Where Wealth Meets Wisdom.
I Inherited a windfall - it was a blessing and a curse
I Inherited a windfall - it was a blessing and a curse
Young millionaire heirs are giving away their fortunes to worthy causes, instead of living a life of luxury. When Paolo Fresia inherited tens of millions of pounds following his mother's death, it was "a blessing and a curse". At first, he simply acted as though it wasn't happening. Then just 22, "my focus was to run away and pretend that that didn't exist," he says.
Market Correction – What is Ahead for Investors!
Introduction Since November 2023 US stocks have rallied almost 30% until the recent drawdown that started in early April. The S&P 500 was down as much as 5.5% in April before the last week’s bounce. Growth-sensitive Nasdaq Index was down nearly 8%, while small-cap stocks were down by a similar amount in April. By contrast, traditional safe-haven asset gold is up over 5%, even as US government bonds sold off. Yields on the 10-year US Treasury have risen to about 4.6% from under 4.2% in March as investors' price-in for fewer Fed rate cuts for 2024. It is entirely normal for corrections of this magnitude in bull markets, especially after the rally we have seen in the past few months, and the pullback is still modest.
Dividend Stocks – potential to Outshine Bonds in a Low Interest Rate Environment
Introduction As we approach September 2024, a significant shift in the financial landscape looms large. The Federal Reserve, having spent much of the past few years hiking interest rates to combat inflation, is now expected to pivot toward cutting rates. This change could open new opportunities for investors, particularly in the realm of high-yield dividend stocks. Historically, rate cuts have had a profound impact on various asset classes, and high-yield dividend stocks have often emerged as winners compared to more traditional income vehicles such as bonds and certificates of deposit (CDs). Companies with a constant and reliable source of income in the form of dividends do well over the long run. These companies are particularly attractive to investors seeking a combination of regular income and capital appreciation. In the environment that lies ahead, these stocks could prove compelling as yields from bonds and CDs drop as a result of the interest rate cuts by the central banks across the developed world. Dividends are likely to be maintained, and there is a potential for these payments to even increase.
Hotel Tycoon Takes £6m Life Insurance to Shield Business from Inheritance Tax Hike
‘I’m insuring my life for £6m to protect family from IHT raid’ More business owners are seeking policies to protect their assets from ‘death tax’ for after they have gone A BRITISH hotel tycoon is buying a £6m life insurance policy to protect his fortune from Rachel Reeves’s inheritance tax raid.
What Does Trump’s Inauguration Mean for Your Portfolio?
Political changes, like Trump's inauguration, often cause market swings. Instead of panicking, evaluate your portfolio, assess your risk tolerance, and maintain a balanced investment mix to handle both rallies and downturns. 2. Sector-Wise Opportunities
The Magnificent Seven’s impact on the S&P 500
Market Concentration and the “Magnificent Seven” The S&P 500, a key barometer of the US stock market, is currently exhibiting a remarkable degree of market concentration. The top 10 stocks within the index now account for 33% of its total market value, significantly surpassing the 27% concentration observed at the height of the tech bubble in 2000. This trend has been driven largely by the "Magnificent Seven": Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. These stocks have collectively amassed substantial market capitalisation, leading to a skew in the index's performance and valuation metrics.
Succession planning takes centre stage for private banks
Succession planning can be both emotionally and practically challenging. Owners of family businesses are starting to realise they need to empower their children to take over, but need help from private banks to meet the succession challenge. While most family business owners, who account for a significant share of the private banking client base, aspire to pass the reins to the ,[object Object], many delay addressing the complexities of ,[object Object], until it is too late. This is where wealth managers and ,[object Object], can provide meaningful support, helping clients navigate this crucial transition.
Take Insurance to Protect Against IHT
Families turn to life assurance to swerve inheritance tax reforms. Labour executes ‘economic own goal’ as taxpayers shield cash in death policies Tax planning has taken a large part of families’ inheritance discussions since Rachel Reeves’s Budget, experts say Credit: Kirsty O'Connor / Treasury
Trust scandal leaves heirs with huge death taxes
‘Sham’ schemes sold to vulnerable pensioners affect thousands, reports Charlotte Gifford The Costly Pitfalls of Family Protection Trusts Many families have fallen into financial and legal trouble after being sold misleading estate planning products, believing they were protecting their assets. Instead, these so-called “family protection trusts” have left them unable to sell their properties, burdened with unexpected inheritance tax bills, and forced to pay thousands in legal fees to correct costly mistakes.
The Labour Government's First Budget Since 2010
Key Highlights and Implications for Investors Introduction The Autumn budget is aimed to enhance UK growth while modestly raising inflation. In this short note, we look at the announced measures and the potential impact it may have on UK assets.
Welcome Back Mr President!
Introduction Donald Trump will become the 47th president of the United States. The past president is only the second person in American history to be re-elected to non-consecutive terms after obtaining the 270 Electoral College votes required. Republicans will restore majority control of the Senate with at least 51 seats while final votes are being counted. Meanwhile, due to close contests in the House of Representatives, the general makeup of Congress can take a few more days or weeks to decide. Nevertheless, the election outcome is clear, and we think investors should base their investment strategies on what the Trump 2.0 era may shape up to be.
Trump Presses Ahead with Tariffs. What Now?
Over the weekend, Trump issued executive orders to impose a 25% tariff on the majority of imports from Canada and Mexico and an additional 10% levy on all imports from China. Mexican energy imports will be subject to the full 25% duty, but duties on Canadian oil imports will be much reduced to 10%. President Donald Trump also reaffirmed his stance warning to increase tariffs on the EU citing the "tremendous deficit" with the EU. Additionally, he declared that he would "eventually" impose taxes on pharmaceuticals, steel, copper, aluminium, and semiconductors. As expected in response, the Canadian government has announced a 25% duty on some US imports starting from February 4. Canada is also considering putting some restrictions on vital mineral and energy exports to the US. Mexico has also wowed punitive actions with tariff and non-tariff measures in response. China condemned the tariff hikes, claiming they were against international trade regulations. It also said it would contest the levies at the WTO and take "countermeasures," which have not yet been defined. How Has the Market Reacted, So Far!
The Trust Lessons from the Earl of Yarmouth's £85 Million Estate Row
A family’s bitter court battle over their £85 million estate raises complex inheritance disputes and governance challenges The family's ancestral seat, Ragley Hall in Warwickshire / Image: Shutterstock
Wealthy Britons Embrace Creative Tactics to Beat Inheritance Tax
Businessman Steve Perez is paying a high price to ensure his company survives once he’s no longer around. The 68-year-old owner of a drinks and hotel chain in northern England is readying to hand over the princely sum of £100,000($130,000) a year for life insurance that will cover the estimated £10 million inheritance tax his heirs will need to pay on the business if he dies within the next decade. The payments, which he’ll finance by taking dividends from his company, will cover a tax bill that he says his firm would otherwise struggle to pay. And he’s not alone.
Market At Crossroads Scenarios That Could Shape the Next Big Move
Following the recent market downturn, investors are questioning when stability might return, whether a recession is imminent, and if a shift towards pro-growth policies could occur. While the future remains unpredictable, assessing both downside and upside market scenarios can help frame investment decisions. Broadly, there are four key market trajectories—equities moving higher or lower, combined with rising or falling bond yields. Below are potential scenarios, that helping investors evaluate how their portfolios may be impacted:
Europe's Quiet Comeback
Why the Continent Could Outshine US Equities Can European Stocks Stay in the Lead? For investors, the Trump 2.0 administration's roadmap hasn't gone as planned, with US stocks cooling due to a sluggish economy, changing economic policies, and increased AI competition from China. The S&P 500 and Nasdaq indexes have dropped by -3.20% YTD and -7.80% YTD, respectively, since Trump's inauguration on January 20 due to the continued high level of political and economic uncertainty. Since the beginning of the year, consumer sentiment has also declined, and domestic manufacturing appears to be losing some of its pace. The Fed's hand is somewhat tied to lowering rates in the near future because tariffinduced inflationary risks are still high.
Global Markets & Economy Adjust to US Tariff Shock
What was Announced? President Trump has declared that import duties will be raised significantly. Beginning on April 5, all imports will be subject to a "baseline" tariff of at least 10%; starting on April 9, there will be higher "reciprocal" rates for specific trade partners thought to have excessive tariff or nontariff barriers. Chart 1: Trump's Reciprocal Tariffs
The tragic inheritance tax quirk that could save you £400k
“Couples who die at the same time can pass on all of the older person’s assets free of inheritance tax.” The little-known rule can save relatives hundreds of thousands of pounds if their loved ones’ deaths were simultaneous or when it is unknown who died first. But the law only works this way in England and Wales, and not in Scotland and Northern Ireland.