The eight golden rules of wealth management

Whether your nest egg is £10,000 or £10 million, the principles involved in managing and growing it remain the same. Financial adviser Stuart E Lipton has boiled down eight of these principles in his new book, Wealth: Grow It, Protect It, Spend It and Share It.

by Knowledge@Wharton
Last Updated: 23 Jul 2013

Lipton was fourth generation heir to the Carnation fortune. Carnation, which made products like evaporated milk, was a family-owned business before Nestle bought it in 1985. Lipton is chairman of the Wealth Strategist Network, which advises wealthy families on how to manage their fortunes.

Wharton believes his eight principles are universal. "They apply regardless of time horizon and family complexity, and they apply whether your ambitions are aggressive or conservative," Lipton says. "For anyone concerned about managing wealth, they provide a source of stability and a critical frame of reference."

Lipton's Eight Principles of Strategic Wealth Management are:

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

"Every decision I make, whether it involves choosing an investment manager, thinking about tax strategy, or working with my family to set goals for next year, gets filtered through these principles," Lipton insists.

Source: Knowledge@Wharton
Wealth: Grow It, Protect It, Spend It and Share It
Stuart E. Lucas

Reviewed by: Nick Loney

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