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John Raymond Leske - ArticlesEmployee Share Schemes – Are the proposed changes all bad news?For many, receiving shares or options from your employer is a welcome benefit. There are usually no immediate tax or cash flow implications and you simply get access to a new investment that, hopefully, will grow in value. The “secret” to wealth creationMany in the financial planning and wealth management industry want you to believe they hold the secret to creating wealth. They’ll guide you into the right investments. They’ll use their superior technical skills to minimise tax. And, perhaps, they’ll suggest you borrow and invest to accelerate your wealth accumulation. International shares: To hedge or not to hedge?In our recent article, “Should you hold international shares in your investment portfolio?”, we argued that there are diversification or risk reduction benefits from holding international shares as part of a share portfolio. To keep it manageable, we did not directly address the exchange rate risk that comes with owning shares denominated in another currency. How far to financial freedom?In our introductory meetings with potential new clients, we want to obtain a preliminary view of their “Net Investment Wealth”. It quickly gives us an idea of how far along the road to financial freedom or independence they have come and how far they have to go. The Golden Rules of InvestingWhen it comes to investing, there is an inordinate amount of information and opinion that is freely available. Most people have an opinion about the direction of the economy, markets, which asset classes or sectors will do best, and which specific securities will out perform. And most of these opinions are supported by valid reasoning and sometimes by informational “evidence”. Ownership of family wealthWhich structure is best? Family wealthFor our clients, there are predominantly four ways they hold their personal wealth. Which structure is best? It depends. But given our emphasis on focusing on the things you can control, the structure choice is one that needs serious consideration. There are a number of often competing factors to take into account, with taxation, asset protection and succession / estate planning usually most prominent. This article considers some of the issues. Franked dividends and your investment strategyMany D-I-Y investors skew their investment portfolios towards shares that pay franked dividends. This is particularly prevalent amongst trustees of self managed superannuation funds who appear to over value the benefit of franking credits. There appears to be a view that franking offers “a free lunch”, resulting in its overemphasis as a driver of investment strategy. We believe investors should not favour particular shares simply because they pay franked dividends. Financial Planning: Personal Financial Advice or “Product Flogging”?The financial planning industry (and a number of accountants dubiously playing on the edge) has come under intense fire recently. The downturn in investment markets has exposed a number of products that have not turned out to be in clients’ best interests. These include high yield mortgage funds, absolute returns funds, agribusiness and protected equity products and excessive margin lending. Fortune favours the brave!If you’re feeling pretty uncomfortable about the current state of financial markets you can be reassured that you’re not alone. Almost all investors are experiencing some discomfort from the recent falls in asset values, yet some handle it better than others. How you manage your emotions in relation to the market’s volatility can have a big influence on your investment outcome over the long term. What does Warren Buffett think you should do?Are you looking for the best way to build wealth? Why not seek the advice of the world’s best investor? Warren Buffett says that the best way to maximise your wealth is to focus on your career and to invest in index funds. You may find that surprising advice from a great investor, yet it does make a lot of sense. If you’re devoting your free time towards trying to out-smart the market at the expense of building your career skills, you may want to re-think your strategy.
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