Wealth of Wisdom

TOM McCULLOUGH is Chairman and CEO of the Northwood Family Office, a multifamily office that serves the comprehensive needs of families of wealth. He has more than three decades of experience in the field of family wealth management and is an Adjunct Professor and Executive-in-Residence at the University of Toronto’s Rotman School of Management. He is the co-author of two other books — Family Wealth Management: Seven Imperatives for Successful Investing, and Wealth of Wisdom: The Top 50 Questions Wealthy Families Ask. KEITH WHITAKER, PhD, is president of Wise Counsel Research, a leading consultancy to families with wealth on governance, communication, and the development of rising generation leaders. He has been published in The Wall Street Journal, The New York Times, The Financial Times, and has co-authored six other books for Wiley, including Cycle of the Gift, Voice of the Rising Generation, and Complete Family Wealth.

Foreword xiii
James E. Hughes, Jr.

Acknowledgments xv

Introduction xvii

Assessing Your Family’s True Needs xxi

Section 1 Thinking Through What Matters Most 1

Chapter 1 Four Profound Questions for Families 3
Ellen Miley Perry

Chapter 2 Identifying Actionable Values for Family and Enterprise 7
Doug Baumoel and Blair Trippe

Chapter 3 Values That Matter 13
Sharna Goldseker and Danielle Oristian York

Chapter 4 A Framework for Family Wealth and Well-Being 19
Richard Franklin and Claudia Tordini

Chapter 5 Understanding Identity and Social Power 27
Kofi Hope and Zahra Ebrahim

Chapter 6 Tapping Character Strengths to Move Families Forward 33
Kristin Keffeler

Chapter 7 Using the Ikigai Model to Foster a Legacy of Meaningful Engagement 39
Don Opatrny and Keith Michaelson

Chapter 8 Stages of Wealth Integration 45
Courtney Pullen

Chapter 9 Learning from Your Money History and Writing a New Story 51
Jill Shipley

Chapter 10 Envisioning the Future 59
Jamie Traeger-Muney

Section 2 Becoming a Learning Family 67

Chapter 11 Benchmarking Your Family Against Successful Global Families 69
Dennis Jaffe

Chapter 12 Understanding the True Goals of Wealth Preparation 75
James Grubman

Chapter 13 Advancing Flourishing: A 10x10 Learning Roadmap 81
Stacy Allred, Joan DiFuria, and Stephen Goldbart

Chapter 14 Finding What’s Next for Your Family 97
Barton Parrott

Chapter 15 Creating Impactful Learning Programs for Families 103
Greg Burrows and Ruth Steverlynck

Chapter 16 Developing a Family Wealth Education Plan 111
Kirby Rosplock

Chapter 17 Practical Tools for Building Healthy Families 119
Christian Stewart

Section 3 Planning Thoughtfully 127

Chapter 18 Expressing Purpose in Your Trusts 129
John A. Warnick

Chapter 19 Managing a Shared Family Property 137
Jamie Forbes

Chapter 20 Creating a Family Bank 143
James E. Hughes, Jr.

Chapter 21 Undertaking a Family Risk Assessment 147
Linda Bourn

Chapter 22 Is Your Infrastructure Resilient? 155
Natasha Pearl

Chapter 23 Creating a Family Owner’s Manual 161
Josh Kanter

Chapter 24 Family Behavioral Health Wellness Assessment 167
Arden O’Connor

Chapter 25 Building a Smart Aging Plan 173
Susan Hyatt

Chapter 26 Managing the Risk of Diminished Capacity 179
Patricia Annino

Chapter 27 Creating an Ethical Will 189
Scotty McLennan

Section 4 Investing Wisely 197

Chapter 28 Monitoring Financial Capital with the “Four Horsemen” Graph 199
Scott Peppet

Chapter 29 Keeping Goals in the Spotlight with Capital Sufficiency Analysis 203
Joe Calabrese

Chapter 30 Constructing an Investment Portfolio to Support Family Goals 209
Jean Brunel and Voyt Krzychylkiewicz

Chapter 31 Investment Education for Family Members 219
Jim Garland

Section 5 Seeking Sound Advice 225

Chapter 32 Assessing Your Family’s Financial and Family Management Needs 227
Scott Hayman and Tom McCullough

Chapter 33 Finding an Advisor Who Will Help Your Family Thrive for Generations 235
Kathy Lintz and Ned Rollhaus

Chapter 34 Choosing Trustees with Care and Wisdom 241
Kim Kamin

Chapter 35 Assessing Your Readiness for a (Family Enterprise) Leadership Coach 251
Greg McCann

Chapter 36 Understanding Advisors’ Fees 255
Mark Pletts

Section 6 Raising the Rising Generation 261

Chapter 37 Balancing Entitlement and Responsibility in Children’s Birthdays 263
Joline Godfrey

Chapter 38 A Ritual to Send Children off to College 269
Andrew Doust

Chapter 39 Developmental Life Lessons for Grandchildren 277
William (Bo) and Suzanne Huhn

Chapter 40 Deciding If You Should Join the Family Business 281
Josh Baron and Rob Lachenauer

Chapter 41 How Can You Ensure the Success of Your Successors? 287
Dean Fowler

Chapter 42 The Intergenerational Dialogue 295
Susan Massenzio

Section 7 Navigating Family Dynamics 299

Chapter 43 A Three-Step Process for Enhanced Communication 301
Keith Whitaker

Chapter 44 Strengthening Your “Family Factor” to Deconstruct Conflict 305
Blair Trippe and Doug Baumoel

Chapter 45 Using Genograms to Understand Family Patterns 311
Guillermo Salazar

Chapter 46 Achieving New Insights and Possibilities through Generative Dialogue 317
Michelle Osry

Chapter 47 How Powerful Are Your Questions? 323
Ian McDermott

Chapter 48 Expectations versus Agreements 329
Mimi Ramsey and Stephanie Hardwick

Chapter 49 Enhancing Sibling Relationships 335
Christian Stewart

Chapter 50 Gamechanging 343
Matt Wesley

Section 8 Making Shared Decisions 349

Chapter 51 Hats Off to You! 351
Lee Hausner

Chapter 52 How to Balance Family Stability with Resilience over Generations 355
James Grubman

Chapter 53 Making Better Decisions by Telling Stories That Have “Already Happened” 359
Stacy Allred

Chapter 54 Democratizing Family Decision-Making 365
Barbara Hauser

Chapter 55 Using RACI to Determine Roles and Responsibilities in a Complex Multigenerational Family Enterprise 369
Kathryn McCarthy

Chapter 56 Creating Internal Controls and Policy and Procedures for a Family Office 377
Eugene Lipitz

Chapter 57 Leading Successful Family Meetings 381
Katherine Grady and Wendy Ulaszek

Chapter 58 Establishing Ground Rules for Family Meetings 387
Keith Whitaker

Section 9 Giving Together 391

Chapter 59 Finding a Philanthropic Focus and Integrating the Rising Generation Perspective 393
Etienne Eichenberger, Małgorzata Smulowitz, and Peter Vogel

Chapter 60 Facilitating Grandchild-Grandparent Philanthropy 401
James E. Hughes, Jr.

Chapter 61 Helping Families Move Up the Philanthropic Curve 405
Leslie Pine

Chapter 62 A Roadmap to Successful Philanthropy 411
Susan Winer

Conclusion 415

Bios 417

Index 419