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Family Governance: Keeping Family Wealth and Relationships in Good Shape

Take a look at how implementing a family governance process can help you to protect your wealth.

“Shirtsleeves to shirtsleeves in three generations” is a well-known saying among many affluent families. It means family wealth that’s built by the first generation is eroded or even destroyed by the third generation, which squanders the assets it inherits through reckless spending, poor investment decisions and other mistakes.

  • Very wealthy families typically take a formal approach to family governance.
  • Both the human/relationship and technical aspects of a family governance plan must be addressed.
  • Financial professionals can help families create a governance plan and work to ensure it’s followed and respected over time.

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Family Governance

Other notes and 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.

 

 

 

 

The Four Types of Advisors: Which One Should You Work With?

This article will help you to make an informed choice when it comes to working with the right advisor.

We find that, by and large, people seeking financial advice know to look for a financial advisor who has high levels of integrity and who wants to do what is in their clients’ best interest at all times.

But it seems that fewer people pay attention to the orientation of their financial advisor candidates. As a result, they may risk choosing an advisor who isn’t a great fit.

  • Investment advisors tend to be adept at asset management.
  • Financial advisors and wealth managers generally offer a broad range of financial solutions.
  • Virtual family offices generally provide the largest menu of products, services and solutions to clients.

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Types of Advisors

Other notes and 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.

 

 

Calculated Responses: One Key to Getting the Results You Want

This article covers emotions; and emotional reactions are natural. But when it comes to making money, it’s all about having a calculated response as it can make a big difference in the results.

You’re cruising down the highway when another driver pulls into your lane without warning, cutting you off. What do you feel? How do you respond?

You discover your child has a drug problem. What do you feel? How do you respond?

A competitor sues you in an attempt to ruin your reputation – and your business. What do you feel? How do you respond?

  • The actions highly affluent people take tend to be very deliberate and well thought out so they arrive at the most strategically, tactically beneficial approach.
  • Focus on the results you expect to attain – estimating the short-term and long-term consequences of particular actions you might take.
  • Seek out sounding boards – people you trust and maybe even professionals – and get their take on your proposed course of action.

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Other notes and 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.

A ‘Set-and-Forget’ Investment Approach? Forget it!

Systematic, evidence-based investing often results in very little activity in a portfolio.  It is wrong to think that this is the result of a ‘set-and-forget’ strategy.  The Firm’s Investment Committee would be aggrieved at such a suggestion!  Considerable effort goes on behind the scenes to allow this state of calm consistency to exist.  The fortitude and discipline to deliver ‘not much needs to be done to your portfolio except for rebalancing’ advice, comes from a rigorous process of ongoing challenge to the status quo.  

The broad terms of reference of the Investment Committee are set out below:

 

Manage risks over time

  • The Investment Committee is responsible for the oversight of the risk in portfolios and the wider investment process.  Meetings are regular and minutes are taken, which include all action points to be followed up on. Third-party inputs and guest members – such as Albion – provide independent insight and challenge.

  Challenge the process

  • The investment process at the Firm is driven by the latest empirical evidence and theory available. It is always open to challenge. If new evidence suggests that doing things differently would be in our clients’ best interests, then we will revise our approach. The investment process is evolutionary, but change is most likely to be slow and incremental.

Review the portfolio structure

  • The underlying characteristics of the Firm’s client portfolios are reviewed, including performance and risk level attributes. Risks (asset class exposures) and their allocations within a portfolio are evaluated. Any issues are raised and resolved. Existing asset classes are reviewed alongside asset classes and risk factors that currently sit outside the portfolios.  Areas of interest are placed on a longer-term ‘watch’ list.

Review the incumbent ‘best-in-class’ investment products

  • The incumbent products are ‘best-in-class’ choices seeking to deliver the returns due to investors for taking specific market risks. Each product has a role to play in a portfolio and its ability to deliver against this objective is regularly reviewed. Any product-related issues are raised and resolved.

Screen for new products and undertake appropriate due diligence

  • Although the incumbent products were recommended as ‘best-in-class’, new products are regularly being launched. Tough screening criteria are in place against which new funds are judged. New, potential ‘best-in-class’ products face detailed due diligence and approval.  They are included only when they make the grade. Given the quality of the products already in portfolios, the threshold for replacement is high, but not insurmountable for newer products.

Reaffirm or revise the investment process 

  • The Investment Committee is accountable for reaffirming or revising the structure of client portfolios. Risk (asset) allocations and product changes are approved by the Investment Committee.  Any actions arising from portfolio revisions will be undertaken, after discussion with and agreement by clients.

The next time you open your latest valuation report, remember that despite the lack of activity on the surface, the Investment Committee continues to paddle furiously behind the scenes to allow this be the case.  In the immortal words of the investment legend and author Charles Ellis:

‘In investing, activity is almost always in surplus.’

Perhaps we should amend this slightly to:

‘In investing, activity is – except for the Investment Committee –almost always in surplus.’

Other notes and 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.

The Need for Wealth Management Before and After You Sell Your Business

This article puts a real emphasis on the importance of carefully considered wealth management and in particular, the benefits of such planning when you choose to sell your business.

Effective wealth management should be an important aspect of all stages of your career. That’s because wealth management is designed to coordinate a broad range of components of your financial life over time – from investments to estate planning, asset protection planning and charitable giving – around your needs and wants. It’s also designed to coordinate a team of experts to help deliver the financial outcomes you seek.

  • A windfall from the sale of a business can present investment management problems that must be addressed.
  • Estate planning can become a big issue if you sell your business for a lot of money.
  • Assets also should be protected post-sale.

Click the image below to read the full article:

The Need for Wealth Management Before and After You Sell Your Business

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.

Inheritors and the Quest for Legitimacy

The wealth that inheritors receive from parents or grandparents is often accompanied by feelings of self-doubt and guilt. Many inheritors have a great desire – a need, even – to justify their wealth and prove to those around them that they deserve all that unearned money.

This drive for legitimacy can empower inheritors to achieve great things – but it can also come with a dark side that creates wealth-destroying problems.

  • Some inheritors feel guilty about their wealth and feel intense pressure to justify their good fortune.
  • Building and running highly successful companies can help inheritors feel a sense of worthiness.
  • Engaging in meaningful philanthropy is another way for some inheritors to gain legitimacy.

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Inheritors and the Quest for Legitimacy

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.

 

Stress Testing Your Wealth Plan: Three Keys to Success

We see that stress testing is becoming an increasingly popular activity among the wealthy and their advisors. It involves putting a wealth plan through its paces – evaluating and accessing it to see if the strategies being used are likely to achieve a wealthy family’s key financial goals and objectives. Stress testing also seeks to identify any strategies or opportunities that are currently being overlooked but that could add significant value to the family’s financial life.

  • Seek out professionals who really “get” what stress testing is all about.
  • A professional has to know you as a person to do an effective stress test.
  • Technically skilled professionals can add the most value to a stress test.

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Click here to find out more about how to successfully stress test

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.

 

 

 

 

When Selling a Business, Failing to Plan Is Planning to Fail

This article takes a good look into why planning when selling your business can help you to be all the more successful. Let this article help to shape your actions and ensure your personal wealth is also protected when you consider selling a business.

The goal of many successful entrepreneurs is to sell their companies for top dollar – maybe in the near future, maybe decades from now. Successful sales not only validate owners’ skills and hard work, but also tend to make entrepreneurs a whole lot wealthier than ever before.

Unfortunately, many of those entrepreneurs may be in for a rude awakening. The fact is, far too many entrepreneurs these days – even some who are trying to be proactive and get set up for success down the road – are not prepared to get the most out of selling their companies. The reason: They haven’t taken a few key steps that can position them for the outcomes they most want.

  • Most entrepreneurs who want to sell their companies don’t have formal plans in place to ensure they get top dollar, based on our experience.
  • Even business owners who have transition plans usually don’t focus on maximising their post sale personal wealth.
  • Don’t leave money on the table – make sure your planning is comprehensive.

Click the image below to read the full article:

Click here to read about how to successfully plan to sell your business

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 Art of Dealing with Successful Toxic Narcissists

Have you ever felt like the world revolves around you? Congratulations – you may be a narcissist!
Don’t fret – you’re in good company. Everyone of us can be a narcissist sometimes. In business, narcissism can be a good thing that can help fuel success – in the right dose, that is.
Narcissism runs along a spectrum, from healthy to toxic. Dealing with healthy narcissists can be relatively easy. On the other hand, toxic narcissists can be very complicated and problematic to deal with.
What’s more, we find from experience that some very wealthy and powerful people are toxic narcissists. That means you may encounter such people on your own path to success.

  • Some wealthy and powerful people are toxic narcissists – which means you may have to learn how to deal with them to get what you want.
  • Confronting them and trying to change their minds is a strategy that is likely to fail.
  • Outthinking them and using their need to be flattered to your advantage can be key to meeting your own agenda.

Click the image below to read the full article:

Click here to read The Art of Dealing With Successful Narcissists

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 Super Rich’s Three Big Fears – and How They Work to Overcome Them

Significant wealth can reduce many of life’s troubles and anxieties – but it can’t eliminate them entirely. Even the richest among us have fears.

What’s more, they often share many of the same worries the rest of us have.

But there is one difference: The wealthy take some highly effective action steps to address those worries and, quite often, overcome them. With that in mind, here’s a look at the three biggest fears of the Super Rich – those people with a net worth of at least $500 million – and some ways they combat those fears.

  • In our experience working with the Super Rich, we find that health, family and wealth concerns are among their biggest fears.
  • The right professionals can aid in overcoming concerns in all three areas.
  • A technique called stress testing can identify potential problems before they become big issues.

Click the image below to read the full article:

Fears

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.