Modern Portfolio Theory: The Efficient Frontier

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Almost 26 years ago, Professor Harry Markowitz was awarded the Nobel Prize for his pioneering work in financial economics. Markowitz developed a model for understanding portfolio allocation under uncertainty, which has endured as Modern Portfolio Theory. Clearly this is not quite so modern today but it has withstood the test of time. By urging investors not to focus solely on returns of individual stocks but to also consider the concept of risk exposure, Markowitz changed the way people invest. Today, trillions of pounds are invested, including our own client’s funds, according to his principles of risk and return.

Gone Phishing!

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Up until a few years ago, if I’d mentioned the word ‘phishing’, you might have assumed that I was talking about serene lakes, fishing rods and carp.

Finding Life’s Balance

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There’s nothing quite like a summer holiday to ‘recharge the batteries’ and bring a little balance back to your life.

As you read this, I will hopefully be sunning myself on the beach or maybe even enjoying a nice lunch with a glass of vino!  I almost said I will be having a ‘restful time’, but as those of you with young children will know; children and restful are not words which often fall into the same sentence.

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Sorry everyone, unfortunately this is not the first part of the winning EuroMillions numbers; these are the results of some research undertaken by the Oxford Health Alliance.

 As Financial Planners, we talk a lot about protecting yourself; whether that be life cover, illness cover, income cover, family or business cover.   But, we hardly ever talk about health promotion and prevention – which can encourage better health, longer life and (now the financial point) cheaper premiums for you for the protection policies we recommend!

6 ways to achieve a Happy Retirement

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It was great bumping into Chris, a long standing client, yesterday and I have to say he looked terrific, relaxed and happy with life. Unfortunately, this is not always the case with retirees as research in the US by the Employee Benefit Research Institute (EBRI) indicates. The findings reveal that those who aren’t satisfied with their retirement are not from a specific economic group or gender but include, rich and poor, men and women, those with a good pension and those without.

Return of multi-generational households

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Multigenerational households could be set to grow in popularity as property costs continue to rise. A new report from Aviva suggests that based on the rate of growth seen in the past 10 years – and assuming house prices will continue to rise – there could be 2.2 million people living in multi-family households and 3.8 million 21–34-year olds living with their parents by 2025.

Family Business Succession and the Need for a Plan

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Let’s move away from Brexit and politics this week, as I am sure we are all fed up with the lack of a plan, and look at one of my favourite subjects – family businesses and succession planning.

Succession planning is one of the major hurdles in helping to build and maintain a family business. The complicated nature of family relationships in a business can make succession planning an emotional process. For the senior generation, acknowledgement of the inevitable can be difficult but for one reason or another they will become less capable in running the business. A good succession plan enables the leadership of the business to be passed on seamlessly from one generation to another.

Break on Through to the other side ….

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What a couple of weeks it has been …. It was Lenin that said “that sometimes not a lot happens in a decade but then a decade happens in a week”

Our post Brexit Blog “Brexit and Your Investments” highlighted our belief that our investment portfolios were well placed to weather the storm of the uncertainty.  Our approach is to have a well-diversified portfolio with the defence of owning short-dated bonds.