In a recent article you read about how the drive to accumulate financial wealth can sometimes become all-consuming. This can create an outcome where you are overly focused on the next acquisition, rather than seeing the wider picture. I described this as constantly moving your own goalposts and never being entirely happy, regardless of your financial wealth. In this article, I want to drill down a bit further into the whole concept of “wealth” and explain to you why I believe there are different ways of measuring how wealthy you are. Wealth doesn’t always mean money If you’re asked what “wealth” means, it’s likely your definition will include reference to money. But to my mind it’s about more than that.... Read More

One question I’m often asked in discussions I have with clients is “have you done this yourself?” Usually this is in relation to a specific piece of advice I’m offering, but occasionally I’ll be questioned about my wider financial planning process. A similar thought may have crossed your mind when reading previous newsletters and articles I’ve written – all of which contain tips and guidance. It’s a very fair challenge that always deserves a response. I believe it is only right that I lead by example and follow the same advice that I give to you. My wants and needs are the same as yours Because no two people are alike, everyone’s financial circumstances are different. Behind that truth, however,... Read More

Whenever you’re putting plans together for a future event, it’s always prudent to think of the potential impediments that could prevent your plan coming to fruition. Sometimes, however, it’s possible for you to overstate the danger of some threats, while at the same time underestimating the impact of potential problems that you should actually be more concerned about. A recent report from the Center for Retirement Research at Boston College, which I read about on the CNBC website, highlights this problem with perception when it comes to planning your financial future. The report correctly identifies three threats to your future financial health: Market volatility Rising inflation Increased longevity. It then goes on to say that many people overestimate the effect... Read More

We are all, to some extent, driven to improve ourselves and our lives. The instinct to earn more money and grow your wealth is perfectly understandable and praiseworthy. It’s a good thing we’re driven to improve our place in life. But problems can arise when those instincts become all-consuming and you become overly focussed on the next acquisition, rather than being able to see the wider picture. In financial terms, that picture should be of your overall financial life plan, rather than a series of short-term purchases. When success is simply defined as the next consumer purchase, it’s easy to become overly stressed and reach the position of never being entirely happy – regardless of your wealth. The correlation between... Read More

In one of my recent newsletter articles, you’d have read about the “paradox of accessibility” – alluding to the fact that massive advances in technology mean that you have a vast amount of information at your fingertips that you don’t really need. In the same article, I also referred to another apparent paradox, or contradiction, which states that often the best thing to do with your investment portfolio is to totally ignore it for extended periods. It set me thinking about other investment contradictions that you should be aware of when it comes to investing your money and planning your financial future. 1. Boring is good, excitement isn’t Index-investing – effectively tracking the performance of either a single stock market... Read More