Stuart E. Lucas - The Taxable Investor's Manifesto

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Library of Congress Cataloging-in-Publication Data

Names: Lucas, Stuart E., author.

Title: The taxable investor's manifesto : wealth management strategies to last a lifetime / Stuart E. Lucas.

Description: Hoboken, New Jersey : Wiley, [2020] | Includes index.

Identifiers: LCCN 2020004855 (print) | LCCN 2020004856 (ebook) | ISBN 9781119692034 (hardback) | ISBN 9781119691990 (ePDF) | ISBN 9781119692027 (epub)

Subjects: LCSH: Investments. | Finance, Personal. | Stocks. | Portfolio management. | Investments—Taxation.

Classification: LCC HG4521 .L86155 2020 (print) | LCC HG4521 (ebook) | DDC 332.6—dc23

LC record available at https://lccn.loc.gov/2020004855

LC ebook record available at https://lccn.loc.gov/2020004856

Cover Design: Wiley

Cover Image: © sorbetto/Getty Images modified by Wiley

To Becca, Camilla, and Sam

The author, through his firm, Wealth Strategist Partners, LLC provides investment advice and functions as an outsourced Chief Investment Officer for taxable individuals and families. Any statements or information contained in this book are made in the author's personal capacity and are not affiliated with, or endorsed by, any investment adviser with which the author may currently, or in the future will, be associated.

The information and views contained in this material are as of the dates noted and are for educational and informational purposes only. Such views are subject to change without notice. Neither Mr. Lucas nor Wealth Strategist Partners have any duty or obligation to update the information in this book. The information presented does not constitute, and should not be construed as, investment advice or recommendations with respect to markets, asset allocation, funds, securities, or individual investments. Moreover, neither the information nor any opinions expressed constitutes a solicitation for the purchase or sale of any investment or security.

Readers should consider their personal circumstances and consult with their own qualified investment, tax, and legal advisors. Neither the author, nor Wealth Strategist Partners, LLC, nor the publisher can be held responsible for any losses or damages arising from any use of this information.

Certain information contained herein is based on independent third-party sources. The author believes that the sources from which such information has been obtained are reliable; however, he cannot ensure the information's accuracy and it has not independently been verified for accuracy, completeness, or the veracity of assumptions used.

Investment performance information should not be relied upon as the primary reason for making investment decisions. Historical investment performance is not a reliable predictor of future performance. The potential for profit also creates the possibility of loss. Tax rates change regularly, and such changes may have a material impact on the expressed views herein and the attractiveness of certain investments.

© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) does not constitute investment advice offered by Morningstar; and (4) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Use of information from Morningstar does not necessarily constitute agreement by Morningstar, Inc., of any investment philosophy or strategy presented in this publication.

Stuart E. Lucas is founder, Co-Managing Partner, and Chief Investment Officer of Wealth Strategist Partners, advisor to large complex families across financial, business, and cultural dimensions of their enterprises.

Stuart designed and is Co-Director of the University of Chicago Booth School of Business's Private Wealth Management continuing education program, which has served over 1,000 wealthy individuals and families in the 12 years since the course's inception. He is a speaker on topics of wealth management around the world. His first book, Wealth: Grow It and Protect It (FT Press), has been published on three continents. He is the author of numerous articles on investing and wealth management, most recently “The 50% Rule” and “Pick Your Battles” ( Journal of Wealth Management ), co-authored with Alejandro Sanz.

Stuart is chairman of the Investment Committee of National Public Radio in Washington, D.C., and is involved in various other philanthropic endeavors in education and media.

Previously, Stuart was the senior managing director of the Ultra-High Net Worth Group within Private Client Services at Bank One (now JP Morgan Chase); director of a multifamily investment office in Paris, France; general manager of European operations of Wellington Management Company in London, England; and assistant portfolio manager of a Forbes Honor Roll mutual fund.

He has a BA with honors from Dartmouth College, an MBA from Harvard Business School, and is a Chartered Financial Analyst. He has been married for more than 30 years to his wife, Susan, and they have three grown children.

Over the years, in my day job, in academia, in my role as chair of National Public Radio's Investment Committee, I am blessed to have built relationships, some spanning 40 years, with brilliant, committed investors. So much of what I have learned about leadership, about investing, about managing taxable wealth, is the result of shared inquiry and the desire to get better and better at our craft. As a result, my book has few ideas I can justifiably call my own. More powerfully, it is the product of that collective inquiry. Possibly the most original idea is simply to weave the insights of others into a hopefully coherent whole.

My journey started as a newly minted Dartmouth history major and aspiring equity analyst at Wellington Management Company. My experience at Wellington and three years of preparation to earn the CFA Charter holder designation gave me the conceptual frameworks to do my job well and defined the rigor with which I have approached my career ever since. The ethical precepts and the professional networks exemplified by both organizations are foundations of my investment worldview for which I am eternally grateful.

Those underpinnings and the relationships that developed with them led to over two dozen busy investment professionals, including Seth Masters, Rick Roeding, Bill Poorvu, Howard Marks, David Puth, Trent Sebits, Shirley Spence, David Jones, Gena Estenfelder Todd, Howard Stevenson, and others, graciously taking the time to read and provide detailed feedback on versions of this manifesto, some of you more than once. The value of your wise insights and honest feedback is priceless and the book's content and readability are infinitely improved as a result. I look forward to continuing our thought partnership in the years ahead.