This chart breaks down the differences in the composition of wealth between middle income, upper income, and ultra wealthy of American households to help us better understand the building blocks that make up net worth. How does your wealth composition compare?
People are living longer so there is a great concern about outliving your savings. What can you do about this? Strategic asset allocation throughout your life can help ensure that you will not run out of money. Essentially your portfolio should be more heavily weight to equities when you are younger and then this exposure is reduced as you grow older. This infographic explains more.
Look at how much the the Fortune Global 100 list of companies has changed in just 10 years. This highlights why I think individual stock picking is dangerous for most people.
The top 100 is always changing, there are always companies growing and shrinking and trying to predict this is very difficult. This is exactly why you need to buy 1000s of companies not 10's, and you need to buy small and medium companies not just the 100 biggest.
In investing, people often exhibit “home-country bias” - favouring the stock market of their home country. However, as this image shows, there is wealth to be found everywhere so by diversifying your investments, you avoid the risk of putting all your eggs in one basket.
Have you ever thought about investing in luxury collectables such as fine wine, classic cars, art or jewels? They seem like a lot of fun to hold as investments but how to these alternative assets perform as investments over time?
This infographic shows 10 years returns on luxury asset classes.
Everyone wants their hard-earned money to grow but specific investment goals can vary wildly depending on age or geography. This infographic explores what investors want from their advisers and why they invest.
Compound interest is fundamental to your long-term wealth. It’s so powerful that Albert Einstein apparently referred to it as the ‘eighth wonder of the world’. It is essentially interest on interest. And that concept is so extraordinary that it could change your life.
A million in savings is a major milestone for many people. It’s actually not that difficult to achieve over time. You don’t need to strike it rich with a lucky stock pick, or use a crystal ball to forecast the future of the market.
Your best bet is to simply focus only on the factors you can control. Time. Discipline. Expenses. Diversification. And this applies even if you are aiming to amass a lot more than a million.
A good financial advisor can add up to 3.75% of added value to your portfolio. A bad advisor will probably make decisions based on what is best for them rather than what is best for you. So how can you find a good advisor? Read on for 7 great questions to ask.