Vince Annable believes your wealth should not live and die with the downturns and upticks of the stock market. But if your advisor stuck you with a prehistoric investment model of stocks and bonds, your heart drops — along with your portfolio value — any time the market takes a tumble.
If you’re ready to escape the volatility and mitigate the risk in your portfolio, it’s not obvious what you should do next. Everywhere you look, it’s the same approach packaged differently.
Vince Annable wrote his new book, The Household Endowment Model: Wealth Planning for Affluent Families, to offer an alternative to the cookie cutter approach.
He takes a step-by-step approach, beginning with a portfolio that utilizes alternative investments like real estate, private equity, and venture capital. Since these assets don’t move in sync with the stock market, you get improved stability and none of the volatility. Once your portfolio is stabilized, the next step is exploring every aspect of holistic wealth management: tax planning, estate and business planning, asset protection, charitable giving, and more.
The result? You can SWAN (sleep well at night) knowing your family’s wealth is protected. I recently caught up with Vince to learn why he felt now was the time to write his book.
What happened that made you decide to write the book? What was the exact moment when you realized these ideas needed to get out there?
I have received an overwhelmingly positive response to the concepts we were offering to our clients, prospective clients, and centers of influence (accountants, attorneys, and investment partners we worked with) through our educational seminars and with our distributed thought content (i.e. white papers). That response let me know that we needed to spread this message to a wider audience. Making The Household Endowment Model a household name became the objective. I knew that our model and message would help entrepreneurs, business owners, and those with a legacy to protect. I remember the exact moment vividly. At a CEG Roundtable Conference Event in May 2018, I listened to speakers who had launched books to get their message out and saw a presentation from Scribe. I knew then in order to get this message out — one that had been so well received — I had to commit to writing a book.
What’s your favorite specific, actionable idea in the book?
In the book, I provide solutions to the five key concerns affluent families have about their wealth. Through extensive research, the five concerns were determined to be:
1. Capital Preservation: Maximizing the probability of achieving all that is important. A properly allocated investment portfolio to mitigate risk and maximize returns.
2. Wealth Enhancement: We achieve this through tax mitigation.
3. Estate Planning: Being sure all they had acquired was passed on to their heirs without complication and based on their desires.
4. Asset Protection: Protecting all they had accumulated from an unjust loss due to a lawsuit.
5. Charitable Giving: 80% of those affluent families interviewed want to give back. We discuss having a coordinated team or Virtual Family Office to facilitate achieving these goals.
What’s a story of how you’ve applied this lesson in your own life? What has this lesson done for you?
I know the Household Endowment Model works not just from using it with clients, but also applying the principles in the book to my own life. After doing so, I’ve been able to rest easy with the knowledge that my family’s financial future is potentially more secure, no matter what future swings the economy might have in store. I always say, “When it comes to investing, your money doesn’t come with instructions.” I wrote this book to give people a money manual with a set of instructions to help guide them in managing your money, assets, and legacy. I know this book can help readers in the way it’s helped my clients and helped me personally.
For more advice on protecting your family’s wealth, you can find The Household Endowment Model: Wealth Planning for Affluent Families on Amazon.