Articles of the Year
Three neat ways to think about money, one smart approach for sleeping well
How we think about how we can apportion our money can be a very useful and rewarding exercise. Charlotte uses three hypothetical pots as a way to help us manage our finances depending on our long-term goals, how much we need for our day-to-day living, and how much we would like to devote to ‘passion’ assets and interests.
What makes Netwealth different? To make a difference to people’s lives, you must offer something different. When Charlotte and Tom set up Netwealth the goal was to challenge the status quo and deliver an investment service unlike any other – but more importantly, have the promise to meaningfully change the outcome for investors. Charlotte explains the key differences here.
|Fact vs fiction: why bespoke advice beats bespoke portfolios Tom highlights the outdated thinking behind bespoke portfolios vs model portfolios. He questions why you should pay more for a bespoke portfolio which is more likely to underperform compared to a centrally managed portfolio. Instead, he suggests, if you choose a model portfolio, then it is much more important for people to focus on advice which is tailored to your needs and circumstances.|
|Do active equity managers outperform passive funds in a bear market? The perception exists that active managers do better than passive funds in a downturn. After all, using their skills to potentially outperform is part of the rationale why they charge more for their services. Iain and the team looked at the evidence and asked: do active funds really outperform passive funds in a downturn? The figures on average say no – and good luck sniffing out one that does.|
|Day in the life of a portfolio manager What does a portfolio manager do all day? Quite a bit, and there are many facets to investing money – and time – effectively to ensure the best outcome for clients. Simon takes us through a regular day, explaining the tasks which are typically completed and the insights, habits and interactions which inform a modern investment strategy.|
Sam Pitts-TuckerHow to invest unsuccessfully Many articles extol the virtues of what to do when investing, but here Sam highlights some of the things to avoid. Even sophisticated investors fall into the most common traps – because we are ruled by our biases and irrational behaviour and because we are often so pressed for time.
Tom KimcheMaking the most of available tax wrappers While the merits of investing are clear, you can make your money work more effectively by using tax wrappers that contain your investments. Tom explains how tax-free allowances and exemptions can be used, and gives examples of how pensions and ISAs can maximise returns from a portfolio.
Five wealth management myths debunked To many, the wealth management industry has often been shrouded in mystery. Despite improvements in transparency it still isn’t always clear how much you pay for having your money managed. Tom addresses the common misconceptions as he runs through five of the most common myths that persist – even in the face of challengers like Netwealth who are changing the client experience.
Please remember that when investing your capital is at risk.