In a recent post on his Forbes.com blog, Steve Parrish of the Principal Financial Group mentioned a discussion with a financial advisor in which the advisor used the expression, “concentrate to create; diversify to protect.” This post discusses this concept as part of The One Percent Solution.

With this post we continue our investigation of the management of illiquid wealth in closely held and family businesses (The One Percent Solution) with a discussion of liquid wealth. By comparing and contrasting these two general forms of wealth, we can begin to understand the principles necessary to manage illiquid wealth. Liquid Wealth Defined Liquid wealth […]

With this post I am beginning a new book, tentatively titled Managing Private Wealth from Closely Held Businesses: The One Percent Solution, and will post additional sections over the coming weeks.  When it is complete, the book will be published as an Amazon Kindle book. The gist of the idea behind The One Percent Solution is:

Consider a budget for managing your pre-liquid wealth (defined as your ownership interest in your private company) similar to the fees you pay to manage your liquid wealth (stocks, bonds, other liquid investments).

If you own a closely held or family business and have been hanging on because of a nagging sense of responsibility or fear of letting go – even if you know you need to – then get and read this book.

Tom Deans has written an excellent book for all business owners and their advisers. The title is Every Family’s Business.