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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 this country 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.

Click the image below to read the full article:

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.

Seven Rules for Building Powerful Professional Relationships

Powerful professional relationships are often the foundation of tremendous success enjoyed by the self-made Super Rich, who prove to be quite remarkable at connecting interpersonally with other businesspeople and motivating them to help the self-made Super Rich achieve their goals.

Here are just a few ways you can build powerful professional relationships:

  • Demonstrating your passion gets other people to want to align themselves with you and your endeavours.
  • Harness the power of reciprocity – help others get what they want and they’ll return the favour.
  • Admitting and revealing your imperfections can actually create stronger relationships and better results.

Click the image below to read the full article:

Professional Relationships

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.

Click the image below to read the full article:

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 Key Person Life Insurance Can Keep Your Business Afloat

As a business owner, do you feel like there are certain people on your team you can’t live without – people who are so important to the success of your enterprise that their absence would be felt across the company, and who would be extremely difficult to replace.

Without safeguards, the loss of these key people (including. of course, you as the owner) can be devastating to a company’s financial health and ability to stay on top – or even keep the lights on!

  • The death of a key employee or team member can hurt – even potentially sink – your business.
  • Key person life insurance is underused by entrepreneurs.
  • Key person insurance can cover the cost of finding a replacement for the vital team member.

Click the image below to read the full article:

key person

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.

Click the image below to read the full article:

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.

Meditation: The Super Rich Do It – Here’s Why You Should, Too

Many wealthy people credit meditation as the driver of their incredible success. Meditation has proven to lengthen attention span, productivity and creativity. This article covers the benefits of meditation and how it can help professionals achieve better overall results.

  • Meditation can improve mental clarity – helping you make better decisions that can boost your health and wealth.
  • Start slow – just five minutes a day can have a positive cumulative effect over time.
  • Listening to music with one beat per second and a ringing bell every four seconds can deepen the experience.

Click the image below to read the full article:

Meditation

 

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 Two Types of Professional Networks You Need to Become Super Rich

There are two types of professional networks that you need in order to support your business and gain an abundance of wealth. Expansive networks and nodal networks are vital to becoming super rich.

  • Top entrepreneurs use expansive networks of many people and nodal networks with just a few contacts to generate tremendous wealth.
  • Nodal networks are tougher to build – they require deep relationships with exactly the right people – but they offer a tremendous return on investment of your time and energy.
  • Leveraging the connections of your own network members can work like rocket fuel – rapidly accelerating your success.

This article explains exactly what these networks consist of and how they could benefit you.

Click the image below to read the full article:

Professional Networks

 

 

 

 

 

 

 

 

 

 

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.

Brexit and Your Portfolio

Whichever way one voted, it is hard not to be dismayed by the shambles that is Brexit, concocted by all sides. In the event that any deal agreed gets voted down in Parliament, or there is no deal, there is a material chance that the government could fall. One or both of these events would come with great uncertainty.

We set out three key investment risks relating to Brexit and how sensible portfolio structures can mitigate them.

Risk 1: Greater volatility in the UK and possibly other equity markets

In the event of a poorly received deal or no deal, it is certainly possible that the UK equity market could suffer a market fall as it tries to come to terms with what this means for the UK economy and the impact on the wider global economy.  A collapse of the Conservative government and a Labour victory would add further uncertainty.

Risk 2: A fall in Sterling against other currencies

In 2016, after the referendum, Sterling fell against the major currencies including the US dollar and the Euro.  There is certainly a risk that Sterling could fall further in the event of a poor/no deal.

Risk 3: A rise in UK bond yields (and thus a fall in bond prices)

The economic impact of a poor/no deal and/or a high-spending socialist government could put pressure on the cost of borrowing, with investors in bonds issued by the UK Government (and UK corporations) demanding higher yields on these bonds in compensation for the greater perceived risks. Bond yield rises mean bond price falls, which will take time to recoup through the higher yields.

Mitigant 1: Global diversification of equity exposure

Although it is the World’s sixth largest economy (depending on how you measure it), the UK produces only 3% to 4% of global GDP, and its equity market is around 6% of global market capitalisation.  Well-structured portfolios hold diversified exposure to many markets and companies.  Changing your mix between bonds and equities would be ill-advised.  Timing when to get in and out of markets is notoriously difficult. Provided you do not need the money today, you should hold your nerve and stick with your strategy.

Mitigant 2: Owning non-Sterling currencies in the growth assets

In the event that Sterling is hit hard, it is worth remembering that the overseas equities that you own come with the currency exposure linked to those assets.  Remember too that a fall in Sterling has a positive effect on non-UK assets that are unhedged.  The bond element of your portfolio should generally be hedged to avoid mixing the higher volatility of currency movements with the lower volatility of shorter-dated bonds.

Mitigant 3: Owning short-dated, high quality and globally diversified bonds

Any bonds you own should be predominantly high quality to act as a strong defensive position against falls in equity markets.  Avoiding over-exposure to lower quality (e.g. high yield, sub-investment grade) bonds makes sense as they tend to act more like equities at times of economic and equity market crisis.

Some thoughts to leave you with

Even if you cannot avoid watching, hearing or reading the news, it is important to keep things in perspective.  The UK is a strong economy with a strong democracy.  It will survive Brexit, whatever the short-term consequences that we will have to bear, and so will your portfolio.  Keeping faith with both global capitalism and the structure of your portfolio and holding your nerve, accompanied by periodic rebalancing is key.  Lean on your adviser if you need support.

‘This too shall pass’ as the investment legend Jack Bogle likes to say.

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.

In the news – March 2016

dog reading newspaperThe latest stories in the news – March 2016 – which may be of interest to our clients.

Older people still struggling with mortgage lenders

Despite instructions from the regulator that lenders should not discriminate against older borrowers, the Telegraph reports that many still face problems. It highlighted cases where people who wanted to extend their mortgage terms beyond the original redemption date, or move small mortgages to new homes, were denied these options by lenders – even though the lenders would offer the same options to younger people. Lenders claim to be improving staff training but it seems the messages are not always getting through.

Please note Donald Wealth Management does not provide mortgage advice.

Trouble ahead for final salary schemes

Collectively, private sector final salary pension funds have a shortfall of £300 billion between their assets and what it will cost to pay the pensions they have promised. Many more of these schemes are likely to be unable to meet their obligations and will end up being taken into the Pension Protection Fund, says the Telegraph. When this happens, people who have already retired are fully protected, but those who haven’t can lose part of their pension entitlement. For high-paid employees, these losses can be substantial since there is a cap on the maximum pension the fund will protect. At age 59, for example, the cap is £30,603 but those with higher entitlements get only 90% of the cap.

The new PSA? Haven’t a clue

Research shows that 90% of savers haven’t a clue about a new tax break that starts on April 6th, says the Telegraph. The Personal Savings Allowance means that if you pay basic rate tax you can receive up to £1,000 in interest each year without paying any tax on it. This includes interest from all bank and building society accounts and from fixed-rate deposits or bonds. For higher rate taxpayers, the allowance is £500 per year. From April 6th, banks and building societies will stop deducting tax from the interest they pay. Unusually, this really is a simplification of the tax system and over 90% of savers will pay no tax on their interest.

Avoid a mortgage payment hike

People with fixed-rate mortgages need to be aware of the date when the term ends and get a new offer lined up, says the Mail. Typical 2-year mortgage rates back in 2013-14 were around 3%, as against Standard Variable Rates of about 5% today. When a fixed term expires, most lenders will switch borrowers to their Standard Variable Rate and a for a typical loan that could send payments up by about £100 per month. Many lenders will make a new fixed-rate offer, but it may not be the best available – current best-buy fixed rates are 2-3% depending on the term.

Please note Donald Wealth Management does not provide mortgage advice.

Offset loan can make good savings

There are fewer offset mortgage loan offers than there used to be, says the Times, but for some borrowers they promise worthwhile savings. It gives the example of someone with a £200,000 mortgage and £25,000 of savings. They might get £125 in interest a year at 0.63% on a savings account, but with an offset mortgage with a rate of 2.5%, they would save £591 a year in interest payments by having those savings inside their offset account.

Please note Donald Wealth Management does not provide mortgage advice.

Golden pensions in the public sector

How big is the difference between a private sector employer pension and a public sector pension, asked the Glasgow Herald. Huge, is its answer – its calculations show that for a typical employee the public sector pension is worth five times that of the private sector. For example an NHS nurse who stayed in the NHS scheme all her working life, paying contributions of 7.1% of earnings, would end up with a pension worth £30,700 in today’s terms, equivalent to two thirds of their final earnings. To match that, a private sector employee would need to devote almost half their salary to pension contributions. And assuming a more likely contribution level of 9% of salary, a private sector employee on similar earnings to the nurse could expect a pension of no more than £6,400 a year.

P2P ISA – is it worth it?

From April 6th, there’s an addition to the types of tax-sheltered Individual Savings Accounts (ISAs) in which you can save, says the Financial Times. The Innovative Finance ISA enables you to put money into Peer-to-Peer (P2P) lending with operators like Zopa. The big problem is that these schemes are not covered by the UK compensation scheme so if you lose money you won’t get any of it back – unlike the position with bank and building society deposits where up to £75,000 is fully protected. The former boss of the Financial Services Authority, Lord Turner, warned a few weeks ago that losses with P2P lending could be very large.

Supreme Court to hear will challenge

The Supreme Court will give the final verdict on a landmark case of a challenge to a will, says the Financial Times. The will left a £500,000 estate to charity, but the will-maker’s child challenged the will and was awarded a third of the estate by the High Court. Now the charities named in the will are asking for a definitive ruling from Britain’s top court. Recent judgments in lower courts have been inconsistent and lawyers say there is uncertainty about the legal rights of children, especially if they are or were dependent on their parents.

HMRC’s giant VAT haul from SMEs

HMRC has collected £3.5 billion in extra VAT from small and medium sized businesses, says the Financial Times – more than it got from the UK’s bigger businesses. VAT accounts for a large slice of the ‘tax gap’ – the difference between what companies and individuals should pay and what they do pay. A recent drive by HMRC has forced businesses to correct errors in their routine VAT filings, often involving VAT reclaims on items that do not qualify for it, such as business entertainment.

Emerging markets – is it time to buy?

The emerging markets – stock markets in developing countries like China and Brazil – have had a bad time for the past five years, says the Financial Times, having produced much lower returns than markets like the UK and US. Part of the reason is the plunge in commodity prices, since many developing countries depend heavily on commodity exports. The FT points out that valuations of shares in many emerging markets are reaching historically low levels and says investors should be keeping a close eye on them.

Shortages threaten free childcare change

Local authorities are already struggling to meet their obligations to provide 15 hours of free childcare per week, says the Financial Times, and the problem will get much worse when the entitlement increases to 30 hours per week in autumn 2017. A third of local authorities do not have enough places to meet demand. Parents are eligible only if both are working and if neither earns more than £100,000 a year.

 

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.

Book launch event – 26th June 2015

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On Friday 26th June 2015 we held a book launch event in the McGregor’s Suite at Villa Park to promote my book ‘Sell Your Business & Retire Happy’.

We were delighted with how the event went with a number of key clients and professional network members being in attendance. Following a presentation about the book and the reasons for writing it we enjoyed a fabulous three course meal before concluding the event with a prize draw.

The book is aimed at business owners and it is my hope it will allow them to protect and preserve what they have worked so hard to build up. My passion for wealth management was formed at an early age. Growing up I had a pretty privileged upbringing living in Four Oaks which is a lovely part of the world. But when I was 15 there was quite a dramatic change in my family circumstances. Suddenly my father was out working all hours. The usual family holiday abroad had been cancelled. Things had changed pretty fast, almost overnight, as I would describe it. It really brought home how fragile financial security can be. Unfortunately my father’s largest corporate client at that time had gone into administration very unexpectedly. So when I was 18 I was faced with an important decision. Should I join the family financial planning business or should I go off to university for three years. With the experience I had at 15 still very fresh in my mind, I had great determination to roll up my sleeves and get started straight away in the family business – I wanted to make sure such events couldn’t happen again to my family nor to the families of my clients.

We received some fantastic feedback for the event and would like to again thank everyone for taking the time to attend.

Further pictures from the event can be found on the Donald Wealth Management Facebook page.

Do you know a business owner who could benefit from my book? Why not mention our Second Opinion Service to them?