The Handbook of Personal Wealth Management: How to Ensure Maximum Investment Returns with Security 4th edition

297 Pages·2008·1.12 MB·English

by  Jonathan Reuvid

personal wealth aw.qxd:Layout 1 2/4/08 14:58 Page 1
FOURTH
Jonathan Reuvid was formerly an The Handbook of Personal Wealth Management, now fully updated for this fourth edition, offers EDITION Includes chapters on:
economist, an investment banker and an authoritative, jargon-free advice on how to structure personal and business-related finances.
international corporate development It covers all aspects of personal wealth management in a clear and comprehensive way, including: • asset allocation;
consultant. He has edited and co-authored • an overview of pension alternatives;
many titles for Kogan Page, including • approaches to portfolio management; • the enterprise investment scheme;
Start Up and Run Your Own Business, • selective investment strategies;
• inheritance tax – death and taxes;
W
nehsse rRei stko, PWuto rYkoinugr Mforo nYeoyu,r Msealfnaangdin Wg Bourksiin-g • pensions planning and products; • agricultural property investment;
Abroad. • real estate and forestry investments; • property and forestry investment;
• taxation issues and estate planning; • investing in coloured diamonds;
• alternative investment vehicles; THE HANDBOOK OF • how to invest in art and antiques;
• philanthropic investment. • investment in fine wines;
• racehorse ownership and investing in
The aim of this book is to provide anyone who has accrued sufficient capital for serious
investment with insightful and practical tips on how best to manage his or her personal affairs. PERSONAL bloodstock;
• engaged philanthropy – charitable giving;
The text also contains valuable analysis of the many less conventional investment assets on the • tax-efficient investments;
market, all offering diversity of choice for the serious investor. These include property investment • inheritance tax, wills and estate planning
in the United Kingdom and overseas, coloured diamonds and diamond exploration, art and for high net worth individuals;
antiques, racehorse ownership and fine wines. For those looking to explore charitable giving, Wealth • the offshore tax angle.
there are chapters covering engaged philanthropy, social investment and how to develop a
giving strategy.
MANAGEMENT
The Handbook of Personal Wealth Management will help to ensure financial peace of mind for
anyone with the capital to be a serious investor. FOURTH EDITION
Jonathan Reuvid was formerly an economist, an investment banker and an international
corporate development consultant. He has edited and co-authored a number of books covering How to Ensure Maximum
all aspects of financial management.
Returns with Security
Consultant Editor: JONATHAN REUVID
ISBN: 978-0-7494-5060-1
Kogan Page Kogan Page US
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com Business and management
THE HANDBOOK OF
REUVID
PERSONAL WEALTH MANAGEMENT
I ឣ
THE HANDBOOK OF
PERSONAL
Wealth
MANAGEMENT
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THE HANDBOOK OF
PERSONAL
Wealth
MANAGEMENT
How to Ensure Maximum
Returns with Security
FOURTH EDITION
CONSULTANT EDITOR:
JONATHAN REUVID
London and Philadelphia
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This book has been endorsed by the Institute of Directors.
The endorsement is given to selected Kogan Page books which the IoD recognizes as being of specific
interest to its members and providing them with up-to-date, informative and practical resources for creating
business success. Kogan Page books endorsed by the IoD represent the most authoritative guidance
available on a wide range of subjects including management, finance, marketing, training and HR.
The views expressed in this book are those of the authors and are not necessarily the same as those of
the Institute of Directors.
Publishers’ note
Every possible effort has been made to ensure that the information contained in this book is accurate at the time
of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions,
however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action,
as a result of the material in this publication can be accepted by the editor, the publishers or any of the authors.
First published in Great Britain and the United States in 2005 by Kogan Page Limited
Second edition 2006
Third edition 2007
Fourth edition 2008
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted
under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or trans-
mitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of
reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning
reproduction outside these terms should be sent to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com
© Kogan Page, Jonathan Reuvid and individual contributors, 2005, 2006, 2007, 2008
The rights of Kogan Page, Jonathan Reuvid and the individual contributors to be identified as the authors of this
work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 5060 1
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
The handbook of personal wealth management : how to ensure maximum investment returns with
security / [edited by] Jonathan Reuvid. — 4th ed.
p. cm.
ISBN 978-0-7494-5060-1
1. Finance, Personal. 2. Rich people—Finance, Personal. I. Reuvid. Jonathan.
HG179.H2549 2008
332.024⬘01--dc22
2008012372
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in Great Britain by Thanet Press Ltd, Margate
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IX ឣ
Contents
Foreword, Institute of Directors xv
Contributors’notes xvii
Introduction 1
Part 1: Investment in securities and portfolio management
1.1 Asset allocation: what private clients can learn from institutional
investors 5
Peter Fitzgerald, Insinger de Beaufort
What is asset allocation? 5; Risk – a rational and an emotional
decision 6; Time horizon – it pays to think big 8;
Asset allocation for private and institutional investors 9; The way
forward 15
1.2 Model portfolios, built on Olympic ideals 17
Simon Gibson, Atkinson Bolton Consulting Limited
Vision – the ability to think about or plan the future with
imagination and wisdom 18; Focus – the ability to concentrate
interest or activity on something 19; Persistence – firm or
obstinate continuance in a course of action in spite of difficulty,
opposition or failure 19; Commitment – being dedicated to a cause
or activity 20; Discipline – training oneself (or other people) to do
something in a controlled and habitual manner 21; To obtain a
swifter, higher, stronger ‘optimal’ portfolio, a model portfolio
backed by asset allocation is essential 22
1.3 One size does not fit all 23
Claire Bennison, Brooks Macdonald Asset Management
Introduction 23; The cornerstone of portfolio construction 23;
Truly bespoke 26; Ethical investment 27; Conclusion 28
1.4 Investing is personal 30
Elissa Bayer, Insinger de Beaufort
Changing worlds 30; Steering a course 32; On the same
wavelength 33; Finding an investment manager 34