the greatest mistake your family has ever made.”<br />-An unsuccessful candidate to become our key trusted advisor.<br />
    3. 3. Works Cited<br />
    4. 4.
    5. 5. Who qualifies to be a real fat cat?<br />Odd how purveyors of MFO and other service providers to the wealthy can’t agree on what asset level you need to be able to afford a single family office – just that it’s a lot. Probably just north of the target market of that particular advisor. <br />
    6. 6.
    7. 7.
    8. 8. Wealth Management <br />A broken business model, but in flux. It is for the better?<br />In the “so strange it must be true” dept…<br />Only 7% of Relationship managers felt strongly they had recd adequate training to complete their job to the highest standard in a 2009 PWC survey of Private Bankers.<br />
    9. 9. Unobtainable Goals<br />Finding a realistic mission somewhere in between “maintaining spending power for all future generations “ and “avoiding bankruptcy.” <br />“The most important risk to a family is not loss in the portfolio. The most important risk to a family is not meeting its goals.” <br />Ashvin Chhabra, Fall Forum, October 2008<br />
    10. 10. Family Office as Risk Manager--Not Doing Its Job<br />Lack of a shared vision for the future<br />Lack of an effective decision making process<br />Lack of transparent family communications<br />Improper ownership structure<br />Inappropriate diversification of assets<br />Lack of focus on key family risks …and failure to create mitigation strategies for those risks. <br /><ul><li>(Family Office Exchange and U.S. Trust Family Wealth Group, 2006, p. x)
    11. 11. What key roles must or should be performed by a family member?</li></li></ul><li>Self-Awareness<br />Who are you that wanted only a [consultant] to join you in your nonsense?<br />Walt Whitman<br />A hunchback is always happy when he see another hunchback.<br /> David S. Brown, my grandfather<br />
    12. 12. Unusual Needs?(Highlights)<br />Makes our own office simpler and eases succession from my father<br />Prefers simplicity yet sophisticated enough to counterbalance me<br />Natural Skeptic<br />Had good potential to earn the trust of the entire family not just thru personality but through the rigorous transparency of their reporting<br />Not looking to get rich but rather a passion for the work and a calling to serve our family. (Jay Hughes’ Personne d’ Confidance)<br />All investment and planning processes were thoroughly integrated into an after-tax, after-fee and cost of support framework<br />A firm that fit into and supported our risk management mindset<br />A quarterback to my coach. Makes our various service providers a team.<br />
    13. 13. Process so far…<br />Mission & Goals<br />Inventory Needs<br />Identify Likely Candidates<br />Compose RFI or RFP related to need<br />Create and Weight Scorecards In Advance<br />Distribute Requests to Candidates. Interview, Score. <br />Check Multiple References. Re-interview, rescore.<br />Total time: 14 months and counting….<br />
    14. 14. An opportunity for collaboration<br />I have created a Wiki to access and edit the tools I used in our search:<br />http://familyoffices.pbworks.com<br />Please, as you visit, post your comments and feel free to add or edit what is there based on your own experiences and wisdom. <br />Currently posted: Our Mission (please post your own), Roles in our Office, Needs Assessment, Cover Letter, RFI, Scorecard, reading list, and a list of potential candidates.<br />Questions? eugene@lipitz.com<br />
    15. 15. Further Reading<br />Family Office Exchange. (2008). 50 Best Practices for an Enduring Family Enterprise. Chicago, London: Family Office Exchange. <br />Family Office Exchange and U.S. Trust Family Wealth Group. (2006). Recasting the Central Role of the Family Office as Risk Manager. Chicago, London: Family Office Exchange. Possibly the finest thing ever put out by this fine organization and central to my thinking in identifying our goals.<br />Horan, S. (Summer, 2008). After-Tax Performance Management. The Journal of Wealth Management. To answer those that say after-tax performance isn’t possible (which is not to say it’s easy)<br />Hughes, J. (2007). Family: The Compact Among Generations. Specifically the Chapters on the Personne d’ Confidance.<br />Institute of Private Investors. (2009). Mutually Agreed-To Expectations. from https://www.memberlink.net/mutually-agreed-to-expectations<br />Institute of Private Investors. (2009). Ten Principles. https://www.memberlink.net/sites/default/files/IPI_report_2009_ch_1.pdf<br />Kuechler, K. (2009). Deciding Whether or Not To Hire An Advisor. Institute of Private Investors, Fall Forum. San Francisco. <br />Lucas, S. (2006). Wealth: Grow It, Protect It, Spend It, Share It. A wonderful primer that helped frame the problems and the questions.<br />Rogers, D. (2004). Tax Aware Investment Management. Contains detailed RFI questions related to this subject.<br />Schwed, F. (1955). Where Are the Customers' Yachts? or A Good Hard Look at Wall Street.<br />Zagst, R. e. (Fall, 2008). Asset Liability Management in Financial Planning. The Journal of Wealth Management. You don’t have to understand this, but your consultant certainly should.<br />