Foreword ix Acknowledgments xiii With Appreciation for America's Armed Forces Service Members xv Introduction xvii Section I Every Family Needs a Chief Financial Officer 1 Chapter 1 Why Do I Need a CFO? I Don't Even Own a Business 3 Section II Maximize the Value of Your Single Biggest Asset-Your Labor 17 Chapter 2 Double the Value of Y our Labor through Education 19 Chapter 3 Make Career Choices That Extend Your Possibilities 29 Chapter 4 Think Like an Investor When Making Career Decisions 33 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 55 Chapter 7 Your Financial Assets Serve Many Functions in Your Family Business 57 Chapter 8 Diversify Your Family Business with the Right Investments 61 Chapter 9 Define the Right Goals for Your Asset Management Business 75 Chapter 10 Use History to Make Reasonable Investment Assumptions 81 Chapter 11 Safeguard Your Assets from the Main Risks 97 Chapter 12 Not All Debt Is Bad! Use Debt to Purchase Assets and Maximize Your Liquidity 101 Chapter 13 Which Is Better, Active or Passive Investment Management? It Depends. . . . 105 Chapter 14 Use Indexing for Your Low-Cost Investment Portfolio 113 Chapter 15 Understand When It Makes Sense to Pick Individual Stocks and Managers 117 Chapter 16 The CFO's Step-by-Step Guide to Building the Family Investment Program 125 Chapter 17 Know Yourself-Understand the Psychological Factors That Can Torpedo Your Goals 131 Chapter 18 Don't Sweat the Details of Your Asset Management Business 135 Section IV Family Inc. Does Not Manage Itself 139 Chapter 19 Create Tools and a Reporting Dashboard for Managing Family Inc. 141 Section V Manage Your Family Endowment in Retirement 165 Chapter 20 Understand How Your Family Business Changes in Retirement 167 Chapter 21 Sleep Well-Protect Your Retirement through Insurance 169 Chapter 22 What's Your Number? Determine When and How Much You Can Afford to Spend in Retirement 179 Section VI Avoid the Rat Race-Change the Game by Changing the Rules 201 Chapter 23 Pay Yourself What You're Worth through Entrepreneurship 203 Chapter 24 Jump-Start Your Heirs' Financial Security 209 Chapter 25 Develop a Succession Plan to Groom Your Replacement(s) 213 Chapter 26 Develop and Manage Your Estate or Uncle Sam Will 217 Chapter 27 Maximize Your Charitable Legacy 221 Section VII A Call to Action 225 Chapter 28 "But It's Different This Time. . . ." 227 Chapter 29 Put Down the Book-Just Do It! 229 Appendix: How to Calculate Expected Lifetime Labor Value 231 Glossary 233 Notes 237 Index 243
DOUGLAS P. MCCORMICK has a lifetime of experiences that provide the foundation for the framework, principles, and tools in Family Inc. As a professional investor, he has spent two decades managing money for institutional clients such as insurance companies, pension funds, entrepreneurs, and high net worth families. Unlike Wall Street money managers who seek to generate paper profits through passive investing, Doug partners with families and entrepreneurs to build and grow their businesses to create sustainable value. Holder of a BS in Economics from West Point and an MBA from Harvard, he is a cofounder and a Managing Partner at HCI Equity Partners. His motivation for writing this book started with his own challenges finding good personal finance advice as a young adult and his belief that financial literacy is one of the largest problems facing Americans today. He is optimistic this problem can be solved through awareness, education, and hard work.