File Apr 11, 8 32 15 PM
File Apr 11, 8 38 47 PM
Legacy across generations2
Unbiased education

About Us

The Family Wealth Consulting Group is a family financial-planning firm founded by Craig and Peggy Martin in San Jose, CA serving Silicon Valley executives and businesses. The Professional Team at FWCG prides themselves on always being available to inform and educate our clients about their best choices and then help them execute successfully on all areas of their financial lives. The Professional Team at FWCG communicates or meets regularly with clients so we can be currently aware of the most important issues that are critical and timely for each client. The Professional Team at FWCG is dedicated to providing experienced, educated and independent financial advice to our clients so they can make an informed decision that will meet their needs.

Mission and Vision – Committed to World Class Service

Mission: To guide our clients to financial success, including achieving the things, based on understanding their values and goals, which are most important to them.

Note: Our mission embodies that we seek to provide the very best service to our clients in support of their values and goals.

Vision: To be recognized as providing excellent service to our clients, including successful wealth management strategies while promoting legacy across generations.

Clients First – Fiduciary Responsibility

The Professional Team at FWCG takes our fiduciary responsibility seriously. We understand that full disclosure means our clients can trust us to always give them our best advice with their interests first.  Full disclosure also means our clients fully understand all our fees and any possible conflicts of interest.

Click to learn more.

Would you like to learn more or connect with Craig and Peggy?

FWCG Opportunity Fund, LP – A unique diversification tool for alternative investments

The FWCG Opportunity Fund, LP (Opp Fund) sets up a side-fund for each client, giving them the choice to invest into any deal of their choosing, when to invest and also how much they want to invest.  The fund offers a constantly changing list of professionally vetted alternative investments each year in all categories so clients are increasingly diversified across managers – management styles – over time – in multiple business models – in successive economic cycles – using evolving allocations.

In 2011 we began searching for alternative investments for the Opp Fund and were able to find many investments with long track records of earning 2X or more compared to what their risk-adjusted benchmarks were performing.  An actual example for clients in the Opp Fund are the four different real estate general partners many clients started their investments with in 2011 who had 20-30 year track records of producing 20% IRR or better if investors had put $1 into each of their prior addresses.  A common index would be the NAREIT but it only produced something less than 10% IRR over comparable time frames.  Unlike the efficient publicly traded stock market, where there are no managers with such outperformance for that time frame, this outperformance track record convinces us that alternatives are in an increasingly inefficient market.  That means to us that we can expect the best alternative managers to be able to produce consistently higher returns than is available by just buying and holding all the securities of an identical market.  For the five year period ending 2015, that is what has happened with the four real estate limited partnerships that have been selling dozens of addresses that were held for the last 5 years producing consistent superior returns ranging from 5% IRR to 65% IRR, with an average probably closer to 25% IRR.  

Because we have found alternatives to be in an increasingly inefficient market we are very excited about researching the database for superior performing managers in all fields, then performing professional due diligence in what has become a successful effort at finding those managers with consistent outperformance.  

  • 12 Managed Futures Managers

  • 40+ Direct Real Estate Investments

  • 2 Competing Option Trading Firms

    Returns are a function of time of hold versus prices

  • 3 Shared Investments with Private Equity Firms

  • 20+ Angel Investments in Start-Up Businesses

Take the next step by clicking here.

Our San Jose Offices

Our San Jose offices are located at:

Phone: 408.453.2225
Fax-to-Email: 408.886.9866
10 S. Almaden Blvd., Suite 1250
San Jose, CA 95113

Investment Methodology – Diversification Is Your Only Safety

All of our clients are allocated to an effectively diversified portfolio of multiple asset classes.  It starts with a risk-managed portfolio including close to 9,000 individual stocks globally diversified with no duplications.  Since clients own almost the entire global stock markets, they are assured of earning the returns of that market.  Some clients choose to allocate more or less to bonds as a risk-management tool in an effort to reduce price volatility.  FWCG is very proud to say that our accredited investors are also able to diversify into alternative investments as both a risk-management tool as well as the great potential of higher earnings in what has proven to be an inefficient market.

We help our clients take advantage of the free returns in the publicly traded market, rather than trying to outsmart what has become an increasingly efficient market.  An efficient market exists when a global list of professionals make worldwide trades by studying what amounts to a common set of information.   We expect that in an efficient market, it is not prudent for our clients to expect any trader to consistently outperform other traders over a lifetime.  The record in the market is that the greatest majority of all traders underperform a simple buy and hold of a risk-adjusted benchmark over the longest time frame.  

Over the last 25 years, our clients have trusted our advice and have learned how easy it is to buy and hold the market using efficient, risk-managed portfolios created by the professionals at FWCG.  

Best Time To Invest (1927 – 2014)

See how $1 invested in the U.S. Total Stock Market grew over the last nine decades, as well as what was in the headlines in Time Magazine. As the video shows, short-term news events generally had little impact on long-term market growth, 

Risk-Management Tools – Efficient risk-management reduces price volatility

The Nobel Laureate, Harry Markowitz taught us that mixing dissimilar price movement asset classes produces a risk-managed portfolio.  All our clients have risk-managed portfolios where we have allocated asset class funds that have dissimilar price movement to each other.  While earning the returns of the market is as easy as buying and holding all the stocks in that market, effectively-diversified, risk-managed portfolios have reduced volatility of returns which produces two significantly important results: greater terminal value during the growth years and a higher spendable payout during retirement years.  

Here are three slides demonstrating how managing volatility of a market based portfolio could be more important than trying to outperform that market

Davis, James L., Dimensional Fund Advisors (April 2006)
Many studies have discussed whether securities are efficiently priced. The available evidence indicates that professional money managers have not been able to exploit cost-effectively any pricing errors that do occur.

Behavioral Finance

The Professional Team acknowledges a great responsibility to help our clients make fully informed and prudent decisions about their daily financial choices as well as their plans for future wealth planning.  There is a large body of knowledge about how our brain dominates how we make decisions that is now called the study of Behavioral Finance.  The Nobel Laureate, Daniel Kahneman, whose research opened up evidence about how humans are normally intuitive thinkers, but not normally capable of incorporating the best of our logic or judgment into that decision.  He gave a grateful financial industry insight and credence to a new field called Behavioral Finance, making observations about how easy it is for our brain to interrupt normal logic producing some really scary financial choices.    

Here is a very interesting read from Professor Kahnemann’s book, “Thinking – Fast & Slow”

What we know is that there is plenty of public evidence detailing the public’s trading records that help us understand how difficult it is for the public investor to build and maintain diversified portfolios.  Primarily this is because of what we know now is a normal human brain that is best suited for survival in the wild but not making prudent financial decisions.  It is a sad indictment of the investing public to see how badly they perform and how difficult it is for them to just earn the return of the markets.  

Masters Of Modern Finance – Meir Statman

Is your mind playing tricks on your portfolio? If you don’t pay attention, you could compromise your financial future.

Cost of Fear

Find out why it’s so important to keep our “caveman brain” out of the picture when making investment decisions.

See also Jason Zweig’s book,  

Click on the button to talk with Craig and Peggy.