Staying on Track When Tragedy Strikes

Life does not always go smoothly. Whether you’re a billionaire, a pauper or somewhere in between, you (or someone close whom you care about) will likely suffer some type of tragedy at some point in your journey.

  • Many of the Super Rich employ strategies that help them stay the course after major life setbacks.
  • The ability to compartmentalise can be helpful in these situations.
  • Tragedy can sometimes motivate people to become even more successful.

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Staying on track when tragedy strikes

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

How Long is Long-Term?

For many investors – particularly those in retirement – the question ‘how long is long-term?’ could also be translated as ‘I’m getting on a bit, so should I still be investing in the stock market?’.  When it comes to systematic investing – that is to say, capturing specific market risks in a disciplined and rules based manner – a subsidiary question might also be ‘should I still own value and small cap stocks, as their excess returns, relative to the market, can take some time to come through?’.   

Even at 80, when investors may begin to ask themselves the question ‘how long is long-term’ they should still consider 20 years to be a sensible horizon.  After all, according to a useful little calculator provided by the Office for National Statistics, today, an 80-year-old woman has an average life expectancy of 90, a 1-in-4 chance of reaching 94 and 1-in-10 chance of getting to 98.  Consider the following:

  • As an investor in equities, you have around a 1-in-4 to 1-in-3 chance that you will suffer a loss in any one year. Yet at a 10-year horizon a 60 equity /40 bond ‘balanced’ portfolio has a better than 1-in-20 chance.
  • For long-term investors, cash is an extremely dangerous asset class, particularly when viewed after the effects on inflation, as it should be.  It is worth noting that over the 10 years since the Credit Crisis those placing their assets in UK cash have lost over 20% of their purchasing power. 
  • Portfolios tilted towards value and smaller company stocks exhibit worst-case outcomes materially better than un-tilted portfolios at 10-year horizons and beyond.  This helps answer the question whether an investor who is 80 should include value and smaller company stocks in any equity allocation they hold. They probably should.
  • Investors with horizons longer than 10 years – even those simply seeking to maintain purchasing power – should own a meaningful level of equities in their portfolio.
  • Cash and bonds alone are unsuitable for most longer-term investors. 

Answering the question

On balance, ‘long term’ should be defined as 10 to 15 years minimum.  Above 15 years, the chances of a negative purchasing power outcome are low, but the risk still exists!  To be prudent, 15 years might be considered as the lower end of ‘long term’, which is still within the investment horizon of most investors, including those in their 80s.  We hope that helps answer the question.

Other notes and risk warnings

Use of Morningstar Direct data

Morningstar Direct © 2019. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.’

Risk warnings

This article is distributed for educational purposes only and must not be considered to be investment advice or an offer of any security for sale. The reference to any products is made only to make educational points and must, in no circumstances, be deemed to be any form of product recommendation.

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. 

It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Three Money Mistakes the Super Rich Don’t Make

The self-made Super Rich – those with a net worth of $500 million or more – aren’t immune to making mistakes with their wealth. But we find that they do tend to avoid certain crucial errors that might otherwise impact their bottom lines and financial futures.

  • Be crystal clear about what you want your wealth to accomplish – and don’t lose sight of those goals.
  • Avoid financial advisors who don’t have what it takes to help you – or worse, who seek to actively harm your financial future.
  • Engage in regular financial checkups – and get a second opinion whenever you feel uncertain.

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financial mistakes

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Winning a Family Business Civil War

The term ‘civil war’ typically refers to a battle between citizens of the same country – the most obvious example in the USA being the War Between the States from 1861 to 1865, which left at least 600,000 dead Americans in its wake. But a civil war can also involve family members who are in business together. When a war erupts between those family members, it can irreparably damage family relationships, the business itself – and, of course, the family’s wealth and financial security.

  • A civil war over the family business can start when the founder doesn’t plan for a transition of ownership.
  • Temporary, shifting alliances among family members can work to your advantage – but they’re not without risk.
  • Enlisting the right professionals can make all the difference and separate winners from losers.

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Family Civil War

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

The Value of Multigenerational Family Meetings

If you’ve amassed sizable wealth, or are on the right path and getting there, it may be time to consider how to pass on some of that money to children and grandchildren – without creating big problems that could harm their futures and destroy family harmony.

  • Family meetings can help avoid the thorny problems that can arise when inheritors who receive substantial assets lack the ability to manage the money prudently.
  • Entrepreneurs who wish to keep their businesses under family control can especially benefit from family meetings.
  • The most effective meetings tend to have an outside professional – a neutral third party – involved as a facilitator.

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Family Meetings

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Here’s Why You Need a ‘Business Plan’ for Your Family

As an entrepreneur, you wouldn’t dream of trying to build a company or seek out funding for a big new venture without a detailed business plan. But chances are you’ve never once thought about creating a similar type of plan for your most important asset: your family.

  • A businesslike plan for your family can empower kids with resiliency and life skills and foster stronger family bonds.
  • Set family-based SMART goals and smaller action steps to achieve them.
  • Accountability is key – you need family “buy in” to make your plan work.

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Business Plan For Your Family

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Combating Professional Criminals, the Super Rich Way

As your influence grows, so can your fears about protecting yourself and your loved ones. After all, the more you have to lose, the more you may worry about losing it.

Of course, we all want protection against violent acts like robbery and assault, as well as against our physical property being stolen or ruined. Increasingly, protecting ourselves and our loved ones also means preventing identity theft and ensuring that information we want to remain confidential stays that way.

What steps should you take and what solutions should you implement to safeguard against those and other threats?

  • Assess the chance of something bad happening as well as the severity of its impact on you and your family when selecting security solutions.
  • Implement solutions aimed at stopping professional criminals who assess risk and return before they act. In doing so, you may also stop the amateur criminals.
  • Advanced security techniques and tools can make you an unappealing target to professional criminals – and cause them to focus on someone else.

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Professional Criminals

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

The Virtual Family Office: Comprehensive Expertise for the ‘Merely Affluent’

The single-family office is often the preferred way for the exceptionally wealthy among us to coordinate the full range of their financial and personal affairs –   from the mundane to the deeply complex.

  • Virtual family offices offer products, services and expertise traditionally available only to the very wealthiest families.
  • A coordinator – often a wealth manager – is at the center of a virtual family office and facilitates the efforts of various specialists.
  • The professionals associated with a virtual family office must have the expertise, integrity, professionalism and personal chemistry.

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Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Perseverance: The Secret Sauce to Building Personal Wealth

One of the most important components of billionaire intelligence is perseverance.  The ability to keep going and stick to it – especially when times are tough – is a cornerstone to many of the greatest accomplishment achieved by the self-made Super Rich (net worth of $500 million or more).

  • Failure is not optional – it’s given. Therefore, perseverance is essential to building wealth.
  • Perseverance stems largely from having self-efficacy – the ability to say “I can” in specific situations, and believe it.
  • Perseverance can be learned and strengthened over time through resources like mastermind groups, red teaming exercises, and working with consultants and peers.

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Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.

Selling a Business? Avoid These Four Big Mistakes

Successful entrepreneurs spend much of their lives building valuable companies. Eventually, many of them end up selling those businesses.
In some cases, no one else is available to carry on the business. Other times, health problems interfere. Often, an opportunity to sell comes along that is just too good to pass up.

  • Key personnel in a company must be well-prepared for the sale of that business.
  • Company financials must be strong and well-documented for potential buyers to get and stay interested.
  • Support from the right team is usually essential to having a smooth and successful sale of a company.

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Business Sale

Other notes and risk warnings

This article contains the opinions of the authors but not necessarily Donald Wealth Management (the Firm) and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Donald Wealth Management’s services. Donald Wealth Management strongly suggests that no investor should act on any of these ideas without first seeking financial advice.

Past performance is not indicative of future results and no representation is made that the stated results will be replicated. The value of an investment is not guaranteed and on encashment you may not get back the full amount invested. Errors and omissions excepted.

Donald Wealth Management is a trading style of Donald Asset Management Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN: 223784). Donald Asset Management Limited is registered in England and Wales under Company No. 4675082. The registered office address of the Firm is: Stable End, 12 Heather Court Gardens, Four Oaks, West Midlands, B74 2ST.