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WMAKEHow Big Data Can Save Your Life; The Race to Driverless Cars; Can the Trumps Make Wine?

GROWCraig Venter on the Future of Aging; Six Health Investments; Tech Wealth Investing in Longevity

LIVE12 Steps to Living Better; Six Spring Getaways; The Best Cuban Cigars You Might Soon Be Able to Smoke

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Filter / Trends in Business & Entrepreneurship

Can Eric Trump Make Wine? / The Next Generation Trump Takes Over the Family Winery

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Filter / Trends in Wealth Management

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Power Trip / Travel Gear That’s Stylish and Durable

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“20 QUESTIONS WITH ROBERT HERJAVEC”(December-January 2014)

Worth interviewed one of the potential investors on ABC’s reality show Shark Tank and the founder of the security fi rm Herjavec Group.

In February, Herjavec Group acquired a leading UK-based based security provider, Sysec, which is expected to generate over $20 million in revenue this year. Sysec specializes in information, identity and infrastructure security and has more than 200 clients. The acquisition expands Herjavec Group’s presence in the European IT security market.

“20 QUESTIONS WITH ANTHONY SCARAMUCCI”(August-September 2014)

Worth interviewed Anthony Scaramucci, founder of SkyBridge Capital and host of the powerhouse SALT Conference, before the opening of his New York restaurant, Hunt & Fish Club.

Scaramucci’s $5 million midtown steakhouse opened in January and has quickly become buzzworthy, with write-ups in the New York Post ("Where Beauties Trawl for Sugar Daddies"), the Wall Street Journal, Bloomberg, Business Insider and the Hu� ngton Post ("A Lot Swankier Than It Sounds"), among others. The clientele to date: largely private equity and hedge fund bigwigs, along with celebrities such as Yankees pitcher CC Sabathia and Timbaland.

“THE BELIEVER”(October-November 2014)

Worth spoke to HighTower founder Elliot Weissbluth about how he lost faith in the fi nancial industry and started his own wealth-management fi rm.

HighTower Advisors started the new year with a big vote of confi dence: a $50 million increase to its line of credit from SunTrust Bank to help with the fi rm’s broker recruitment e� orts. SunTrust joins PNC and BMO Harris, which gave HighTower access to $100 million last July.

“TIMELINE: CHRIS AND TORY BURCH”(June-July 2012)

Worth examined the challenges of running a family business when you’re no longer family.

Chris Burch’s C. Wonder retail fashion brand fi led for bankruptcy in January. Burch and ex-wife Tory Burch endured a lengthy and public legal battle over the similarities between their two brands, though C. Wonder had a low-price strategy while Tory Burch takes a more high-end approach. C. Wonder failed, argued a writer for the website Racked, because Burch was

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“MR. STUMPF STAKES HIS CLAIM”(February-March 2015)

Worth talked to the CEO of Wells Fargo about his role as head of the country’s biggest bank.

In March, Wells Fargo became the fi rst major bank to put a cap on the number of auto loans it grants to subprime borrowers. The move comes as federal and state authorities examine whether auto dealers—in an echo of the precrash subprime mortgage crisis—have been falsifying information on loan applications to ensure that any borrower, qualifi ed or not, is able to purchase a car.

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We’ve done something a li� le diff erent for this issue of Worth. It’s built around a theme, as all of our issues are; we like the depth you can achieve by looking at a

single subject—in this case, health—from the multiple perspectives of entrepreneurship, investing and lifestyle. The topic opens up in surprising ways when you look at it from diff erent angles.

But health is a li� le diff erent from what we usually cover. It’s a fi eld that is both immensely compli-cated and undergoing profound and rapid change.

So we decided to call in reinforcements: We asked four medical experts to share their wisdom as we discussed story ideas and mapped out the issue. Three of them—Dan Carlin, Marc Penn and Ellen Rome—are doctors. (Dan is also a regular columnist for this magazine.) The fourth, Chirag Patel, is a venture capitalist with a focus on healthcare. We brainstormed with this core group (see page 24) to learn more about what they do every day, where they expect the fi eld of healthcare to go and what they see that surprises and interests them. We also asked them to make sure that nothing we wrote struck them as seriously off base.

And, because I thought he could do it be� er than I could, I asked Dan Carlin to write an introduction to the issue; you’ll fi nd it on page 22.

These four folks are incredibly busy, and I’m hugely grateful for their gi� s of time and wisdom. If you like this issue—and I do, very much—please know that we couldn’t have done it without them.

— Richard Bradley rbradley@worth.com

E D I TO R ’ S L E T T E R

S

“We asked four medical experts to share their wisdom as we discussed story ideas and mapped out the issue.”

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THE SMALLEST THINGS LEAVE THE GREATEST IMPRESSION.

We are approaching the end of the current age of medicine; the next one is broaching the horizon. The transition will almost certainly prove chaotic. So our goal with this issue of Worth is to give readers perspective on the coming changes, and guidance to help weather the storm.

Today’s healthcare system is underfunded, its core mission of healing perverted by dysfunctional economic incentives. The result is a hodgepodge of providers, tests and treatments, o� en operating in isolation. To make ma� ers worse, this unstable assembly is on a collision course with a demographic onslaught: 65 million aging baby boomers.

Two huge forces will drive the disruption of American healthcare.Though it has been only 12 years since the great map of the human genome was created, we are well

into understanding the map’s profound and sublime intelligence. For example: We once thought that sickle cell disease and cystic fi brosis were the pathologic result of defective DNA. We now know that these defects, when distributed across a larger population, confer protection against malaria and cholera. We also know that our DNA can be mission-fl exible, driven by external circumstances that guide the expression of some proteins at the expense of others.

This unlocking of our DNA has created two entirely new fi elds of healthcare: cellular therapies and regenerative medicine.

The best cellular therapies happen on a molecular basis inside the cell. Targeted chemotherapies kill cancer cells by exploiting the specifi c protein or DNA defects that made them cancerous. In regenerative medicine, the use of stem cells to repair diseased or lost tissue is moving quickly. From treating parkin-sonism to rebuilding burned skin, your own stem cells will provide the means to heal.

Complementing our understanding of DNA is the power of computing and connectivity. These two technologies will reach fruition when we fi gure out how to connect health records across

providers—chaos, at the moment—and integrate data from personal health monitors into clinical practice. When these two goals are reached, every illness or injury will be both trackable and matchable against your DNA to determine the best cure. At that moment, the next age of medicine will have begun.

Amid all this change, there is a compelling role for the affl uent. Wealthy families, by funding research that is meaningful to them, o� en bankroll a cure or process benefi cial to millions. With government funding for medical research falling, medical philanthropy will be essential to maintaining progress.

My thanks to Worth’s editor-in-chief, Richard Bradley, for the opportunity to help captain this issue. It was a thoroughly enjoyable journey.

— Dr. Dan Carlin Contributing Editor

D O C TO R ’ S N OT E

Ö

“Complementing our understanding of DNA is the power of computing and connectivity.”

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Dr. Dan Carlin

Carlin, CEO and founder of WorldClinic, a con-cierge medical fi rm, is an expert in telemedicine, which he grew passionate about while volunteering in refugee camps in Africa and Pakistan. After work-ing in an environment in which access to medical expertise and resources is urgent and rare, Carlin, who founded WorldClinic in 1996, wanted to de-velop a system that pro-vided both. But despite his passion for technol-ogy, Carlin focuses on the human side of medicine and worries about up-and-coming doctors. “This is a generation raised on the smartphone,” he says. “Frankly, their inter-personal skills are poor. They’re terrible at talking to old people who don’t like to text.”

Dr. Marc Penn

Penn is a cardiologist and director of research at the Summa Cardiovascular Institute in Akron, Ohio. Formerly on sta� at the Cleveland Clinic, he is also a professor of medicine and integrative medical sciences at Northeast Ohio Medical University. Penn is both a scientist and entrepreneur whose research has led to new strategies for optimizing gene therapy and stem cell therapy for the regen-eration of heart tissue. Sophisticated medical consumers need to be proactive, he emphasizes. “A lot of folks who are interested in maintaining their health need to not rely on current standard of care and guideline-based therapies,” he says. “The reality is there are things out there that ev-eryday physicians do not invoke that could actually help people.”

Chirag Patel

A longtime venture capitalist, Patel is manag-ing director at the New York-based fi rm High-note Foundry, where he works in partnership with large corporations to incubate new businesses in the fi elds of digital health solutions, wealth management, media and education. Patel has a specifi c interest in tele-medicine. (Foundry is an investor in Dan Carlin’s WorldClinic.) “There’s an abundance of capital and no shortage of ideas around digital health solutions,” Patel says. “The question becomes, how do you identify businesses that have staying power?”

Dr. Ellen Rome

A pediatrician with a de-gree in psychology from Yale, a medical degree from Case Western Re-serve University and a masters in public health from Harvard, Rome is head of the Center for Adolescent Medicine at the renowned Cleveland Clinic. She says that the challenges faced by to-day’s youth are numerous and, often, novel; they range from cyberbully-ing to obesity to suicide to drugs and alcohol to stress and burnout. “Par-ents almost uniformly want to do the best for their kid,” Rome notes. “But many parents turn a blind eye to things because of the fear, ‘I’m failing as a parent.’” Rome collaborated with Dr. Mehmet Oz and Dr. Michael Roizen on two books: You: The Owner’s Manual for Teens and You Raising Your Child: The Owner's Manual from First Breath to First Grade.

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“JEWELS THIS SPECIAL

COULD ONLY COME FROM

MARTIN KATZ.”

B R I L L I A N T LY I M AG I N E D & B R I L L I A N T LY VA LU E D @ M A RT I N K ATZ J E W E L S 3 1 0 . 276 .7200 WWW. M A RT I N K ATZ .CO M

B E V E R L Y H I L L S • N E W Y O R K • B E R G D O R F G O O D M A N

7.19SXSW V2V

Stephanie Staidle, The Right Brain Entrepreneur

Global CalendarMAKE BUSINESS & ENTREPRENEURSHIP grow INVESTING & WEALTH MANAGEMENT live TRAVEL & CULTURE

A P R I L J U L Y 2 0 1 5

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04/15

Skoll World Forum on Social Entrepreneurship(OXFORD, ENGLAND)

The annual conference on social entrepreneurship brings together luminaries from business, government and civil society to grapple with the world’s biggest problems and devise inno-vative ways to make prog-ress in solving them. Past participants have included Nobel Prize winner Malala Yousafzai, former UN secre-tary general Kofi Annan, Sir Richard Branson and former vice president Al Gore. Through April 17.Contact: registration@skollworldforum.org, skollworldforum.org

04/15

Tribeca Film Festival(NEW YORK)

Going on its 14th year, this two-week Robert De Niro-headed festival is a major stop for fi lm producers, who take over lower Manhattan with a roster of fi lms from emerging and established directors from around the world. Through April 26. Contact: vip@tribecafi lm.com, 212.941.2400, tribecafi lm.com

04/23

Singapore Yacht ShowThis marks the fi fth year that superyacht manufacturers will fi ll Singapore’s luxurious One° 15 Marina Club with the

newest models of high-end boats. The concentration of wealth also draws supercar, jewelry and fashion compa-nies to entice the mostly re-gional clientele who attend this show. Through April 26.Contact: info@singaporeyachtshow.com, 65.6271.0050, singaporeyachtshow.com

04/26

Milken Institute Global Conference(LOS ANGELES)

In addition to fi nancial talk, this conference aims to prompt discussion of practical solutions to issues in health-care, philanthropy, govern-ment and education. Previous attendees include the Carlyle Group’s David Rubinstein, T. Boone Pickens and Eric Schmidt. Through April 29.Contact: Courtney Lyman, clyman@milkeninstitute.org, 310.570.4608, milkeninstitute.org

04/08

2015 IMG World Congress of Sports(LOS ANGELES)

Sports are about physical and mental achievement; they’re also about business. Speakers at this year’s World Congress will include Rob Manfred, commissioner of Major League Baseball, Walt Disney Company chair and CEO Bob Iger and LinkedIn CEO Je� Weiner. Topics will range from managing teams and leagues to marketing and digital integration. Through April 9.Contact: Lorianne Lamonica, loriannelamonica@sportsbusinessjournal.com, 704.973.1523, sportsbusinessdaily.com

04/13

13D Monitor’s Active-Passive Investor Summit(NEW YORK)

More than 300 investors, CEOs, bankers and attorneys will gather for a marathon networking and information-sharing session at the Crowne Plaza Times Square. With a focus on value and activist investing, the summit provides a great way to con-nect with top thinkers in the fi elds. Past speakers have in-cluded Pershing Square Cap-ital CEO Bill Ackman, activist investor Carl Icahn and Rela-tional Investors founder Ralph Whitworth.Contact: Meredith Marbach, mmarbach@icomm-net.com, 917.472.7416, 13dmonitorconference.cvent.com

4.15Tribeca Film Festival

4.23Singapore Yacht Show

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05/02

Kentucky Derby(LOUISVILLE, KY.)

The most famous horse race in the United States is also one of the greatest oppor-tunities to hobnob with leading personalities in in-dustries varying from fi -nance and government to fashion and fi lm. Best spot for the action: the Turf Super Suite, with indoor and covered outdoor seat-ing, gourmet catering and an open bar.Contact: 502.636.4400, kentuckyderby.com

05/04

TechCrunch Disrupt NY(NEW YORK)

For tech startups, Disrupt is huge. The Startup Battlefi eld is the conference’s core event: 30 companies, se-lected from hundreds of ap-plications, pitch themselves to a panel of judges and a live audience of thousands. Presenting gives startups a chance to catch the eye of angel investors and venture capitalists, and the winner pockets $50,000 to boot. Through May 6.Contact: events@techcrunch.com

05/05

SALT Las VegasSpeakers including Richard Branson, Michael J. Fox and Lawrence Summers—who famously clashed with Nas-sim Taleb at last year’s event—will join attendees at the Bellagio to discuss eco-nomics, politics and invest-ment opportunities. More than 1,800 thinkers, profes-sionals, investors and public o� cials attend the annual conference sponsored by SkyBridge Capital, and an online platform allows peo-ple to schedule one-on-one meetings with SALT dele-gates. Through May 8.Contact: salt@skybridgecapital.com, 212.364.7258, saltconference.com

05/13

Cannes International Film Festival(CANNES, FRANCE)

The invitation-only festival is perhaps the most respected and attended in the movie world. (The location doesn’t hurt.) Though the screenings are strictly for those in the industry, the glitzy parties transform Cannes into a VIP extravaganza. This year, di-rectors Joel Coen and Ethan Coen will lead the festival’s jury. Through May 24.Contact: 33.0.1.5359.6100, festival-cannes.com

05/05

Clinton Global Initiative Middle East & Africa(MARRAKECH, MOROCCO)

The Middle East and Africa may seem to have a dispro-portionate share of the world’s political, social and economic problems—from ISIS to Ebola—but CGI con-venes politicians, scholars and business leaders from around the globe to fi nd so-lutions. CGI’s fi rst Middle East and Africa meeting will be hosted by Bill, Hillary and Chelsea Clinton. An interest-ing subtext: controversy over the foundation’s acceptance of foreign money. Through May 7.Contact: cgimea@clintonglobalinitiative.org, 646.778.5155, clintonfoundation.org/clinton-global-initiative

TechCrunch’s Disrupt Cup award winner of 2014 5.04

Kentucky Derby5.02

Andre Agassi

speaks at SALT

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T H E F I R S T R E S I D E N T I A L B U I L D I N G S I N H A W A I I B Y O N E O F

T H E W O R L D ` S G R E A T E S T L I V I N G A R C H I T E C T S

R E G I S T E R Y O U R E A R L Y I N T E R E S T

W A R D V I L L A G E G A T E W A Y . C O M O R C A L L 8 0 8 . 3 6 9 . 9 6 0 0

L A U N C H I N G S U M M E R 2 0 1 5

This is a graphical rendering of the planned project. It has not yet, and need not, be built. This is not intended to be an ofer to sell nor a solicitation of ofers to buy real estate. Any amenities or recreational facilities

shown are not part of the project unless specifcally stated, may not exist and may only be accessible by permission of the owners of such amenities or recreational facilities. Exclusive Project Broker Ward Village

Properties, LLC. Copyright 2015. Equal Housing Opportunity.

E X T R A O R D I N A R Y

r i c h a r d m e i e r i s c o m i n g t o h o n o l u l u

05/14

Frieze New YorkA little more irreverent than Art Basel but with the chops the contemporary art world demands, this o� shoot of the London art fair is a must for any serious collector. The pavilion, located on Ran-dall’s Island, will house more than 190 contemporary gal-leries, along with public pro-gramming that includes style, fi lm, music and food. A new addition: Spotlight, dedicated to works from the 20th century—a great place to fi nd pieces by artists now being rediscovered.Through May 17.Contact: vip@frieze.com, 212.463.7488, friezenewyork.com

05/14

Worth Leading Wealth Advisor Summit(NEW YORK)

This event brings together thought leaders and luxury experts to provide investment education and passions-oriented entertain-ment in a relaxed setting. Contact: Alisha Snider, asnider@worth.com, 917.934.2865, sandow.com

05/19

EBACE 2015(GENEVA)

Otherwise known as the European Business Aviation Convention and Exhibition, this conference draws more than 13,000 business lead-ers, government o� cials and representatives of the aviation industry, who come to launch new products. Last year, Gulfstream sur-prised everyone by an-nouncing its G650ER at EBACE. Through May 21.Contact: Coryn Alvarez, calvarez@nbaa.org, 202.737.4480, ebace.aero

than 2,000 delegates, rep-resenting $10 trillion AUM, attended. Speakers have included former UK prime minister Tony Blair, former secretary of state Henry Kissinger and GE chairman and CEO Je� rey Immelt. Through June 3.Contact: jpm.asia.conferences@jpmorgan.com, jpmorgan.com/pages/jpmorgan/investbk/conferences/chinasummit

06/15

London Technology WeekDrawing tens of thousands of entrepreneurs, technolo-gists and business leaders, this is one of the world’s largest tech conferences.To accomodate more social events, this year’s schedule includes the weekend. Through June 21.Contact: londontechweek@ubm.com, londontechnologyweek.co.uk

07/19

SXSW V2V(LAS VEGAS)

V2V, the latest addition to the SXSW conference series, is a departure in several ways—it’s entirely focused on startups and innovation, and it’s in Vegas’ Bellagio rather than SXSW’s native Austin, Texas. Through July 22.Contact: registration@sxswv2v.com, sxswv2v.com

05/21

Monaco Grand PrixThe top event of the Formula 1 circuit winds through the narrow streets of Monte Carlo and La Con-damine—described by some as one of the world’s deadliest courses—once again. That’s part of the thrill that draws the world’s elite to this race. The ubiq-uitous parties are another lure. Through May 24.Contact: location@formula1monaco.com, 377.9315.2624, formula1monaco.com

06/01

J.P. Morgan Global China Summit(BEIJING)

With a focus on China’s evo-lution from exports and in-frastructure to an economy based on domestic con-sumption and innovation, the J.P. Morgan Global China Summit is a key event for anyone investing in the world’s second-largest economy. Last year more

Man on Wood Sca� old, 1976 by George Segal iscoming to Frieze New York

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Calendar_WO35.indd 30 3/17/15 12:07 PM

E. Charlton FortuneThe Senora’s Garden, circa 1918oil on canvasSold for $722,500

Bonhams knows art...

...back to front.

+1 (866) 983 7056 – info.us@bonhams.com – bonhams.com©2014 Bonhams & Butterfelds Auctioneers Corp. All rights reserved. Bond No. 57BSBGL0808 Principal Auctioneer: Malcolm Barber. NYC License No. 1183017

We never judge a book by its cover, or a painting by its front side alone. By the time this E. Charlton Fortune reached the auction block, our experts knew it inside and out.

Having already set the world record for a Fortune at auction, they built on their experience by studying the painting’s scribbled notes, exhibition labels and materials.

Then they used Bonhams’ global reach to put the painting in front of the right audience. Found in London, The Senora’s Garden returned home to California to sell for $722,500.

At Bonhams, starting at the back of each painting keeps our results out in front.

Bonhams specialists noticed that this

canvas by E. Charlton Fortune is painted

beyond the tacking edge along the left side,

showing that the painting was resized. The

original frame and exhibition labels suggest

the artist herself made the change.

The color, patina, and aging of the

frame and canvas are consistent with

a painting dated circa 1918.

A mix of original and replacement

canvas keys along with modern

mounting hardware reveal a

recent restoration.

This Stanford White style carved oak

ripple moulding perfectly matches

the frames of several other Fortunes

sold at Bonhams, indicating the

artist’s preferred format.

A minimal label led Bonhams researchers to the

1921 “Autumn exhibition of modern art: the

forty-ninth,” in London. Dicksee & Co. appear

in a London Post Office Directory as “Fine Art

Agents, Packers and Conveyancers.”

Bonhams specialists recognized

this handwriting as the artist’s, and

the label as a 1920’s San Francisco

Art Association Exhibition design.

Examined under ultraviolet light, the surface of

the painting shows no retouching, but a close

inspection revealed tiny, scattered spots. The

Bonhams team recognized these as splatters

from house paint, and had the painting

cleaned to remove the offending marks.

Notes in chalk refer to the

1921 Liverpool exhibition.

A rare example of the artist’s

card. Bonhams experts used

Fortune’s handwriting and many

other factors to confirm the

painting’s authenticity. Originally

priced at $500, this work would

have rewarded a patient investor

when it sold for over $720,000.

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“It requires a huge amount of skill, discipline and rigor—and perhaps a bit of folly. It’s a bit like

watchmaking. ”

“There are many, many possible states of

health and disease. What we want to figure out is what is the optimal healthy path for you—

and how do we keep you from these points of no return. ”

DR. JOEL DUDLEY

The director of biomedical informatics at Mount

Sinai’s Icahn School is on the forefront of digital medicine. For more,

see page 44.

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MAKEMAKE TAKES YOU INSIDE THE WORLD OF MEN AND WOMEN WHO BUILD BUSINESSES—AND COMMUNICATES THE SECRETS OF THEIR SUCCESS. MAKE

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MILLENNIALS LOVE A DIFFERENT LUXURY.

�Millennials—people born between roughly 1982 and 2004—are the largest generational cohort in U.S. history, and their spending already accounts for around $1.3 trillion in the

U.S. They're a vital market for luxury goods makers, but millennials engage with luxury di� erently than previous generations. According to Havas Worldwide CEO Andrew Benett, they care about “mindful consumption” and focus on “pure ingredients,” “sustainability” and “sharing." Labels matter less than authenticity, and they value experiences over physical goods. One priority: “conversational currency”—the storytelling value that a product provides.

SOURCE “THE NEW LUXURY: FOUR TRUTHS CHANGING THE SECTOR” BY ANDREW BENETT, HAVAS WORLDWIDE, PROSUMER-REPORT.COM; “MARKETING TO MILLENNIALS? MAKE IT PERSONAL AND CUSTOMIZED” BY DEBRA KAYE, ENTREPRENEUR, ENTREPRENEUR.COM

DON’T BUILD KILLER ROBOTS.

�Do artifi cial-intelligence researchers, and AIs themselves, need a code of ethics? Elon Musk and Stephen Hawking think so. Musk and Hawking, along with

hundreds of other scientists and technologists, signed an open letter following a January conference in San Juan, Puerto Rico, calling on researchers to commit to maximizing “the societal benefi t of AI.” Of particular concern: issues surrounding “liability for autonomous vehicles,” “autonomous weapons” and privacy. In mid-2014, Clearpath Robotics, a Canadian-based company, became the fi rst robotics fi rm to sign the “Campaign to Stop Killer Robots.” The company explained, “Clearpath Robotics believes that the development of killer robots is unwise, unethical, and should be banned on an international scale.”

SOURCE “RESEARCH PRIORITIES FOR ROBUST AND BENEFICIAL ARTIFICIAL INTELLIGENCE: AN OPEN LETTER,” FUTUREOFLIFE.ORG/MISC/OPEN_LETTER; “CLEARPATH ROBOTICS TAKES STANCE AGAINST ‘KILLER ROBOTS,’” CLEARPATHROBOTICS.COM

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FilterTHE CARS WILL BE DOING THE DRIVING.

�Self-driving cars are no longer around the corner—

they’re pulling up in front of the house. Both Audi and BMW showed up at the 2015 Consumer Electronics Show in Las Vegas with autonomous vehicles, and the United Kingdom started testing the robotic cars in February. Volvo began experimenting with self-driving cars in Sweden last year. In the tech world, Google has been testing self-driving cars (above) in California for years, while Uber has partnered with Carnegie Mellon University to develop autonomous vehicles, potentially putting its 162,037 “active drivers” in the U.S. out of work. Then there’s a rumored Apple project, and startups such as Cruise are starting to develop systems as well. The market is clearly accelerating.

SOURCE CRUISE, GETCRUISE.COM; “100 SELF-DRIVING VOLVOS TO HIT THE STREETS OF SWEDEN” BY LUCAS MEARIAN, COMPUTERWORLD, COMPUTERWORLD.COM; “DRIVERLESS CARS TRIALLED ON UK ROADS FOR FIRST TIME…” BY LIZZIE DEARDEN, THE INDEPENDENT, INDEPENDENT.CO.UK; “UBER TO DEVELOP SELF-DRIVING CARS” BY DAVID GOLDMAN, CNNMONEY, MONEY.CNN.COM

F F Fiiillltttltlltlltl eeetettet rrrereere

�U.S. They're a vital market for luxury goods makers, but millennials engage with luxury dthey care about “mindful consumption” and focus on “pure ingredients,” “sustainability” and “sharing." Labels matter less than authenticity, and they value experiences over physical goods. One priority: “conversational currency”—the storytelling value that a product provides.

SOURCE PROSUMER-REPORT.COM; “MARKETING TO MILLENNIALS? MAKE IT PERSONAL AND CUSTOMIZED” BY DEBRA KAYE, ENTREPRENEUR

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M A K E » B U S I N E S S & E N T R E P R E N E U R S H I P

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Q: What’s the takeaway from your research?A: Strong character creates profi t. Who the CEO is as a person is just as much a driver of value as what they know how to do. Business schools focus on teaching them skills, but their character is just as important—it can account for 20 to 30 percent of the value brought to the bottom line.

Q: How do you defi ne character?A: Everyone describes a strong-character person, or a highly principled person, as someone who tells the truth and keeps promises and forgives people who make mistakes.

Q: How do you measure character?A: We measure your reputation for how you treat other people, because we think that refl ects your character.

Q: How can business leaders use this research?A: There’s great opportunity for them to move up what we call the “character curve.” They’re leaving a lot of value on the table because they’re unaware that how they treat people impacts business results.HARVARD BUSINESS REVIEW PRESS, APRIL 2015, $30, 272 PAGES

A P P S ãEKKO

� Controlling your trail of digital breadcrumbs is hard. Ekko can help. The app pulls together all your communications into one place and sorts them into feeds. You can easily swipe through your various accounts—Twitter, email, Facebook and more—and set privacy preferences. Messages can be password-protected, redacted or set to “self-destruct” after being read. Subscribers receive an @ekko.net secure email account, and Ekko does not share or store data without permission.$5 PER MONTH OR $50 PER

YEAR, EKKO.NET

B O O K S ¿DISRUPTING DIGITAL BUSINESS: CREATE AN AUTHENTIC EXPERIENCE IN THE PEER-TO-PEER ECONOMY By R. "Ray" Wang

� Ray Wang, CEO of tech consulting fi rm Constellation Research, dispenses advice on fostering innovation. “You’re either going to disrupt or be disrupted,” he writes. Wang's maxims are illustrated with examples such as Sony’s failure to beat Apple in the MP3-player category. HARVARD BUSINESS

REVIEW PRESS, MAY 2015,

$28, 204 PAGES

A P P S ãIF

� With If, you can link your phone’s apps to create complex actions or “recipes." If you add a new contact, for example, If could automatically upload it to a Google spreadsheet. FREE, IFTTT.COM

B O O K S ¿With a PhD in counseling psychology from the University of Minnesota, Fred Kiel has consulted on leadership issues for numerous Fortune 500 companies and is the cofound-er of executive consulting fi rm KRW International.

M A K E » B U S I N E S S & E N T R E P R E N E U R S H I P

C H A R A C T E R I N T H E

R E A L W O R L D

“If I were one of the venture

fi nanciers of Uber, I’d be pretty concerned about

it,” Kiel says. “There’s a price to

be paid.”

RETURN ON CHARACTER

�IN HIS NEW BOOK, PSYCHOLOGIST FRED KIEL ARGUES THAT BUSINESSPEOPLE

WITH GOOD CHARACTER MAKE MORE MONEY THAN THOSE WITHOUT IT.

T H E O N LY C O M P E T I T I V E E D G E

“Most CEOs run companies whose business models are very similar to their competitors,’” Kiel says. “The only area they can really set themselves above and compete is how they treat their workforce.”

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Smart business moves helped Donald Trump buy Virginia’s Kluge Estate for a song. Now his son Eric is in charge of the newly named Trump Winery. But will oenophiles fizz over a wine named Trump?

profile can eric trump make wine?

“ We own the finest golf courses and hotels in the world. Now wine’s part of that world,” says Eric Trump.

Eric Trump (right) at the winery

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The copter rotors slow, then halt.

The doors open, golden seat belt

buckles flashing against soft leather

seats, and several people step out: the

pilot, in a leather aviator jacket, two

suits from Manhattan, a petite blonde

woman dressed in black, and a tall

young man with swept-back straw-

berry blond hair in a blue shadow-

plaid shirt and light gray pants.

Thirty-one-year-old Eric Trump

strides smiling toward what was once a

very large stable and is now the offices

of the largest winery complex in Vir-

ginia, 200-plus acres of the usual sus-

pects in the global drama of premium

wine: cabernet sauvignon, chardonnay,

pinot noir. But what preceded Donald

Trump’s acquisition of the estate in 2011

was a modern, high-stakes real estate

play. And just four years later, Virginia’s

preservationists are girding them-

selves for a battle with the Trumps,

whom many of them consider interlop-

ers. The issue isn’t wine, but golf.

The figure at the center of this

drama is not multimedia billionaire

and philanthropist John Kluge, who

built the mansion and outbuildings

and died in 2010, nor his former wife,

Patricia, who had these vines planted,

nor The Donald himself. It’s Eric, the

youngest child of Donald and first

wife, Ivana, emissary from Manhat-

tan to the Old Dominion, and now the

president of the Trump Winery.

Sitting in the Barn—that’s what they

call it—with his back to the gorgeous

view, Trump, like his father, talks a

good game. “We now own the biggest

contiguous vineyard on the East Coast,”

Trump says. (The “we,” of course, refers

to his family and the Trump Organiza-

tion, where Eric is an executive vice

president for development and acquisi-

tions.) “People think we’re only into

big buildings, but iconic houses have

always been the real interest. We own

11 of the world’s top hotels, and all the

support services needed to keep them

running. Trump properties have to be

the best—clubs, hotels, houses. We pride

ourselves on this, and we’re concentrat-

ing on the smaller properties.”

T he sleek black Sikorsky helicopter makes a slow turn into the wind, TRUMP in white letters three feet high clearly visible from the ground, and

settles onto a manicured expanse too broad to be called a lawn. In the background, orderly vineyards are sculpted into 1,300 acres of the Virginia piedmont south of Charlottesville. This is the Trump Winery, or, as it was known until 2011, the Kluge Estate Winery and Vineyards. It sits in the shadow of the aptly named Blue Ridge Mountains just eight miles from Monticello, where the soft contours of the land and the lovely oblique light bring locals as much pleasure today as they did Thomas Jefferson two centuries ago.

“He chooses the designs for everything from the bridal suites to the wine labels. He’s a guy’s guy who can also pick out patterns for throw pillows.”

Make_TrumpWinery_WO35.indd 38 3/17/15 1:23 PM

He cites Marjorie Merriweather

Post’s 58-bedroom Mar-A-Lago in Palm

Beach and Seven Springs in West-

chester County, N.Y., which was built

by former Washington Post publisher

Eugene Meyer in 1919 and was Eric’s

home for a time. In 10 years, Trump

adds, the organization hasn’t sold any-

thing except, in 1995, the Plaza Hotel in

New York for $325 million—too good

a deal to pass up. “We’re into all these

properties for the long haul.”

At the Trump Winery, outbuildings

include a collection of rentable “country

chic” ballrooms that can accommodate

wedding parties or corporate boards.

In one, the Pavilion, the custom-made

mahogany bar is identical to those

in other Trump buildings on several

continents. The 30,000-square-foot

Grand Hall that once stored antique

carriages from the Jefferson era col-

lected by the Kluges is now a series of

more ballrooms (Grand Cru, Sparkling,

Reserve), overseen by Eric. “He chooses

the designs for everything from the

bridal suites to the wine labels,” says

Ashley Rutter, the winery’s sales man-

ager. “He’s a guy’s guy who can also pick

out patterns for throw pillows.”

Albemarle House, the former Kluge

residence, an over 23,000-square-foot

Neo-Georgian manor on a hillside, was

built in 1985 in the style of homes built

by titans of industry at the turn of the

20th century. A small army of trades-

men is converting it to a 10-bedroom

B&B with the theme “Southern charm

with a Trump flair.” Eight bedrooms

are named for American presidents

from Virginia; all the new mattresses

bear the Trump label.

None of the Trumps will have a

home here, however. None seem much

interested in Charlottesville society,

or for that matter, in vineyards—Don-

ald Trump is said to actually dislike

wine. So why buy a property steeped

in Southern traditions and wine cul-

ture, so different from the gilt and

bling of other Trump properties?

“Because wine’s sexy,” Eric explains.

“It fits in with our company. It’s luxuri-

ous as well, particularly when com-

bined with a grand house.”

Within the Trump Organization,

Eric was drawn to construction, an es-

sential part of the global firm. “I get a

sparkle in my eye when we talk about

redoing a property soup-to-nuts,” he

says, and that includes the many golf

courses. As an exalted general contrac-

Scenes from the estate

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tor he travels the world, concentrating

on South America and Europe, where

he keeps an eye on Trump Interna-

tional Golf Links in Doonbeg, Ireland,

among other duties. (The controversial

Trump course in Aberdeen, Scotland,

fell under the aegis of his older brother,

Don, who handles sprawling Trump

commercial real estate.)

The Kluge estate in Virginia “fell

naturally into our acquisition strategy,”

says Eric, an outgrowth of the new

Trump National Golf Club D.C., on the

banks of the Potomac, which is “in the

neighborhood.” Apparently the winery

and mansion were less attractive than

the prospect of a unique golf course

among vines, in countryside insepa-

rable from America’s formative history,

wine just another high-end enhance-

ment of the family moniker.

When asked by his father to

oversee the winery, Trump knew

little about the business of winemak-

ing—hardly the only vineyard owner

of whom that could be said—and he

avoids the usual paeans about clone

selection and soft tannins. He suggests

that the strength of Virginia wines

lies in their “seasonality,” by which he

means the effects of Virginia’s volatile

climate. “I’ve always liked sparkling

wine,” he adds. “Rosé, too.” Younger

wine drinkers make more personal

choices, Trump says. “There’s been

a major shift away from Europe and

California. I’m more likely to turn to

the Finger Lakes, or Virginia, and to

pick an odd wine.”

He has learned from his Virginia

experience. “In the beginning, if we

needed something quick, like a trac-

tor, a neighboring winery would loan

us one. I asked myself, ‘Why would a

guy help a rival when it’s against his

own interests?’ Then I realized this is a

community, there was camaraderie—a

beautiful thing.” When a Trump spar-

kling rosé won a gold medal last year,

Eric says, winery owners here wrote

thanking him for raising the profile of

Virginia wine. “In Manhattan, develop-

ers don’t write thanking us for putting

up a building.”

The Trumps aren’t the first New

Yorkers to descend upon the neighbor-

hood; Patricia Kluge herself was some-

thing of an arriviste who had acted in

a racy 1969 British film called The Nine

Ages of Nakedness. Before marrying

John Kluge, founder of Metromedia

and once reported to be the world’s

richest man, Patricia met her first

husband when she worked for him as

a nude model. She and John met on a

trip to New York, married in 1981 and

lived at Albemarle much of the year,

often entertaining extravagantly.

When they divorced in 1990, according

to Forbes, she received a settlement of

$1 million a year—not much, consider-

Albemarle House; below, Donald Trump announces the opening of the vineyard in October 2011 as Eric Trump and Patricia Kluge look on

Younger wine drinkers make more personal choices, Trump says.

“There’s been a major shift away from Europe and California.”

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ing her husband’s estimated $5 billion

wealth—and Albemarle.

Convinced that great wine could be

made in Virginia, Kluge transformed

the estate into a vineyard in the late

1990s. She got good advice from Ga-

briele Rausse, director of gardens and

grounds at Monticello, and from Mi-

chel Rolland, probably the most costly

winemaking consultant on earth.

Expectations were low, and the wines

surprised everyone. “Patricia was com-

mi� ed,” says Rausse. Other winery

owners now “understood that it was

time to stop playing around … I respect

her for what she did for Virginia wine.”

But Kluge Estate Winery was soon

producing far more than it could

sell. Rising debt led Farm Credit, an

agricultural lending network, to pull

a $34.8 million loan in 2011, and other

creditors, notably Bank of America,

quickly followed. Kluge defaulted on

her debts and was forced to sell off $5

million worth of jewelry, and paint-

ings and furnishings worth $15 mil-

lion, including an imperial Chinese

clock worth almost $4 million, all

auctioned by Sotheby’s.

One of the people involved in the

se� lement was Donald Trump, who

had known the Kluges in New York.

“We gave to the same charities,” Kluge

said later. “Social Manha� an’s even

smaller than Charlo� esville.” Trump

bought a 300-acre parcel in front of the

main house and eventually all the land,

including vineyards, outbuildings,

winery, machinery and wine inventory,

with the sole exception of the mansion.

Albemarle House went on the mar-

ket in 2009 for $100 million, but the

price dropped to $24 million during the

recession. Put up for auction, the house

a� racted no bidders, primarily because

Donald Trump owned the front yard.

For the bargain price of $6.5 million,

he soon acquired the house, too. Pa-

tricia was allowed to stay for a year as

general manager of the winery, a¡ er

which she moved back to New York.

Tasting TrumpTHE TRUMP WINES ARE WELL-MADE AND BALANCED,

WITH RELATIVELY LOW ALCOHOL AND OAK EXPOSURE, ALLOWING VARIETAL FLAVOR TO SHOW THROUGH.

FOLLOWING, SOME TASTING NOTES.

2012NEW WORLD

RESERVE

A Bordeaux-style blend of merlot, cabernet franc, cabernet sauvi-gnon and petit

verdot. Red fruit on the nose, good body with a hint

of chocolate, smoky fi nish.

2009 SPARKLING BLANC DE

BLANC

Yeasty complexity on the nose,

nice body and dry, almost tart fi nish.

2009 SPARKLING

ROSÉ

Lovely salmon color, mouth-fi lling, good structure.

Only 8 percent pinot noir

but it shows through.

2013 CHARDONNAY

Touch of oak on the nose

and the palate, medium

body, creamy.

2013 VIOGNIER

Pale gold, fl oral nose, hints of citrus, short fi nish from

a grape that does well in

Virginia.

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“John Kluge was a great friend of my father’s,” says Eric. “Patricia was a friend, too. I can’t imagine what she went through, or what it felt like to fall from the height of the capitalist sys-tem to the bottom.”

Today, Eric claims, sales of Kluge wines are many times what they were when the Trumps bought the property, though most of the wine sold so far was made by Kluge. Eric has since hired a young winemaker, Jonathan Wheeler, but while the resplendent visitors’ cen-ter hums on weekends, the winery re-mains a scruffy, out-of-sight amalgam of trailers and rudimentary structures. It’s also unclear whether wine aficiona-dos will embrace a bottle with the word “Trump” on its label. The Trump brand has appeared on any number of prod-ucts, from suits to mattresses to shoes

and furniture, with mixed results, and in any event such mainstream brand-ing doesn’t typically appeal to wine connoisseurs. Though there’s a market for expensive sparkling wines, the competition is intense and sometimes as much about tradition as quality. The Trumps are brash newcomers.

Inevitably, Trump is developing al-ternative revenue streams. There were 65 events here last year, with more expected in 2015, which in conjunction with the B&B is a path of increased revenue. But those things are also po-tential problems, and not just for the

Trumps. Of the roughly 250 wineries in Virginia, only a handful produce exceptional wine, and Trump Winery as yet isn’t one of them. Virginia hov-ers on the edge of recognition in the wine world, but its fragile reputation is threatened by “pop-up” wineries in the countryside hawking events, T-shirts and “shiners,” inferior bulk wine bought in bottles without labels.

Napa Valley, the inspiration for so much of America’s wine country, pro-hibits most such activities, but Virgin-ia’s famously lax legislators have taken such decisions out of local hands. Still, the primary enterprise of all wineries is supposed to be farming, which is why they’re allowed to operate in agri-cultural areas, and despite the money earned from hospitality, Eric insists that farming is also paramount here.

“[The Trumps] are about real es-tate,” says Kerry Woolard, the general manager at Trump. “The family’s impressive hotels and golf courses are all over the world. They’re not about to do anything here that would hurt the property or their reputation.”

Not everyone shares that opinion. In early 2013, the winery applied to Albemarle County for a special-use permit for an 18-hole golf course to be developed on the property. A public meeting was held at the winery, as re-quired by law, to announce the plans. “All we have to do is cut the grass,” Eric half-jokes, meaning that the ter-rain and artificial lakes already lend themselves to links.

But the Albemarle County board of supervisors never voted on the applica-tion. And there’s another obstacle: a conservation easement on the Kluge estate that prevents any changes to the topography. It’s held by the Virginia Outdoors Foundation [VOF], which advised Donald Trump that his golf course was unlikely to get its approval.

So last year The Donald appealed di-rectly to Virginia governor Terry McAu-liffe. “After many acquisitions and tireless efforts,” he wrote, “I reassem-bled the estate, reopened the winery, and invested tens of millions of dollars, far surpassing the magnificent prop-erty’s former glory.…We need a clear and direct statement from the VOF.”

Despite the fact that Trump had donated $25,000 to McAuliffe’s un-

Make_TrumpWinery_WO35.indd 42 3/17/15 1:23 PM

sucessful race in 2009, the governor declined to intervene, and the VOF will do nothing until the board of su-pervisors acts. Eric intends to reapply and brushes off any suggestion that the board might ultimately oppose the golf course. “We know all those guys,” he says. “They’re wildly enthu-siastic.” The Trump family could build

houses on 100 adjacent acres instead, Eric adds, a none-too-subtle threat.

As for the conservation easement, “it doesn’t prevent the building of a golf course. We’re just going to mow in some fairways.” A precedent exists, he says, in a private nine-hole course— no longer in evidence—the Kluges had Arnold Palmer design for them.

When the subject of environmen-talists comes up, Trump sounds increasingly like his father, who not long ago fought a pyrrhic battle to

build a golf course on the environ-mentally fragile dunes of Aberdeen. “You always have groups that want to come after the big bad developer,” Eric says. “They don’t want to see anything done. Don’t disturb a blade of grass, just freeze the world in time.” His tone hardening, he adds, “It vali-dates them.”

Environmentalists in Virginia are circumspect when they talk about the coming dustup over the Trump National Golf Course. The director of the Virginia Outdoors Foundation declined to be interviewed, and Chris Miller, head of the powerful Piedmont Environmental Council, will say only, “We’re expecting a lawsuit.”

Aberdeen-like opposition could be a major PR problem for the Trumps. That isn’t sand that bulldozers—and eight-irons—would be cutting

into, but terroir, and terroir with important historic provenance. And those aren’t weeds but cabernet and chardonnay vines across which the fertilizer, pesticides and herbicides required in large doses by golf courses would inevitably drift.

The incompatibility between grow-ing fine wine and cries of “fore!” is an-other problem. Wine is as much about image as the most glamorous golf re-sort, but it’s not the same image. Sell-ing at the high end demands not just expertise, but also evidence of authen-ticity bordering on the religious. In the ever-exacting world of fine wine, any distraction can be seen as lack of commitment to the holy of holies, and golf is a large distraction indeed.

Eric Trump disagrees. “We own the finest golf courses and hotels in the world. Now wine’s part of that world.” The golf course is a fait accompli, he insists. “It would be disheartening if a problem came up, after all the effort we’ve put in, but we’re emotionally committed. This isn’t just a name on a piece of property.”

For more information, visit trumpwinery.com.

Trump winemaker Jonathan Wheeler

That isn’t sand that bulldozers—and eight-irons—would be cutting into, but terroir, and terroir with important historic provenance.

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Director of biomedical informatics at Mount Sinai’s Icahn School of Medicine in

New York, Dr. Joel Dudley uses big data, genomics and a supercomputer called Minerva to build new models of disease, find new uses for drugs and—eventually—predict illness.

You have a PhD in biomedical informatics from Stanford. What do you do at Mount Sinai?I put two and two together. DNA’s digital. It’s the sheet music. And the notes, in effect, are mRNA [molecules that carry genetic info from DNA to the ribosome]. They tell you the degree to which a gene is on or off in a cell. It’s like Match.com for disease and drugs.

Once you have genomic data and disease or drug data, what happens?You want to know how a change from one gene in a cell leads to changes in lots of other cells.

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Precision medicine—sometimes called digital medicine—is radically transforming the treatment of diseases.

“Part of the reason I work in biotech is because I have Crohn’s disease. I feel like if I have the ability to change this, I owe it not just to myself, but to others.”

Q & A D r . J o e l D u D l e y

What’s revolutionary about your work? We don’t have a learning healthcare system. When Joel Dudley walks through a door to a new doctor, other than my family history and what’s in their head, they start from scratch. They don’t say, “Well, we’ve collected all this information on Joel, and who does he look like that we’ve seen before, and what happened to those people?” Why don’t we do that? Google and Amazon sure look at your cookies in your web browser and say, “Who looks like this person and what kind of products do they like to buy?”

How does the data you collect help you improve health?We have the genomic data that says, when diseases manifest, these are the changes we’re seeing at the genomic level. And we have every gene in the genome, so no matter what the disease is, we can compare them and ask: Based on all these measures, how similar is this patient to the next patient to the next patient?

For example?There are a lot of cases where Alzheimer’s disease and skin diseases look similar at the genomic level. And you’re thinking, Why the hell is that happening? The question the data pose is: Could we learn about Alzheimer’s from skin diseases?

Are there any concrete advances you’ve made using this technology?An antipsychotic drug that could be used for small-cell lung cancer. We did a pattern-matching approach, like Netflix does to suggest movies to users, and then systematically matched the drugs to the disease.

You’re passionate about your work. Are there reasons beyond intellectual curiosity?Part of the reason I work in biotech is because I have Crohn’s disease. I have two siblings with Crohn’s. It’s profoundly complex at the molecular level, and we don’t understand the underlying mechanisms all that well yet. I feel like if I have the ability to change this, then I owe it not just to myself, but to

others in my family and beyond who suffer.

What’s the next step?We’re launching a new center here, the Center for Precision Wellness. We need to understand an individual’s trajectory.

An individual’s trajectory?Your health course is like a topographical map. It’s not like there’s this linear trajectory. There are many, many possible states of health and disease. What we want to figure out is what is the optimal healthy path for you, and how do we keep you from these points of no return, these cliffs.

Are Mount Sinai’s Precision Wellness services available yet?There are some tests underway with Medicaid and Medicare populations. But for others, for now, it’s not going to be cheap and it’s not going to be covered by insurance.

For more information, contact info@precisionwellness.org, precisionwellness.org.

Make_Q&A_DrDudley_WO35.indd 44 3/17/15 11:28 AM

Dr. Joel Dudley photographed with super compueter Minerva on February 5, 2015

Joel Dudley photographed with supercomputer Minerva

on February 5, 2015

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CRAIG VENTER

The scientist and entrepreneur is determined

to crack the code of aging. For more,

see page 68.

“It’s relatively easyto do nothing in life.

Anybody who has a goal beyond themselves can be accused, rightly, of having an ego. ”

W O R T H . C O M A P R I L - M A Y 2 0 1 5 047

GROWTHE SECOND STAGE OF WEALTH CREATION: MANAGING THE MONEY YOU’VE EARNED SO THAT IT WILL BE THERE FOR GENERATIONS TO COME.

Grow_Opener_WO35.indd 47 3/17/15 12:10 PM

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FROM LONDON TO YANGON

�London is the most important city to the world’s

ultra high net worth individuals, according to the 2015 Wealth Report from real estate consultancy Knight Frank. New York comes in second, followed by Hong Kong. But what cities will matter most in the decade to come? Among the ones to watch, says Knight Frank: Addis Ababa, Ethiopia, because it is “Africa’s political capital”; Panama City, because it “bridges Latin and North America”; Belgrade, Serbia, as “southeast Europe’s business center”; and Yangon, Myanmar, for its “emerging-market wealth creation.” Though they may not be on “the second-home list of most UHNWIs” anytime soon, they should certainly be on their investing radar, says the report.

SOURCE THE WEALTH REPORT, KNIGHT FRANK, KNIGHTFRANK.COM

INEQUALITY AT THE TOP

�A National Bureau of Economic Research paper suggests that wealth concentration has actually become more unequal—among the wealthy. The wealth of the top .01

percent—families worth over $110 million—has increased at an annual rate of 7.8 percent since 1988, versus a 3.9 percent rate for families with net assets between $4 million and $20 million. The report's economist authors argue that this concentration of wealth is due to the reversal in the 1980s of New Deal-era income and estate tax policies that had inhibited vast transfers of wealth. “The combination of increasing income inequality with increasing saving rate inequality is fueling wealth inequality,” they say.

SOURCE WEALTH INEQUALITY IN THE UNITED STATES SINCE 1913 BY GABRIEL ZUCMAN AND EMMANUEL SAEZ, GABRIEL-ZUCMAN.EU

DOES INCOME DETERMINE HEALTH—OR DOES IT JUST AFFECT YOUR ANSWER?

� Depending on their income, Americans di� er in their views about the causes of ill health, according to a new report by NPR, the Robert Wood Johnson Foundation

and Harvard. Those with household incomes of under $25,000 a year are more likely than those with household incomes of $75,000 or more to believe that poor neighborhoods and housing conditions (40 percent to 27 percent), bad working conditions (40 percent to 26 percent) and low income (32 percent to 22 percent) cause individuals’ health problems.

The role of income on health has been hotly debated for decades and numerous studies have linked low income with poor health—with much disagreement about the causal connections. There is little question that “money matters,” says Sir Michael Marmot, an British epidemiologist writing in Health A� airs. What's less certain: How?

SOURCE WHAT SHAPES HEALTH?, NPR, NPR.ORG; “THE INFLUENCE OF INCOME ON HEALTH: VIEWS OF AN EPIDEMIOLOGIST” BY MICHAEL MARMOT, HEALTHAFFAIRS, HEALTHAFFAIRS.ORG

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Grow_Filter_WO35.indd 50 3/17/15 11:56 AM

Q: What's the di� erence between being rich and being wealthy?A: Rich is a number, be it on a W-2, a brokerage statement or the price Zillow assigns your home. Wealthy is being able to make the choices you want in life, whether you’re rich or not. Q: What causes money-related stress for the a� uent?A: Lifestyle tops that list. After a while things that seem like a luxury to most people—private school, a second home, three or four great vacations a year—are just another bill to pay. If things go wrong—a lost job, a lower bonus, a global recession—people can go through great and unnecessary periods of stress.

Q: What are the biggest mistakes made by the rich?A: Big house syndrome is one. I spend a lot of time in Naples, Fla., and I’m grateful to all the people who own the $10, $20, $40 million houses on the beach—their enormous property tax bills make the place great. But the only savvy ones are the ones who paid real cash—not cash from a margin loan—for those houses. One of the savviest guys I know has a $4 million house he owns outright three blocks back from the beach. It’s one of four homes he has around the country, all paid o� .SIMON & SCHUSTER, $27, 256 PAGES

W E B S I T E S �CFTC SMARTCHECK

� The Commodities Futures Trading Commission has created a website to help investors protect themselves from fraud. It includes a section for checking the registration, license and disciplinary history of fi nancial professionals, a section of news and alerts concerning derivatives scams and a section for reporting suspicious activity. SMARTCHECK.CFTC.GOV

B O O K S ¿CLIMATE SHOCK: THE ECONOMIC CONSEQUENCES OF A HOTTER PLANETBy Gernot Wagner

and Martin L. Weitzman

� Economists Wagner and Weitzman argue that investors need to prepare for the possible fi nancial repercussions—and opportunities—of climate change. A sober, sophisticated and even at times hopeful look at one of the most pressing issues of our age, and the risk-management questions it raises.PRINCETON UNIVERSITY

PRESS, FEBRUARY 2015,

$27.95, 264 PAGES

A P P S ãGANJAPRENEUR

� Investors looking to get in early on legal marijuana sales have a new tool for monitoring the burgeoning industry. Ganjapreneur, a recently launched website of news, interviews and investment opportunities, has launched a mobile app.FREE, AVAILABLE VIA

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AND GOOGLE PLAY,

GANJAPRENEUR.COM

B O O K S ¿Paul Sullivan writes the Wealth Matters column for the New York Times and has written for the Financial Times, Fortune and Barron’s. He is the author of Clutch: Why Some People Excel Under Pressure and Others Don’t.

THE THIN GREEN LINE: THE MONEY SECRETS OF THE SUPER WEALTHY

�PAUL SULLIVAN, A WRITER WHO FOCUSES ON THE 1 PERCENT, ARGUES THAT

HAVING MONEY AND BEING WEALTHY ARE NOT THE SAME THING.

W A I T I N G F O R G O D O T S Y N D R O M E

“Too many a� uent people live like

next year will always be better

fi nancially than this year,” says Sullivan.

W O R T H . C O M A P R I L - M A Y 2 0 1 5 051

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All financial ad-visors have an inherent conflict

of interest: They need to generate revenue and in-come from the same assets that you need to achieve your financial goals. Le-gitimate advisors, who are registered investment advisors or investment ad-visor representatives, are financial fiduciaries; they are supposed to put your financial interests ahead of their own. Nonetheless, this largely unenforceable regulation does very little to protect you from less ethical advisors.

You can get an annual physical to measure the health of your body. Mea-suring the health of your relationship with an advisor is not so easy. Your advisor controls all the information you need to assess your re-lationship, and there are no disclosure requirements. It’s legal for your advisor to withhold information that would impair his or her ability to make money from your assets.

Bottom line: It is the personal ethics of your

financial advisor that pro-tects you from bad finan-cial advice, bad investment products and bad results. So how do you know if you have a healthy relationship with an advisor who puts your interests first?

The answer is based on one business prac-tice—transparency—and three types of financial information: expenses, relative performance and

risk exposure. The health of your relationship can be measured by what he does and doesn't disclose.

TransparencyHow much information does the advisor volun-teer about his credentials, ethics, business practices, expenses, services and results? Is the advisor willing to document this information? When your financial health is at stake, trust what you see and not what you hear.

How do you uncover withheld information? You have to ask the right questions and know good answers from bad ones.

Layers of ExpenseYour advisor should vol-untarily disclose every dollar of expense that is deducted from your ac-counts. He should also disclose who got the money and what advice or service you receive for each deduction.

Expenses have a major impact on your net perfor-mance, but the cost they exact goes much deeper than that. A lot of advisors do not want you to know how much money they make from your assets. You may not be concerned

about expenses when you are earning double-digit returns, but if you're earning flat or negative returns, your advisor is making more money from your assets than you are.

Relative PerformanceYou should receive monthly, quarterly, year-to-date and annual reports that docu-ment your performance. The report should provide

performance data that is gross and net of all fees so you can see the impact of expenses on your results.

Your advisor’s perfor-mance report should also compare your results to a benchmark that reflects how your assets are invested.

Relative performance is more important than absolute performance. For example, your stock investments are up 10 per-cent for the year—sounds good. But what if the stock market was up 20 percent?

Risk ManagementAdvisors don't like to talk about risk. They'd much rather talk about how much money you'll make when their advice produces positive returns. And it’s been easy making money in equities since 2009. The stock market has produced six straight years of positive returns. Interest rates are sitting near his-torical lows. The economy is growing, and unemploy-ment rates are down.

But the good times won't last forever. Do you believe your advisor’s risk management strategy will protect you in the next down market? Now is the time to prepare.

Your advisor should voluntarily disclose every layer of expense deducted from your accounts.

Jack Waymire is the founder of Paladin research & registry (paladinregistry.com), a leading provider of information services to investors who rely on financial advisors.

Waymire:TrusT, BuT Verify

Do you have a healthy relationship with your advisor? Here's how to tell.

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©2015 CARDINALE WINERY. ALL RIGHTS RESERVED

FIGURE 4.

India produces 10 percent of the world’s generic drugs.

FIGURE 1.

In 2013, about 211,000 medical tourists visited South Korea, mainly for plastic surgery.FIGURE 2.

A coronary bypass in India

costs 98 percent less than it

would in the United States.

GLOBAL MARKETPLACE:HEALTH AROUND THE WORLD

Growing drug sales, increasing R&D activity, rising rates of obesity and a boom in medical tourism are some of the reasons healthcare is an ever-larger industry in the emerging world.

FIGURE 3.

A chest scan from a radiography

machine developed in China costs

one-tenth that of Western scans.

Grow_GlobalMarketplace_WO35_2.indd 54 3/16/15 3:19 PM

Research assistant: Avery Salinger

A recent University of Washington study estimates that some 62 million Chinese are obese, and 300 million overweight. While still lower than the U.S.

in percentage terms, China now has the second-highest number of obese people of any country. (The U.S. is fi rst.) A particularly worrying aspect: the increase in overweight and obesity rates among those under age 20. In 1980, less than 6 percent of China’s youth popula-tion had weight issues; by 2014, nearly 19 percent were overweight or obese.

CHINA, INDIA, MIDDLE EAST, NORTH AFRICAOBESITY RATES

IN THE PAST DECADE, PHARMACEUTICAL COM-PANIES ESTABLISHED RESEARCH FACILITIES in emerging markets as a low-cost option for conduct-

ing clinical trials and other development activities. As local markets have grown, countries including China, India, South Korea and Taiwan now mandate in-country patient trials in order to obtain regulatory approvals. By working with local physicians early in the development cycle, com-panies can enhance their products’ reputations and tailor those products to local needs.

In the medical-equipment space, Chinese companies enjoy signifi cant cost advantages selling their products to other developing countries. Zhongxing Medical, for example, developed a digital radiography machine that provides basic chest scans for one-tenth the cost of more sophisticated Western machines. Zhongxing captured half of the Chinese market from Western competitors and forced foreign companies to lower prices or withdraw from the Chinese scanner market.

SOUTHEAST ASIA,CHINA, INDIA, S. KOREAR&D ACTIVITY

�

SINGAPORE HAS BECOME ASIA’S REGIONAL HUB FOR PHARMACEUTICAL DISTRIBUTION. In 2013, sales of pharma products in Singapore were

$1.1 billion, a number that’s expected to rise to nearly $4.6 billion by 2017. Nor is Singapore alone. Twenty-one emerging nations, including the BRICS, Turkey and Poland, represent about 12 percent of global pharma-ceutical sales; in three years, sales of pharmaceuticals in those countries are expected to hit nearly $400 billion.

India produces about 10 percent of the world’s ge-neric drugs, and it’s now also consuming more drugs because of increased health awareness, changing life-styles leading to higher incidence of certain diseases and the rise of healthcare in rural areas.

SINGAPORE, BRICS, TURKEY, POLANDGROWING PHARMA

WHILE INCREASING OBESITY RATES ARE A WOR-RYING TREND, there is some positive news: Overall life expectancy in developing countries has increased

substantially in the past decade. The gap between how long one will live in emerging nations versus the devel-oped world is narrowing. For men, the gap is about 15 years—60.2 years of age versus a high of 75.8, on average, in high-income countries. The fi gure for women shows a di� erential of almost 19 years: 63.1 versus 82 years.

WORLDWIDELIFE EXPECTANCY

�

THANKS TO RISING COSTS IN DEVELOPED MAR-KETS, LONG WAITING LISTS FOR TREATMENT AND A DESIRE FOR PRIVACY, the world’s market

for medical tourism is booming. In 2007, about 750,000 people traveled to another country for medical treat-ment. That number, according to Deloitte, will increase to a staggering 15.75 million medical tourists, spending some $79 billion, by 2017. Southeast Asia is one of the world’s top markets for medical tourism, with Singapore, Thailand and Malaysia in particular o� ering high-quality care at a� ordable prices.

Thailand claimed 2.53 million medical tourists (includ-ing spa tourists) in 2012, the last year for which statistics are available, a one-third increase in two years. In the same period, revenues from medical and spa tourists doubled to $4.2 billion.

Thailand’s Bangkok Hospital in Phuket has developed a niche in gender reassignment surgery. The country also caters to Japanese medical tourists; Bangkok Hospital has a clinic sta� ed entirely with Japanese-speaking doc-tors and nurses.

In 2013, Singapore generated some $630 million in medical tourist revenues. Most of Singapore’s medical tourists come from neighboring Indonesia, where health-care is signifi cantly less advanced.

Malaysia’s medical tourist market has nearly doubled since 2010, with 770,000 visitors now spending about $200 million annually on medical care.

As changes in diet and urbanization in India have prompted a surge in cardiovascular disease there, the country has forged a niche in cardiac care. According to Bloomberg Business, a coronary bypass procedure that can cost over $100,000 in the United States costs less than $2,000 in India.

And in 2013, about 211,000 medical tourists came to South Korea, mainly for plastic surgery.

SOUTHEAST ASIA, CHINA, INDIAMEDICAL TOURISM

�

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PR FITSHEALTHY

HEALTHCARE WAS 2014’S

BEST-PERFORMING INVESTING

SECTOR. CAN IT REPEAT

THAT SUCCESS THIS YEAR?

HERE ARE SIX SUGGESTIONS

FOR KEEPING YOUR HEALTHCARE

INVESTMENTS IN GREAT SHAPE.

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PR FITSANDY ACKERPortfolio Manager / Janus Global Life Sciences Fund

Best idea: FERTILITY/IN VITRO FERTILIZATION

Acker and many on his research team aren’t just stock savvy, they’re also scientists, which gives them a legitimate understanding of the viability of new therapies and their potential impact on the marketplace. “One of our key themes

is to invest in companies that address high unmet medical needs,” Acker says.

Among the most pronounced of these areas: the $9 billion fertility sector. “There are 1.5 million in vitro fertiliza-tion cycles each year. The cost is over $10,000 per cycle on average and the success rate is only in the 25 percent to 35 percent range,” he says. “This is an unsatisfi ed market with a relatively low success rate, high out-of-pocket ex-penses and signifi cant discomfort.”

Acker sees potential for major growth in, for example, new technology that uses egg stem cells, located inside the protective ovarian lining, to provide an existing egg the energy required to ef-fect the process of fertilization, or to create an entirely new egg.

The technology was developed by OvaScience, a Cambridge, Mass.-based biotechnology company that went pub-lic in 2013. The company’s stock tripled

in 2014, but it’s at the early stages of growth: So far, OvaScience technology is only being used in Canada, the United Kingdom, the United Arab Emirates and Turkey, and the fi rst children born through the new procedures are due to arrive in the middle of this year.

BRAD SORENSENDirector of Market and Sector Analysis / Charles Schwab, Schwab Center for Financial Research

Best idea: HEALTHCARE PROVIDERS AND MEDICAL EQUIPMENT

Throughout 2014, providers benefi ted from low interest rates and easy loans through private lenders. They refi -nanced debt and, with liquidity on hand, were active in mergers and acquisitions.

TOUGH ODDS

Of the 1.5 million in vitro cycles done each year, only 375,000 to 525,000 are successful.

PR FITSHEALTHCARE STOCKS WENT ON A TEAR LAST YEAR, POSTING A NEARLY 30 PERCENT RETURN AND OUTPERFORMING ALL OTHER SECTORS IN THE S&P 500. The fuel for that

growth—aging baby boomers, increased insurance coverage under the A� ordable Care Act, profi table new

drugs and technologies, and an active M&A market—will continue to propel healthcare stock prices this year.

But investors will have to be more selective in 2015. Once interest rates begin to rise, as seems inevitable,

the resulting higher costs of borrowing may cause certain subsectors, such as small healthcare providers

and biotechnology stocks, to stumble. What’s more, valuations have been driven up, making individual com-

pany analysis critical. Don’t bet on a rising tide lifting all boats.

HERE ARE THE BEST IDEAS IN HEALTHCARE INVESTING OVER THE NEXT 12 MONTHS AND BEYOND FROM SIX LEADERS IN THE FIELD.

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This year, smaller providers may take a hit when interest rates begin to rise, mak-ing it more costly for them to meet debt obligations. But larger providers—par-ticularly large hospitals—can withstand small rate increases, and will continue to benefit as more people become insured under the Affordable Care Act and seek medical care. “The momentum is good and valuations aren’t a concern,” Sorensen says, adding that investors should expect steady growth in the next 12 to 16 months.

On the more speculative side, he be-lieves medical equipment companies are poised for a boost this year. The Afford-able Care Act imposed a new medical equipment tax, which Republicans in Congress are vowing to repeal, saying it is an undue burden on companies and will lead to lost jobs. “This is the year when things will get done in Washington, and this is a very unpopular tax,” So-rensen argues. “There could be a lot of upside due to a rollback.”

Monica DicensoU.S. Head of Equity Strategy / J.P. Morgan Private Bank

Best idea: healthcare retailers

For basic healthcare services, consum-ers are increasingly bypassing their doc-tors’ offices and heading to their local CVS, Walmart, Rite Aid, Walgreens or other healthcare retailer. These and other large stores with pharmacies have been aggressively building out their businesses beyond prescriptions, toiletries and candy.

They’re hiring clinicians, registered nurse practitioners and other healthcare work-ers in order to become quick stops for physicals, screenings, vaccinations and diagnosing and treating common ail-ments such as ear infections, strep throat, pink eye and the flu—all for a fraction of the cost of a traditional doctor’s visit.

In addition to price, consumers also like the convenience of retail clinics. While a growing shortage of family physicians can make it harder to get a prompt appointment at a doctor’s of-fice, retail clinics are generally centrally located, have evening and weekend hours, and allow walk-in appointments.

DiCenso believes these businesses will get a boost from simple consumer economics. They’re relatively cheap, and price is increasingly important as more consumers take on high-deductible health insurance to offset rising premiums.

owen fitzpatrickHead of U.S. Equity Strategy / Deutsche Bank

Best idea: pharMaceutical Distribution coMpanies

Known as the middlemen of the healthcare industry, wholesale buyers

and distributors of drugs may not be visible to the average consumer, but Fitzpatrick advises investors to take note. These companies, which buy drugs in bulk and sell them to hospitals, HMOs, pharmacies, physicians and clinics, are poised for a growth surge thanks to several trends.

Long-term growth will likely be fu-eled by an increase in demand for drugs as the baby boom generation ages and more Americans become insured. But there’s also good reason to be optimis-tic about near- and intermediate-term results. Profit margins on popular brand-name drugs are notoriously thin for these companies, but a wave of pat-ent expirations on widely used designer drugs is creating a bigger business in the more profitable generic drug area.

“A good many drugs that were ap-proved by the FDA in the 1990s and the early part of the last decade are hitting the point where their patents expire,” Fitzpatrick says, citing choles-terol-lowering Lipitor, the best-selling drug ever, and Nexium, a popular anti-

generic profits

Pfizer’s patent for Lipitor expired in 2011, creating large profit margins for the distributors of the generic version.

retail options

Retail clinics, such as the CVS Minute Clinic, provide a quicker, cheaper alternative to a traditional doctor’s visit.

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reflux medication, as major examples. “These companies benefit because generics are more profitable.”

As pharmaceutical companies try to make up for the loss of exclusivity on brand-name drugs, the push to develop so-called orphan drugs— medications for rare illnesses—has picked up. Orphan drugs are helping to fuel significant growth of specialty drugs, which are also highly profitable for wholesalers.

Those stocks aren’t cheap. “They’re trading at 17 times forward earnings,” Fitzpatrick says. “But the growth is there.”

Charlie ryanEvercore Wealth Management / Manager of Evercore Equity

Best idea: Cash kings of pharmaCeutiCals

Ryan is always on the lookout for companies with best-in-class manage-ment and innovative drugs. But given a more selective market for healthcare in-vestors this year, he has added another criterion for sizing up prospects: the amount of cash they are generating.

Mergers and acquisitions will likely be a big driver of returns for inves-tors this year, and big cash generators are the most likely candidates to seek expansion. Ryan notes there are a

number of such firms in the healthcare space, particularly pharmaceuticals, where earnings have been far more predictable and steady than in other investment sectors.

Consider Gilead Sciences, whose cutting-edge new hepatitis C drug, combined with HIV and cardiovascular therapies, generated a 122 percent increase in revenues last year and one of the highest cash levels—$11.7 bil-lion—in the industry. “The company is generating cash so quickly it’s likely to be opportunistic in mergers and acqui-sitions,” Ryan says.

Chris adamsSenior Portfolio Manager / Delaware Investments

Best idea: diabetes and other disease management

With many chronic illnesses, it’s up to patients to manage regular medica-tions and screening schedules. That’s a burden for patients, who often mis-manage their treatment as a result.

Adams believes investors can get a big lift over the next one to five years from technologies designed to improve patients’ daily lives and disease man-agement. One highlight in this area is a growing ability to replace daily doses

with a weekly or periodic injection that slowly releases the medication into the patient’s body. “This is especially appli-cable for mental health because keep-ing people on their medications is a big problem,” he says.

An Ireland-based firm called Alker-mes is at the forefront of this technol-ogy. Until recently, Johnson & Johnson was distributing Alkermes’ technology, but the firm has gotten large enough to begin handling its own distribution. “It’s evolving from a royalty-based business to retaining full rights,” Adams says.

Another groundbreaking develop-ment is a tiny glucose sensor that sits under a patient’s skin and provides con-tinuous feedback for diabetes patients. Medtronic has been a leader in glucose-monitoring technology, but it’s going to get some competition from Dexcom, which has developed a monitor for dia-betics that provides continuous feed-back via an app available on the Apple watch or iPhone. “This is a big long-term growth story,” Adams says.

help for diaBetics

DexCom’s G4 with Share technol-ogy is the latest development in continuous glucose monitoring for diabetes patients.

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GROW_Immortality.indd 60 3/16/15 11:03 AM

THESEARCH

FOR

B Y B E N J A M I N R E E V E S

“Thank you for calling the Alcor Life Extension Foundation. This call may be recorded. If you are reporting the death or the near death of an Alcor member, please press two now.”

Anti-aging research is the next big thing in healthcare. Companies such as Calico and Human Lon-gevity, both based in California, are pioneering genetic and pharmacological techniques to reduce the ravages of time on the human body. At the fringes of science, Alcor, an Arizona-based nonprofi t, vitrifi es dead people in hopes of reviving them at a later date, while Russian internet mogul Dmitry Itskov seeks to create cybernetic bodies to host human consciousness.

Aging “is one of the great mysteries of biology,” says Dr. Thomas Rando, director of the Glenn Center for the Biology of Aging at Stanford University. “If we begin to understand what the process of decline associated with aging is, and if we can slow that by targeting those mechanisms, then potentially one could alter its course.”

DEPLOYING THEIR IMMENSE WEALTH, BUSINESS AND TECH IMPRESARIOS ARE INVESTING IN THEIR NEXT DISRUPTION: ENDING DEATH.

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The idea that death can be fore-stalled by a magical substance, usually the mystical waters of the Fountain of Youth, dates back at least to the Greek historian Herodo-tus in the 5th century BC. The “elixir of life” also appears in ancient Chi-nese and Indian legends and in alchemical texts from medieval Europe. The Spanish explorer Juan Ponce de León was thought to have quested throughout the New World in the 16th century in search of the fabled Fountain of Youth.

As living standards improved in the 20th century, the quest for eter-nal life was subsumed into modern medicine’s fi ght against infectious disease. The average American’s life expectancy rose from 70 in 1960 to almost 79 in 2012, according to the World Bank. Yet li� le a� ention was paid to extending good health into old age. Rather than dying at 70, people now live to be far older, but o� en with a lesser quality of life.

Serious anti-aging research only started about a decade ago. “Improv-ing health is the goal, and longevity might be the consequence of the

improvement,” says Dr. Joon Yun, president of hedge fund Palo Alto Investors and sponsor of the Palo Alto Longevity Prize, which funds anti-aging research.

At the time, scientists interested in treating or preventing the impair-ments of aging were o� en seen as ei-ther out of touch or just plain kooky. “I remember talking to some people from [the healthcare company] Roche about 15 years ago about this notion of drugs that might tar-get the aging process,” Rando says. “They thought that was ridiculous.”

Two trends have since proved to be the foundation for longevity re-search: new discoveries in genomics and the ability to share information

over the internet. But for the most part, longevity research has not been funded by conventional research in-stitutes or biotech companies—as great as the payoff could be, there’s little to no short-term return. In-stead, some of the world’s wealthi-est and most visible entrepreneurs have taken up the challenge. Some have a background in medicine, but

most of these investors come from the worlds of technology and engi-neering. That makes more than just fi nancial sense. “It’s clear now that biology is an engineering project, whereas before that wasn’t so obvi-ous,” says Sonia Arrison, author of 100 Plus, a book about the eff ects of superannuation.

The prospects are encouraging: Participants in longevity research say they expect rapid gains in a ma� er of years and decades. It’s not unreasonable to think that today’s children could regularly crack 100 or even 120.

“It’s the holy grail of healthcare, extending a human lifespan,” says Dr. Peter Diamandis, cofounder of Human Longevity and CEO of the XPrize Foundation, which awards fi nancial gi� s for scientifi c and tech-nological advancements. Yet there’s a downside to the prospect of extreme longevity: If people don’t maintain good health into their senescence, longevity could place enormous strain on economies and societies.

And, of course, philosophical ques-tions abound. What do highly suc-cessful people like Sergey Brin, Larry Ellison or Peter Thiel—or anyone else for that ma� er—gain by living a few years more? How will added lon-gevity change age-old notions of the phases of life? Will longevity become, even more than it already is, a gi� largely conferred on the wealthy?

The research will not pause to answer these questions. Here are six successful entrepreneurs who have turned their energy—and their wealth—to the project of longer life.

“IMPROVING HEALTH IS THE GOAL, AND LONGEVITY MIGHT BE THE CONSEQUENCE OF THE IMPROVEMENT.”– D R . J O O N Y U N

GROW_Immortality.indd 62 3/16/15 11:03 AM

“Nature endowed the greatest healthcare system in the world: It’s called our bodies,” Yun says, explaining why he endowed the $1 million Palo Alto Longevity Prize. “Our body is an incredible system that is able to self-heal.” Yet begin-ning in middle age, “it is more vulnerable to the slings and arrows of life.”

Yun, 47, graduated from Harvard with a degree in evolu-tionary biology before getting his MD at Duke and joining Stanford’s clinical faculty. He signed on with Palo Alto Inves-tors, a $1 billion healthcare investment fund, in 1998. His goal? To extend what he calls “healthspan”—our healthy years before we begin to decline—into middle and old age; if longer life is a consequence, so much the better.

Under the current healthcare regime, Yun says, “we have been helping people live longer and stronger lives, but the tra-jectory is unsustainable. This idea of helping people live longer without solving the underlying cause of aging lends itself to exponential increases in healthcare spending.

“This is an area of relative market dysfunction,” he adds. Biotech companies and healthcare providers are incentivized to treat diseases, not prevent them. Com-pounding the problem, increased healthspan is hard to measure; it requires long time spans, discouraging companies with short-term goals from pursuing it.

Yun created the Longevity Prize to incentivize re-search in two areas: restoration of the body’s ability to repair and maintain itself, and extending the lifespan of a mammal by 50 percent. Preventing people from getting sick as they age, Yun says, is about “getting a lot more healthcare value for a lot less money.”

DR. JOON YUNMANAGING PARTNER AND PRESIDENT, PALO ALTO INVESTORS SPONSOR, PALO ALTO LONGEVITY PRIZE

“OUR BODY IS AN INCREDIBLE SYSTEM THAT IS ABLE TO SELF-HEAL.”– D R . J O O N Y U N

DMITRY ITSKOVFOUNDER, NEW MEDIA STARS, 2045 INITIATIVE

Itskov’s Facebook page displays a piece of promotional art from James Cameron’s 2009 movie, Avatar, with Itskov’s face pasted over it. The movie was about futuristic soldiers who transfer their minds to artifi cial bodies. Its-kov, who launched Russian internet company New Media Stars in 1999, must have really liked Avatar, because in 2011 he founded the 2045 Initiative, a foun-dation that aims to transfer human consciousness into cybernetic bodies.

Itskov, 34, has plotted the evolution of humanity from carbon-based life form to liberated machine sentience. By 2020, according to his website, he foresees the “widespread use of a� ordable android ‘avatars’ controlled by a ‘brain-computer’ interface.” By 2025, an “autonomous life-support system for the human brain linked to a robot ‘avatar’ will save people whose body is com-pletely worn out.” By 2045, “substance-independent minds will receive new bodies with capacities far exceeding those of ordinary humans.”

To get there, Itskov is investing in startups creating avatar technology, while the 2045 Initiative is designed to coordinate and support scientifi c advance-ment in the fi eld.

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Alcor life extension foundAtionAlcor vitrifies people after they die in the hopes of bringing them back to life in the future. Members’ bodies are infused with a “cryoprotective solution, a kind of medical antifreeze” after they die, Alcor ceo Max More says, before being cooled and stored in liquid nitrogen.

the cost? At least $200,000 for the entire body or $80,000 for just the brain, and it can be paid using life in-surance benefits. According to More, many wealthy members set up a trust so they have a nest egg if and when they wake up.

HuMAn longevity, inc.A collaboration between cofounders dr. Peter diamandis, dr. robert Hariri and pioneering geneticist dr. craig venter (see page 68), Hli may be the only serious competitor to google ventures’ calico. the company focuses on extending life through genom-ics and stem cell therapies, and specifically targets cardiovascular and neurodegenerative diseases and cancer.

Hli is “building the largest genome-sequencing facility on the planet,” diamandis says. it will also compile microbiome, Mri and metabolism data. “it’s just a massive amount of data that would have been impossible to manipulate, fathom or mine even just five years ago,” diamandis adds. “We’re targeting millions of data sets from millions of individuals from around the world, from across ages, from across disease groups and mining that to extract knowledge and information.”

in January, the company announced a gene-sequencing agreement with biotech giant genentech, which hopes to use Human longevity’s findings to speed the discovery of new drugs.

Two ApproAchessoMe longevity orgAnizAtions focus on bringing PeoPle bAck to life, otHers on keePing you froM dying in tHe first PlAce.

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On January 14, 2013, Brin posted on his Google+ page a photo of jellyfi sh suspended in the limpid water of a lake in Palau; because some jellyfi sh do not appear to die, they have become a focus of aging research. “No place in the world has made me consider my place in the universe like Jellyfi sh Lake,” Brin wrote. “Millions of creatures all drifting seem-ingly aimlessly, searching for light, for the energy to spawn so generations of their o� spring may do the same years later. I take a small breath, sink toward the bot-tom, watching them in wonder and think, are we really so di� erent?”

This kind of thinking led Brin and Larry Page, his Google cofounder, to launch Calico in 2013 with money from the company’s venture capital arm, Google Ventures. (Brin is said to be consider-ably more involved. One possible reason why: Brin, 41, has a genetic mutation, LRRK2, which is thought to substan-tially increase the probability of devel-oping Parkinson’s disease.) Calico’s stated goal is “to harness advanced tech-nologies to increase our understanding of the biology that controls lifespan.” The company announced a $1.5 billion coin-vestment with pharmaceutical company AbbVie in September 2014 to construct an R&D lab “focused on aging and age-related diseases, including neurodegen-eration and cancer.”

Calico’s approach is twofold. In the short term, the company is develop-ing drugs to treat age-related diseases; in the long run, Calico hopes to gain a larger, more holistic understanding of why humans age and to fi ght aging using pharmacology.

Calico is in a “unique situation in being able to invest in basic aging re-search without having to turn a profi t for a long time,” Stanford’s Rando says. “So there’s the potential there to do some-thing really big.”

SERGEY BRIN COFOUNDER, GOOGLEBACKER, CALICO

“NO PLACE IN THE WORLD HAS MADE ME CONSIDER MY PLACE IN THE UNIVERSE LIKE JELLYFISH LAKE.”– S E R G E Y B R I N

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Kurzweil is the eccentric uncle of Silicon Valley. He invented the CCD fl atbed scanner and a machine that reads text to the blind. The recipient of 20 hon-orary doctorates, he cofounded Singularity Univer-sity in Silicon Valley in 2007. Its mission: to become the epicenter of theorizing about the “singularity,” the moment when artifi cial intelligence will surpass human minds, allegedly leading to a tech utopia. Kurzweil believes that anti-aging research, nutrition and nanotechnology, among other things, will “en-able humans to live indefi nitely,” according to a note he wrote for the Methuselah Foundation website.

A major donor to the research-oriented Methu-selah Foundation, Kurzweil, 67, is also a member of the Alcor Life Extension Foundation, a nonprofi t that cryonically preserves people when they die in the hope of one day bringing them back to life.

“What’s the harm in rationalizing death?” Kurz-weil wrote in 2004. “The harm is that in rationalizing something that is tragic, we fail to take the urgent action needed to avoid the tragedy.” As human lifespans grow, Kurzweil adds, “we are also going to merge with our technology and expand our cognitive and emotional ca-pabilities, as well as the depth and richness of our intellec-tual, relational, artistic, sexual and emotional experiences many-fold.”

RAY KURZWEILDIRECTOR OF ENGINEERING, GOOGLECOFOUNDER, SINGULARITY UNIVERSITY

Ellison, one of the most intriguing fi gures in Silicon Valley, gave more than $350 million for anti-aging research from 1997 to 2015, making him by far one of the largest sponsors of the fi eld. With no tangible results in sight, he stopped making new grants in 2013, and has never publicly explained why. The foundation, however, still operates.

When Ellison, now 70, established the foundation, “there wasn’t enough traction to allow any success in the fi eld,” says Dr. Kevin Lee, executive director of the Ellison Medical Foundation. The research grants provided by the foundation subsequently “defi ned this as a problem that wasn’t being addressed.” Ellison’s support, Lee says, helped move anti-aging research from the scientifi c fringe to the main-stream. “The foundation’s timing was perfect in providing the seeding for this fi eld to develop.”

LARRY ELLISONEXECUTIVE CHAIRMAN AND CTO, ORACLEFOUNDER, ELLISON MEDICAL FOUNDATION

“WHAT’S THE HARM IN RATIONALIZING DEATH? THAT WE FAIL TO TAKE ACTION. ”– R AY K U R Z W E I L

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There are three approaches to death, Thiel recently told the Guardian: “You can accept it, you can deny it or you can fi ght it. I think our society is dominated by people who are into denial or accep-tance, and I prefer to fi ght it.”

Thiel, 47, has said that he plans to live to be 120. He runs, takes human growth hormone, adheres to a Paleo diet and eschews sugar. He has also donated at least $6 million to the SENS Research Foundation and the Methuselah Founda-tion, both longevity-research projects started by a Cambridge-educated biolo-gist named Aubrey de Grey.

“There’s 100,000 people or more dying every single day of aging or age-related causes,” de Grey says. “Mostly dying after a long period of decline and dependence and disease and general misery. So, you know, every single day that I bring the defeat of aging for-ward—which I prob-ably do about once a month—I’m saving 100,000 lives. That’s pretty motivating.”

Thiel said in a Reddit “Ask Me Anything” session last year that he pre-fers to invest in medical and research ventures when they resemble “software companies—a group of really commit-ted founders with a clear vision of what they’re trying to do.”

“The key thing about Peter Thiel is he has a high threshold of reputation toler-ance,” the Methuselah Foundation’s CEO, David Gobel, says. “There is a very large number of millionaires and billionaires who are legitimately terrifi ed of being pilloried and burned at the stake in the media, because it’s happened to them and it has consequences… I think he’s made a rational calculation that his reputation is not worth as much as the potential.”

PETER THIELCOFOUNDER, PAYPAL, PALANTIR TECHNOLOGIESBACKER, SENS RESEARCH FOUNDATION, THE METHUSELAH FOUNDATION

“YOU CAN ACCEPT [DEATH], YOU CAN DENY IT OR YOU CAN FIGHT IT,” THIEL SAYS. “I PREFER TO FIGHT IT.”

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Craig Venter was the first scientist to sequence any genome, the first scientist to sequence the human genome and the first scientist to create a synthetic organism. Now, as the head of a new company called Human Longevity, he hopes to crack the code of aging. That, and email life to Mars.

“ I would not want to live forever. I think that would be torture,” says Craig Venter.

Craig Venter photographed on February 27, 2015

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Caption here (this ia a promo photo from the winery, I don’t

have date details).

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Venter, 68, has a penetrating gaze that can make you feel like he’s think-ing on multiple tracks. When we first sat down to talk at his Alexandria, Va., home overlooking the Potomac—Venter lives there and in La Jolla, Calif.—he introduced himself and promptly asked how I had prepared for our conversation. In fairness, Venter merits a lot of preparation: Modern genomics and the nascent field of preci-sion medicine exist in large part because of his efforts. (See “The Origins of Craig Venter,” page 72.)

But success wasn’t inevitable for Venter, who grew up in modest circum-stances in Millbrae, Calif. His father was an accountant, his mother raised him and his three siblings. Venter remembers follow-ing his mother to the grocery store while pulling a Radio Flyer wagon in which to carry their food home. He was a poor stu-dent, and when he finished high school, his ambitions ran no further than surfing

at SoCal beaches. But the Vietnam War intruded on his idyll. Venter was drafted, and the Marine Corps trained him to be a military medic, patching up bloodied soldiers in Da Nang.

It was emotionally devastating work, and one day Venter swam far out into the South China Sea with the intention of letting himself drown. He came back from the edge of suicide, though, and returned to the U.S. in 1968 determined to succeed in medicine. The surf bum would become one of the world’s most influential scientists.

Q: What does Human Longevity Inc. (HLI) do?A: We’re setting up a machine-learning enterprise. We hired Franz Och out of Google; he’s the one who built the Google Translate system. He wrote a self-learning algorithm that went out to the web and found every article in Ger-

man that had been translated to English and vice versa, and learned from them how they did it. He didn’t have to learn [German] himself; the computer could learn the process. It’s pretty stunning. We sought him out because it’s not dis-similar to the process we want to apply to the genome.

Which is what?We’re trying to build a system with the largest-ever data set in history, at least in medicine. Where, if you have the right phenotype, if you can describe a char-acteristic very accurately, and it has a genetic basis, the system will be able to solve, “What are the genetic components of that trait?” It doesn’t matter if it’s visual memory, or height, Alzheimer’s disease. Whatever you can feed in, if you can measure it accurately and it has a genetic basis, we will know how to predict that.

I’ve heard the study of genomics compared to the invention of flight—you had to wait a few decades before the technology progressed enough to be broadly useful. Where are we at with genomics? Is it a mature field?Is a 20-year-old field young or old? In science, it’s very young. We’re in the early stages of being able to read the genetic code. Twenty years ago this June, I sequenced the very first genome in history. Five years later we scaled up to do the human genome—a huge leap. The first genome was about 2 million letters of genetic code versus 3 billion for the human genome.

One of the new machines we’re using today at HLI is 1,350 times the equivalent of everything we did 15 years ago [in terms of speed and processing power]—the entire operation. And we have 20 of those machines. The scale is following or exceeding Moore’s law, but our understanding is not changing at the rate of Moore’s law. I can’t tell much more about my genome today than 15 years ago.

Is the eventual goal to look at someone’s genome and identify targeted treatments from it?Those are pretty rare things where we can read your genetic code and say, “This is the outcome, this is how you prevent disease.” But sometime in the future we will be able to read and understand the 6 billion letters in our code as though it were what it is—a software language. And we’ll know every subroutine in that language. So we’re trying to use it, for example, to predict a photo of your face from your V

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T here’s something Hemingwayesque about Craig Venter, and though he probably knows that, his real-man quality still feels authentic. Venter drinks

Scotch—less than he used to, but still a fair amount. He races his collection of sports cars, including Aston Martins and a Ford GT, at Laguna Seca, a racetrack in central California. In the ’00s, he spent several years mapping the biology of the world’s oceans aboard a 100-foot sailboat, Sorcerer II. In 1997, he won a transatlantic sailing race. He owns a poodle named Darwin. And in the rest of his time, he is one of the world’s greatest living scientists and biotech entrepreneurs, now tak-ing aim at two seemingly impossible targets: increasing human longevity and biological teleportation.

Venter steers Sorcerer II in November 2004; right, scenes from Star Trek

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genetic code. Or the sound of your voice from your genetic code. Ulti-mately, we should be able to create a genetic map of your brain.

Wouldn’t early detection of disorders and genetic mapping also give you different or better tools to fight diseases and disorders?Probably half our genes are as-sociated with our brain wiring and function. It’s not clear that we can undo the wiring pattern. But maybe we can change that gene and change that wiring pattern in advance. That’s not going to hap-pen in the next two or three years, but it’s the direction this information will go in as we compile more and more, millions upon millions of genomes with accurately mea-sured phenotypes.

And what are the implications of that knowledge?There will be lots of social consequences of being able to basically predict the fu-ture from being able to read that software. If we know from your brain wiring or from the genes predicting the size of the hippo-campus whether you are somebody with a photographic memory, or somebody who is not good at memorization, there might be totally different tracks to put people in with the education system.

Are these positive changes? You can imagine some dark scenarios.You mean you predict someone is going to be really stupid?

And as a result, they find opportunities closed off to them and their lives aren’t what they might have been. Biology becomes destiny.Well, only if those predictions become self-fulfilling. People are who they are. Just knowing [your potential], maybe it would provide people with a list of their unique strengths and career choices.

Are you concerned about the way societies are now using genomic data?Hopefully our society is at the stage where it won’t misuse this. But there are a number of centers set up for [Ameri-can] parents to test the potential athletic ability of their kids. China just outlawed genetic screening in all but a few major hospitals because the number one thing it’s used for is sex selection. Is that good for society? Clearly not. If that’s where our society’s norms are, we’re going to be in trouble.

Another project you’ve been working on is a biological teleporter. Where does that stand?The first part is being marketed this year. So you can buy one. It doesn’t do the en-tire step. It assembles the pieces of DNA to make larger segments of DNA.

Let’s say we take Craig Venter and send his DNA through the biological teleporter. Do we get Craig Venter on the other end?We just learned that Spock died today—it’s very sad. But the “beam me up” from Star Trek, where you get dematerialized and reproduced at the other end, is not a very likely scenario. We’re sending the instructions. We’re sending the digital version of the genetic code and remak-ing that genetic code as DNA. If you have a complex system to basically put that DNA in an egg and get it maturing, you would start with a very young, min-iature version of me.

And how would that be useful?Elon Musk and others are anxious to colonize Mars. It’s pretty clear to me

they can’t get rockets back and forth fast enough so if someone comes down with a Martian infection, they’re stuck. They could send that organism to us digitally, we could reproduce it, create a phage that could kill it and email it back to them.

Over the course of your career, you’ve often been described as egotistical and arrogant…Those are the nice articles.

Is ego important in science? We owe the history of everything that’s progressed in human life to people having ambitions, wanting to change the world.

That’s ambition. What about ego?The ego part is the belief that you can do it. It’s relatively easy to do nothing in life. Anybody who has a goal beyond themselves can be accused, rightly, of having an ego. We have everything we have in this country because of people who pursued ideas and goals.

You had this terrible moment in Vietnam when you contemplated suicide. Now you’re launching Human Longevity to fight aging. Is death the big question that you haven’t come to terms with? No. It’s something I had to deal with every day in Vietnam, and I probably had to deal with death more than most peo-ple in my generation. It would be actually very irresponsible, if we knew how to do it, to make everybody live to be 200.

“ The “beam me up” from Star Trek, where you get dematerialized and reproduced at the other end, is not a very likely scenario.”

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Why?We’re wiping out resources of the planet as it is. Maybe having people have shorter lifespans would be healthier for the planet.

Living to the same age but doing that with good health—that’s my personal goal. I would not want to live forever. I think that would be torture.

How so?Well, if you’re the only one doing it, you’re constantly having other people’s lives cycle through yours. Part of human interaction is dealing with people you care about. If you live forever and you’re on your 12,000th wife, it probably gets old after a while.

Internet entrepreneur Dmitry Itskov wants to transfer human consciousness into machines. But no one ever seems to answer the question, “Why would I want to live longer?”There is a class of people for whom it’s pretty clear why. You look at our new bil-lionaire class, there’s no way that they can spend all of their money in their lifetime. They can’t even intelligently spend a fraction of it. If you acquired those resources late in life and you don’t have a chance to do any-thing with them, that’s probably frustrating.

You’re a wealthy man—what about you?

I’ve used most of the resources I’ve got-ten building my institute. So it’s not

about, can I get a bigger boat or a bigger airplane? It’s more around accomplishing things.

So death isn’t fundamentally a bad thing?I’m not in a hurry to leave. I

understand that there’s a dif-ference between living 150 years

and 10,000 years. The goal of HLI is to foster a healthy human lifespan.

And for some people, knowing their genomic data could add years well before they reach old age.Larry Page [of Google] has made this ar-

gument that if you cure all cancer you only change the average lifespan in the U.S. by about three years. It’s just a brutal misuse of statistics and what they mean. If you have a child who dies at age 6 months from neuroblastoma, maybe it only changes the averages by a little bit, but to that person and that family, that’s a lifetime. That’s the whole point of using your personalized genetic code to tell you about your life. The averages don’t mean anything.

1946 John Craig Venter is born in Salt Lake City (his father was an excommunicated Mormon), and grows up in Millbrae,

Calif. Venter's childhood hobby is racing airplanes on his bike as they take off from San Francisco Municipal Airport.

1965 As the Vietnam War heats up, Venter joins the Navy, with the promise of a spot on the Navy swim team. The Gulf of

Tonkin incident scuttles that plan and he serves as a medical corpsman.

1968 He returns to the U.S. with his first wife (Venter has been divorced twice and married three times) and starts his

education at a community college before transferring to the University of California, San Diego, intent on becoming an MD.

1975 Venter switches tracks and receives his PhD in physiology and pharmacology from UCSD. He takes a professorship at

the State University of New York at Buffalo.

1984 Venter joins the National Institutes of Health and soon becomes the leading scientist working on automated DNA sequencing.

1990 Venter leads an international team sequencing the smallpox

virus. The sequence is published in 1994.

1992 Venter leaves the NIH and launches the Institute for

Genomic Research. In 1995, he and his team sequence the first complete genome in history, the haemophilus influenzae bacterium.

1998 Venter founds Celera to sequence the human genome. Racing

against the NIH, he succeeds in outpacing the larger and better-funded government program. In 2000, the mapping of the human genome is jointly announced by Venter and the NIH at a White House ceremony.

2003 Venter returns to the sea and be-gins the Global Ocean Sampling

Expeditions. From 2004 to 2006, the Sorcerer II circumnavigates the world collecting and ana-lyzing the microbiology of the seas. Further ex-peditions take place in 2007–08 and 2009–10.

2005 Venter launches Synthetic Genomics and the following year

founds the nonprofit J. Craig Venter Institute.

2010 Venter and the Synthetic Genomics team create the first synthetic organism (the company is now working on the

biological teleporter).

2014 Venter founds Human Longevity, Inc. with the goal of extending health into old age through genomics and computer learning.

The Origins of Craig Venter

From surFer to scientist, craig Venter has explored the depths oF liFe.

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How do you wake up in the morning and say, “I’m going to study life”?I made that decision a long time ago. Now, I’m more focused on the goals of the day. I’m past the age where, if I were working in Europe, I would have been forced to retire. A lot of people die within a few years of retiring because they lose their self-identification and their goals, but this is one of the most exciting phases [of research], so I need a certain amount of longevity to achieve these goals.

How do you think your own genetics have determined your intellectual and psychological traits?Of course environment is important. I’ve maintained my curiosity, which is critical to have as a scientist, by not letting the education system destroy it in me.

I carry a gene that predicts increased risk of Alzheimer’s disease. I decided to have [a test that] measures the amount of amyloid [an abnormal protein] in your brain. The doctors involved were so wor-ried about having me have this test that they wanted to do it under a pseudonym. They said it could really affect every-body’s view of my ability to function. Imagine if we knew how bad Ronald Reagan’s Alzheimer’s was before the elec-tion. But the results came back completely negative. It was a delightful discovery to find out that my brain has a good report card for the next 20 years.

It sounds like, in general, you prioritize genetics over environment. Inherent genetic abilities are really key. Who’s this person with the silly notion that with 10,000 hours you can do anything?

Malcolm Gladwell.It’s total BS. Yes, you can learn a skill set. It can’t make you the best in the world. There’s a swimmer body, there’s a sprinter body, there’s a high jump body. People self-select or get selected for these at-tributes. Does that mean the Olympics should go away? No. It just means we should recognize it for what it is and cel-ebrate it.

Over your career, you’ve had a sometimes contentious relationship with government research institutions. Should the government have a role in science?Government plays a central role in sci-ence. In fact, if it wasn’t for government funding, there wouldn’t have been a genome project for me to accelerate a thousandfold.

You value your freedom from bureaucracy. You picked that up?

It wasn’t that difficult.I would consider it pure hell to have to have a position in government, at any level.

It’s very hard to change these sys-tems. Somewhere on the level of 90 percent of science funding in the United States is wasted. Maybe we can influ-ence Congress, the next president, to try and do more about that. But I don’t think it’s changeable from within.

You’ve enjoyed a lot of success in life. Other than not being able to change the government, have you had any notable failures? Failure’s not bad. If you’re not making mis-takes, if you’re not trying and failing, you won’t learn and you won’t grow. There’s failing at what you’re doing and there’s failure in life. I don’t think I’ve failed in life.

But is there any particular mistake that you regret?

I sold some stock too early. [Here, Ven-ter paused for almost a minute.]

I would not want to have to go back and relive any of my life. I’m not unhappy where I am and what I’ve accomplished so far.

What’s important to you now?Convincing others of the power of this [genomic] information, the social respon-sibility required with this information.

There are going to be some real chal-lenges in the future. If you’re a physician and you have all of this information available and your patient dies because you were ignorant of it, are you legally culpable? This will be changing our legal system and, in part, our value system. If knowledge is power, is too much knowl-edge in the hands of people who don’t know how to use it dangerous?

These are going to be big decisions we’re going to have to make as a society going forward.

Are you the person to make these decisions?I’d much rather be drinking Scotch.

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Venter with his dog, Darwin, on February 27, 2015

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New York, NY Leading Insurance Advisor

A portfolio of desirable vintage auto-mobiles could have returned as much as 450 percent in the 10-year period ending with the third quarter of 2013. The S&P 500 returned 88 percent in that same 10-year span.

Certainly, the vast majority of car collectors are driven by their passion—some are dedicated to a single marque while others may search for a particular elusive automobile with an unmatched provenance or racing history. But there is no denying that these investments are being viewed more and more as a viable alternative asset class. As such, they require a sophisticated protection plan, both from an aesthetic and finan-cial perspective.

There are roughly six million collec-tor autos in the United States, and that number is constantly growing. In keep-ing with the tremendous interest in collecting cars, there exists a specialty niche in the insurance industry to protect them. Whether collectors own old-master canvases, a cellar of vintage Bordeaux or a stable of prewar Bugattis, they should have the comfort of knowing that everything possible has been done to protect them. Private collections poli-cies cover rare and often irreplaceable items, but that’s just part of the story. Coverage can be coupled with vulner-ability assessments, risk management services and loss prevention advice.

Knowledgeable insurance carriers and brokers can draw from experience to consult on diverse topics, such as:

• Have proper appraisals been per-formed, and is the collection insured to value?

• Is the garage facility properly constructed to withstand tremors or storm surges?

• Has an emergency evacuation plan been put in place?

• Are necessary vehicle repairs or restorations being performed by quali-fied experts?

• Is the transportation company suited to the needs of the car and the move?

• Has proper international documen-tation been put in place for a smooth overseas transit?

The intricacies of collector auto cov-erage are just as important as the pre-loss planning. Details may vary from carrier to carrier, but some of the more important aspects are:

• Agreed value coverage• Worldwide coverage• Full transit coverage• Single liability policy for the entire

collection• Market appreciation coverage to

account for rising values• Diminution in value coverage for

partial loss• Automatic coverage for new pur-

chasesCollector auto enthusiasts build

collections for a variety of reasons: to enjoy the aesthetic qualities of the cars, to diversify an investment port-folio or simply to satisfy a lust for a particular car first seen as a teenager.

Preferences can range from Auburns, Cords and Duesenbergs to hot rods, concept cars and exotics. Whatever they choose to own, true collectors know that proper protection is always in good taste.

What should I look for when considering insurance for my collector cars?By Ron Fiamma

A C L A I M S T O R Y

Our claims experts go to extraordinary lengths to satisfy passionate collectors. One U.S.-based AIG client owned a rare 1930s-era Alfa Romeo that had just undergone an extensive 18-month restoration in New Zealand, home to one of the top Alfa shops in the world. Preparing his home for the onslaught of Superstorm Sandy, the client assumed the car was safe on a 4-foot-high riser in his Long Island, NY, garage. Unfortunately, the power of the storm caused the garage and the car to be completely submerged in salt water.

Our head of auto physical damage was in the client’s garage within 24 hours to discuss the options available to him. When the client explained he would not feel comfortable having anyone else work on the car except the expert in New Zealand, we agreed. Within one day, the car was on a plane headed back. A second restoration was completed, and the client now has his 80-year-old beauty back home ready to participate in the Concours d’Elegance show circuit.

American International Group, Inc. (AIG) is a world-leading property-casualty and general insurance organization servicing more than 70 million clients around the world. Through its Private Client Group, a division of the AIG member companies, successful individuals can access innovative protection for homes, excess liability, automobiles, private collections, yachts and more. AIG Private Client Group also offers supplemental services designed to minimize property damages, safeguard fine art and other collectibles and bolster family safety.

AIG Ron FiammaVice President and Global Head of Private Collections

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“The majority of car collectors are driven by their passion, but there is no denying that these investments are a viable alternative asset class.”—Ron Fiamma

How to reach Ron Fiamma

Please contact me at 212.458.8843 or by email at ron.fiamma@aig.com for an initial consultation regarding insurance for all types of private collections.

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Number of Private Collections Policies46,200

Range of Individual Auto Collections Insured $10,000 to $500 million+

Website www.aig.com/pcg

Email ron.� amma@aig.com

Aggregate Worth of Art/Collector Cars/Collectibles Insured$67 billion (as of 3/2015)

Aggregate Worth of Jewelry Insured$8.5 billion (as of 3/2015)

Number of Insured Clients as “Best in Show” Winners at Pebble Beach Concours d’Elegance 12 of the past 16

AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843 AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843 AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843 AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843 AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843 AIG Private Client Group 175 Water Street, 12th Floor, New York, NY 10038 212.458.8843

AIG

About Ron Fiamma

Ron Fiamma is vice president and global head of private collections for the Private Client Group, a division of AIG. Based in New York, Mr. Fiamma manages the firm’s insurance portfolio of client collections of fine art, jewelry, wine and collector automobiles. Prior to joining Private Client Group, he spent six years in the financial institutions division of AIG underwriting professional liability coverage for investment advisors, hedge funds, family offices and securities broker/dealers. He joined AIG after many years in the financial services industry as a broker, trader and analyst. Mr. Fiamma received his degree in art history from Vanderbilt University and continued his graduate work in Italy in art history, archaeology and art restoration. He maintains his childhood fascination with vintage automobiles and Formula 1 auto racing.

W O R T H . C O M A P R I L - M A Y 2 0 1 5

MY MOST RECENT VACATION.. .

Second year in a row in Nicaragua smoking

cigars with a group called Brothers of the Leaf

WE ARE ON TRACK TO.. .

Insure all 39 Ferrari 250 GTOs in the world…we cover 16 of them now

WHAT'S ON MY DESK.. .

My trusty Nespresso machine...to get me through the afternoon

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CBIZ MHM LLC Marc J. Minker, CPA, PFS, CFF, Managing Director, Private Client Services National Practice Leader

New York, NY Leading Wealth Advisor

What challenges do closely held business owners face when working alongside family members? By Marc J. Minker

Family businesses can be a huge success—assuming a solid founda-tion has been built. The legacy that is established can continue from generation to generation. However, on the flip side of the coin, there are many challenges that closely held business owners face when family members are active there. These may include succession planning, family feuds, family politics and, sometimes, less personal reliability.

As wonderful as a family legacy may be, without a succession plan in place, the company can crumble as fast as it was built. According to fam-ily business experts, only 30 percent of these privately owned businesses make it past the first generation. If certain procedures and succes-sion plans are not implemented, how will these businesses survive?

In any type of business, family or not, there are always differences that exist in the views and opinions of members of the workplace. And sometimes these small differences among the related business owners can create family feuds, affecting whether the company will survive long-term.

Family members certainly dis-agree, but when they work together, they may find it hard to express those disagreements. For example, a son, fearing rejection, may not tell his father, the founder of a successful advertising company, that he sees a different business direction. Scenar-ios like this are common and detri-mental to the company’s future and negatively impact family harmony.

Additionally, a strong business and its legacy can be built and maintained only if there are willing participants. Many family-run businesses don’t want outsiders in their high-level positions; yet what a business owner desires does not always work out that way: For example, the founder and owner of a large architectural firm may want to play less of a role and has plans for her daughter to take over the business. However, the daughter may have a different vision for her future, leaving the once-thriving architectural firm to dwindle down.

Another problem is that family business owners may promote fam-ily members or give them a job even though they lack adequate skills

for the position. Clearly, being a family member does not qualify this individual for a given job. The result: A company that hires only relatives may end up having some bad apples and neglecting skill and experience in the promoting/hiring decision process.

Overall, the challenges of run-ning a family-owned business can be as basic as the need to maintain a good balance between work life and home life. For example, it’s all too easy to discuss business mat-ters while trying to enjoy a family meal. But, ideally, there should be a healthy boundary between work and home so as not to ignore the most important aspects of being a family.

That’s why family business own-ers must find a balance to achieve long-term success. If the company is built on a solid foundation and is organized, it will be ready for all the challenges the business may en-counter. It’s imperative that the owners of a closely held business find a way to work through their day-to-day differences, for the sake of the company, not only for today but for tomorrow.

This article was co-authored by Anthony Parrelli, Senior Manager, at CBIZ. This article is distributed with the understanding that CBIZ is not rendering legal, accounting, or other professional advice. To the extent

anything herein could be construed as tax advice, such advice is not intended to be used and cannot be used to avoid penalties under the Internal Revenue Code, or to promote, market, or recommend to another person any tax-related matter. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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Minimum Net Worth Requirement $10 million (planning services)

Minimum Fee for Initial Meeting None required

Largest Client Net Worth $500 million+

Financial Services Experience 28 years

Professional Services Provided Personal financial planning, personal business management, insurance/risk management advice and products, family office services, divorce consultation, valuation services, corporate executive services, strategic tax planning, tax compliance, estate planning and wealth transfer

Website www.cbiz.com/cbizmhm-newyork

Email mminker@cbiz.com

CBIZ MHM LLC 1065 Avenue of the Americas, New York, NY 10018 212.790.5700

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How to reach CBIZ MHM LLC

As a nationally ranked Top Ten Accounting Provider, we would be pleased to hear from you to discuss your unique financial administration needs. To speak with any member of our team, please call 212.790.5700.

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The Private Client Services group of CBIZ New York provides innovative solutions for managing the day-to-day financial administration activities of family groups and high net worth clients. For more than 40 years, CBIZ has developed numerous longstanding relationships by simplifying the complexity and difficulty of handling routine financial matters for its clients. As a result, CBIZ clients are able to enjoy the benefits of their families, wealth and lifestyles, knowing their personal and administrative needs are being handled with the highest level of integrity and professionalism. As a nationally ranked Top Ten Accounting Provider (Public Accounting Report, 2014), CBIZ has a multidisciplinary team of professionals uniquely positioned to implement an end-to-end family office and personal business management approach with a full suite of customized services.

About CBIZ MHM LLC

“Overall, the challenges of running a family-owned business can be as basic as the need to maintain a good balance between work life and home life.”—Marc J. Minker

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Cook Maran & Associates Inc.Christine Schrader, Insurance Advisor

East Hampton, NY Leading Insurance Advisor

What is the best way to insure my most prized and valued items? most prized and valued items? By Christine Schrader

All homeowners insurance policies provide limited amounts of protec-tion for valuable items like jewelry, furs, fine art, wine and other collect-ibles. And in many instances, those limitations may be significant. But in the worst-case scenario, there is no protection at all if the insurance is absent when it’s needed most.

The only way to obtain compre-hensive protection is through a per-sonal articles floater form. Depending on the insurance carrier, the policy may also be known as private collec-tions, jewelry, art and collections, or valuable-articles coverage. Regard-less of the name, the protection the policy offers is a critical component of a comprehensive insurance plan. Note, too, that coverage may be added to the homeowners policy as an endorsement.

THERE ARE TWO DIFFERENT WAYS TO INSURE VALUABLES:1. Scheduled/itemized coverage2. Blanket coverage

“Scheduling coverage” entails a complete description and value of every item. Depending on the value, a recent appraisal may also be re-quired. Qualified appraisers will usually be affiliated with at least one of the three major appraisal organi-zations: Appraisers Association of America, American Society of Ap-praisers and/or the International

Society of Appraisers. Each organi-zation requires its members to stay abreast of appraisal practices and subscribes to a code of ethics.

In some cases, insurance provid-ers agree to accept a purchase in-voice to initially establish insurance value. All invoices used in this way should be recently dated; include the address of a recognized sales insti-tution, printed on stationery or letter-head; and be stated in U.S. currency or foreign currency converted on the date of sale.

“Blanket coverage,” the second category, typically establishes both a total and item limit for each class of valuables. An example would be a $100,000 blanket limit of jewelry with a $10,000 per item limit. The maximum per-item limit should be no more than the highest value of any one piece of jewelry covered. One advantage of selecting blanket coverage is that individual apprais-als are not required.

Some of the key coverage features which many companies targeting the affluent provide for both sched-uled and blanket insurance protec-tion include:

• Worldwide coverage for loss/damage due to fire, theft, earthquake, flood and breakage anywhere in the world.

• Coverage for mysterious disap-pearance of jewelry items. Theft from

a known place must be established for coverage on the homeowners pol-icy but is not required for scheduled or blanketed items. Perhaps the most common claim for the jewelry class.

• Coverage for newly acquired items, which extends automatically up to 25 percent of the policy class limit and is effective 90 days after the purchase. New acquisitions are pro-tected immediately after purchase but should be added to your policy as soon as possible.

• Coverage for diminished value; in the event of a partial loss, the com-pany will pay the full amount to re-store the piece to its condition prior to the loss.

• Many policies provide up to 150 percent of the insured amount. The value listed on an item in your policy is what you can expect in the event of a loss. Should your item appreciate, you will be protected.

• Choose to repair, replace or sur-render undamaged items that are part of a pair or set. If you lose an item such as an earring, you benefit from being flexible at claim time.

• Items on exhibit that are dam-aged when moved to and from ex-hibitions. Share your collection with the public and feel assured that it is protected at every stage.

Speak with your insurance provider to create a specific plan that safeguards your most prized possessions.

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How to reach Christine Schrader

To learn more about Cook Maran & Associates Inc. and our full range of insurance solutions, please give me a call at 631.390.9818.

Insurance Services Experience 30+ years

Insurance Services Provided Personal insurance sales and services

Website www.cookmaran.com

Email cschrader@cookmaran.com

Cook Maran & Associates Inc. 40 Marcus Drive, Melville, NY 11747 631.390.9818

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Christine Schrader is an insurance advisor responsible for new client development at Cook Maran & Associates Inc. Serving clients with exposures throughout the United States, Ms. Schrader reviews and designs insurance protection catered to the specific personal insurance needs of her individual and family clients. Ms. Schrader started her insurance career in 1984 at the Charles E. Hyde Agency, a forerunner of Cook Maran & Associates Inc., and has been with the firm ever since. She holds brokers licenses for both property and casualty insurance as well as life and health insurance. Ms. Schrader is an AAI® candidate and expects to earn the designation later this year. She frequently participates in initiatives supporting The Humane Society and resides in Coram, NY, with her husband.

About Christine Schrader

“In the worst-case scenario, there is no protection at all if the insurance is absent when it’s needed most.” —Christine Schrader

Left to right: Laura Kearney, Christine Schrader, Tim Brenneman, Rosemary Whisler, Alison Schmidt

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Excelsior Wealth Management at Morgan Stanley Craig Pastolove, CIMA®, CPWA®, PRP®, Managing Director–Wealth Management, Financial Advisor Scott Sklar, Managing Director–Wealth Management, Financial Advisor Jesse Friedman, CFP®, Vice President–Wealth Management, Financial Advisor

New York, NY Leading Wealth Advisor

Many affluent families have long sup-ported the notion of giving back to society as a way of expressing appre-ciation for their good fortune. Nurtur-ing a tradition of family giving—of both assets and time—may bring a family closer together and develop a shared value system that can be passed down to future generations.

IDENTIFYING YOUR MISSIONAs a starting point, a family may want to outline a purpose or mission for its philanthropic endeavors. Holidays or family get-togethers are perfect times to begin the discussion. Adults and older children can share rewarding experiences that have impacted their lives, while younger children should be encouraged to identify role models they admire. Outlining these thoughts and feelings can help family members craft a mission statement to focus their charitable efforts.

Mission statements don’t need to be lengthy, but they should address three key criteria:

• The cause a family plans to support• The goal the family would like to

achieve • A plan to achieve the goalAs part of their deliberations, fami-

lies should consider the issues, interests or causes that they care about most, and

decide whether to focus their efforts locally, regionally, nationally or inter-nationally. The following hypothetical statements offer some examples:

• We will help to lift the spirits of the homeless during the holiday season by sponsoring and serving dinner to shelter residents.

• We will raise awareness about a disease or affliction (e.g., Alzheimer’s disease, autism, pancreatic cancer) by competing in a road race, promoting our participation and securing pledges for research dollars.

• We will help finance art projects for inner city youth, meet as a fam-ily three times annually and identify groups to receive donations generated from the activity.

MAKING A LASTING DIFFERENCEWith its mission established, your family can explore opportunities to make a difference in the lives of in-dividuals, or to help support a cause or organization.

For instance, many organizations, including those with religious af-filiations, sponsor annual trips to the world’s troubled regions, matching volunteers with host communities to build schools, clinics and/or homes for the needy. Habitat for Humanity is perhaps best known among Americans

for its work building housing for low-income families and those who have lost their homes in natural disasters.1

Families can also work together to support a specific charitable event. For instance, Project Bread’s Walk for Hunger focuses on eradicating hun-ger in Massachusetts,2 while Echoing Green3 encourages some of its do-nors to review the business plans of the social entrepreneurs applying for seed funding.

Of course, a family’s charity event of choice need not be as high-profile as these examples. Opportunities to participate in fundraisers in local com-munities abound:

• Active families can compete for pledges in a walking/running event.

• Technology-savvy individuals may volunteer to organize and manage an event’s website.

• Cooks can provide refreshments for sale at an event.

• Children can create posters or vol-unteer at a craft table.

The only real criteria for involving the whole family in charitable activi-ties are a common passion for doing good and a commitment to achieving tangible results. When these shared values are in place, families can foster a charitable mission that is both re-warding and lasting.

How do I chart a course for family giving?By Craig Pastolove

1Habitat for Humanity website, http://www.habitat.org/; 2 Project Bread website, http://www.projectbread.org/; 3 Echoing Green Fellowship program, http://www.echoinggreen.org/Craig Pastolove is a Financial Advisor with the Wealth Management division of Morgan Stanley in New York, NY. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC [www.sipc.org]. Morgan Stanley Financial Advisors engage Worth to feature this article. Craig Pastolove may only transact business in states where he is registered or excluded or exempted from registration (www.morganstanleyfa.com/excelsiorwealthmanagement). Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Craig Pastolove is not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors. (CRC1136222 04/15)

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Assets Under Management$700 million (as of 10/31/14)

Minimum Fee for Initial MeetingNone required

Minimum Net Worth Requirement$3 million

Largest Client Net Worth$200 million (as of 3/31/14)

Financial Services Experience50+ years (combined)

Compensation Method Asset-based fees or commissions (customized structured products and syndicate)

Primary Custodian for Investor Assets Morgan Stanley Smith Barney LLC

Professional Services Provided Financial planning, investment management, family office services and institutional consulting

Association Memberships Investment Management Consultants Association

Website www.morganstanleyfa.com/excelsiorwealthmanagement

Email craig.pastolove@morganstanley.com

Excelsior Wealth Management at Morgan Stanley 522 Fifth Avenue, 15th Floor, New York, NY 10036 212.296.1026

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Left to right: Jesse Friedman, Craig Pastolove, Scott Sklar

How to reach Excelsior Wealth Management

We look forward to hearing from you and can be reached at 212.296.1026.

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In less than 15 years, Craig Pastolove, managing director in wealth management, has built a large, well-respected wealth management team. Clients include celebrities, senior executives at publicly traded companies, entrepreneurs and hedge fund principals and traders. Scott Sklar, managing director, has been providing capital market insights to the hedge fund industry for 20 years. His reputation for providing timely and competent advice has garnered relationships with many of the leading managers in the asset class. Jesse Friedman, vice president–wealth management, has worked with Mr. Pastolove since 2001 and manages the financial planning process from start to finish. He marshals thought leaders at the firm in order to brainstorm about clients before presenting the team with a plan. Mr. Friedman is also responsible for managing the other five members of the team.*

About Excelsior Wealth Management

Investment Management Consultants Association, Inc. owns the marks CIMA®, Certi� ed Investment Management AnalystSM (with graph element®), and Certi� ed Investment Management AnalystSM. Certi� ed Financial Planner Board of Standards Inc. owns the certi� cation marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with � ame design) in the U.S. *Please reference the biography section of our FA website to identify all team member titles and designations.

“The only real criteria for involving the whole family in charitable activities are a common passion for doing good and a commitment to achieving tangible results.”—Craig Pastolove

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Fieldpoint Private Greenwich, CT Office Managing Directors, Senior Advisors: Jeffrey Ferraro; Ronan O’Byrne; Stephen Steinthal; Haley Rockwell, CDFA, CFP®; Gregory Reidy, CFP®; Dara Johnson; Marcus Zavattaro; Samuel Gilliland; Frazier Caner, CFP®

Greenwich, CT Leading Wealth Advisor

What is aggregation technology, and how can it help reduce risk? By Fieldpoint Private

Consider for a moment this very real financial picture: A couple has a total net worth just over $75 million. They hold accounts with a respected global brokerage, a discount broker and an in-dependent advisory firm. Among these are two advisory accounts invested with money managers and hedge funds, two IRAs, two trusts and a family founda-tion. Beyond this, they have a signifi-cant stake in a private business, two life insurance policies, a deferred-equity comp plan and a pair of old 401k accounts. They also have three resi-dences, two mortgages, a couple of bank accounts and two personal loans.

By the end of the month, their home office looks like a mailroom. It’s messy, but that’s not the problem.

The problem is risk. Such are the components of a complex financial life. But lurking unseen in this virtual mailroom is risk—risk that stems from elements of a family’s net worth forc-ibly separated, one from the next. The envelopes represent not just accounts but ambitions and dreams, residing not only in separate documents, but separate orbits, managed by well-in-tentioned professionals at different institutions who are unaware of one another and of the potential syner-gies and contradictions in the tactics each employs.

A risk left invisible is a risk left unmanageable. It is difficult, if not im-possible, to manage the risks and op-portunities in a portfolio when the elements are accessible only through discrete accounts overseen by the dis-crete professionals who advise on them. When this financial picture is not viewed regularly in the aggregate, the result is advice and decisions on each of the separate elements provided without regard to the others. Unwit-tingly, advice intended to mitigate risk may actually amplify it.

Enter performance aggregation. Technology today makes it possible for every asset and liability you own, regardless of where it is held, to be ag-gregated into a single, always-on view of your net worth, and of the perfor-mance of your investments. This means every stock, bond, currency, policy, pri-vate equity share, loan, residence, ve-hicle and collectible you own resides on one dashboard, on any screen—even in your cab heading down Fifth Avenue, if you like.

The application of this technology is transformative. It enables you (and those to whom you grant access) to see the combined allocation and perfor-mance of all your investments. Using an online dashboard you can drill into any account, asset class or investment

to see its component parts. For in-stance, using your allocation pie chart, you can click on global fixed income to see your fixed-income composition across, say, international bonds, versus U.S. bonds, versus emerging markets. Then you can click on emerging mar-kets and see what the underlying hold-ings are. Next, you can access the underlying holdings to see which ac-count is holding them. (That Zimba-bwe 10-year will have nowhere to hide.)

A report can be created to flag whether you are taking on more risk than you bargained for, and where it’s coming from—so it can be managed. For instance, if you own a business heavy in real estate and two of your hedge funds start making big bets on real estate, you may have a risk concen-tration brewing. Performance aggrega-tion can flag it, so you can hedge it.

Investors who focus on the finer points of the price of sweet crude or style drift among their managers—while their well-intentioned advisors are unwit-tingly concentrating risk or cancelling out one another’s efforts—are commit-ting the financial equivalent of texting while driving. Eyes ahead. Performance aggregation is here and is essential in managing complex financial lives. You are strongly encouraged to discuss the possibilities with your advisor.

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“If not viewed regularly in the aggregate, advice and decisions on each part of the financial picture are provided without regard to the others.”—Fieldpoint Private

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Assets Under Advisement$3.1 billion

Assets Under Management Available on request

Largest Client Net Worth $1 billion+

Financial Services Experience 244 years (combined)

Number of clients 500

Method of CompensationAsset-based fees and commissions (investment products)

Primary Custodian for Investor Assets Pershing

Professional Services ProvidedPlanning, investment advisory services and investment products

Email inquiries@� eldpointprivate.com

Website www.� eldpointprivate.com

Fieldpoint Private 100 Field Point Road, 2nd Floor, Greenwich, CT 06830 203.413.9300

Fieldpoint Private is a boutique wealth advisory and private banking firm established in the early days of the financial crisis by 31 individuals including former chairmen and CEOs of some of the most well-known and successful financial and consumer firms in America. Their intent was not to craft a firm that would emulate the large, established institutions, but to serve as an unconflicted alternative: a boutique, fully dedicated to clients with complex needs. Fieldpoint Private has roughly $3 billion in assets under administration and more than 60 employees across offices in New York City and Greenwich, CT. To learn more about Fieldpoint Private, watch the firm’s story here: www.fieldpointprivate.com/founders-video.

About Fieldpoint Private

Greenwich, CT Office: Top row, left to right: Jeffrey Ferraro, Ronan O’Byrne, Stephen Steinthal, Haley Rockwell; bottom row, left to right: Gregory Reidy, Dara Johnson, Marcus Zavattaro, Samuel Gilliland, Frazier Caner

How to reach Fieldpoint Private

We welcome the opportunity to speak with you. Please call us at 203.413.9300 to set up an initial appointment.

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Gerson, Guarino & Meisel Group at Morgan Stanley Shawn P. Landau, CFP®, Senior Vice President, Family Wealth Director, Financial Advisor Jeffrey S. Gerson, Executive Director, Family Wealth Director, Financial Advisor

New York, NY Leading Wealth Advisor

How can I prepare for the succession of my business?

Shawn P. Landau, CFP® and Jeffrey S. Gerson are Financial Advisors with the Wealth Management division of Morgan Stanley in One Penn Plaza, New York, NY. The views expressed herein are those of the authors and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC. Member SIPC (www.sipc.org). Morgan Stanley Financial Advisor(s) engage Worth to feature this article. Shawn P. Landau, CFP® and Jeffrey S. Gerson may only transact business in states where they are registered or excluded or exempted from registration (www.morganstanleyfa.com/ggmgroupsb). Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Shawn Landau, CFP® and Jeffrey S. Gerson are not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S. (1125144 02/15)

By Shawn P. Landau, CFP® and Jeffrey S. Gerson

From the late nights of brainstorm-ing, to the first hire, and then multiple expansions of people and workspace, there are certain mile-stones an entrepreneur never forgets. For most business owners, launching a business is the truly ex-citing part of the journey, the part in which you have invested a huge amount of energy. However, the pro-cess of exiting your business can often have the greatest effect on your life, your legacy and the lives of the people you care for. How it’s structured and implemented can make all the difference.

Business-succession planning re-quires stepping back and taking a broader look at what you have built over years, if not decades, from hard work and entrepreneurial savvy. How you exit your business is deeply tied to your vision for the next phase in your life. While some business owners want to maintain a level of managerial engagement, others look forward to being able to shift their focus to other aspirations, including philanthropy, or simply enjoying a well-earned retirement. Transferring leadership to a family member may be a goal for some, while others look to select a buyer

who can help move their initial vi-sions to new dimensions.

In addition to your personal goals, there are the goals of other stakeholders—including co-owners, partners, employees, family mem-bers and others. If you have been integrally involved in your business, and the relationships you have formed with these stakeholders are the foundation of your business, it is important to carefully present and time the communication of your planned transition. The key is to start thinking through potential is-sues while there is adequate time to prepare for them.

Even if you have been involved with the operations of your busi-ness on a day-to-day basis, having an advisory team can help with the meticulous preparation needed for a successful succession strategy. Ideally, you should start planning for this major life event at least two years before it actually occurs. This prepa-ratory lead-time allows you to focus on growing the company to increase its valuation and create a cash-flow machine that buyers can envision taking over with minimal changes.

Regardless of the size and com-plexity of your transaction, you

may want to engage legal coun-sel, an accountant, an investment banker or business broker and, of course, your Financial Advisor. Your advisory team may include profes-sionals you have worked with over the years, but it is important to also consider whether new ap-pointments are needed. While your attorney may have worked with you in the past on contracts, litiga-tion and legal issues, he or she will need to be well versed in the intri-cacies of both purchase and sale agreements and wealth-transfer tax considerations. Your accountant may be the same CPA who prepares your corporate returns each year, but he or she will need to have ex-tensive experience in dealing with financial issues associated with minimizing your active participa-tion in running, or in transferring, a business. An evaluative team of specialists will provide support along the way.

The succession process can be a complicated one. We understand the interplay between decisions you make for your business and the impact they can have on your financial goals and security. Call us to initiate a dis-cussion to see how we can help.

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Seated: Jeffrey S. Gerson; standing, left to right: Shawn P. Landau,Christopher Guarino, Gregory Meisel

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Assets Under Management $1.3 billion (as of 12/31/14)

Minimum Fee for Initial Meeting None required

Minimum Net Worth Requirement $3 million

Largest Client Net Worth $100 million+ (as of 12/31/14)

Financial Services Experience 75+ years (combined)

Compensation Method Asset-based and transactional fees

Primary Custodian for Investor Assets Morgan Stanley Smith Barney LLC

Professional Services Provided Planning, portfolio management and money management services

Association Membership Portfolio Management Institute

Website www.morganstanleyfa.com/ggmgroupsb

Email shawn.p.landau@morganstanley.com jeffrey.s.gerson@morganstanley.com

Gerson, Guarino & Meisel Group at Morgan Stanley One Penn Plaza, New York, NY 10119 212.643.5757

About the Gerson, Guarino & Meisel Group

The Gerson, Guarino & Meisel Group is a wealth management team at Morgan Stanley, one of the largest wealth advisory firms in the world. With decades of advisory and investment experience, the team partners—Jeffrey S. Gerson, executive director, family wealth director and financial advisor (27 years of experience); Christopher Guarino, senior vice president, senior portfolio management director and financial advisor (22 years); Gregory Meisel, senior vice president and financial advisor (16 years); and Shawn P. Landau, CFP®, senior vice president, family wealth director and financial advisor (14 years)—help their clients achieve their most meaningful financial goals. Through an uncompromising commitment to delivering intellectual strength, quality advice and personalized attention, the Gerson, Guarino & Meisel Group provides an intensely personal experience to high net worth individuals and their families, corporations and charitable institutions.

How to reach the Gerson, Guarino & Meisel Group at Morgan Stanley

The Gerson, Guarino & Meisel Group has helped many business owners choose a retirement plan that works for the size of their company and their particular needs. Please call us at 212.643.5757 to arrange a consultation.

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“The process of exiting your business can often have the greatest effect on your life, your legacy and the lives of the people you care for.”— Shawn P. Landau, CFP®

and Jeffrey S. Gerson

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Hallmark Capital Management, Inc. Steve Erikson, CFP®, President and Chief Executive OfficerGeorge R. Kress, CFA®, First Vice PresidentThomas S. Moore, CFA®, Executive Vice President, Chief Investment Officer Cynthia Bechmann, Senior Vice President, Chief Operating Officer

Wayne, NJ Leading Wealth Advisor

How does inflation affect investments? By Thomas S. Moore

Changes in the rate of inflation affect, either directly or indirectly, every-thing from the level of bond yields to stock market price-to- earnings ratios, commodity prices, foreign ex-change ratios and effective income tax rates. The inflationary 1970s dis-torted all markets, but taming run-away inflation in the 1980s set the stage for a two-decade bull market for stocks and bonds. The conclusion? Inflation rates matter tremendously.

So far this cycle, most of the potential inflationary effects from the upsurge in the money supply have been offset by the sluggish economy. Weak mac-roeconomic conditions, however, can restrain inflation only as long as they endure. Once the economy improves and downward pressures lighten, one would expect that higher inflation will begin to reassert itself. The signs of a cyclical upturn in inflation should be-come clearer as unused capacity and labor return to productive economic pursuits. Initially, any rise in inflation may be slight, but it could be persistent.

Furthermore, it appears as if the Federal Reserve wants to see a higher

rate of inflation, and we believe the Fed has the means to achieve it. Rightly or wrongly, its leaders believe they have the tools to contain inflation if it starts to accelerate too fast. That is a risky strategy but could turn out to be a good trade-off. Living through a short period of time with 2- to 3 percent inflation could be a small price to pay if it ultimately means achieving an extended period of strong economic growth with full employment.

Many investors fear that higher in-flation rates will stop the stock market dead in its tracks, but history does not bear this out. There is a relationship between inflation and how investors value stocks, but it is not a simple one. The most direct impact of higher inflation rates on stocks is to lower overall price-to-earnings ratios, which can cause a short-term dip. These have often turned out to be worthwhile buy-ing opportunities, because higher rates of inflation bring better corporate pricing power, helping to boost profit margins. The positives from faster earnings growth offset the negatives from lower price-to-earnings ratios.

The Standard & Poor’s 500 index has posted average annualized re-turns above 14 percent when infla-tion rates were very low (0- to 1.5 percent), but index returns were al-most as good, at 13 percent, when in-flation rates were higher (1.5- to 3 percent). As inflation rates climb beyond 3 percent, however, the ef-fect shifts from positive to negative for stocks, and returns become pro-gressively lower. Since inflation would be rising from extremely low levels, it should be a while before we have to worry about rates persistently above 3 percent.

Bond yields still provide compara-tively poor rates of return versus the earnings yield on stocks. In the past, it was only when bond yields began to reach a level close to the econo-my’s long-term nominal growth rate that investors thought of bonds as serious replacements for stocks on a risk-adjusted basis. In today’s envi-ronment, bond yields would have to top 5 percent to hit that target. Until then, we believe optimism for stocks is warranted.

This article is not intended as investment, legal, accounting or tax advice. Any opinions, recommendations or indications of past performance contained in this article may be subject to risks and uncertainties beyond the control of Hallmark Capital Management, Inc. (Hallmark) and are no guarantee of future returns. Hallmark does not guarantee or certify the accuracy, completeness or timeliness of the information presented in this article. Hallmark is an investment advisor registered with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply that Hallmark or any individual providing investment advisory services on behalf of Hallmark possesses a certain level of skill or training. © Hallmark Capital Management, Inc. All rights reserved.

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“Once the economy improves and downward pressures lighten, one would expect that higher inflation will begin to reassert itself.”—Thomas S. Moore

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Assets Under Management $808 million (as of 12/31/13)

Minimum Asset Requirement $500,000 (for investment services)

Number of Clients 353 (as of 12/31/13)

Primary Custodian for Investor AssetsMultiple—please inquire

Financial Services Experience Erikson, 30 years; Kress, 24 years; Moore, 34 years; Bechmann, 30 years

Professional Services Provided Planning and money management services

Website www.hallcapmgt.com

Email eriksons@hallcapmgt.com kressg@hallcapmgt.com

Hallmark Capital Management, Inc. 1195 Hamburg Turnpike, Wayne, NJ 07470 973.808.4144

Standing, left to right: George R. Kress, Thomas S. Moore; seated, left to right: Cynthia Bechmann, Steve Erikson

How to reach Hallmark

We are delighted to offer our services and welcome the opportunity to speak with you. Steve Erikson, CFP®, and George R. Kress, CFA®, can be reached at 973.808.4144.

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Hallmark Capital Management, Inc. (Hallmark) is dedicated to empowering clients to attain their financial goals by providing objective investment management and financial planning services. Hallmark employees remain committed to maintaining the highest degree of professionalism and integrity, while using their best judgment and wisdom on behalf of clients, as they have for more than 25 years. They have a fiduciary duty of care, loyalty, honesty and good faith to always place the best interests of clients ahead of their own.

About Hallmark Capital Management, Inc.

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MBAF | Certi� ed Public Accountants and Advisors Gary M. DuBoff, CPA, CFP®, PrincipalEmilio T. Escandon, CPA, Principal

New York, NY Leading Wealth Advisor

There are many reasons why New Yorkers maintain a second home in Florida, not the least of which is that the latter has no state income tax.

However, if you think that es-tablishing residency in Florida is as simple as buying property there and using it as your mailing address, think again. New York State is not inclined to give up on its tax revenue so easily. It all has to do with the complex tenets of the tax code regarding “domicile.”

In casual conversation the words “domicile” and “residency” are often used interchangeably, but from a legal and tax stand-point, domicile has a very specific meaning. The IRS and most state tax authorities define it as the place where the taxpayer has his or her fixed, permanent home. It is important to point out that the definition, particularly as the New York State Department of Taxa-tion and Finance uses it, does not necessarily apply to any one spe-cific dwelling, but rather the place or area the taxpayer “intends to return whenever absent.”

In other words you can have many residences, but from a legal and income tax standpoint, you can have only one domicile, or “permanent residence” to which you intend to return.

With tax laws and tax rates dif-fering state to state, you can see how the place where you establish domicile has a significant impact on your income tax and estate tax, as well as the structure of your in-vestment assets.

When it comes to determining domicile, New York State employs primary, secondary and tertiary factors. The five primary fac-tors are:1. Home2. Active business involvement3. Time4. Items near and dear5. Family connections

Domicile is almost always de-termined by New York State based on these primary factors. A look at secondary or tertiary factors will be taken only when an equal case for domicile can be made by another state based on the pri-mary factors. As stated, New York does not let go so easily, and if a determination of nonresidence is reached after the primary factors are considered, the other factors that indicate a connection to New York State will be brought into play. These can include:

• The address at which bank statements, bills, financial data and correspondence concerning other family business are primar-ily received

• The physical location of any safe deposit boxes used for family records and valuables

• The location of auto, boat and airplane registrations as well as the individual’s personal driver’s or operator’s license

• The place where the taxpayer is registered to vote, and an analysis of the exercise of said privilege

Finally, to determine residency, New York will ultimately apply its “183 day test” to anyone with a per-manent dwelling in New York. The statute defines a New York resi-dent as “any individual who is not domiciled in New York, but who maintains a permanent place of abode in New York and spends in the aggregate more than 183 days of the taxable year in New York.”

It has been said that home is where the heart is, but to a tax examiner, that has little meaning. To establish domicile, scrutiny is applied between states with high-tax obligations, such as New York, and states such as Florida which have little or no state in-come tax—locations where New Yorkers commonly own vacation homes or winter residences. So, if you plan to relocate to Florida, yet still maintain ties with New York, it is best to seek the advice of a CPA familiar with the domicile regulations of both states.

Home is where the heart is—or is it?By Gary M. DuBoff, CPA, CFP®

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Largest Client Net Worth$1 billion+

Financial Services Experience DuBoff, 35 years; Escandon, 31 years

Methods of CompenstationFixed and hourly fees

Professional Services ProvidedTax planning and consulting, tax compliance, assurance (audit services), family office and concierge services, estate and charitable planning services

Website www.mbafcpa.com

Email gduboff@mbafcpa.com eescandon@mbafcpa.com

MBAF 440 Park Avenue South, 3rd Floor, New York, NY 10016 212.576.1400

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Emilio T. Escandon Gary M. DuBoff

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At MBAF, more than 400 highly qualified principals and employees serve domestic and international clients across a broad range of industries and practices in more than 44 countries and all 50 states from offices in New York, Miami, Baltimore, Boca Raton, Boulder, Fort Lauderdale, Orlando, Valhalla (Westchester County) and India. Providing clients with strategic guidance precisely suited to meet their needs, MBAF CPAs and advisors possess deep industry expertise spanning five specialized practice areas—tax and accounting, private client wealth, management advisory services, technology consulting and assurance—and 18 different areas of industry expertise. MBAF is ranked nationally as a Top 40 accounting and advisory firm by Accounting Today. Also named one of the 2013 Top Five Best of the Best firms in the country by INSIDE Public Accounting, MBAF was chosen for demonstrating long-term consistency and exceptional performance.

About MBAF

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How to reach MBAF

Whether you choose MBAF for your business, your personal finances or both, our goal is a simple one: to work with you to design innovative planning techniques that preserve wealth, minimize taxes and maximize growth opportunities. To learn more, please contact Gary or Emilio at 212.576.1400.

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“It has been said that home is where the heart is, but to a tax examiner, that has little meaning.”—Gary M. DuBoff, CPA, CFP®

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An asset allocation appropriate to your goals and risk tolerance, while always essential for success, is espe-cially critical in a changing market. And today’s market, while robust enough to set records, also harbors an under-current of volatility. So we believe that investors need an asset allocation that is not only customized to meet their needs but is one they feel comfortable with to endure volatility.

Evidence of burgeoning volatility in today’s market comes from a January 26, 2015, article in the Wall Street Jour-nal,1 which reported that in 2014 the total number of days when the market was up or down more than 1 percent accounted for 14 percent of the total. This year, according to the article, the percentage of 1 percent-plus-variance days was already 40 percent.

While a carefully crafted asset allo-cation is essential in a volatile market, the actual crafting of that allocation is somewhat complex. Or, in our view, should be. To effectively customize an asset allocation that is spot-on for your goals requires a two-part process. First, a wealth advisor will work with you to understand your unique risk tolerance, time horizon and investment objec-tive. Implementing the second part of

the process is a team of specialists dedicated to developing asset allocation and manager-implementation strate-gies. The team’s extensive knowledge of the markets and each one of the invest-ment managers complements a wealth advisor’s intimate real-time knowledge of an investor’s situation and needs.

Meaning that during the process, you, the client, will have nearly all of your direct contact with your wealth advisor while a team of specialists, like the Investment Strategy Group at Neu-berger Berman, works “behind the scenes” fashioning your customized portfolio. That said, it is vitally impor-tant to confirm not only that the less visible work is being done on your account, but that a “deep and knowl-edgeable bench” of investment spe-cialists exists to do it.

At our firm we have more than 40 teams of investment managers and each one has a different investment process, strategy and objective. Some portfolios will be designed for income, some for growth and some for a combi-nation of the two, meaning that each of the teams’ risk profiles differs. The role of the Investment Strategy Group is to combine an expert-level under-standing of asset-allocation strategies,

market conditions and each manager’s investment philosophy, to construct a customized portfolio for your unique risk tolerance, time horizon and income needs. Put another way, in terms of your portfolio, it is “one size fits one,” not all.

Ultimately, what is most important is that the strategic allocation be designed to meet your investment objectives with an appropriate level of risk. That entails deciding how much of your assets will be exposed to growth and how much will be for capital preservation, in order to protect your portfolio from not only volatility but also possible inflation. The interaction and resources of a wealth advisor dedicated to understanding your unique needs, and a team of specialists like the Investment Strategy Group—skilled in asset allocation, manager selec-tion and portfolio construction—are vital to developing the appropriate allocation.

In our view, of the three ways to approach your portfolio—inactively, reactively and proactively—only the third is acceptable. We suggest you make sure that those to whom you entrust your portfolio have the means and teams in place to proactively address your needs from an asset-class and manager perspective—especially in today’s volatile market.

New York, NY Leading Wealth Advisor

Why should I proactively address my portfolio from an asset-class and manager perspective?

Neuberger Berman Wealth ManagementDiane G. Domenici, Senior Vice PresidentMatthew Rubin, Managing Director

By Diane G. Domenici and Matthew Rubin

1 E.S. Browning, “Markets get bumpier as Fed withdraws safety net,” the Wall Street Journal, Jan. 26, 2015. This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice. No recommendation

or advice is being given as to whether any investment or strategy is suitable for a particular investor. Investing entails risks, including possible loss of principal. Any views or opinions expressed may not reflect those of the firm as a whole. Past performance is no guarantee of future results. Neuberger Berman LLC is a registered investment advisor and broker/dealer, and member, FINRA/SIPC. Alternatives and fixed-income products and services are generally available through affiliates of Neuberger Berman LLC. Financial planning analysis, tax-planning and trust and estate administration services are offered by Neuberger Berman Trust Company N.A., an affiliate of Neuberger Berman LLC. The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC. ©2015 Neuberger Berman Group LLC. All rights reserved.

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Richard P. Slaughter Associates Inc. 13809 Research Blvd., Suite 905, Austin, TX 78750 512.918.0000

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Minimum Fee for Initial MeetingNone required

Minimum Net Worth Requirement $1 million

Financial Services ExperienceDomenici, 31 years; Rubin, 18 years

Website www.nb.com

Compensation MethodAsset-based fees

Professional Services ProvidedInvestment advisory, wealth planning, trust and � duciary services

Primary Custodian for Managed AssetsJ.P. Morgan

Email diane.domenici@nb.com matthew.rubin@nb.com

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“Of the three ways to approach your portfolio—inactively, reactively and proactively—only the third is acceptable.”—Diane G. Domenici

How to reach Diane G. Domenici

I can be reached at 212.476.9194 and look forward to hearing from you.

Neuberger Berman Wealth Management 605 Third Avenue, New York, NY 10158 212.476.9194Neuberger Berman Wealth Management 605 Third Avenue, New York, NY 10158 212.476.9194Neuberger Berman Wealth Management 605 Third Avenue, New York, NY 10158 212.476.9194

Diane G. Domenici Matthew Rubin

About Neuberger Berman Wealth Management

Wealth management is part of Neuberger Berman’s DNA. The firm was founded to manage assets on behalf of individuals, families and their charitable organizations. Now, over 75 years later, as a global investment management organization overseeing more than $250 billion across all asset classes, Neuberger Berman’s wealth management business still remains a central focus. Diane G. Domenici, senior vice president with the firm, joined in 2005 as a wealth advisor. Ms. Domenici works closely with high net worth individuals and their network of advisors to develop integrated investment solutions designed to meet their financial and family goals. By partnering with Matthew Rubin, managing director and head of the firm’s Investment Strategy Group, Ms. Domenici provides her clients with strategically allocated portfolios customized for their individual needs and risk tolerances.

diane.domenici@nb.com matthew.rubin@nb.com diane.domenici@nb.com matthew.rubin@nb.com

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NFP P&C Private Client Group Amy Ciasulli, Senior Vice President; Gilbert Lai, Senior Vice President; Paul Gallagher, Vice President; Heather Gladwell, Vice President; Salvatore Lundy, Vice President; Patricia O’Brien, CPCU, ARM, Vice President

New York, NY Leading Insurance Advisor

Do I need a personal ‘kidnap & ransom’ policy?

Wealthy individuals and their fam-ily members are attractive targets for criminals who use kidnapping and other forms of extortion for financial gain. If you travel fre-quently to high-risk parts of the globe for business, vacations, philanthropy or use of a residence overseas, you may be at greater risk of an attack. Even more commonplace today are serious threats to personal security that come from leaks in informa-tion by domestic staff, employees or acquaintances in your everyday life. Securing kidnap and ransom insur-ance (known in the industry as K&R) is a smart decision for wealthy indi-viduals who want to safeguard their family and their assets.

Policies cover more than kidnap-for-ransom incidents. Insured events also include extortion (against persons and property), wrongful detention and hijackings. A disgruntled former household employee threatening to release sensitive information or the hijacking of a vehicle or private aircraft would fall within the cover of K&R insurance and, regretta-bly, these events do happen. Other covered events may include disap-pearances, child abduction, threats and hostage crises. Says Fritz Barjon, head of K&R for AIG in the United States and Canada: “Because many cases go unreported, accurate global statistics do not exist; however, sources cite tens of thousands of incidents each year.”

K&R policies are indemnity poli-cies. In a covered event, the insured would need to make any ransom payment demanded by the kidnap-pers and then submit a claim to the insurer for expense reimbursement. It is worth noting that a K&R policy covers far more than just a ransom payment. It includes loss of ransom in transit, the judgment, settlement and defense costs, death and dismember-ment, business interruption, personal financial loss, medical, “rest & rehabil-itation,” increased security and access to specialist security consultants.

Arguably the most significant feature of a K&R policy is access to the best-in-class security experts. These consultants come from varied backgrounds, including the military, law enforcement and international intelligence agencies. Their role is to advise the family on all aspects of dealing with the incident—from the formulation of an effective response strategy and communications with the perpetrators, to dealing with the media and the authorities and care of other family members.

Of course, the best course of action is prevention. As a policyholder, you may have complimentary pre-incident briefings with a team of security consultants who will estab-lish your risk profile and prepare you for specific security issues you may encounter.

The popularity of social media also raises concerns. Wealthy individuals

living low-profile lives sometimes overlook their children’s activities on Facebook and Twitter. Says Graham Ashcroft, operations director of NYA International and a specialist with 20 years of experience in crisis preven-tion and response: “Younger family members can be inadvertently com-promising their family’s security by advertising precise details of their lifestyle, location, daily routines and plans to a vast, online social net-work. Criminal groups can easily access this information and use it for tracking and targeting purposes. It is important to make children aware of the risks.”

Should a crisis occur, a K&R policy provides the assurance that an experienced security consultant will be available to your family 24/7 to help structure and execute a controlled strategy to resolve the crisis quickly while maintaining the highest level of protection for your family.

Policies, available in coverage amounts of $1 million up to $50 mil-lion, are crafted and priced based on personal factors. These factors may include your public profile, locales you travel to, your net worth and the number of people covered. While personal factors differ, of course, K&R policies have a common thread: to ensure the safety of you and your family regardless of where it is that you travel and whom it is that you see.

By NFP P&C Private Client Group

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largest Client net Worth $500 million

insurance services experience 117 years (combined)

Website www.nfp.com/privateclient

email amy.ciasulli@nfp.com heather.gladwell@nfp.com gilbert.lai@nfp.com sal.lundy@nfp.com paul.gallagher@nfp.com patricia.obrien@nfp.com

NFP P&C Private Client Group 40 Wall Street, 30th Floor, New York, NY 10005 212.888.9800 360 Mt. Kemble Avenue, Morristown, NJ 07960 973.539.8500

How to reach the NFP P&C Private Client Group team

We would be pleased to hear from you. To reach Amy Ciasulli, Heather Gladwell, Salvatore Lundy or Patricia O’Brien in our New York office, please call 212.888.9800. For Gilbert Lai or Paul Gallagher, please call our New Jersey office at 973.539.8500.

NFP P&C Private Client Group is a personal lines insurance agency headquartered in New York City, with offices across the country. The agency specializes in personal insurance, ranging from homeowners and automobile insurance to specialty lines, such as coverage for yachts, aircraft, fine art and antique cars. NFP has agency appointments with a number of leading insurance markets, including ACE, AIG, Chubb, Fireman’s Fund and PURE.

Amy Ciasulli, senior vice president, began her career in 1989 at Continental Insurance Company and then worked at AIG’s Private Client Group. Gilbert Lai, senior vice president, began his career in 1990. Prior to joining NFP, he was a vice president and Northeast regional director at Aon Private Risk Management. Paul Gallagher, vice president, began his career in 1989 as an underwriter in Chubb’s Personal Lines Division. With an underwriter’s understanding of insurance policy contracts, he brings a valuable perspective in counseling high net worth clients. Heather Gladwell, vice president, began her career in 1998 and worked for Marsh & McLennan’s Private Client Services in New York. Salvatore Lundy, vice president, began his career in 1991 with Sentry Insurance and holds the certified insurance service representative designation. Patricia O’Brien, vice president, previously worked at Marsh Private Client Services and Rockefeller Risk Advisors.

About NFP P&C Private Client Group

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Standing, left to right: Patricia O’Brien, Salvatore Lundy, Gilbert Lai, Paul Gallagher; seated, left to right: Heather Gladwell, Amy Ciasulli

“A K&R policy provides the assurance that an experienced security consultant will be available to your family 24/7.”—nFp p&C private Client Group

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Will you fall prey to your state’s estate tax regime?

Pioneer Financial at Northwestern Mutual – Park Avenue Kevin R. Luchetta, CFP®, AEP®, Partner; Michael S. Schwartz, CFP®, Partner; Stephen A. Schwartz, CFP®, Partner; James L. DiNardo, CLU®, ChFC®, CFP®, MSFS®, Partner; Paul D. Tortorella, Partner

?

New York, NY Leading Wealth Advisor

By Michael S. Schwartz, CFP®

April marks the one-year anniver-sary of sweeping changes that took effect for New York State’s estate- and gift-tax laws. New York effec-tively doubled its exemption from $1,000,000 to $2,062,500 for deaths occurring between April 1, 2014, and April 1, 2015. This year, the exemption is adjusting the applicable exclusion amount from $2,062,500 to $3,125,000.

The exemption amount will con-tinue to rise annually, through Janu-ary 1, 2019, when it will be pegged to the federal estate exclusion, which is projected to be around $5,900,000, and indexed for inflation moving for-ward.1 This would all seem to be posi-tive news, but as they say, “The devil is in the details.”

New York is one of only 15 states2 with an estate tax, but it also happens to have one of the most onerous ones. The exemption level is among the low-est, and the tax rate is the highest, cur-rently set at 16 percent. The law also

outlines a graduated slope, which phases out the applicable credit amount for taxable estates and elimi-nates the exemption altogether for the estate of any decedent whose New York taxable estate exceeds 105 per-cent of the basic exclusion amount. A New York State Society of Certified Public Accountants report illustrates how this change, effective in April 2017, could impact you.3

Assuming a basic exclusion amount of $5,250,000, a decedent with a New York taxable estate of $5,512,500 would result in New York estate tax of $430,050. In effect, that is an estate tax of $430,050 on the additional $262,500 in estate value, in excess of the basic exclusion amount.

The writer is describing a mar-ginal estate-tax rate of nearly 164 percent. And if that does not give you sticker shock, other problems arise: For one, all taxable gifts not otherwise included in the federal gross estate

and made during the three years end-ing at the decedent’s death will be included in one’s gross estate to calcu-late the estate tax. Moreover, the new law fails to come into parity with the federal law when it comes to portabil-ity for the surviving spouse.

This is a prime example of where ignorance of the law can hurt you.

Does your state have a separate estate- and gift-tax regime? It is impor-tant to be conscious of local estate-tax laws. New York trust and estate attor-ney Daniel Faizakoff of Daniel B. Faizakoff P.C. adds, “Estate plans are living, breathing entities, and they need to adapt not only to changes in one’s life, but to the constantly evolv-ing complex tax laws. An ongoing close relationship with an estate-plan-ning attorney and a qualified finan-cial planner is essential to minimize tax exposure and to keep hard-earned money in the family and away from the IRS.”

1New York State Society of Certified Public Accountants, “Memorandum Concerning Certain Aspects of the 2014–2015 New York State Executive Budget,” January 20, 2104. http://www.nysscpa.org/commentletter/budget14.pdf; 2Emanuel, Liz, Scott Drenkard and Richard Borean, “State Estate and Inheritance Taxes in 2014,” Tax Foundation, May 28, 2014. http://taxfoundation.org/blog/state-estate-and-inheritance-taxes-2014; 3New York State Society of Certified Public Accountants, Memorandum, ibid. http://www.nysscpa.org/commentletter/budget14.pdf

This article is not intended as legal or tax advice. Financial representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.

Michael S. Schwartz offers advisory services as a representative of Northwestern Mutual Wealth Management Company (WMC), a limited purpose federal savings bank, and a wholly owned subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, Wis., (NM). Northwestern Mutual is the fleet name for NM, its subsidiaries and affiliates. Investments held with or managed by WMC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by WMC or its affiliates and are subject to investment risks, including loss of the principal. Michael S. Schwartz is an insurance agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company, a subsidiary of NM, and a registered representative of Northwestern Mutual Investment Services, LLC (NMIS), an NM subsidiary, broker-dealer, investment advisor, member, FINRA, SIPC. Pioneer Financial is a marketing name used by a group of Northwestern Mutual representatives (not all of whom are affiliated with WMC) including Michael S. Schwartz (referred to as the “firm”), and is not a legal entity, partnership, investment advisor, broker-dealer or affiliate of NM. The information contained in this article is not a solicitation to purchase or sell investments or securities. The views expressed herein are those of the author and may not necessarily reflect the views of Northwestern Mutual.

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“Rising exemption amounts seem to be positive news, but as they say, ‘The devil is in the details.’ ” —Michael S. Schwartz, CFP®

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Pioneer Financial at Northwestern Mutual – Park Avenue 245 Park Avenue, Suite 1800, New York, NY 10167 646.459.6366Pioneer Financial at Northwestern Mutual – Park Avenue 245 Park Avenue, Suite 1800, New York, NY 10167 646.459.6366Pioneer Financial at Northwestern Mutual – Park Avenue 245 Park Avenue, Suite 1800, New York, NY 10167 646.459.6366

Assets Under ManagementCon� dential

Professional Services Provided Financial planning, investment advisory, risk management and money management services

Minimum Fee for Initial Meeting None required

Minimum Net Worth Requirement $1 million

Compensation Method Asset-based fees and commissions (investment and insurance products)

Primary Custodian for Investor AssetsAccounts held at Northwestern Mutual Investment Services LLC, an introducing broker-dealer, member FINRA, SIPC. Accounts carried, and all transactions executed, cleared and settled through Pershing, A BNY Mellon Company, member FINRA, NYSE and SIPC.

Financial Services Experience Kevin R. Luchetta, 18 years; Michael S. Schwartz, 17 years; Stephen A. Schwartz, 16 years; James L. DiNardo, 16 years

Email kevin.luchetta@nm.com michael.s.schwartz@nm.com stephen.schwartz@nm.com james.dinardo@nm.com

Website www.pioneer.� nancial

Seated, left to right: Michael S. Schwartz, James L. DiNardo; standing, left to right: Kevin R. Luchetta, Paul D. Tortorella, Stephen A. Schwartz

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How to reach Pioneer Financial

At Pioneer Financial, our goal is to focus on the individual needs of each of our clients and bring to light innovative and sound financial solutions. To learn more, please contact any member of our team at 646.459.6366.

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About Pioneer FinancialPioneer Financial at Northwestern Mutual provides financial services to high net worth and emerging high net worth individuals, families and business enterprises. Pioneer Financial’s team of 15 associates/staff serve clients nationwide from their Park Avenue office in New York City. Kevin R. Luchetta, Michael S. Schwartz, Stephen A. Schwartz and James L. DiNardo are wealth management advisors and CERTIFIED FINANCIAL PLANNER™ practitioners. The practice is focused on assisting clients through comprehensive financial planning that includes asset management, retirement funding, risk management, estate preservation and distribution.

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International diversification: Still a viable strategy?

Steinberg Forman Group at Morgan Stanley Evan L. Steinberg, CIMA®, Managing Director, Private Wealth Advisor Todd J. Forman, CFP®, Executive Director, Private Wealth Advisor

Still a viable strategy?

New York, NY Leading Wealth Advisor

By Evan L. Steinberg and Todd J. Forman

Despite the developing global econ-omy, some investors still believe that owning U.S. securities is suffi-cient—that international securities would just duplicate their efforts. But a closer look at economic and market trends reveals numerous rea-sons for continuing to diversify with investments from around the world.

In 2014, the total return of the S&P 500 was 13.7 percent. Compare that to non-U.S. equities, which returned -3.4 percent (dollar-denominated). That divergence is the widest for any year since 1992 (according to Bloomberg). There have been four other instances since 1970 with that type of diver-gence, and each time the non-U.S. index beat the S&P 500 by an average of 14 percent.1

We are not suggesting that inves-tors go “all in” on international stocks, but we strongly believe that asset allo-cation through diversification really does work. A prudent mix of assets and the conviction to weather the storm has rewarded patient investors.

Valuation Variations: When inter-national stocks are less expensive than U.S. stocks, value-oriented inves-tors looking to diversify growth-oriented portfolios may find attractive

opportunities in foreign markets. Furthermore, we believe that we will see broader economic and earnings growth in Europe and Japan, and that now is not the time to abandon foreign stock exposure. Accelerated earnings growth almost always leads to better-performing equity markets.

International Growth? While the U.S. economy flexed its muscles in 2014, much of the world was lethar-gic. As a whole, the European Union remained stagnant. While there have been improvements in countries such as England, Ireland, Spain and Portu-gal (the latter two being the most sur-prising), Europe as a whole remains weak. Germany and France, the conti-nent’s two largest economies, have weakened and disinflation (trending toward deflation) remains troubling.

Heralded as a momentous occasion in January 2015, the ECB introduced a massive 18-month monetary stimu-lus program that we believe will help Europe (as QE helped the United States get back on its feet). The Euro-zone currency has weakened dramati-cally, which should help European exports and keep interest rates low for a considerable time. This process, coupled with some structural reforms,

should give European economies a much-needed boost.

Japan also suffered a disappointing conclusion to 2014. In the first half of 2014, Japan was showing signs of improvement, but the impact from a consumption tax and a decline in global markets put the nation back into a mild recession. It is likely that Japan will emerge from this recession in 2015 with positive GDP. The falling yen, low oil prices and an 18-month implementation delay in the con-sumption tax should help accelerate growth. Japan’s greatest challenges are demographic and structural: Like Europe, Japan has an aging popula-tion: the Wall Street Journal recently reported that 25 percent of Japan’s population is at retirement age and that sales of adult diapers have exceeded those for babies.2

As nothing in investing is certain, we always try to think in terms of probabilities. We try to assess funda-mental economic and market data and determine what outcomes are most likely. We then try to structure portfolios accordingly. We like inter-national equities, in particular, for valuation reasons and for the ongoing recovery abroad.

1Michael Wilson, “On the Markets,” the Wall Street Journal, Jan. 12, 2015; 2 The Wall Street Journal, Jan. 12, 2015.S&P 500 Index is an unmanaged, market value-weighted index of 500 stocks generally representative of the broad stock market. An investment cannot

be made directly in a market index. International investing may not be suitable for every investor and is subject to additional risks, including currency fluctuations, political factors, withholding, lack of liquidity, the absence of adequate financial information and exchange control restrictions impacting foreign issuers. These risks may be magnified in emerging markets. Diversification does not guarantee a profit or protect against a loss. Past performance is no guarantee of future results.

Evan L. Steinberg and Todd J. Forman are Wealth Advisors with the Private Wealth Management division of Morgan Stanley in New York, NY. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, member SIPC (www.sipc.org). Morgan Stanley Wealth Advisors engage Worth to feature this article. Evan and Todd may only transact business in states where they are registered or excluded or exempted from registration (www.morganstanleyfa.com/sfgroup). Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Evan and Todd are not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors. (CRC1124054 02/15)

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Todd J. Forman

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Steinberg Forman Group at Morgan Stanley 1290 Avenue of the Americas, 12th Floor, New York, NY 10104 212.893.7501Steinberg Forman Group at Morgan Stanley 1290 Avenue of the Americas, 12th Floor, New York, NY 10104 212.893.7501Steinberg Forman Group at Morgan Stanley 1290 Avenue of the Americas, 12th Floor, New York, NY 10104 212.893.7501Steinberg Forman Group at Morgan Stanley 1290 Avenue of the Americas, 12th Floor, New York, NY 10104 212.893.7501

Assets Under Management $1.7 billion (as of 2/28/15)

Professional Services Provided Planning, money management services, investment and insurance products

Minimum Fee for Initial Meeting None required

Minimum Asset Requirement $2 million (for investment services)

Largest Client Net Worth $1 billion

Compensation Method Asset-based fees and commissions (investment and insurance products)

Primary Custodian for Investor AssetsMorgan Stanley Smith Barney LLC

Financial Services Experience Steinberg, 19 years; Forman, 12 years

Email evan.steinberg@morganstanley.com todd.forman@morganstanley.com

Website www.morganstanleyfa.com/sfgroup/

Evan L. Steinberg Todd J. Forman

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How to reach Evan L. Steinberg and Todd J. Forman

If you’d like to learn more, please contact Evan L. Steinberg, 212.893.7501, or Todd J. Forman, 212.893.7502, or visit www.morganstanleyfa.com/sfgroup/.

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Certi� ed Financial Planner Board of Standards Inc. owns the certi� cation marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with � ame design) in the U.S. Investment Management Consultants Association, Inc. owns the marks CIMA®, Certi� ed Investment Management AnalystSM (with graph element)® and Certi� ed Investment Management AnalystSM.

to diversify with investments from around the world.”

Evan L. Steinberg and

Todd J. Forman

About Evan L. Steinberg and Todd J. FormanEvan L. Steinberg, managing director and private wealth advisor, has been in the financial services industry for 19 years, serving institutions and private clients. His areas of focus include strategic and tactical asset allocation, portfolio construction, due diligence and risk management. Prior to entering the financial services industry in 1995, Mr. Steinberg was a practicing attorney at a large New Jersey law firm. He received his BA from Georgetown University, his JD from Rutgers University Law School, and he obtained the CIMA® designation from the Wharton School of Business at the University of Pennsylvania. Todd J. Forman, executive director and private wealth advisor, has worked in the financial services industry for 12 years. His areas of focus include financial planning and portfolio construction. In addition to being a CERTIFIED FINANCIAL PLANNERTM , Mr. Forman was a practicing attorney at Schulte Roth & Zabel LLP in New York City. He earned his BA from the University of Wisconsin–Madison and his JD from Seton Hall University School of Law.

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“How do you make a small fortune in the stock market?” “Start with a large one.”

So goes the old saw, and like most old saws, it still has some teeth to it. The wisdom behind this iconic joke, however, has been lost in recent times as more and more investors look at the stock market as a place to get rich. Soaring stock prices, the tendency to buy during every dip, an unshakable conviction in the invincibility of the Fed and the per-ception that new economy stocks are the exception to market cycles, these have all conspired to create the illusion that the road to riches is through your friendly online broker.

One might think that the volatility of the recent past would have changed this perception, and for some it has. Still, notions of “making a killing” on Wall Street seem to be reviving. This is unfortunate. The truth is that the stock market has never been a good place to get rich.

Entrepreneurs with good ideas and guts get rich. Venture capitalists who back them get rich. CEOs with enormous compensation packages get rich. Heirs who build out small fortunes get rich(er). And, of course, movie stars and sports figures get

rich. Even game show contestants and lottery bettors can get rich. But most stock market investors? Not so much.

Most investors do not get rich “playing the stock market” because maximizing returns requires taking on more risk than most folks can afford. Of course, it doesn’t look like risk when everything is going accord-ing to plan. But that’s the nature of risk. It is a measure of how much you can lose when things are not going so swimmingly. And at various points in the cycle they will not.

Meaning: Investors counting on their stocks to create instant wealth often fail to stay focused on the long term, and that costs them dearly. The average holding period for the typical private investor is shrinking at an appalling rate. Extremely short holding periods mean those inves-tors are absorbing enormous trans-action costs, even if commissions are discounted.

They are also running headlong into an unfavorable tax system that taxes short-term gains at ordinary income rates, while severely limiting the deductibility of losses. This short-term orientation virtually assures the accuracy of the old saw with which we started this essay.

According to Bloomberg, the total return on the Dow Jones Industrial Average has been 11.5 percent annu-ally from 1963 through 2013. While these are more than acceptable abso-lute returns, we doubt they would excite the investor trying to strike it rich. But what equity investing can do is keep capital intact if an investor sticks with a disciplined approach and does not chase the latest invest-ment fads trying to generate returns in excess of historical averages.

The most successful investors among our clients are those who have been with us the longest period of time. The majority of them don’t know the value of their portfolio on a day-to-day basis and are, if anything, amused by most Wall Street hype. They got rich in one of the ways out-lined at the outset, not in the stock market. And they make it clear that they do not expect us to make their fortunes, but to keep them safe.

At Tocqueville, we have always viewed the equity market as the ideal place to invest funds for the long term in order to preserve capital against the insidious long-term effects of taxes and inflation. In short, it is a good place to stay rich.

And that’s our final answer.

Manhattan Leading Wealth Advisor

Who wants to stay a millionaire?

Tocqueville Asset Management LPRobert W. Kleinschmidt, CFA®, President, CEO and CIO

By Robert W. Kleinschmidt

Note: This article was originally published 15 years ago, proving that TV shows about millionaires may go in and out of style, but good investment advice for them seldom does.

The information contained herein has been obtained from sources believed reliable, but is not necessarily complete and cannot be guaranteed. The views expressed in this article are current as of the date of this article, and are subject to change at any time. Tocqueville Asset Management L.P. and its affiliates and their officers, directors, employees or members of their families as well as the clients for whom they manage portfolios: 1) May have positions in securities or options of issuers mentioned in this publication and may make purchases or sales of the securities or options while this publication is in circulation; 2) May hold directorships in corporations discussed in this publication.

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Richard P. Slaughter Associates Inc. 13809 Research Blvd., Suite 905, Austin, TX 78750 512.918.0000

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“The truth is that the stock market has never been a good place to get rich.” —Robert W. Kleinschmidt

Assets Under Management$12 billion (as of 12/31/14)

Largest Client Net Worth$1 billion+

Minimum Fee for Initial Meeting None required

Methods of Compensation Asset-based fees

Website www.tocqueville.com/wealth

Minimum Net Worth Requirement $25 million (for planning services)$10 million (in assets, for investment services)

Primary Custodian for Investor AssetsPershing

Financial Services Experience 38 years

Professional Services ProvidedPlanning, investment advisory and money management services

Email rwk@tocqueville.com

WHAT I ’M READING NOW…

Fateful Lightning: A New History of the Civil War and Reconstruction, by Allen C. Guelzo (the older I get, the more I’m interested in history), and The Singular Universe and the Reality of Time, by Roberto Unger and Lee Smolin (I can never read just one book at a time)

IF I WEREN’T A WEALTH ADVISOR, I ’D BE…

A full-time advocate for limited constitutional

government and for personal and economic liberty

About Tocqueville Asset Management LP and Robert W. KleinschmidtFormed in 1985, Tocqueville Asset Management LP is an entrepreneurial, employee-owned partnership that focuses exclusively on growing and preserving long-term capital for its clients. Investing alongside its clients, the firm has more than a professional interest in producing results that meet and exceed expectations.Tocqueville manages investment portfolios with the independent thinking and rigorous research that was the hallmark of Alexis de Tocqueville, the great 19th century chronicler of American democracy. Like its namesake, Tocqueville resists preconceived notions and constantly tests its ideas against the hard realities of the marketplace—“We are contrarians who believe that the best investment results over time are achieved outside the mainstream consensus.” Tocqueville’s investment process is built around identifying undervalued companies that possess long-term earnings power. Robert W. Kleinschmidt, CFA®, is president, chief executive officer and chief investment officer of Tocqueville. Mr. Kleinschmidt joined the firm in 1991 and manages discretionary portfolios for institutional, individual and family clients. He is also the lead portfolio manager of the firm’s flagship fund, the Tocqueville Fund, and of the multi-cap equity strategy. He earned a BBA in accounting from the University of Wisconsin–Oshkosh and an MA in economics from the University of Massachusetts–Amherst.

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How to reach Robert W. Kleinschmidt

Please contact me via email at rwk@tocqueville.com or by telephone at 212.698.0849.

Tocqueville Asset Management LP 40 West 57th Street, 19th Floor, New York, NY 10019 212.698.0800 Tocqueville Asset Management LP 40 West 57th Street, 19th Floor, New York, NY 10019 212.698.0800 Tocqueville Asset Management LP 40 West 57th Street, 19th Floor, New York, NY 10019 212.698.0800

MY HOBBIES ARE…

Mountain biking, fishing, hunting and playing squash

Tocqueville_WO35.indd 101 3/11/15 4:56 PM

Traust Sollus Wealth ManagementAl Zdenek, CPA/PFS, President and CEO

New York, NY Leading Wealth Advisor

Does stock market volatility represent a risk or an opportunity for me?

For a person who already has solid financial and investment plans in place, it is an opportunity.

Let’s start with a reminder. Volatil-ity is most often explained as being a statistical measure of the disper-sion of returns for a given security or market index. The shorter the time periods and the greater the spread between upward and down-ward movements in price, the higher volatility the security or index is said to have. Those investments displaying longer intervals between movements and less spikey spread characteristics are said to have lower volatility.

Three sets of two to consider: There are two points many inves-tors tend to forget when it comes to volatility. Without upward vola-tility, you would never have price appreciation for an investment, and you need that to grow your wealth. Also, just because mar-ket volatility may have increased does not mean that the underly-ing fundamentals of a company in which you have invested may have changed significantly, or at all.

Investment risk is primarily two-fold: the permanent loss of capital

and the loss of buying power. If you buy into an investment whose sell-ing price later drops and does not recover, you’ve lost money. While you can ride out volatility, you can-not undo a permanent loss in an investment. Then, there’s inflation. If you buy a bank CD that pays less than the rate of inflation, you do not earn enough on it to keep up with the rising cost of living.

The two key factors that make stock market volatility represent opportunity rather than risk for investors are how they make choices about the investment risks they are willing to take, and whether they manage their exposure to invest-ment risks to their advantage. So, let’s consider what it takes to be in a position to make more educated decisions as to what steps to take, if any, when stock market volatility is grabbing the headlines.

Making more educated deci-sions: For my firm’s clients, what guides the choices they make about which investment risks to take comes from the customized strate-gies we develop for their portfolios based upon their individual wealth goals, investment time frames and

risk tolerance. From this, an invest-ment policy statement is created with the client, and that is what guides the recommended asset allo-cations, investment vehicles and money managers selected for that portfolio. This is not a cookie cutter template where you can follow what may be right for someone else. So base your decisions about which investment risks to take with your investment portfolio on your own wealth goals, investment timeframe and risk tolerance. Turn to a wealth manager who is also a CPA to help you make those determinations.

Windows of opportunity: Higher volatility market environments can create price disparities that inves-tors can take advantage of. When short-term bad news drives inves-tor emotion from greed toward fear, and expands the pendulum swing of market volatility, the savvy investor often finds opportu-nity to add to existing positions at bargain prices: scooping up a hold-ing that has swung from fairly or overvalued to undervalued, or even adjusting asset allocation weight-ings at a more tax efficient time.

You can be that savvy investor.

By Al Zdenek

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“When short-term bad news drives investor emotion from greed toward fear, the savvy investor often finds opportunity to add to existing positions at bargain prices.”—Al Zdenek

Assets Under Management Available on request

Minimum Fee for Initial Meeting None required

Minimum Net Worth Requirement $5 million

Largest Client Net Worth Con� dential

Financial Services Experience 30+ years

Compensation Method Flat fee arranged with agreement of the client based on plan complexity

Primary Custodian for Investor Assets TD Ameritrade

Professional Services ProvidedComprehensive personal � nancial planning, investment advisory, tax planning and � ling; cash-� ow planning, estate planning, risk management; business consulting for small and family-owned businesses

Association Memberships AICPA, NAPFA, NYSSA

Website www.tswealth.com

Email azdenek@tswealth.com

Traust Sollus Wealth Management 70 East 55th Street, 12th Floor, New York, NY 10022 212.661.8682

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Al Zdenek, president and CEO of Traust Sollus Wealth Management, has more than 30 years of experience in providing personal financial planning, cash-flow planning, estate planning, business management, tax planning and investment management advice to affluent individuals, senior executives, physicians and business owners. He has appeared in lists of the nation's top financial advisors and is often quoted in the media about wealth building and wealth management. He also has lectured on financial planning and investment management across the country. Mr. Zdenek founded Traust Sollus in December 1982. He holds an undergraduate degree from Rutgers University and an MBA degree from Rutgers Business School.

About Al Zdenek

Al: Traveling internationally, wine, cooking and

collecting art. I also spend time supporting Rutgers

University, Visual Enterprises International, the Global

Partnership for Afghanistan and the Inter-City Scholarship

Fund of New York City, and teaching—especially underprivileged children.

MY HOBBIES ARE…

Al Zdenek

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Brian Picariello

How to reach the Traust Sollus Team

Please give us a call at 212.661.8682 for a preliminary consultation.

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RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)RIA Investment Forum (Central)

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This directory is designed to jump-start your quest for a qualified financial, legal or insurance expert—an enterprise that requires time, effort and due diligence. Advisors listed here have voluntarily submitted information to Worth and Paladin Advisor Research (www.PaladinRegistry.com) that details their credentials, ethics, business practices and services. Once admitted, Worth® Leading Wealth Advisors™ pay a fee to participate in this program.

N A T I O N A L D I R E C T O R Y2 0 1 5 W O R T H ® L E A D I N G W E A L T H A D V I S O R S ™

AIG 175 Water Street, 12th Floor, New York, NY 10038Ron Fiamma 212.458.8843, ron.fiamma@aig.com

Altair Advisers LLC 303 West Madison Street, Suite 600, Chicago, IL 60606Anna Nichols 312.429.3000, info@altairadvisers.com

Baldwin Krystyn Sherman Partners 4010 West Boy Scout Boulevard, Suite 200, Tampa, FL 33607 Laura Sherman 866.279.0698, lsherman@bks-partners.com

Bank of the West Wealth Management 4400 MacArthur Boulevard, Newport Beach, CA 92660Edward Mora 949.797.1938, edward.mora@bankofthewest.com

Bank of the West Wealth Management 555 Market Street, Suite 100, San Francisco, CA 94105Paul Bianchi 415.796.9628, paul.bianchi@bankofthewest.com

Bingham, Osborn & Scarborough LLC 345 California Street, Suite 1100, San Francisco, CA 94104Richard Golinski 415.781.8535, rich.golinski@bosinvest.com

Bruce Gendelman Company 340 Royal Poinciana Way, Suite 305, Palm Beach, FL 33480Bruce Gendelman 800.845.4145, ext. 11, bgendelman@gendelman.com

CBIZ MHM LLC 1065 Avenue of the Americas, New York, NY 10018 Marc J. Minker 212.790.5700, mminker@cbiz.com

Celedinas Insurance Group 4283 Northlake Boulevard, Palm Beach Gardens, FL 33410 Ray Celedinas 800.940.7744, rceledinas@celedinas.com

Cook Maran & Associates Inc. 40 Marcus Drive, Melville, NY 11747Christine Schrader 631.390.9818, cschrader@cookmaran.com

CTC | myCFO 111 West Monroe Street, 10E, Chicago, IL 60603Michael Stritch 312.461.3184, michael.stritch@ctcmycfo.com

Excelsior Wealth Management 522 Fifth Avenue, 15th Floor, New York, NY 10036at Morgan Stanley 212.296.1026, craig.pastolove@morganstanley.comCraig Pastolove

Fieldpoint Private 100 Field Point Road, Greenwich, CT 06830The Connecticut Team 203.413.9300, inquiries@fieldpointprivate.com

Gerson, Guarino & Meisel Group at Morgan Stanley One Penn Plaza, New York, NY 10119Shawn P. Landau 212.643.5757, shawn.p.landau@morganstanley.com

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Advisors are listed in alphabetical order by firm name.

N at i o N a l D i r e c tory

Glowacki Group LLC 11400 West Olympic Boulevard, Suite 1500, Los Angeles, CA 90064 Donald I. Gettinger 310.473.0100, info@glowackigroup.com

Granite Group Advisors 187 Danbury Road, Wilton, CT 06897Lyle B. Himebaugh III 203.210.7814, lhimebaugh@granitegroupadvisors.com

Hallmark Capital Management, Inc. 1195 Hamburg Turnpike, Wayne, NJ 07470Steve Erikson 973.808.4144, eriksons@hallcapmgt.com

Horton Private Client Group 200 South Wacker Drive, Suite 2550, Chicago, IL 60606Ronald R. Assise 312.917.8600, ron.assise@thehortongroup.com

IFAM Capital 5299 DTC Boulevard, Suite 1350, Greenwood Village, CO 80111Jenny Thompson 720.550.5551, jthompson@ifmcapital.com

Kayne Anderson Rudnick 1800 Avenue of the Stars, 2nd Floor, Los Angeles, CA 90067Darnel Bentz 580 California Street, Suite 1750, San Francisco, CA 94104 800.231.7414, dbentz@kayne.com

LLBH Private Wealth Management LLC 33 Riverside Avenue, 5th Floor, Westport, CT 06880Bill Loftus 800.700.5524, bloftus@llbhpwm.com

Marsh Private Client Services Three Logan Square, 1717 Arch Street, Philadelphia, PA 19103Diane Giles 215.353.1730, diane.m.giles@marsh.com

MBAF | Certified Public Accountants and Advisors 440 Park Avenue South, 3rd Floor, New York, NY 10016Gary M. DuBoff 225 Northeast Minzner Boulevard, Suite 685, Boca Raton, FL 33432 212.576.1400, 561.909.2100, gduboff@mbafcpa.com

Mogil Organization LLC 41 West Putnam Avenue, Greenwich, CT 06830Steven B. Levine 203.661.8126, stevenlevine@mogil.com

Momentous Insurance Brokerage 5990 Sepulveda Boulevard, #550, Van Nuys, CA 91411Pam Wesier 818.933.2715, pweiser@mmibi.com

Moore Group at Morgan Stanley 8383 Preston Center Plaza Drive, Suite 400, Dallas, TX 75225Marie A. Moore 214.696.7175, marie.a.moore@morganstanley.com

Neuberger Berman Wealth Management 190 South LaSalle Street, 24th Floor, Chicago, IL 60603Brian E. Hahn 312.325.2223, bhahn@nb.com

Neuberger Berman Wealth Management 605 Third Avenue, New York, NY 10158Diane G. Domenici 212.476.9194, diane.domenici@nb.com

Neuberger Berman Wealth Management 401 East Jackson Street, Suite 2350, Tampa, FL 33602Shawn R. Ryan 813.387.3206, shawn.ryan@nb.com

New England Private Wealth Advisors LLC 36 Washington Street, Suite 395, Wellesley, MA 02481Ira Rapaport 781.416.1700, ira.rapaport@nepwealth.com

NFP P&C Private Client Group 40 Wall Street, 30th Floor, New York, NY 10005Amy Ciasulli 212.888.9800, amy.ciasulli@nfp.com

NFP P&C Private Client Group 5956 Sherry Lane, Suite 1618, Dallas, TX 75225Craig Low 214.987.2000, craig.low@nfp.com

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NFP P&C Private Client Group Atlanta, GAMichael Carmody 561.443.2000, michael.carmody@nfp.com

Pioneer Financial at Northwestern Mutual–Park Avenue 245 Park Avenue, Suite 1800, New York, NY 10167Michael S. Schwartz 646.459.6366, michael.s.schwartz@nm.com

Private Risk Insurance Agency LLC 4001 MacArthur Boulevard, 3rd Floor, Newport Beach, CA 92660Michael Mira 949.223.8258, michael.mira@tfgroup.com

Richard P. Slaughter Associates Inc. 13809 Research Boulevard, Suite 905, Austin, TX 78750Bob Tabor 512.918.0000, bob@slaughterinvest.com

Signature Estate & Investment Advisors LLC 2010 Main Street, Suite 220, Irvine, CA 92164Mark E. Copeland 949.705.5188, mcopeland@seia.com

Steinberg Forman Group at Morgan Stanley 1290 Avenue of the Americas, 12th Floor, New York, NY 10104Evan L. Steinberg 212.893.7501, evan.steinberg@morganstanley.com

Sterling Investment Advisors Ltd. 1055 Westlakes Drive, Suite 150, Berwyn, PA 19312Timothy E. Flatley 610.560.0400, flatleyt@sterling-advisors.com

Stonnington Group LLC 21031 Ventura Boulevard, Suite 1201, Woodland Hills, CA 91364Nicholas H. Stonnington 818.444.0600, nick@stonningtongroup.com

Strategic Financial Group, LLC 1333 Burr Ridge Parkway, Suite 200, Burr Ridge, IL 60527Bradley J. Rathe 888.363.7147, bjrathe@sfgweb.com

Swanson Group at Morgan Stanley 440 South LaSalle Street, Suite 3800, Chicago, IL 60605Meredith S. Parrish 312.706.4527, meredith.parrish@morganstanley.com

The Haverford Trust Company Three Radnor Corporate Center, Suite 450, Radnor, PA 19087Henry B. Smith 610.995.8700, hsmith@haverfordquality.com

Tocqueville Asset Management LP 40 West 57th Street, 19th Floor, New York, NY 10019Robert W. Kleinschmidt 212.698.0800, rwk@tocqueville.com

Transamerica Life Insurance Company 1150 South Olive Street, T-26, Los Angeles, CA 90015Travis M. Burke 404.276.3089, foreign.national@transamerica.com

Traust Sollus Wealth Management 70 East 55th Street, 12th Floor, New York, NY 10022 Al Zdenek 212.661.8682, azdenek@tswealth.com

Waldron Private Wealth 1150 Old Pond Road, Pittsburgh, PA 15017Matthew Helfrich 412.221.1005, mhelfrich@waldronpw.com

Wilson Group at Morgan Stanley 5444 Riverside Drive, 2nd Floor, Macon, GA 31210Eric S. Wilson 478.471.2266, eric.s.wilson@morganstanley.com

PLEASE READ THE FOLLOWING IMPORTANT STATEMENT: Worth magazine, as a financial publisher, is committed to providing its readership with timely, informative and interesting articles; however, the listing of any firm or advisor in the 2015 Worth® Leading Wealth AdvisorsTM Program does not constitute a recommendation or endorsement by Worth magazine of any such firm or advisor and is not based upon Worth magazine's prior dealings with any firm or advisor (aside from those featured, which have met certain pre-determined criteria established by Worth magazine). Worth magazine has not reviewed the information presented by each firm or advisor, which may include profiles, statistical data, presentations, reports, commentaries, recommendations or strategies, as such information is the sole responsibility of the contributing firm or advisor. The views or opinions expressed herein are those of the author and not those of Worth magazine. Worth magazine makes no representation or warranty as to the accuracy or completeness of such information, assumes no liability for any inaccuracies or omissions therein and expressly disclaims responsibility for the suitability of any particular investment recommendation or strategy for any person. In no event will Worth magazine, its parent, subsidiaries, affiliates, directors, officers, employees, principals, representatives and agents, or any other party that has been involved in the creation, production, promotion or marketing of any information presented in Worth magazine, be liable for any loss, injury, claim, liability, or damage of any kind, whether direct, indirect, special, incidental, reliant on or consequential to, the fullest extent permitted by law; or any information or content included in Worth magazine, even if Worth magazine or such other party has been advised of the possibility of such damages. Nothing contained in Worth magazine constitutes or should be construed as any form of investment, legal, insurance, or tax advice, nor a solicitation or offer of investment advisory services or a recommendation to buy, sell, hold or trade any securities, financial instruments or assets. The strategies and/or investments referenced may not be suitable for all investors, and therefore, readers are always advised to consult their legal, financial, insurance and tax advisors prior to making any investment or pursuing any investment strategy. Readers interested in obtaining the services of or being advised by any of the firms or advisors listed herein are required to conduct their own investigation and analysis of such firms and advisors.

Directory_WOR35.indd 107 3/16/15 12:36 PM

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W O R T H . C O M A P R I L - M A Y 2 0 1 5 109

LIVEFROM PHILANTHROPY TO TRAVEL TO HEALTH, LIVE OFFERS INSIDER RECOMMENDATIONS ON HOW WEALTH CAN ENRICH YOUR LIFE.

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MINDING THE GAP

�A much-publicized report by the charity Oxfam recently announced that the richest 1 percent of the global population controls half of the world’s wealth. The

study’s language suggested the wealthy were directly responsible for the inequality gap. However, a Spectrem Group survey conducted for CNBC last May showed inequality to be a concern for America’s millionaires. Nearly two-thirds of those surveyed supported raising taxes on the wealthy as a means to address the issue. Raising the minimum wage and increasing educational opportunities for the less wealthy were also largely backed by those polled.

SOURCE WEALTH: HAVING IT ALL AND WANTING MORE, OXFAM, OXFAM.ORG; “CNBC SURVEY SHOWS MILLIONAIRES WANT HIGHER TAXES TO FIX INEQUALITY” BY ROBERT FRANK, CNBC.COM

BETTING ON NICARAGUA

�Now that the Nicaragua Canal has o� cially broken ground and is slated for completion by 2019, the country’s southwestern coast is poised for a luxury travel

boom. While much of the focus has been on Nicaragua’s eponymous lake and the Chinese plans for golf developments along the canal route, over the last decade several luxury developments and resorts quietly opened on the Pacifi c coast nearby. Most notably: a private 1,670-acre swath of beachfront called Guacalito de la Isla that will soon have its own airport. A� uent Americans and celebrities such as Morgan Freeman, Catherine Zeta-Jones and Michael Douglas have made up the majority of frequent guests and homeowners, whose purchases of vacation homes in the picturesque enclave will likely appreciate dramatically over the next fi ve years.

SOURCE “IN NICARAGUA, CAN CHINESE MOVE THE CANAL, AVOID RIO SAN JUAN, AND STILL PLAY GOLF?” BY TIM ROGERS, THE NICARAGUA DISPATCH, NICARAGUADISPATCH.COM

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�When it comes to attracting a� uent

Americans, the boot-shaped country is still kicking. Luxury-travel advisor network Virtuoso reported in January that Italy is the most popular destination for 2015 among its customers. Butterfi eld & Robinson CEO Norman Howe tells Worth that Italy is also leading the way with his a� uent clients. Both sources point to interest in wine tours and a well-established tourism infrastructure for high-end travelers as major factors—but a weaker euro and the World’s Fair in Milan (May 1 to October 31) may also be driving a particularly stellar year for Italian tourism.

SOURCE THE 2015 VIRTUOSO LUXE REPORT, VIRTUOSO, VIRTUOSO.COM; BUTTERFIELD & ROBINSON, BUTTERFIELD.COM

A P R I L - M A Y 2 0 1 5 W O R T H . C O M 110

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Q: You’ve had success in both medicine and the arts. How does your approach to work di� er in these fi elds?A: The di� erences in thinking and behaving between being a physician and being an artist are tremendous. A micron mistake in retinal surgery can result in a blind eye. In my studio it’s about trying anything. A mistake sometimes is magic.

Q: How did you transition from ophthalmology to photography?A: When my second daughter graduated from high school in 1987, I felt I could devote one day a week to photography. I decided my fi rst project would be to study portraiture through women who were known for their accomplishments versus how they looked. I made all kinds of mistakes, but I worked my way through it, and a book was published called Gifted Woman.

Q: One of your earliest projects was taking portraits of and interviewing San Francisco’s homeless. Why?A: I wanted to know, how does this happen? I understood success and that there was a bell-shaped curve, but I never understood that other side of the curve.GLITTERATI, MAY 2015, $600, 832 PAGES

T R I P S óTHE RITZ-CARLTON SAN FRANCISCO

� Following a yearlong $27 million renovation, the Ritz-Carlton, a neoclassical landmark, debuted its new guest rooms in mid-March, marking a modernization trend in the traditionally stodgy Nob Hill neighborhood. The new décor eschews the expected Victorian motifs for a more modern blue and silver palette, with the in-room tech to match. (The TVs stream your Pandora or Netfl ix accounts.) The hotel also debuted a wine salon created by winemaker Jean-Charles Boisset.RITZCARLTON.COM

B O O K S ¿THE ART OF FORGERYBy Noah Charney

� Art-crime historian Noah Charney examines the most prolifi c art forgers from antiquity to modernity. He shows how criminals faked masterpieces and how they were eventually caught; he also delves into their motivations, which ranged from fame-seeking and revenge to political and social manipulation.PHAIDON, MAY 2015, $35,

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W E B S I T E S �ELI’S LIST WINE & SPIRITS

� Manhattan grocer and wine afi cionado Eli Zabar has launched this website to showcase his favorite Old World wines. Its rotating selection of 400 focuses on Burgundy, Piedmont and Champagne varietals. Customers may also join Zabar’s wine club and receive three bottles every month. ELIZABARWINE.COM

B O O K S ¿Dr. Howard Schatz was a renowned retina specialist in San Francisco. Since 1992, he has shot for Vanity Fair, Vogue and The New Yorker, among others, and published 20 photography books.

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For an early project, Schatz photographed and interviewed over 1,000 homeless people.

A P R I L - M A Y 2 0 1 5 W O R T H . C O M 112

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LAT56˚ RED EYE CARRY-ON GARMENT BAG

Named for the latitude of its native Scotland, luggage company Lat56˚ is perhaps best known for its innovative use of military-grade EVA foam, which makes its bags not only impact- and water-resistant, but also incredibly light. Weighing just four pounds, its distinctive garment bag easily fi ts two suits, shoes and spare clothing—and its patented suit-packing system guarantees your clothing won’t be creased. ($300) Rachel Stott, rachel.stott@lat56.com, 44.871.200.7756, lat56.com

T.T. TRUNKS DANDY TRAVEL TRUNK

This canvas-lined piece from French bespoke trunk maker T.T. Trunks, which manufactures all its products near Alicante, Spain, is geared toward the sophisticate: It contains three watch winders, a Sonos speaker, a Spanish-cedar cigar case, a poker set, a set of cocktail glasses and two compartments for bottle storage. The wheeled trunk also connects to all types of smartphones and includes an integrated charging station. (35,600€, about $40,900) 33.1.45.74.04.31, tttrunks.com

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CHIEF TRUNK JOURNEY DUFFEL

There was a time when the Oshkosh “Chief” trunk, with its signature yellow and red stripes, was considered the Louis Vuitton of America. Though the company closed up shop in the 1960s, the historic luggage line was recently revived as Chief Trunk. The company’s 20-inch canvas du� el, with black leather handles and brass zippers, evokes pre-jet age elegance and is perfect for a weekend holiday. ($595) customerservice@chie� runk.com, 917.524.9656, chie� runk.com

C É L I N E M E D I U M P H A N TO M LU G G AG E TOT E I N M U LT I CO LO R T E XT I L E

The French design house’s Luggage Tote style became wildly popular just a few years ago, and it continues to carry weight in the handbag world thanks to its practicality as well as its aesthetics. New this spring, this cotton canvas version features stripes and calfskin handles and trimmings. ($2,100) celine.com

LOUIS VUITTON 3 WATCH CASE

This compact leather cylinder with a soft microfi ber interior makes it easy to take your favorite timepieces with you wherever you go. The case measures 8.27 x 3.54 x 3.15 inches and fi ts three watches comfortably. ($985) 866.884.8866, us.louisvuitton.com

TUMI CFX COLLECTION

Launched last fall, the CFX collection is made of a soft and fl exible carbon fi ber—the same stu� used in high-performance race cars—because it’s lightweight and tough. The line encompasses wheeled travel cases and day bags. Each CFX bag has leather detailing, custom-designed metal hardware and a monogram patch. (Shown here, from left: Adelaide Soft Du� el, $1,995, Silverstone International Carry-On, $2,495 and Sebring Tablet Cover, $395) service@tumi.com, 800.299.8864, tumi.com

SADDLEBACK LEATHER MEDIUM WATERBAG

One very large contiguous piece of leather composes this robust bag. That’s important, because the fewer seams a bag has, the stronger it is. This versatile piece (which is not waterproof, but very resistant when fully closed) can expand and turn into a heavy-duty tote. Straps can also be attached to carry it on your back. ($710) ihaveaquestion@saddlebackleather.com, 210.858.5210, saddlebackleather.com

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+ Since the U.S. imposed a trade embargo on Cuba in 1960, cigar lovers have either

abstained from habanos or acquired them clandestinely abroad. But the re-cent thaw in relations between the two countries has cigar afi cionados dream-ing of a not-far-o� day when they can freely buy Cuban smokes.

If and when that day arrives, Cuban ci-gars will enter a market that has changed drastically in the last 55 years. Cuban cigar masters who fl ed the country after their companies were nationalized took their expertise to countries such as Nica-ragua, Honduras and the Dominican Re-public, producing cigars for the American market that have become legendary in their own right—Fuente, Padrón, Ashton,

Camacho and the non-Cuban versions of Davido� , Partagás, Montecristo, Cohiba and others.

Many of these post-embargo brands exploded in popularity during the cigar boom of the late 1990s, an era in which educated cigar connoisseurs bemoaned a decline in the quality and consistency of Cuban cigars—the result of economic strife stemming from the collapse of the Soviet Union and a subsequent reduction in Russian aid to Cuba.

Quality-control initiatives in the 2000s helped Cuban cigars recapture their reputation for quality, but how they would fare in the U.S. market against established favorites such as the Dominican Republic’s Fuente Fuente OpusX or Nicaragua’s Padrón is unclear. Here are several of Cuba’s fi nest to consider.

The Cohiba brand was created to be Fidel Castro’s personal cigar

SMOKE ACROSS THE WATER

Cuban cigars gained cult status after they became inaccessible to Americans—but will they live up to their mystique once the embargo ends?

Cuba presented a new cigar, the Behike, from the Cohiba line at the Habanos Tobacco Festival 2010

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PUNCH PUNCH

Fans of the toro or corona gorda size—and there are many in the U.S.—will want to light up this 5 5/8” x 46 cigar and savor its rich, earthy fl avor.

The Hoyo de Monterrey tobacco plantation in Cuba’s Vuelta Abajo region

JFK secured for himself 1,200 Cuban cigars just hours before enacting the Cuban trade embargo in 1962

MONTECRISTO NO. 2

Widely considered the gold standard of shaped cigars, or fi gurados, this full-bodied power cigar has a tapered head and measures a generous 6 1/8” x 52.

HOYO DE MONTERREY EPICURE NO. 2

A smooth yet complex robusto (4 7/8” x 50), this selection from one of Cuba’s oldest brands is handmade entirely with leaf from the legendary tobacco fi elds of Cuba’s lush Vuelta Abajo region.

COHIBA BEHIKE BHK 52

A recent extension of the brand created to be Fidel Castro’s personal cigar, the compact (4 3/4” x 52) smoke has quickly become a favorite, with its traditional “pigtail” cap and fi ller blend of rare aged tobacco.

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DESTINATION:R ITES OF SWING

A fantasy trip for a true sports fan

+ For baseball fans, spring sparks thoughts of trips to Florida or Arizona for the

all-too-popular spring training. Those who want to do more than just watch others swing the bat might consider another destination: San Diego, home of the Padres. The Padres, who are typically so-so, are show-ing signs of a reversal of fortune this year. More to the point, this is a town where you can not only stay at a great hotel, eat fantastically well and watch hope-fi lled baseball—you can also rent out a major league stadium and take to the fi eld yourself.

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BEFORE YOU GO

A hardcore baseball getaway requires the best equipment you can fi nd, so have a bespoke bat made by Tucci Lumber. The Norwalk, Conn., company was founded by former Triple-A minor leaguer Pete Tucci, who was on the Padres’ 40-man roster when his career was cut short by a hand injury. Tucci’s handcut maple and ash bats are currently used by more than 130 MLB players. Contact: Pete Tucci, pete@tlbats.com, 888.810.2287, tlbats.com

FANTASY PLAY

Now 11 years old, Petco Park was built around the Western Metal Supply building, a 1909 structure that has been repurposed with suites, a restaurant and a rooftop deck, connecting this stadium to the history of San Diego’s Gaslamp Quarter. When the Padres aren’t home, fans can actually rent Petco for their own games. In addition to on-fi eld play, rental packages can include everything from meals and behind-the-scenes tours to pitching instruction, anthem singers and personal trading cards. (Packages start at $18,500 for two hours of play for up to 50 guests.) Contact: Kristie Ewing, kewing@padres.com, 619.795.5025, petcoparkevents.com

OFF THE FIELD

A short drive across the bay is the Hotel del Coronado, a Victorian landmark. Its Beach Village cottage suites provide prime access to the ocean and you can book private chef dinners. If the ocean isn’t for you, the Grand del Mar just north of the city o� ers villa accommodations, a Tom Fazio–designed golf course and an equestrian center. Relais & Châteaux grand chef William Bradley runs its on-site restaurant, Addison, which has a spectacular wine program. Contact: Hotel del Coronado, 619.435.6611, hoteldel.com; the Grand del Mar, 858.314.2000, thegranddelmar.com

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DELEÓN DIAMANTE

Less than fi ve years after its launch, this tequila brand was bought by hip-hop mogul Diddy along with spirits conglomerate Diageo last year. Flashy marketing notwithstanding, DeLeón Diamante is a blanco so complex and smooth that it can be sipped neat—but don’t be afraid to mix it. ($150) deleontequila.com

RIEDEL VERITAS COUPE GLASSES

The centuries-old glassware manufacturer has released this new design inspired by the Prohibition era. Think Jay Gatsby style, but with a thinner crystal and a wider top, bringing the avant-garde design into the 21st century to use for anything from Champagne to cocktails and desserts. ($69 per set of two) info-USA@riedel.com, 732.346.8960, riedel.com

MOUNT GAY 1703 OLD CASK SELECTION

This premium rum from Barbados comprises 44 blends from Mount Gay’s reserves, some of which are up to 30 years old. Unlike other aged rums, this spicy and smooth blend is not sugary, making it a great sipping spirit for warm-weather evenings. ($100) 246.227.8800, mountgay.com

PIO CESARE FIDES

The result of aging for 20 months in medium-toasted French oak casks, this single-vineyard barbera d’Alba from the Colombaro vineyard in Piedmont, Italy, has a robust intensity—fruity spice with plenty of versatility. ($40) piocesare@piocesare.it, 39.0173.440386, piocesare.it

2012 NEWTON UNFILTERED CHARDONNAY

Sourced in Los Carneros and Knights Valley, California, Newton’s 2012 vintage has produced a fresh chardonnay with a creamy texture that pairs well with dishes such as sea bass, oysters and lobster. It’s also a good complement to a cheese course. ($60) Lori Narlock, lori_narlock@chandon.com, 707.204.7620, newtonvineyard.com

As the weather warms up, stock your home bar with the following essentials.

DRINKS:SPRING FORWARD

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+ Over its short but impressive 11-year his-

tory, watchmaker Greubel Forsey has sought to improve the performance of mechanical watches by “redefi ning the tour-billon,” as cofounder Stephen Forsey says, and its innovations on that 200-year-old escapement have garnered acclaim from collectors and critics. But it was largely feedback from the former, Forsey says, that led the company to create the Art Piece 1, a collaboration between Greubel Forsey and Brit-ish artist Willard Wigan, whose sculptures can fi t on the head of a pin and fetch upward of $125,000. To the naked eye, the Art Piece 1 looks like it has a speck of dust inside; when viewed through a magnifi er at 9 o’clock on the crown, the speck reveals itself to be a Wigan sculpture—anything from a replica of Da Vinci’s

The Last Supper to an intri-cate sailing ship.

“Greubel Forsey and I share the same language because we understand small things,” says Wigan, who received an Order of the British Empire from Queen Elizabeth II in 2007. The artist began creating sculptures at age 5, when he started making furni-ture for ants using a razor and wood splinters. “My mother said the smaller my work, the bigger my name would become.” Over time Wigan learned to work on an infi nitesimal scale with materials such as gold, precious stones and even hair—a skill that requires such steadiness, Wigan says, that he must sculpt between heartbeats to minimize mistakes.

“It requires a huge amount of skill, discipline and rigor—and perhaps a bit of folly,” Forsey says of Wigan’s work. “It’s a little bit like watchmaking.”

For the Art Piece 1, Greubel Forsey was chal-lenged with fi nding a way to incorporate Wigan’s sculptures into timepieces and make them visible. “We were told by an optics specialist that it was im-possible to do,” Forsey re-calls. “It took several years’ work, but eventually we found a way to do it.”

The watch uses the brand’s Double Tourbillon 30-degree escapement. And while it appears to lack a time display, press-ing the pusher at 4 o’clock reveals a dial that tells time. The display, like the sculpture, can be custom-ized with di� erent colors, textures and fi nishes, and the customer can choose the metal for the case (seen here in white gold).

Price: Upon request (about $1.65 million) Contact: Fernanda Zapata Vakil, fernanda@timeartusa.com, 212.221.8041, greubelforsey.com

WATCHES:MINUTE ART

By incor-porating micro-sculp-tures into its inventive mechanism, Greubel Forsey’s Art Piece 1 blurs the line be-tween utility and artistry.

Willard Wigan

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and artistry.

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patrontequila.com

simply perfect

Gran Patrón Burdeos is aged in American and French oak barrels.

It is then distilled a third time and finished in vintage Bordeaux

barrels, which imparts a taste that’s velvety smooth with hints

of vanilla and raisins. Perfect for your finest snifter.

Cognac aficionados,

your tequila is ready.

On February 5th, James Dimonekas, President, Worth Media Group, and Jerry Hourihan, President, AIG Private Client Group, hosted leading wealth advisors at the exclusive Grand Havana Room for an evening of premium cigars and cocktails. The event included a special guest appearance by Rudy Giuliani, celebrated attorney, businessman and former Mayor of New York City.

The evening’s guests included advisors from Abbot Downing, Bessemer Trust, Convergent Wealth Advisors, Fieldpoint Private, Greenwich Wealth Management, HighTower Advisors, Intelligent Edge Advisors, J.P. Morgan, KKM Financial, LLBH, MBAF, Morgan Stanley, Northern Trust, Northwestern Mutual and Prestige Wealth Management. CNBC market analysts Jon Najarian, Jeff Kilburg and Jackie DeAngelis also joined.

During the event, Robert Schimek, President and CEO, the Americas, AIG; and Ron Fiamma, Global Head of Private Collections, AIG Private Client Group, shared stories of the firm’s extraordi-nary commitment to wealth protection programs and services for high net worth families.

Swiss watchmaker Hublot also treated guests to a private preview of its limited edition, novelty and complicated time-piece collections. Super premium cigar brand, Gurkha Cigar Group, provided samples of its Cellar Reserve, Cellar Re-serve Limitada, Cellar Reserve Edicion Especial, 125th Anniversary and Grand Reserve cigars, and awarded a box of triads to a lucky guest. The Glenlivet’s single malt whisky ambassador offered tastings of Glenlivet 15, Glenlivet 16 Nadura and Glenlivet 18.

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A r t o f P r e s e r v i n g We a l t h G r a n d H a v a n a R o o m

Worth AND AIG PRIvATE CLIENT GROuP CO-HOST THE “ART OF PRESERvING WEALTH” PRIvATE SMOkES EvENT AT THE GRAND HAvANA ROOM IN MANHATTAN.

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1 Left to right: Jerry Hourihan, President, AIG Private Client Group; Steve Maginn, President and CEO, AIG Financial Distributors; Rudy Giuliani, former Mayor of New York City; Robert S. Schimek; President and CEO, the Americas, AIG; James Dimonekas, President, Worth Media Group 2 Eric C. Shepard, President, Rolls-Royce Motor Cars, North America, viewing a collection from Swiss watchmaker, Hublot. 3 Swiss watchmaker Hublot treated guests to a private preview of its limited edition watches. 4 Left to right: Robert Matthews, CEO, Fieldpoint Private; Ron Fiamma, Global Head of Private Collections, AIG Private Client Group. 5 The Glenlivet treated guests to single malt whisky tastings. 6 Left to right: Bianca Melone, Gurkha Cigar Group; Jon Narjarian, trader, market analyst and co-founder optionMONSTER; Michele Marron, Kelsey Lenihan, Worth; Brian E. Hahn, Managing Director, Neuberger Berman; Jeff Kilburg, Founder and CEO, KKM Financial; Bita Golshani, Hublot Boutique. 7 Left to right: Rudy Giuliani, former Mayor of New York City; Robert S. Schimek, President and CEO, the Americas, AIG. 8 Guests at the “Art of Preserving Wealth,” Grand Havana Room. 9 Jeff Kilburg, Founder and CEO, KKM Financial; Jackie DeAngelis, CNBC reporter and host of “Futures Now”; Jon Narjarian, trader, market analyst and co-founder optionMONSTER; James Dimonekas, President, Worth Media Group. 10 Left to right: Cherie Andre, Prestige Wealth Management Group; Chris Clements, Worth; Angie Sabel, Abbot Downing; Ilka Gregory, Bessemer Trust. 11 The Glenlivet single malt ambassador offered tastings of Glenlivet 15, Glenlivet 16 Nadura and Glenlivet 18. 12 Rudy Giuliani, former Mayor of New York City; Kaizad Hansotia, Founder and CEO, Gurkha Cigar Group.

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All-Terrain TravelIt’s not just where you’re going—it’s how you get there. Here are four incredible destinations and the most exciting, romantic and inspiring ways to travel there.BY ALISON J. STEIN

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The romance of train travel isn’t as easy to experience as it was once, but glamour on the rails is still the norm on the Venice Simplon-Orient-Express. The train has transported passengers around Europe since 1883,

back when it was the most rapid form of transit.That the train is no longer the fastest way to get

somewhere is now a signifi cant part of its allure: At a speed of 62 to 74 miles per hour on its regular run between London and Venice, the Orient-Express whooshes past the ever-changing scenery at an agreeable pace, from the lights of Paris to the Swiss Alps to arrival in Venice—a still-reasonable 20-hour journey.

The view is only part of the show, though. With its oak paneling, mosaic tiling and elaborate brocades, the interior of the train looks more like a Gilded Age mansion than a fi rst-class cabin on a standard train. Liveried staff members serve meals in the dining car; at dinner, tuxedos and gowns are de rigueur for passengers. A personal butler converts private cabins into sleeping compartments, and a baby grand-playing pianist entertains revelers in the bar car.

“It’s about theater, excitement and reliving the golden age of travel,” says Gary Franklin, managing director of trains and cruises for Belmond, the company that operates the train.

Contact: Heather Ernst, reservations.us@belmond.com, 888.635.2356, belmond.com

Via Train: London to Venice

The Venice Simplon-Orient-Express in Lucerne, Switzerland

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Via Boat: The Grenadines

The Grenadines are a particularly lovely archipelago of 31 islands between St. Vincent and Grenada, but there isn’t actually a lot of land on those white-sand-fringed

islands. Instead, what you’ll mostly fi nd in the Grenadines is the Caribbean Sea, in all its most decadent shades of sapphire, aquamarine and turquoise.

This isn’t the Caribbean of cruise ships and large commercial jets, so the best way to get around is on a chartered yacht—also the best way to observe some of the most vibrant coral reefs remaining on the planet. Underwater adventures include swimming in the company of green sea turtles and eagle rays; on land, visit the markets and rum bars on Union Island, play golf at the Grenadines Estate Golf Club on Canouan, or watch traditional boatbuilders at work in Carriacou.

Most visitors to the Grenadines own or rent a home, but the sole occupant of the private island of Petit St. Vincent is a 22 cottage and villa resort where it’s worth dropping anchor for several nights. Guests may charter a variety of sea vessels for area adventuring; popular choices include a 43-foot Tiara yacht, a 41-foot Striker, a Vendetta speedboat and a locally built wooden sloop. “This gives guests who are interested in an ocean experience—but who are not quite prepared to stay on a boat for several nights—the best of both worlds,” says Matthew Semark, general manager of Petit St. Vincent (PSV). “They get out on the water and at night retire back to the island for a nice bottle of wine from our 4,500-bottle cellar.”

Contact: Pam Duffi eld, info@petitstvincent.com, 954.963.7401 or 800.654.9326, petitstvincent.com

3D

Beauty, a traditional Windward Islands sloop; photo by Jeff Stevens

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The Moorings charters yachts from St. Lucia to the Grenadines. Contact: sales@moorings.com, 888.952.8420, moorings.com

Sunsail charters catamarans from its base in Grenada. Contact: 877.651.8681, sunsail.com

Barefoot Yacht Charters, based in St. Vincent, charters monohulls and catamarans. Contact: bookings@barefootyachts.com, 784.456.9526 or 9334, barefootyachts.com

Other Boating Options

Cottage view at Petit St. Vincent; Mike Toy Photography

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Via Sports Car or SUV: Tasmania

Tasmania, Australia’s southernmost and smallest state, is separated from the mainland by 150 miles of water, but it feels a world away. Its 25,000-square-

mile landscape offers a little of everything but desert: mountains, fi elds, vineyards, rivers, cliffs, beaches—all under clean fresh winds that blow in from Antarctica.

What there isn’t a lot of in Tasmania: people. While the island is just a little smaller than Ireland, with about 500,000 residents it has less than a tenth of Ireland’s population. Long miles of well-maintained, car-free winding roads beckon the auto enthusiast. Take a get-acquainted drive in a 2006 Porsche Boxster S from the capital, Hobart, northeast to the Freycinet Peninsula. The Porsche’s 3.2-liter engine takes you from 0 to 60 in 5.2 seconds as you cruise past ocean views that progress from dramatic to jaw-dropping. Park the car and hike for a view of Wineglass Bay, one of the most gape-worthy photos you’ll ever snap.

Stay overnight at Saffi re Freycinet, one of Australia’s top lodges, and then set a course for Launceston, in the heart of Tasmania’s wine country, via the Midlands Highway, says Pedro O’Connor, director of Epic Private Journeys in Brisbane. “This is a beautiful road—excellent driving conditions,” says O’Connor. There are also opportunities for off-roading in, say, a Range Rover Sport, near Stanley, where unpaved roads will take you to waterfalls, river fi shing and hikes amid the leatherwood forests from which Tasmania’s prized honey gets its fl avor.

Contact: Australia Inbound, Epic Private Journeys, Pedro O’Connor, poconnor@epicprivatejourneys.com, 61.7.3720.8554, epicprivatejourneys.com; Saffi re Freycinet, stay@saffi re-freycinet.com.au, 61.3.6256.7888, saffi re-freycinet.com.au

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Overdrive Car Hire in Hobart rents luxury and performance vehicles. Contact: 61.3.6231.9790, overdrivecarhire.com.au

Other vehicles to consider on Tasmania’s roads include: the BMW Z4 Roadster, with a 3.0-liter engine that produces up to 200 hp; and the Audi TT Coupe, whose 4-cylinder engine generates 230 hp. For all-wheel drive vehicles, try a Porsche Cayenne, whose 3.2-liter V6 engine puts out 247 hp.

Other Car Options

Wineglass Bay; photo courtesy of Tourism Tasmania & Scott Sporleder, Matador

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Via Plane: Southern African Safari

After a few nights at the same game lodge—even a fantastic one like Singita Sabi Sand in South Africa—most people get a hankering to see different

animals in different habitats. Whether it’s endangered black rhinos at &Beyond’s Ngorongoro Crater Lodge in Tanzania or crocodiles you’d like to (safely) contemplate from a mokoro, a dugout canoe, at Botswana’s Okavango Delta from Sanctuary Retreats’ tented Stanley’s Camp, luxury lodge guides throughout southern Africa can make it happen. You just have to be able to get yourself between South Africa, Botswana and Tanzania to follow the game you’d most like to see.

There are no direct commercial connections between the area’s national reserves and parks. A much better plan is to charter a jet to fl y as directly as possible from lodge to lodge. An even more seamless approach may be to use NetJets, which recently launched a partnership with longtime safari tour specialists Abercrombie & Kent. This program will manage the transit and fl ight logistics “from your front door in Manhattan to your hammock in Botswana,” says NetJets SVP Adam Johnson.

Contact: NetJets, 866.538.7241, netjets.com; Singita Sabi Sand, enquiries@singita.com, 27.0.21.683.3424, singita.com/regions/singita-sabi-sand; &Beyond’s Ngorongoro Crater Lodge, contactus@andbeyond.com, 27.11.809.4300, andbeyond.com/ngorongoro-crater-lodge; Sanctuary Stanley’s Camp, reservations.america@sanctuaryretreats.com, 630.725.3449, sanctuaryretreats.com/botswana-camps-stanleys

Bombardier Global 6000 interior

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PrivateFly provides chartered aircraft in Africa. Contact: 866.726.1222, privatefl y.com

Premier Tours specializes in African safaris. Upon request it can also provide guides for charter fl ights who keep an eye out for game from the air. Contact: info@premiertours.com, 800.545.1910, premiertours.com

Abercrombie & Kent offers other private-jet safaris in addition to its program with NetJets. Contact: 888.611.4711, abercrombiekent.com

TCS World Travel offers group and private travel to safari destinations via private jet. Contact: Scott Leviton, scott.leviton@tcsworldtravel.com, 206.254.0228, tcsworldtravel.com

Other Private Jet Options

Sanctuary Stanley’s Camp in Botswana

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S T E P S TO LIVING BETTER AND LONGER

1212» YOU PREPARE FOR THE FUTURE WITH THE BEST LAWYERS, WEALTH MANAG-ERS AND INSURANCE ADVISORS. But what about your health? Seeing a primary-care physician once a year hardly takes advantage of the top information and care available today, particularly when it comes to mitigating risk factors for chronic conditions such as heart disease, cancer, diabetes and vascular disease. With these leading causes of death in mind, here are 12 steps that, in conjunction with talking to your doctor, can help you live both better and longer.

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03» COMPANIES LIKE FITBIT AND JAWBONE HAVE CREATED TRENDY TOOLS THAT TRACK YOUR SLEEP PATTERNS AND PHYSICAL MOVEMENT, but there are more ad-vanced apps and devices being developed that connect patients directly to doctors, minimizing the need for in-o� ce tests. Carlin’s clients at WorldClinic, for example, use an AliveCor heart monitor that records an electrocardiogram and heart rate in 30 seconds. That information is sent instantly to the clinic through the AliveECG app on a patient’s phone. A patient’s BMI, blood pressure and sugar levels can also be sent this way through the use of smart scales and wireless blood-pressure and glucose monitors.

GET HIP TO WEARABLE TECH

02» EXECUTIVES WHO TRAVEL A LOT SHOULD ALWAYS CARRY A CUSTOM PORTA-BLE MEDICAL KIT CONTAINING PRESCRIPTION DRUGS frequently needed in emergencies so that doctors can start immediate treatment. “As emergency physicians, we know that the single biggest risk in a medical situation is a delay in starting e� ective treatment,” says Dr. Dan Carlin, a Worth columnist whose telemedicine practice, WorldClinic, o� ers this service. “It’s particularly true for problems like cardiac angina, trauma and allergic anaphylaxis, where minutes are often the win-dow between life and death.”

01» IN ADDITION TO PROVIDING PATIENTS WITH ON-DEMAND PERSONALIZED CARE, CONCIERGE DOCTORS SEE FAR FEWER PEOPLE THAN DO REGULAR PRIMARY-CARE PHYSICIANS, a� ording them the time to keep up with the latest in medicine and technology. When it’s not an emergency situation, concierge doctors work with patients to fi nd the world’s best therapies. One example: Leslie Michelson, CEO of medical fi rm Private Health Management, says many of the most e� ective cancer drugs are covered by health insurers only for later-stage treatment of specifi c cancers because drug companies have tested them in, and the FDA has approved them for, that population. “But the most knowledgeable physicians”—often the ones in concierge practices—“know that these drugs can be used successfully in earlier stages and for other cancers.”

CARRY A PRESCRIPTION MEDICAL PACK

JOIN A CONCIERGE MEDICINE PRACTICE

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04» EVERYONE KNOWS THAT EXERCISE PROMOTES CARDIAC HEALTH, BUT DR. ZACHARY PALACE, A NEW YORK GERIATRICIAN, SAYS IT CAN ALSO HELP PRESERVE COGNITIVE FUNCTION BY KEEPING THE NEURAL PATHWAYS ACTIVE. Just 20 minutes of exercise a day three times a week has been shown to enhance cardiovascular and brain fi tness—and you can do it without a gym. A circuit of exercises that use your body weight for resistance such as push-ups, squats, reverse crunches and mountain climbers will go a long way toward improving muscle tone as well as fl exibility. Consult your doctor or personal trainer to put together an adequate exercise regimen.

EXERCISE TO SAVE YOUR BRAIN

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05» REDUCING STRESS, SAYS DR. ELIZABETH OCHOA, CHIEF PSYCHOLOGIST IN THE DEPARTMENT OF PSYCHIATRY AT NEW YORK’S MOUNT SINAI BETH ISRAEL, SHOULD INVOLVE STRATEGIES THAT INCREASE SELF-AWARENESS, such as taking slow and rhythmic breaths, rather than short, gulping breaths. Breathing exercises are one of the most e� ective strategies to combat stress, which, if left unchecked, can exacerbate serious conditions such as heart disease, high blood pressure and diabetes.

PRACTICE RHYTHMIC BREATHING

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06» IF THERE IS ONE DIETARY CHANGE THAT REBECCA SOLOMON, DIRECTOR OF CLINICAL NUTRITION AT MOUNT SINAI BETH ISRAEL IN NEW YORK, recommends for living longer, it is to consume more oily fi sh, such as salmon and mackerel. They are rich in omega-3 fatty acids, which have been shown to decrease the risk of arrhythmias, lower triglycer-ides, which are associated with an increased risk for heart disease, and may increase levels of HDL, the good cholesterol that protects against heart disease.

08» CHOLESTEROL ISN’T THE ONLY BIOMARKER TO DETERMINE THE RISK OF HEART DISEASE, BUT IT’S OFTEN TREATED THAT WAY. According to Dr. Marc Penn, founder and chief medical o� cer of the Cleveland HeartLab, 50 percent of patients who su� er heart attacks actually have their cholesterol levels under control through diet and exercise at the time of a cardiac event. Penn’s clinic o� ers a battery of tests—myeloperoxidase, high-sensitivity CRP, PLAC test, oxidized LDL, urinary microalbumin/creatinine ratio and F2-isoprostanes/creati-nine ratio—that examine two urinary biomarkers and four blood markers to better assess one’s risk of heart attack or stroke.

06

07» THIS TEST HELPS TO DIAGNOSE ANY NARROWING OR OBSTRUCTION OF THE ARTERIES, AN ANEURYSM, DEEP VEIN THROMBOSIS, PULMONARY EMBOLISM OR OTHER VASCULAR CONDITION, says Leslie Michelson of Private Health Management, and proactive monitoring of signifi cant medical risks is less common than it should be. Sophisticated scans like CT angiographies take about 10 minutes, require very little radiation exposure and pro-vide the best imaging of blood vessels in the body. Doctors often don’t recommend these or other important tests; you have to ask.

GET A COMPREHENSIVE VASCULAR INFLAMMATION PANEL

EAT MORE FISH

CHECK YOUR HEART WITH A CT ANGIOGRAPHY

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09» THESE DEVICES CAN BE INSTALLED IN HOMES, PLANES AND YACHTS TO ALLOW FACE-TO-FACE COMMUNICATION WITH A PHYSICIAN AT ANY TIME. That immedicacy is particularly important if you’re monitoring chronic diseases such as diabetes or obstructive pulmonary disease. Steve Nor-mandin, president of Chelmsford, Mass.-based AMD Global Telemedicine, says available equipment includes everything from heart monitors to portable X-ray machines and HD-quality live video conferencing.

OUTFIT YOUR HOME WITH TELEMEDICINE SYSTEMS

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10» WHEN DONE FOR YOURSELF AND YOUR CLOSE RELATIVES, THIS PROCEDURE CAN IDENTIFY INHERITED OR SOMATIC MUTATIONS IN YOUR SYSTEM. Your doctor can order a DNA sequence for you, or you can go straight to a gene-sequencing company such as the San Diego-based Illumina. The results may lead to changes in recommended diet, the identifi ca-tion of medications and anesthesia you should avoid, and the development of personal prevention or early detection strategies for breast, skin, colon and other cancers. “If there is an unusual disease that develops in one member of the family, having the DNA of all family members stored might en-able physicians to more rapidly and reliably diagnose it,” says Michelson.

HAVE YOUR GENOME SEQUENCED

11» IF YOU’RE GENETICALLY AT RISK FOR ALZHEIMER’S, A PET SCAN OF THE BRAIN MAY HELP DETECT IT EARLY BY SHOWING THE PRESENCE OF ABNORMAL CLUMPS OF PROTEINS AND PLAQUES, AN INDICATION OF ALZHEIMER’S. The results aren’t always clear and need to be interpreted with great care, but early detection of Alzheimer’s can sig-nifi cantly increase the number of treatment options.

GET A PET SCAN FOR ALZHEIMER’S

12» THIS EXPERIMENTAL APPROACH FOR PERSONALIZED CANCER TREATMENTS COSTS ABOUT $12,000. Private labs such as Champions Oncology in New Jersey can breed mice to determine which drugs might best treat a specifi c patient’s cancer. A tumor from the patient is grafted under the skin of an immune-defi cient mouse, allowing various drugs to be tested on the animal to determine which might best fi ght the disease. As of now, the testing takes months—so the avatars may be best suited for people with early-stage and nonaggressive cancers.

USE MOUSE AVATARS FOR CANCER DRUG TESTING

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01What are you reading?

The Draper Associates investment memoran-dum, but if you mean a book, I just read Zero to One. It’s terrific.

02 What’s the first website you check every day? I am not a big web-site checker. I like theS-kimm, and wherever my email takes me.

03 Favorite U.S.city? San Mateo, Calif., home of Draper University of Heroes. Internationally? Probably Singapore. The people in government there have done wonders for their people.

04 How many days a year do you travel? Be-tween 100 and 200.

05 Do you fly private or commercial? Both. For international trips, I would rather be in a big plane.

06 Your investment philosophy? Invest in extraordinary people pursuing big market op-portunities.

07 Your best investing tip? Choose hardworking management teams with an equity stake bigger than five times their salary.

08 The worst investing mistake you’ve made? Not being willing to pay enough for Facebook. Getting talked out of Google. Getting outbid for Yahoo.

09 Your biggest invest-ing challenge right now? To reach beyond the high hurdle set by my early investments in Baidu, Tesla, Skype, Hotmail, Parametric, Theranos and Twitch.tv.

10 Beer, wine or spir-its? I don’t drink alcohol.

11 Your watch?

A Pebble—we backed them early. I would bet on them and their Pebble Time over Apple iWatch.

12 Your favorite movie? Risky Business. Or Jerry Maguire. Or Accepted. All three make the entrepre-neur the protagonist.

13 What do you drive? A Tesla Model S, Founder Series, of course!

14 How do you relax? I play basketball to blow off steam. About once a year, I do a painting.

15 Your worst habit?

I watch Shameless on Showtime.

16 How many hours of sleep do you get a night? Four minimum, average of about five and a half. I find that I need less now, and I’m glad, because I have a lot to accomplish before I die.

17 Do you have a hero? My father. At 87, he is still the most active guy. My mom too—she is constantly over-coming her Parkinson’s.

18 Favorite food? Man-gosteen, this rare fruit you can get in Singapore. It blows me away.

19 Your favorite philan-thropy? By a strict defini-tion, it would be BizWorld, a nonprofit that teaches young children how busi-ness and entrepreneurship work. But my portfolio companies are really doing the most for society by improving our lives.

20 How would you like to be remembered? As the greatest supporter of en-trepreneurs and entrepre-neurship, an educator and a transformer of government.

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The son and grandson of venture capitalists, Tim Draper founded Draper Fisher Jurvetson, one of Silicon Valley’s most influential firms, in 1985. His myriad other activities include an offshoot called Draper Associates, a leadership school called Draper University of Heroes and a far-out plan to divide California into six new states.

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WHEELSUP.COM

Rickie FowlerProfessional GolferCessna Citation Excel/XLS

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