Most people plan their retirement by looking forward, trying to envisage their perfect future. “What do I want to do? Where do I want to live?” Unfortunately, most people have no idea what they want. Ask someone to describe their ideal retirement and you’ll get vague answers. “Travel more.” “Spend time with my family.” These sound nice, but they’re not specific enough for planning. Here’s a different approach that gets you better answers much faster: start with what you don’t want. This comes from Charlie Munger, who made “invert, always invert” one of his core principles. Instead of asking “How do I succeed?”, consider asking “How do I fail?” and then work to avoid those outcomes. When you ask “What... Read More

This article is all about risk, but maybe not the first risk you think of when it comes to your financial future. In my experience, and that of adviser colleagues I talk to, the biggest fear many clients have involves the risk of stock market volatility, in particular the danger of big losses at a time of excessive market turbulence. The media are far too keen to run lurid headlines about “billions wiped off the value of shares” whenever there’s a market downturn. Because of that, it’s understandable that recent events such as the pandemic and President Trump’s tariff announcements have caused a sudden loss of investment value, and can easily cause many sleepless nights. However, there are three important... Read More

There’s a dangerous moment in your investment journey. It usually comes after you’ve achieved some success following proven fundamentals. Everything is working well, your wealth is growing steadily, and then… boredom sets in. The basics start to feel too simple. Surely someone who has accumulated significant wealth deserves a more sophisticated approach? This is when good investors make their worst mistakes. The truth is that the fundamentals haven’t stopped working. You’ve just stopped appreciating why they work. It’s easy to abandon a process that works The fundamentals of wealth building are almost embarrassingly simple – so simple that your mind can rebel against them. Surely something so straightforward can’t be the answer for someone of your success and sophistication? This... Read More

Managing how you spend your money is a key part of long-term financial planning, both while you are working, and during your retirement. Even the most robust and detailed financial plans can be jeopardised if you are spending too much each month. You might be accumulating excessive debt in order to fund your spending, or using your savings and investments. Because of this, it’s important to keep control of your spending. In this regard, it can pay dividends to have a clear idea in your mind about what you will and won’t spend money on. Controlling your spending impulses Understanding where your money goes each month, and what you choose to spend it on, calls for an important level of... Read More

You’ve probably heard a few stories of investors who made a fortune with a single investment decision. The neighbour who bought Amazon early and saw massive returns, or the colleague who invested in AI startups and is now talking about early retirement. When you hear stories like these, it’s natural to feel like you’re being left out. However, for every success story you hear, there are countless others you don’t. Families who chased the next big thing, only to watch significant capital disappear when they backed the wrong company or the hype faded. Every new technology and industry will lead to incredible success stories for some investors. However, for most investors, risking the family financial fortress on isolated bets is... Read More