Two-Comma Wealth

A financial planner offers advice for managing a lifetime of wealth.

In this debut book, Stefanou draws on his work advising clients and his personal experience of helping his immigrant father to manage his finances in his later years. It offers readers a roadmap to investing responsibly, managing tax obligations, and using accumulated wealth for charitable or legacy purposes. The book’s title refers to the wealth of its target audience—people who have accumulated more than $1 million in investable assets, often concentrated in retirement accounts. The book guides readers on how to invest that wealth to preserve and maximize its value, as well as how to spend it responsibly and enjoyably, and pass it down to one’s heirs. Stefanou covers some familiar topics, such as how to balance growth and risk over the lifetime of a portfolio, minimize tax liability through legal means, and manage spending during retirement. The book also dedicates a chapter to the needs of business owners, arguing that they should diversify their investments beyond their own enterprises and recommending exit planning well in advance of retirement for a smooth sale or transition. Other chapters address less concrete aspects of financial planning, such as assessing personal and ethical values, deciding how to get the most enjoyment out of spending one’s available money, and anticipating and mitigating conflicts among heirs. Stefanou also advises readers on how to avoid financial scams and find a capable financial adviser. Each chapter concludes with “SWIM [Stefanou Wealth and Investment Management] Lessons,” combinations of summary and workbook exercises that guide readers through taking action on the topics covered.

The book provides a solid base of information, and it’s enhanced by the many anonymized stories that Stefanou shares from his clients’ adventures in saving, investing, and bequeathing inheritances. For instance, he explains the steps that he took to help a young man with a low salary minimize his income tax exposure. However, what makes the book unique is Stefanou’s inclusion of stories about his father, a Greek immigrant who lived frugally while working low-wage jobs and acquired enough capital to buy a rental property; he ended up with a portfolio worth more than $1 million, while continuing to work long hours into his later years. The author explains that the penny-pinching habits his dad practiced out of necessity were hard to shake when his financial situation was less precarious, and he takes readers through instances when he coached his father into occasionally spending some of his money. For instance, Stefanou encouraged his father to hire a builder to replace his porch, instead of doing it himself. “It was a fear of embracing and utilizing wealth because he felt like he needed permission to spend or else he was squandering money,” the author explains, and it took the combined effort of himself and his sister to help their father to overcome it. Such insights set this book apart from others in the genre. Throughout, Stefanou writes with empathy for his readers while offering advice that will guide them to responsible financial behavior.

A useful financial-planning book that’s enhanced by the author’s personal experience.