In FAMILY INC.: Using Business Principles to Maximize Your Family’s Wealth Douglas P. McCormick empowers readers to take control of their family’s financial security with the confidence and strategic insight of a corporate Chief Financial Officer.
Most people know how to create a monthly budget, pay off debt and meet a savings goal. But few bring these individual components together into a holistic and long-term financial plan. They think they’re making the right decisions, but they don’t really know how financially secure their family is. Or worse, they outsource the responsibility to a financial adviser and feel relieved that an “expert” is in charge.
In FAMILY INC.: Using Business Principles to Maximize Your Family’s Wealth (Wiley; April 18, 2016), Douglas P. McCormick empowers readers to take control of their family’s financial security with the confidence and strategic insight of a corporate Chief Financial Officer. The book teaches readers how to become the CFO of their family, apply the time-tested principles of corporate finance to the family’s finances, and plan, monitor, and forecast their family’s financial future with customizable tools available at www.familyinc.com.
The FAMILY INC. financial plan begins with the premise that your family is a business, and the Family CFO is responsible for managing that business’ two primary assets: labor and financial capital. The labor business involves “selling” family members’ skills and energy for money, while the asset management business involves growing that money to support your spending needs today and in the future, long after you retire. This new paradigm allows the Family CFO to use many of the everyday tools of the world of business to maximize both assets and accomplish three things: provide cash flow to support the family’s spending and investing; maximize the family’s net worth; and manage their legacy through an inheritance to financially literate children and charitable giving.
In FAMILY INC., McCormick provides a holistic framework for managing a family’s wealth, and teaches readers how to:
- Calculate how much money they can expect to earn over a lifetime – their Expected Lifetime Labor Value – and increase that value through education, selecting the right types of jobs, and extending their working life
- Build a customized financial management program and manage it with calculators, income statements, balance sheets, and analytics, all available at www.familyinc.com
- Plan for retirement by estimating how much to save, how their retirement age affects their risk of outliving their money, and how their investment and spending plan will change in retirement
- Create maximum wealth and shelter themselves from competition through entrepreneurship
- Offer sound education and career advice to their children and jump-start their success through an inheritance, while giving them the knowledge, skills and training to become responsible owners of Family Inc.
McCormick argues that financial security is not achieved through saving tricks and stock picks, but through a lifetime of better decisions about the major factors that impact long-term financial security: education, career, spending, investing, insurance and retirement. With FAMILY INC., McCormick provides a time-tested framework for winning the financial game of life.
Douglas P. McCormick has a lifetime of experiences that provide the foundation for the framework, principles and tools in Family Inc. As a professional investor, he has spent two decades managing money for institutional clients such as insurance companies, pension funds, entrepreneurs and high net worth families. Unlike Wall Street money managers who seek to generate paper profits through passive investing, Doug partners with families and entrepreneurs to build and grow their businesses to create sustainable long-term value. His own journey to achieving financial independence began at the age of seven, when his Dad helped him purchase AT&T stock. During his professional career, he has gone from active duty Army officer with a young family, to grad school student, to employee at a Wall Street investment bank, to private equity investor and finally entrepreneur through co-founding HCI Equity with his partners.
As Managing Partner at HCI Equity, Doug oversees all aspects of the firm’s strategy, investments and operations with his partners. Before joining HCI Equity, he worked as a Managing Director at Thayer Capital and in the Investment Banking Division of Morgan Stanley & Co. Doug previously served as a Captain in the U.S. Army’s 25th Infantry Division where he earned the Airborne, Air Assault, Expert Infantryman, and Ranger qualifications. Doug holds a Master of Business Administration from Harvard Business School and a Bachelor of Science in Economics from the U.S. Military Academy at West Point, where he graduated at the top of his class while serving as First Captain and Co-Captain of the Army Wrestling team.
Doug’s personal passions include his family (wife Michele, son Mike and daughter Kelly), his dogs (Mac and Sammy), hunting, outdoor activities, politics and veteran causes. Doug serves as a board member of Team Red White and Blue (www.teamrwb.org), and is honored to be a Henry Crown Fellow, class of 2011.
Melissa Connors, Publicity Manager
WILEY
mconnors@wiley.com