INTRODUCTION

The first edition of this book was published in late 2011, just as we were emerging from the depths of a global financial crisis. So much has changed in the wealth planning arena in the past few years that this second edition is almost a new book. As well as radical changes to many of the chapters, there are five new chapters: socially responsible and impact investing; property, land and woodlands; single-premium investment bonds; non-trust structures; and young people and money.

This book is set out in four main sections. Part 1 covers strategic wealth planning issues, including the importance of developing and maintaining a proper overall wealth plan that is in tune with your personal mission, vision, values and goals. This edition explores behavioural finance and the impact of emotions on decision making and financial outcomes. In addition, I have explained the role of guidance and advice and when and how to choose suitable professionals to work with, as well as the negative impact that the media can have on your financial wellbeing.

Part 2 deals with wealth preservation, including a condensed and ‘elegantly simple’ investment framework that is likely to form the core of your wealth plan, as well as an expanded chapter on the role of insurance. While there are many investment-related books that go into forensic detail, I’ve tried to explain the subject matter on the basis of what matters and, more importantly, what works. My view is that the simpler you can make your investment approach, the more likely it is to be effective.

Part 3 focuses on wealth enhancement, with an overview of tactical planning issues including general tax, portfolio tax and pension planning.

Part 4 deals with wealth transfer and succession, including later life issues, trusts, young people and money, philanthropy and life purpose.

Some of these subjects are complicated and wide ranging, so I’ve tried to cover what I think will be the most important issues to the majority of readers. I could easily have written three times as much material, so bear that in mind when reading those chapters, and if necessary seek additional reading.

Don’t feel that you have to read the whole book from beginning to end. You might prefer to read random chapters that take your fancy, or read one whole section. If you read this book in small chunks, you might get more out of it than thinking you need to absorb every word. The language is as jargon-free and clear as I could make it, bearing in mind the complexity of some of the subject matter.

I do not think there is a definite ‘right way’ to manage personal wealth, but my approach has been shaped as much by my 25 years of practical experience of working with families on private wealth matters as it has by the thousands of hours spent studying, training and updating my technical knowledge. I would hope that this book becomes your trusty companion along life’s financial highway and that it gives you the inspiration, understanding and confidence to make good decisions about your wealth or to hold to account professionals whom you engage to manage it for you.

If you spend less time and effort worrying about your money and more on living your life to the full then it will have been worth the effort.