Wealth Secrets of the Affluent reveals the ten keys to financial success that affluent families have used for decades. This is a must read for anyone who earns over $150,000 per year or any family that is worth over $2,000,000, as well as any advisor who makes a living assisting wealthy clients or would like to attract wealthy clients with more appropriate and more effective advice. There are specific strategies used to achieve unparalleled wealth, and this book puts them in perspective.
Christopher R. Jarvis, MBA, is a financial planner with experience as an actuary and entrepreneur. He is cofounder, with Mr. Mandell and Jason M. O'Dell, of O'Dell Jarvis Mandell, LLC, which is based in the cities of Austin, New York, Cincinnati, and Ft. Lauderdale, and has affiliate offices nationwide (www.ojmgroup.com). David B. Mandell, JD, MBA, is an attorney and financial advisor to high-net-worth clientele. He is the shareholder of the Law Offices of David B. Mandell, PC(www.mandellpc.com). Along with Mr. Jarvis, Mandell is coauthor of the Wiley title Wealth Protection: Build and Preserve Your Financial Fortress. www.secretsoftheaffluent.com www.ojmgroup.com
Acknowledgments xiii About the Authors xv Introduction xvii The First Key Understanding and Embracing Affluence 1 Chapter 1 Who Are the Affluent? 3 Chapter 2 Understanding the Average American 8 Chapter 3 Unique Advice for the Affluent 16 Chapter 4 The Affluent Don t Want to Fit In 21 The Second Key Use Leverage to Achieve Affluence 27 Chapter 5 The Basics of Leverage 29 Chapter 6 Financial Leverage 32 Chapter 7 Leveraging Effort 34 Chapter 8 Leveraging Assets 37 Chapter 9 Leveraging People 42 The Third Key Build the Right Team of Advisors 49 Chapter 10 The Value of Advisors 51 Chapter 11 Types of Advisors 56 Chapter 12 Seven Mistakes to Avoid 68 The Fourth Key Protect Assets 77 Chapter 13 The Importance of Asset Protection 79 Chapter 14 The Sliding Scale of Asset Protection 83 Chapter 15 Asset Protection Myths 87 Chapter 16 The Mixed Blessing of Property and Casualty Insurance 91 Chapter 17 Business Protection Often Ignored 96 Chapter 18 Maximizing Exempt Assets 101 Chapter 19 Family Limited Partnerships and Limited Liability Companies 107 Chapter 20 Using Trusts to Shield Wealth 117 Chapter 21 International Planning 125 Chapter 22 Protecting Your Home 134 Chapter 23 Divorce Protection 140 Chapter 24 Using Captive Insurance Companies to Protect Businesses 148 The Fifth Key Always Consider Taxes 155 Chapter 25 Uncle Sam s Pieces of Your Pie 157 Chapter 26 Use Retirement Plans 165 Chapter 27 Borrowing Lower Tax Rates 168 Chapter 28 Long-Term Care Insurance 171 Chapter 29 Charitable Planning 174 Chapter 30 Educational Planning 181 Chapter 31 Is Your Tax Advisor Helping or Hurting You? 191 The Sixth Key Preserve Your Estate 195 Chapter 32 The Truth about the Estate Tax Repeal 197 Chapter 33 Wills and Living Trusts 203 Chapter 34 The A-B Living Trust 209 Chapter 35 Joint Ownership and Disinheritance Risk 213 Chapter 36 Estate Planning Life Insurance Policies 216 Chapter 37 Family Limited Partnerships and Limited Liability Companies 220 Chapter 38 Avoiding the 70 Percent Tax Trap of Pensions and IRAs 225 Chapter 39 Protection from Rising Medical Costs 238 Chapter 40 Charitable Estate Planning 242 The Seventh Key Avoid Financial Disasters 247 Chapter 41 Premature Death of a Family Member 249 Chapter 42 Premature Death of a Business Partner 253 Chapter 43 Disability of a Breadwinner or Business Partner 260 Chapter 44 Long-Term Care Needs for Families 268 Chapter 45 Running Out of Money in Retirement 274 The Eighth Key Invest Wisely 279 Chapter 46 A Nobel Prize Is Not Enough 281 Chapter 47 Taxes, Inflation, and Your Investments 288 Chapter 48 Outgrowing Mutual Funds 292 Chapter 49 Alternative Investment Strategies 300 The Ninth Key Use the Secret Investments of the Affluent 307 Chapter 50 Investment Efficiency 309 Chapter 51 Real Estate Basics 312 Chapter 52 Real Estate Leverage 316 Chapter 53 Flexibility and Efficiency of Real Estate 319 Chapter 54 Life Insurance Basics 325 Chapter 55 Life Insurance Leverage 332 Chapter 56 Flexibility and Efficiency of Life Insurance 337 Chapter 57 Proof that Life Insurance Outperforms Mutual Funds 340 Chapter 58 Creative Applications of Insurance 349 Chapter 59 Leveraging the Ultimate Leverage Tool 352 The Tenth Key Plan for Success 357 Index 365