We begin to unpackage the growing influence of ESG factors which has pushed its way to the forefront of future investment agendas; reshaping and re-imagining the industry.
There’s a lot written about inheritance tax (IHT) planning and much of it is useful and reasonable. There are clever schemes that involve gifting money, investing in particular share classes that qualify for certain reliefs, complicated products from life companies, and a plethora of different trust arrangements available directly from Solicitors. However, although these schemes work, before you engage in them you should firstly consider more simple solutions, some of which I have set out below.
In Part 1 we looked at the impact of time and quantum in building savings and investments to best equip you for life’s journey and to ensure you combine liquidity with returns in excess of inflation, to ensure you maintain buying power. In Part 2 we are looking at how to best use capital markets to give you the returns you need to maximise the chance of living life as you want to, at a level of risk that will not keep you awake at night.
Over the course of this quarter we aim to help you understand why you might want to invest, where returns come from and the dangers you need to be looking out for. Part 1 covers the difference between saving and investing, and some ground rules to help guide you through the maze of money management.
It is often the case that advisers, brokers, fund managers and their clients do not fully understand the degree of risk they are taking, particularly following sustained periods of benign market conditions, such as those we are currently experiencing. With that in mind, I thought I’d provide you with a timely piece of poetry.
“We are exhausted, fed up and would retire tomorrow if we thought we could afford to“.
This was pretty much the first sentence in a conversation I had some years ago with new clients who ran a business which demanded all of their time, with very little respite. Both in their early 60s and having worked every day for the previous 30 years, they were both pretty much at the end of their tethers.
Throughout life we grow up hearing about the importance of setting goals. Right from being children we are encouraged to select study options for future career ambitions, which we may grow to not desire. Goals are evidenced in all the choices we make, whether it be supporting our children to establish themselves, choosing the right house type and location to call home, picking a vehicle to drive, positioning a business for sale and even to planning for retirement. The list goes on!