The Handbook of Personal Wealth Management: How to Ensure Maximum Investment Returns with Security

Contents......Page 9
Foreword......Page 15
Contributors’ notes......Page 17
Introduction......Page 23
Part 1 Investment in securities and portfolio management......Page 25
What is asset allocation?......Page 27
Risk – a rational and an emotional decision......Page 28
Time horizon – it pays to think big......Page 30
Asset allocation for private and institutional investors......Page 31
The way forward......Page 37
1.2 Model portfolios, built on Olympic ideals......Page 39
Vision – the ability to think about or plan the future with imagination and wisdom......Page 40
Persistence – firm or obstinate continuance in a course of action in spite of difficulty, opposition or failure......Page 41
Commitment – being dedicated to a cause or activity......Page 42
Discipline – training oneself (or other people) to do something in a controlled and habitual manner......Page 43
To obtain a swifter, higher, stronger ‘optimal’ portfolio, a model portfolio backed by asset allocation is essential......Page 44
The cornerstone of portfolio construction......Page 45
Truly bespoke......Page 48
Ethical investment......Page 49
Conclusion......Page 50
Changing worlds......Page 52
Steering a course......Page 54
On the same wavelength......Page 55
Finding an investment manager......Page 56
Challenges in the 21st century......Page 59
Are there any firm rules for assessing investment risk?......Page 62
In the 21st century passive investment management is where the real risks lie......Page 65
What is the Treating Customers Fairly initiative?......Page 67
What changes should financial advisers look to make?......Page 68
Can customers really be treated fairly?......Page 71
Part 2 Taking advantage of tax breaks......Page 73
Pension rules: the basics......Page 75
Investment performance......Page 77
Asset allocation, investment choice and investment control......Page 78
SIPPs – how much choice?......Page 82
Decumulation......Page 83
Notes......Page 84
2.2 Unquoted shares as an asset class within your SIPP......Page 85
But what constitutes ‘taxable property’?......Page 87
So what will be a ‘genuinely diverse commercial vehicle’?......Page 88
What exactly are the tax consequences of being deemed to invest ‘indirectly’ in ‘taxable property’?......Page 90
2.3 The Enterprise Investment Scheme......Page 93
Qualifying investments......Page 94
EIS tax concessions......Page 95
EIS vs VCTs......Page 96
Summary......Page 98
Types of trust......Page 99
Trust applications......Page 101
Wills......Page 103
VCTs – what they are......Page 106
How to claim tax reliefs......Page 110
Portfolio considerations......Page 111
Considerations when investing in a VCT......Page 112
Selecting a VCT......Page 113
Inheritance tax today......Page 115
Paying the tax......Page 116
Making a will......Page 117
Using life assurance-based products......Page 118
Conclusion: what is the future for inheritance tax?......Page 119
Part 3 Real estate, forestry and hardwood investments......Page 121
Timing......Page 127
Tenure......Page 128
Development......Page 129
Conclusion......Page 130
Summary......Page 131
Property in Estonia......Page 133
Forestry in Estonia and Latvia......Page 135
Romania......Page 138
Introduction and summary......Page 141
Timber value growth......Page 142
Risk......Page 143
Special qualities of timberland investment......Page 144
Finding the market value of hardwood timberland......Page 146
Timber value trends and influences......Page 147
Extra considerations when investing in US forestry......Page 148
How to invest in hardwood timberland in the United States......Page 150
Summary......Page 152
The pensions crisis......Page 155
Conclusion: a hands-free investment solution......Page 162
Part 4 Sound stores of value......Page 163
Gold price......Page 167
Gold as an investment – why?......Page 168
Gold as an investment – how?......Page 172
Conclusion......Page 175
Introduction......Page 176
Grading diamonds......Page 177
Evaluating coloured diamonds......Page 179
Buying the right colours......Page 183
Sources......Page 186
4.3 Investing in coloured diamonds......Page 187
Acquisition......Page 189
The sales process......Page 190
Sources......Page 193
Introduction......Page 194
The art market......Page 195
Formulating an art investment strategy – the pros and cons......Page 198
Art as investment......Page 201
Art and antiques journals, guides and price indexes......Page 207
Buying and selling art: auctioneers, the internet, dealers, fairs and artists......Page 209
Conclusion......Page 211
Part 5 The better things in life......Page 213
Why invest in wine?......Page 219
What sort of wines should I invest in?......Page 220
Why invest in Bordeaux?......Page 221
A–Z of buying wine for investment......Page 223
A history of horseracing......Page 227
Racehorse breeding......Page 229
The bloodstock sales......Page 230
Investing in bloodstock......Page 231
5.3 Emotional wealth......Page 235
Refining your strategy......Page 236
Taking advantage of the tax breaks......Page 237
How can I plan my giving more effectively?......Page 238
Social investment......Page 240
Conclusion......Page 241
What would you support?......Page 242
Philanthropy......Page 244
3H Fund (Help the Handicapped Holiday Fund)......Page 255
Sources......Page 258
Part 6 Anticipating taxation......Page 265
6.1 Tax-efficient investments......Page 267
Tax shelters......Page 268
Estate planning......Page 269
Investment wrappers......Page 270
Conclusion......Page 271
What is inheritance tax and when is it payable?......Page 273
How can an individual reduce the burden of IHT on death?......Page 274
Tax-efficient wills......Page 277
The family home......Page 278
Conclusion......Page 279
Investment abroad......Page 280
Buying property abroad......Page 281
Tax residence......Page 282
International agreements......Page 283
Domicile......Page 284
Conclusion......Page 285
Contributors’ contact list......Page 286
Index......Page 291