Wealth Actually

Artificial intelligence is a charged term- one that has been around, but has taken on new meaning in the last couple of years. As the first crossovers of AI and HUMAN RESOURCES emerge, many issues are coming out. People are both excited and afraid of its implications. Employees and their managers are afraid of cultural and measurement shifts (and career arcs in general). Executives are worried about missing out on ways to increase the top and bottom line. Boards are concerned about threats to corporate strategy and new and unseen risks that could put the company (and them) on the front page of the Wall Street Journal However, the news isn’t all scary and the world is not becoming Skynet yet! SUSAN YOUNGBLOOD is an expert on the intersection of AI and Human Resources. Equipped with broad executive experience and board expertise, she is the ideal person to help us get our arms around the AI/HR intersection at the employee, manager, executive and board level. I spoke with her on the conundrum that decision-makers face as technology and people collide. SUSAN is a technology CHRO who has launched, acquired, and transformed companies at Fortune 50 and FTSE 100 companies such as IBM, BNY Mellon (BK), and London Stock Exchange Group (LSEG.L) as well as a tech startup, As a leader in the HR field, Susan enabled high growth and faster time to market by navigating teams through the human capital agenda at critical inflection points: New company launches, Rapid scaling, M&A, Global expansion, Digital transformation, and Large-scale cost reduction. Having dealt with company strategic issues, Susan has also managed global crises and assisted companies in mitigating extensive risks. https://open.spotify.com/episode/092y3urUEfDav5JTaraAbI?si=2a6c0eb7905747c2 Wealth Actually on Spotify Susan’s Background AI and Human Resources How are companies are leveraging AI today? When implementing AI, what are some of the risks companies take? What are some big mistakes companies have made with AI ? Proper governance: what should it look like within businesses? How are boards responding to the AI and Human Resources implications? Are the scary things about AI for workers? What are the implications for various types of workers: The General Workforce Managers Middle Managers Executives With all of this worry, are there opportunities for the workforce? How do you prepare your workforce to embrace AI? https://youtu.be/HmdN8jL7iOY?si=ALUnFs0lbo0cV38x How do we find Susan? SUSAN YOUNGBLOOD LINKEDIN Additional Background on Susan Susan serves on the Board of Directors for Cornell University’s ILR school, is onthe Advisory Council for SUNY College of Optometry, and she is an angel investor. Sheholds a bachelor’s degree in psychology from Vassar College and a Master ofIndustrial and Labor Relations (MILR) degree from Cornell University, where shewas also the assistant coach of the women’s tennis team. https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=&sr=

“Empowered Entitlement” isn’t a buzzword yet in the lexicon of next-generation wealth education tools. But it well could be. In an environment where productivity and drive is difficult to identify and develop, CHRISTIAN BROYHILL is using her psychology background and unique viewpoint to advise wealthy multi-generational families. Christian’s willingness to lean into the inheritor’s financial reality (and trauma) distinguishes her from many in the “next-gen” field. Christian’s background and the development of “Empowered Entitlement” THE 4TH GENERATION STORY A generation of inheritors that didn’t have to have a job An emphasis on the challenges that come with inheritors with resources, but no particular expectation Leaning into a loaded word The evolution of Christian’s practice – what does it consist of?  The two pronged approach – Medicaid clients and HNW.  Why continue to serve both?  What are you learning? What are the barriers to services for HNW individuals? When someone comes to you, what are they trying to solve?  Christian’s experience with trauma patients that aren’t in the HNW world and how that impacts her work Is your work preventative or crisis management? Or both? What is Empowered Entitlement? What is Empowered Entitlement? What are the strategies that you use with individuals and families?  How do you interact with the trustees / advisors / family members around them? Once the immediate trauma is addressed, how do you develop the coping and resilience skills in people that never had them? Is there a “done” moment with your clients?  How do you help clients use “empowered enititlement?” What does a good structure for a client or family look like going forward?   How do they develop esteem and productivity (which sometimes can be at odds with family expectations)? How do we find Christian? NEXT GEN JOURNEYS CHRISTIAN BROYHILL ON LINKEDIN More on Childhood Wealth Discussions https://open.spotify.com/episode/2TTS0LllLlTZKVXrI8pZZp?si=FOXYNzJ2RWqhgyAGQWVLKA Christian Broyhill discussing “Empowered Entitlement” on Wealth Actually (Spotify) https://youtu.be/p27ChSS2BCs?si=Qfi93Px0IGq6Ayda Christian Broyhill discussing “Empowered Entitlement” on Wealth Actually (YouTube) https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

“Family Office” recruiting is one of the most difficult subsets of wealth management. Loaded with mystery and allure, many wealthy families want to “have” a family office. It’s a different story when the family has to determine the ROI of the project, lay out the costs and, ultimately, staff one. This is actual work. Family offices are expensive and require deep strategic thought and long term purpose and budgeting by the family. As we will learn here, family offices call for the identification, acquisition, and support of talent that is not readily available. This new talent can also be risky. A new structure with new people subjects large amounts of personal wealth to the domain of outsiders and public risk. Failure is often embarrassing (and expensive). https://open.spotify.com/episode/5IBc5iTzMNHHSoQqp8Ufhe?si=PUFi51DIR361WrnlEoJyRQ I went to a source with a unique viewpoint. BRIAN C. ADAMS is a Principal at Mack International, a leading executivesearch, and human capital consulting firm that serves the familyoffice/wealth management markets. Along with his background in family office, Brian has co-founded two real estate private equity firms, Excelsior Capital and Priam Properties, and has assembled a portfolio of over $600 million in real estate assets. Brian’s Background and Unique Path into Family Office Recruiting The Nuts and Bolts SUCCESSION PLANNING AND NEXT GENERATION DEVELOPMENT TALENT IDENTIFICATION AND ACQUISITION/ STRATEGIES FOR RETAINING KEY TALENT COMPETITIVE COMPENSATION PACKAGES AND HOLISTIC COMPENSATION APPROACHES GLOBAL TRENDS THAT IMPACT THE FUTURE OF FAMILY ENTERPRISES How “fully formed” is the vision for the office by the time they begin actually recruiting? Is this coming from the lawyer? The tax professional? The banker? Or from family office consultants? What is the ROI on a family office? Should it be a profit center? A “break-even” cost of doing business? A loss-leading accomodation? Is the family driving the search or a consultant? Do they often hire a CEO and they run the lower level searches?  How do you get a family to think about a family office’s linkage with (or separation from) a family business?  Should it be funded out of liquidity or operating cash? Complications with Family Office Recruiting What happens if the job mandate doesn’t feel right? How much are you dealing with the family and how much is it the consultant? Are the structures already built? Eddie Marshall’s 3 x 3 rule “problem” for Family Offices: 3 years / Over 3M and you still don’t know what you have? LEARN MORE HERE What are the real costs? Do families understand the expense? Who is developing the budget? Threading a needle- Identifying the talent and skills Cultural Fit Compensation terms – Salary vs Upside The accounting spine VS “the guy to analyze deals” VS a large, full service situation What happens if the fit is bad after 6 months? Searches for new (de novo) family offices Turnover due to retirement vs, turnover due to cultural problems Searches for executives vs. technicians Do searches for positions ever include family members to engender competition Private or Public Company Board experience – is a lack of it a red flag? Technology building and security experience Any major best practices (or worst) for families exploring which functions to internalize and which to outsource? Family offices and the trends toward outsourcing and MFO’s How does one deal with “scope creep”? What if the family gets sick of the expense?  Do you look for other families to use services and share in the expense? https://youtu.be/O3qFi0YhuFI?si=nu5iQJ_Hnuno0zjX How To Find Brian Adams BRIAN ADAMS LINKEDIN BRIAN ADAMS MACK INTERNATIONAL https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

PROPUBLICA has taken on the role abdicated by most mainstream news organizations. Its long form journalism, while controversial, takes on many special interests that escape public scrutiny. While I often don’t agree with the slant that they take, ProPublica represents a new frontier for the fourth column. Traditional news outlets make less and less business sense. I wanted to find out more about how long form journalism is going to work going forward and how it will apply to financial regulation. So I spoke to JUSTIN ELLIOTT, an Investigative Reporter at ProPublica. Justin has won the Gerald Loeb Award for business journalism, the Selden Ring Award for a series on the American Red Cross and, with the “Trump, Inc.” podcast team, a duPont-Columbia Award. He co-wrote the story revealing tech mogul Peter Thiel’s multibillion-dollar Roth IRA which we talk about here. Justin’s Path to Reporting The Role of PROPUBLICA in Long Form Journalism What are its origins? What is its mandate? How is it funded? What is the Role of Journalism in (Re) Establishing Accountability in Society? What is Congress’ (and the other branches of government) role in fixing the issues that journalism uncovers? Peter Thiel’s $5 Billion Roth What happened? (How did Thiel get assets into a Roth IRA with a $2K cap?) How did this work? (Funding a Roth IRA with low value Founders’ shares) The “Law”, the Intent of the “Law” and the Variability around the “Law”? Is this a valuation issue as much as a legal issue? Is it wrong? How should we correct a distortion like this? What’s next for Justin and ProPublica and how do we find him? 2024 Election Coverage Justin at ProPublica Justin at Twitter https://www.youtube.com/watch?v=f1YOe9GV0MY https://youtu.be/Ao33oyZJuC8 https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT Buy “Wealth Actually” Paperback, Kindle and Audio

David Barnard, Founder and CEO of Luminary, shares insights from his extensive background in private wealth management. He discusses the crucial integration of technology in estate planning, emphasizing its importance for modern advisors. Barnard highlights the challenges of managing complex estate concepts and the role of storytelling in effective communication. He unveils Luminary’s platform as a bridge for collaboration among advisors and clients, allowing for dynamic planning and clear visualizations that drive client engagement and decision-making.

Artificial intelligence and healthcare have been intertwined for a long time. The public has finally noticed. With the emergence of OpenAI and other Large Language Model platforms, we are on the forefront of more huge changes in the business of health care. Healthcare and elder issues are the major concerns for most families planning for their futures. Artificial intelligence has permanently changed the method and pace of research, the role of privacy, the choice and delivery of treatment, and the way people interact with the healthcare community. To better understand these issues, I spoke with Chris Heye. who is working in the space. Background Dr CHRIS HEYE is the CEO and Founder of both Whealthcare Solutions, Inc. and Whealthcare Planning LLC. He is a proven entrepreneur with extensive experience starting and growing technology companies. After confronting dementia in his own family and witnessing elder financial abuse in friends, Chris decided that older adults needed more protection. Chris and I take a look at this intersection. The advances are exciting. Having surveying the landscape, we marvel at the leaps forward to come and worry about the issues that they create. https://www.youtube.com/watch?v=dsGlUlYQG84&t=7s Artificial Intelligence and Healthcare Against that backdrop, we take on these questions: How is the intersection of artificial intelligence and healthcare changing medical research? Is artificial intelligence shifting the methodology and processes of healthcare and is it for the better? After sharing our experiences with dementia and loved ones, Chris and I wonder about the future of dementia management. Will the intersection assist patients with their day-to-day lives? Is artificial intelligence widening the gap between retirement, late stage health and death? Knowing the pernicious effect of ageism, can the financial planning industry properly account for the length and expense of elder living? What can we expect in the near future and what should we look out for? https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT Further Wealth Actually updates HERE

The transition of wealth between generations has put the spotlight squarely on fiduciary roles. With the rapid changes in the financial services space, directed trustees and independent administrative trust companies have exploded in popularity. The Evolving World of Directed Trustees Most advisors, wealth management firms, and clients under-appreciate the responsibility and risks of proper trusteeship. They remember a culture and business model that existed decades ago. These days, individuals trustees usually can’t handle the rigors of the job and law firms are leaving the space for liability reasons. Finally, in an environment where clients want more flexibility and control, the large bank-owned trust departments provide a cumbersome experience and high turnover, With this in mind, modern estate planning has unbundled traditional investment, administrative and distribution trustee roles. There is a huge appetite for jurisdictional planning and best-in-class providers. With all of this change, it is confusing for the advisor to know who is responsible for what and how much it should cost. The Problem for RIAs RIA’s do not have the resources to advise or service clients with this complexity. The administration and oversight of these structures is a distraction. Building a trust company to solve this problem does not make business sense in a private equity-backed RIA aggregation environment. Moreover, using conflicted trust providers is out of the question for fear of putting client relationships at risk. An increasingly popular option for RIAs and wealthy families is the use of directed trustees and the independent administrative trust company. CHRISTOPHER HOLTBY is a co-founder of an independent trust company that works specifically with wealth advisors and directed trustees. Not only do we highlight the best practices for identifying and partnering with an administrative trustee, but we also discuss the typical workflow between an RIAs and directed trustees. Chris’ Background with Directed Trustees How RIAs work with directed trustees and an independent trust company: 1/ What are the basic requirements of independent trust company? 2/ Accordingly, which “value adds” should RIA firms should look for? 3/ Are there key attributes to spot when deciding to work/partner with an independent trust company? 4/ Lastly, should you be aware of any “Gotchas” in the space? How Do We Stay in Touch with Chris? WEALTH ADVISORS TRUST COMPANY Video of the Podcast: https://www.youtube.com/watch?v=6YyqlULg1GA “Wealth Actually” is now on Video! https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT

Richard Haass: Episode 152 – The World’s Hot Spots Dr. RICHARD HAASS takes us on a tour of The World’s Hot Spots. We also discuss the U.S. in 2024 and the concept of citizenship. Richard is a veteran diplomat and respected scholar of international relations. He is president emeritus of the Council on Foreign Relations after having served as the CFR’s president for twenty years. Richard is also senior counselor with Centerview Partners, an international investment banking advisory firm. He appears frequently in the media and has authored several books on American Foreign Policy, Management and Democracy. Richard Haass on the World’s Hot Spots Israel/Gaza/Middle East/Hamas/Hezbollah – What do the other oil-rich nations to the north think of these troubles? Even with outside pressure, is there a long term answer for this conflict? Ukraine/Russia – Meanwhile, what does a Russia look like after Putin? China/Taiwan/South China Seas – While Russia struggles, but progresses, with the Ukraine, has the U.S. calculus with China changed? India – Because India now has the same population as China and growing economic power, is there an appetite for them to step up in world affairs? Haiti – As a result of this month’s events and it’s long history of chaos, is Haiti a broken country? Richard Haass on The United States in 2024 With Trump vs Biden now a semi-official Rematch, what are you looking out for? The Health of Economy – With statistics saying it’s healthy and people saying it doesn’t feel that way, who wins out? Immigration – How did the U.S. get this so wrong? As a result immigrations and the headlines around National Security and Foreign Policy, is this the election where the economy is not the decisive issue? If the electorate looking inward this cycle, will this attitude have an impact on Tax Policy? With both parties having lame ducks and shallow benches, what does the next administration look like as the head into midterms? If the cult of personality begins to dissipate, what’s next? Resultantly, is this a source of optimism that well get back into actual policy debates at the party level? “The Bill of Obligations” and Citizenship https://www.amazon.com/Bill-Obligations-Habits-Good-Citizens-ebook/dp/B0B8R2HJVJ What prompted you to write about what it takes to be a good and productive citizen? What are the 10 points of the Bill of Obligations? -Be Informed-Get Involved-Stay Open to Compromise-Remain Civil-Reject Violence-Value Norms-Promote the Common Good-Respect Government Service-Support the Teaching of Civics-Put Country First Are there certain writers and publications you enjoy reading? Favorite books? Final Questions With some of the big concepts laid out, what big concept out there keeps you up at night? Lastly, with so much conflict around the globe, is there a big opportunity that you see that isn’t being noticed? How do we find Richard’s writing and appearances? “HOME AND AWAY” ON SUBSTACK RICHARD on TWITTER COUNCIL ON FOREIGN RELATIONS CENTERVIEW PARTNERS https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

Episode 151 – MARK HOUSE Cryopreservation and wealth was once the purview of science fiction and Hollywood. Freezing one’s self to be revived in the future is not just something out of Issac Asimov book or a Ridley Scott movie. The science, estate planning, and economics of this “call option on immortality” are here right now. There are legitimate and current issues with cryopreservation and wealth- fascinating ones at that! Science, estate planning, ethics, governance, economics and good old-fashioned drafting are in focus as I speak with Scottsdale-based attorney MARK HOUSE. We’re going to get our arms around the misconceptions of the freezing process and what that means legally and practically. With that background, we’ll dive into the structuring and drafting considerations to effectuate this amazing concept. Finally, we have some fun by guessing at what the world may look like with revived citizens hundreds of years from now. INTRODUCTION BACKGROUND -How did Mark get into estate planning and how did he get into cryonics? CRYONICS -Let’s define freezing “pre-death” vs “post-death.” -Behind the Science: GREG FAHY’S WORK and BIO -What is the legal and funding process? ESTATE PLANNING AROUND CRYOPRESERVATION AND WEALTH -Usually when people die (and the being’s existence terminates), the assets transfer to beneficiaries. However, here something different happens. -Is there a difference between being kept alive but in “suspended animation” and dying? -Does having various features including DNA maps serve as the basis for a new being? DIRECTED TRUSTS -Ownership in a trust should be able to provide the structure that allows the Grantor to be resuscitated when the science catches up. -Trusts have a Grantor, Trustee, Corpus (literally in this case) and beneficiaries. -Trustees must administer, invest and distribute.  -How does a directed trust allow the Grantor’s intent to persist? TRUST REQUIREMENTS -Perpetuity and a Good Trust Protector Structure are vital. -With that in place, trustees must have distribution flexibility and discretion around “beneficiary determination” -Why is it important to have broad Trustee choice? -If we’re making guesses about the future, why is nimble decision-making process around “science determinations” important? -When talking about investment flexibility, is endowing a future being a “prudent investment’? If so, how does a trustee sign off on that? CRYOPRESERVATION AND WEALTH ISSUES -Who pays the freezer? How much does this cost? -Once we know that, how does the trust pay for it? -When should a person use life insurance? When employed, does the presumption of death change anything? -What happens if you run out of funds? -Does it make sense to (also) endow the future persons’ lifestyle? If not, how will they function in the future? -Should other the trust not include future beneficiaries to reduce a potential future conflict -How do you staff this? (See here for an interview with Betsy Brown on Corporate Trustees designed to deal with tricky situations: https://frazerrice.com/ep-63-betsy-brown/) -What if the individual or corporate trustees cease to exist? (Trust protector) -Is there liability for the science committee if they unfreeze too soon?  Can other beneficiaries then be added? Should they be? -Are private trust companies common in these situations? BEST PRACTICES AROUND CRYOPRESERVATION AND WEALTH -What’s the best way to get started? OUTRO – How do listeners find Mark House? MARK HOUSE CONTACT INFORMATION ARTICLE ON CRYONICS TIM URBAN’S ARTICLE OUR TRUST AND ESTATES PROFESSOR, JEFFERY PENNELL Firms that do this ALCOR- https://www.alcor.org/ https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/

Episode 150 DAVID LESPERANCE AND MELVIN WARSHAW In this 150th Episode, we revisit the topic of citizenship and expatriation and try to answer the question, “Should I expatriate?.” Establishing a life outside the friendly confines of the United States is a popular wealth conversation.. In the last few years, fueled by local dissatisfaction, political polarization, wealth divide animosity and positive “working abroad” experiences, “Expatriation” is now a big word in the cocktail party circuit. It’s a word that shouldn’t be taken lightly. Done correctly, it is a multi-year decision and planning process with significant consequences. Long-time friend of the podcast, DAVID LESPERANCE and fellow cross-border tax expert, MELVIN WARSHAW, share their expertise on the three levels of “detachment” from the USA. They will set out the administrative and tax consequences of moving up the ladder of recission from the United States. (David’s previous interview here EP-76 Citizenship Diversification) What factors have caused a dramatic increase in Wealthy Families seeking second citizenships and residence as “Fire Insurance”? Tax the Rich proposals, Rising racism and anti-semitism, political polarization, mass shootings etc. What are the tax consequences of being a United States citizen? How does one obtain a second residence? What factors to consider? How does one obtain a second citizenship? What factors to consider? What are the types of “Fire Escape Plans”? (i.e. Go Bag option, American Living Abroad, Expatriation)  What are the Tax consequences of leaving the United States vs a full “Expatriation”? What are possible factors that may cause one to trigger their Fire Escape Plan? (SCOTUS decision in Moore, Election mayhem, natural disasters, election results etc.) What is the impact on the US of Wealthy Americans triggering Fire Escape Plans? Should I Expatriate? Contact David Lesperance on Linkedin Melvin Warshaw on Linkedin https://www.amazon.com/Wealth-Actually-Intelligent-Decision-Making-1-ebook/dp/B07FPQJJQT/