Wealth

About the Author

Stuart E. Lucas is a fourth-generation heir to the Carnation fortune and a seasoned wealth management advisor. His great-grandfather, E.A. Stuart, started with a modest sum of $25,000 and founded the Carnation Company, which was later sold to Nestle for $3 billion. Lucas has held significant positions such as Senior Managing Director of private client services at Bank One, General Manager of European Operations at Wellington Management Company, and Assistant Portfolio Manager of a Forbes Honor Roll mutual fund. His unique perspective on wealth management stems from both his personal experiences growing up in a wealthy family and his professional expertise in the field.

Main Idea

Lucas's book, Wealth: Grow It, Protect It, Spend It, And Share It, provides a comprehensive framework for managing wealth effectively. Drawing from his own experiences and professional expertise, Lucas emphasizes that wealth management is not merely about money but also about people, relationships, values, and family dynamics. The book is designed to help individuals and families safeguard, nurture, and productively share their wealth. Lucas presents a flexible approach that can be customized to fit the unique circumstances of anyone concerned about wealth creation, management, and transfer.

Table of Contents

1. Introduction
2. How the Wealth Industry Works
3. Strategic Wealth Management
4. Eight Principles of Strategic Wealth Management
5. Everything Begins With Values
6. Picking Your Investment Strategy
7. Making Your Most Important Hire
8. Taxes Can Be Your Ally
9. Promoting Entrepreneurial Stewardship
10. Making Philanthropy Part of Your Strategic Wealth Program
11. Multigenerational Planning and Wealth Transfer

How the Wealth Industry Works

The wealth-management industry often works against clients who are not proactive and informed. Advisors may prioritize their own interests over those of their clients, may not fully understand family dynamics, and may struggle to provide truly valuable advice across different areas of expertise. Lucas stresses the importance of being a proactive, thoughtful, and informed client to navigate these challenges effectively.

Classic Approach to Wealth Management

In the traditional approach, clients often select advisors based on appealing sales pitches without a thorough understanding of their goals. This leads to quickly implemented solutions that may not be fully explained, especially low-cost, high-value options. Regular reviews focus on portfolio performance but lack in-depth discussions about the client's comprehensive wealth-management strategy.

Strategic Wealth Management

Lucas introduces Strategic Wealth Management as a holistic approach that places the client's interests at the center. This method involves exploring all strategic options, aligning family and financial goals, and leveraging family dynamics and external contexts like tax codes and estate-planning laws. It aims to create a comprehensive and cohesive wealth-management strategy that adapts to the family's unique needs.