Customer Reviews

Wealth: Grow It, Protect It, Spend It, and Share It (Paperback)

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With more than 25 years' experience managing other people's money, his personal finances and his family's wealth, Stuart Lucas shares his secrets for building and protecting wealth.

Lucas, a fourth-generation heir to the Carnation fortune, is an accomplished wealth management advisor. In Wealth: Grow It, Protect It, Spend It and Share It, he offers a coherent plan that integrates the vital components of a wealth management strategy.

Departing from the money management classic process, he offers a unique eight-point framework.

1. Take charge and do it early.
2. Ally family and business interests around wealth-building goals and strategies.
3. Create a culture of accountability.
4. Capitalize on your family's combined resources.
5. Delegate, enable and respect independence.
6. Diversify but focus.
7. When possible, err on the side of simplicity.
8. Develop future family leaders with strong wealth management skills.

Lucas says he filters every decision he makes, whether it involves choosing an investment manager, thinking about tax strategy or setting family goals through the prism of these principles.

His discussion equips even the most sophisticated of financial families with an essential, but workable, reference point for their own financial processes.

Everyone dreams of financial ease. It turns out that living with ease takes a great deal of work, dsicipline, and planning. We all hope that we will be able to accumulate enough financial resources to not only take care of our old age, but to provide some things for our children. If our dreams are ambitious we want to accumulate enough resources to change the trajectory of our family's ensuing generations.

We have all heard sad stories of people who attain sudden wealth and how it ends up destroying their lives. Other fortunes that have taken a lifetime of toil to build are quickly lost through any number of mistakes. More than a few entrepreneurs who have shown brilliance in building their company have demonstrated clumsiness in managing their personal wealth. Much of this is due to inexperience and a complete lack of a financial education.

Fortunately, the path of the wealthy has been trod by many and what works is well known. The trick the newly wealthy person has is to become well informed without having to learn about all possible financial mistakes from personal experience. This wonderful book provides a very fine, if not comprehensive, outline of what building, protecting, and sharing wealth means. The author knows from personal experience because he is one of the members of the family that benefited from the Carnation sale to Nestlè and he is also a financial advisor for a living, both for clients and his family.

I particularly like the way the author emphasizes the importance of family with its values and structure in making any plan work successfully. If the family doesn't have a way to plan and work together, then it is really not likely the idea of multi-generational wealth planning will work.

The principles Lucas puts forward in this book are purposely kept simple and present general principles rather than specialized techniques. He puts forward several basic models as frameworks for approaching wealth and I think they are quite good. Each has an approach to investing, risk, and spending based upon the desired outcome. For example, you might not have kids and want your last dollar spent at your funeral. That is different from someone who wants to live off their income from their wealth and give the capital in tact to the next generation. And that is different than someone who wants each member of the next generation to have the same starting wealth in life as the previous generation.

Once the family values are known and the financial goals are set, Lucas takes us into various considerations for reaching those goals through financial management. Obviously, there are an infinite number of possible investment strategies and some are likely to criticize this book because they agree with some specific judgments Lucas makes. This would be an incorrect assessment of the value of this book. The importance of the book is getting a good understanding of what needs to be understood about wealth and capital management rather than any specific recommendation. However, I personally like Lucas' approach.

Finally, he discusses strategies for donating wealth as you see fit and for funding specific things for your descendents such as education, health care, and housing. The book also has a very useful and humorous appendix on the vocabulary of wealth management.

Highly recommended for anyone who is interested in understanding family wealth. A more important topic than most realize until it becomes a crisis. Read this book ahead of time and think about these ideas as you create the wealth and you will be much better off.

This is mainly about asset management. With the plethora of pieces put out on how to "make wealth," here is advice on how to maintain and preserve it. How assets are managed affects the other aspects of people's lives. "Wealth: Grow it, Protect it, Share it, Spend it," is written for a small audience. But due to coming demographical changes this audience may increase (albeit slightly) in the coming decades.

Lucas's work and efforts in this book will help those who need it. This author was willing to share his positive approach, experience, and expertise with the public. He was born to money, being a descendant and heir of the carnation company.

This is also a book from a financial manager who has experience and is currently involved in several organizations. The focus is for those in wealthy families understandably, with the orientation obviously toward families with significant amounts of assets. This will likely become a more common field of expertise in the coming years to some to degree, and this book doesn't come from an elitist perspective.

Some of the focus is to keep what one already has and safely maintain it, allowing it to grow. In short, don't blow it, nor make mistakes that lead to pain later in life. When it comes to sizable assets and the numerous options of managing and investing them, there can be, and often is - disagreements and disputes within a family - over asset allocation.

As for Lucas, he's basically been managing the funds that were
acquired by the 1985 sale of his family's business (Carnation) to Nestle. Looking at an average inflation rate of say, 3.2% , if someone "diversifies," and consistently monitors their assets they should have no problem getting about, or more than, 5% above the average inflation rate. In addition to looking at computer screens and viewing pie charts and bar graphs, he allocates the rest of his time "serving" on various boards and foundations. He comes across as very down-to-Earth.

His 8 point plan is one of common points we hear today: diversify, delegate, keep it simple etc., This is told by many advisers and planners. But to Lucas's credit he does go into the fine details. Tax planning and looking at long-term goals are also delved into. Of course it's critically important to choose a highly skilled and competent planner(s).

This can be a useful book for those that it applies to. For those that come across assets, we must be reminded that a large percentage of the American public is financially illiterate. How many inheritances, earned capital gains, and hard earned assets have been not only mishandled by the owners themselves, but misused by the investment planner and trustee whose job it was to safeguard them. This is an important book that is very useful.

It's said that, perhaps even more than sex, the most difficult subject to discuss with your spouse is money. No other issue seems to be as emotionally laden as this, whether you perpetually find yourself without enough of it, or as is the case with the potential readers of this book, with more than you may need in your lifetime.

The strength of Stuart Lucas's book is the way he has taken a wide-angle look at the complexities of managing wealth. Much more than just a how-to of investing, Wealth candidly discusses the family dynamics involved in the stewardship of money. The author provides examples from his own experience as an heir to the Carnation fortune.

This book isn't a "poor little rich guy" tell-all. Lucas is genuine in his belief that under the best circumstances, wealth can be used to transmit values to our children, enrich relationships between family members, and help the less fortunate in society. (He also outlines the potential disasters that can result if you don't do your homework.) Lucas is relentless in his advice that soul-searching and honest, sometimes difficult conversations with spouses and other family members be the foundation of any wealth management strategy...talk about it, then talk some more. Each chapter ends with helpful "don't forget" reminders entitled "Issues to Discuss With Your Spouse and Family."

Written for an admittedly small and privileged audience, the book nevertheless contains guidance for both the newly wealthy and those who have been managing large sums for a longer period of time. If you're new to this game, the book is a roadmap to getting it right from the start, and if you're well on your way, it's an excellent tool for stepping back, evaluating your progress and making adjustments.

Structurally, the book takes a dense and potentially deadly-dull topic and infuses it with readability and humor. Headings, sidebars and anecdotes abound, and the writing style is comfortable and colloquial, even when it's technical. Appendix A, "Learning the Language of Wealth Management" is laugh-out-loud funny; it provides conventional and wealth management definitions to the terms Lucas uses throughout the book. Read it even if you think you know what you're talking about.

Wealth is carefully conceived and thoughtfully organized how-to guide about that most uncomfortable of subjects.

Wealth management is on everyone's mind, and there are certainly a number of reference books of varying quality you can chose from on the bookshelves of Borders. This one is a particularly strong entry into this crowded field because the author has not only worked with successful clients at investment management firms but also has the pedigree to be a convincing evangelist. A Harvard MBA, Stuart Lucas is a fourth-generation heir to the Carnation Company fortune and consequently an expert on multi-generational estate management. What makes this book interesting is that it is not simply a by-the-numbers guidebook into wealth but a generally well-rounded tome that addresses the emotional concerns and giveback issues once investing decisions are made and implemented.

Using his own family background for key examples of his philosophy, Lucas manages to avoid an elitist tone and balances in-depth financial guidance with his own tips on negotiating financial decisions when it comes to retirement planning. He is obviously in a good position to give advice on how to manage wealth received through inheritance, and in turn, he shows how to make sure the next generation can manage the wealth they receive. As an investment professional, the author does not shy away from the details behind various investment options and is generous with quantifiable information. While not that enlightening on its own, the data is essential in his presentation. However, it's the more holistic picture where Lucas excels as he provides helpful guidelines around the following areas:
--Taking charge early
--Aligning family and business interests around wealth-building goals and strategies
--Creating a culture of accountability
--Capitalizing on the family's combined resources
--Delegating, empowering and respecting independence
--Diversifying while maintaining focus
--Oversimplifying on investment decisions and keeping them in check
--Developing future wealth leaders within the family

Lucas has produced an eminently readable how-to book which certainly does not err in the direction of being too dry on the subject. He uses his own wealthy subsistence as a means to share the wealth, sort of speak, even if the reader is just starting to think about retirement. I think the book is best targeted to his fellow investment professionals, but there is enough here to appeal to the future-challenged layman. Highly recommended.

Author Stuart E. Lucas is financially savvy, a superb communicator and a very decent human being. His book, "Wealth; grow it, protect it, spend it, and share it," is an important roadmap for all types of investors. After all...it is common knowledge that investors don't plan to fail...they fail to plan.

The foreword for this impressive text is provided by Joe Mansueto, Chairman & CEO of Morningstar. Mansueto explains that Stuart is a pedigree...he is a fourth-generation investor and a member of one of America's wealthy families. Mansueto also informs us that Stuart has a broad definition of wealth..."that being wealthy is about being productive, giving to others, serving society, and creating a legacy." The Morningstar chief applauds the holistic approach and more importantly points out that "Stuart packages advice for his readers in an understandable cohesive framework."

On that note, Chapter 3, "Everything begins with values," and Chapter 7, "Making your most important hire," are the jewels of this book. In Chapter 3 Stuart helps the reader understand critical issues and then provides guidelines for translating values into financial goals. However, Chapter 7 covers the most important decision in investing..."selecting a financial advisor/administrator." Certainly, most of Main Street America will not have to go to the extremes that Stuart advocates (they simply do not have that kind of wealth). Nevertheless, his core values of making sure one has a high degree of trust...and of insisting that you select an investment representative that is skilled, transparent and with a good firm are solid benchmarks to grow and protect your lifetime of savings. Recommended.

Bert Ruiz

Stuart Lucas's book makes one appreciate the differences in viewpoint between planning for the financial future of a couple versus many generations of a family.

Conventional financial wisdom says that a couple should withdraw no more than 4% of the investment portfolio during retirement (with an annual inflation adjustment). This 4% rule came from examining past 30 year periods to see if the money would last. Thirty years was chosen because that was the expected lifetime of a couple retiring at age 65.

With a family foundation, like the Lucas one, you are no longer planning for just the 30 year retirement period of one couple. You are actually planning for eternity if you plan for each succeeding generation to the current one. This drops the 4% rule down to more like a 1 to 2% safe withdrawal rate to assure the money lasts forever. Quite a different planning horizon than just one couple.

Lucas does an excellent job of laying out the annual costs of a foundation, and more importantly identifies 4 investment strategies which are typically used.

I was a little surprised at Lucas's definition of barbell investing. The definition I was familiar with was in regards to asset allocation. The definition I am familiar with is a strategy where you invest in small cap and large cap stocks, but you skip the mid-caps. Lucas has developed a different definition. He suggests that 80% of your assets be invested in financial entities, and you use 20% for running your own business. This strategy allows people to try a 2nd career working part-time for full-time. Because you are working, there are no withdrawals and therefore the portfolio lasts longer.

I was also surprised that Lucas invests in some very high risk investments such as emerging markets, private equity, and hedge funds. He sometimes practices market timing once per year as well. The returns for these investments can be higher than conventional stocks and bonds, but so are the risks. It takes time and the ability to get some highly sought after managers to work for you. Many of these high risk investments are not available to the individual investor.

Lucas also warns to find the right municipal bond funds, since many bond funds are not immune to the AMT tax.

I enjoyed Lucas's book. His writing style is good, and he uses his own family's experiences to tell his story. I like the fact he recommends index funds. He also makes you think about modifying one of his four strategies for your investment strategy. If you are thinking about retiring from your first career, and then starting your own business, his barbell strategy is interesting as well.

I would suggest companion books to supplement this book including:
The Richest Man in Babylon
Bogle on Mutual Funds: New Perspectives for the Intelligent Investor
The Millionaire Next Door
The Four Pillars of Investing: Lessons for Building a Winning Portfolio
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition

The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life
The Bogleheads' Guide to Investing
All About Asset Allocation.

Lucas is a money manager, but with a most unusual perspective. He is an heir to the founder of the Carnation Company and the money he manages is that of his family. As a combination of custodian of the family wealth and one of the shareholders of that wealth, he not only has to answer to others, but in a way unlike other money managers, his accountability is different and higher. His advice on how to manage money is interesting, but not the really significant point of the book.
What is truly significant about the book is what Lucas says about how to effectively carry out the transfer of wealth from generation to generation. There always seems to be a story in the news regarding a legal action over the transfer of wealth from one generation to the next. Sometimes it is about a spoiled "poor little rich kid" who never has had to accept responsibility and squanders much of the family fortune. Others are about relatives squabbling over shares, sometimes between them, other times an "outsider", such as a new spouse or caretaker is involved and sometimes both. Whatever the circumstances, enormous legal fees are run up, often for little to no gain.
Lucas is very straightforward about how it has been done in his family and their strategy is something that should be listened to. He argues that a young person should first work and be successful outside the family before being given a responsible position inside a family owned business or organization. Children in his family are expected to earn their positions rather than simply have them handed to them and then be protected against failure. He also puts forward arguments that a family member put in a position to mind the family wealth should have earned the position rather than just be placed in it. He also sides with people such as Bill Gates and Warren Buffett who are lobbying against the repeal of the estate tax. Lucas, like so many very wealthy people, believes that the creation of a permanent aristocracy of ultra-wealthy people in America is not in the best interests of the country.
As Lucas is quick to point out, there are disagreements among his family members, just like in all other family units. He is very frank in discussing such issues, how people who marry into a wealthy family are perceived and how a divorce can change the dynamics. Several very important questions that must be raised and honestly answered are put forward. They are:

*) Who in the family has demonstrated a strong interest/competency in allocating capital and has a track record of doing so successfully?
*) Who in the family is clearly in sync with the family culture and value system and is generally sensitive and able to hear the voices of others in family discussion?
*) Who in the family displays the skills and temperament to be a good moderator and mediator of conflicts, if and when they arise?
*) Who is willing to hold themselves accountable?
*) Who in the family displays strong business instincts and acumen and has options to build a lucrative business career away from the family?
*) Are there family members who exhibit entrepreneurial traits or are superb at executing the vision of others?
*) Who is healthy enough to manage the physical and emotional rigors of managing the family wealth?

Any family that can honestly answer these questions without degenerating into open and extensive hostility is guaranteed to be successful in just about anything.
Lucas also discusses the obligations of wealth, not only the proper management of it, but also how to spread it around so that it is used for the best benefit of society. At a time when we hear story after story of greedy, crooked executives and wealthy people snapping up all they can, this book is very refreshing. There are people who honestly accept the responsibility of wealth and operate with the best interests of society in mind. All too often we hear wealthy people say that their best interests and those of society are coincident. Lucas is to be commended when he states the contrary position, lives it and communicates that position to others.

This is one of the best books yet written on the subject of personal financial management. The author, Stuart E. Lucas, is heir to one of the biggest family fortunes in America. When he and his family took a close look at their finances, they discovered that mediocre management was eroding their wealth. They decided to take a new, very disciplined approach to money management. This book recounts their experiences and summarizes their guiding principles. Although few readers will have wealth on the scale of the author's family fortune, we believe that even those in modest circumstances, and certainly the well-to-do or up-and-coming, will benefit from Lucas' advice about spending, saving, investing, taxes and family values.

Author Stuart Lucas is an heir to the Carnation family fortune, so he knows a little something about wealth. This book is a useful, albeit somewhat plodding, handbook on managing wealth. It covers almost all the fundamentals except how to make it. It's a bit like the old Steve Martin routine, "How to Make a Million Dollars and Never Pay Taxes."

"Ok, first - get a million dollars....and then ...

For those who do not inherit their fortunes, means other than inheritance will have to drive the ability to arrive at a level of wealth, enabling the tips and techniques that Lucas discusses. For those who want to better organize their finances, plan their estates or who experience a "liquidity event,"

"Wealth" is an effective guide to picking a financial advisor and assessing one's own financial aims.