Category Archives: Wealth Management

Advice and general posts on all matters of Wealth Management

Q&A: Foretelling The Future?

Question: Why can’t advisers tell the future? Answer: No one can systematically predict the future. Market prices are forward-looking and are set based on expectations. As new information emerges, it is quickly reflected in prices, but future news is by definition unknowable. The sensible approach is to control what you can (e.g., diversification, taxes, costs, […]

What is Sudden Wealth?

Question: Duncan, I hear the term ‘sudden wealth’ more and more often these days, but what is it? Answer: Well there’s gradual money and there’s sudden money.  Most of us are used to gradual money – earning an income and building a nest egg over time.  It’s a slow and steady process.  As our net […]

Sudden wealth no guarantee of health

Ever daydreamed about winning the lottery? You probably imagined a life of financial comfort and good health. But research suggests that such fantasies are often just that. Real lottery winners are not guaranteed either better health or even long-term financial security, say the economists behind two new studies. And amongst UK lottery winners, the problem […]

When Sudden Wealth Flows!

Many of us dream at some point in our lives about sudden wealth. What if we won the lottery, or a big-money contest, or inherited untold riches? Well, it does happen; what if it happens to you? Take for example, the lottery.  If you become a lotto winner your life is never ever going to […]

Q&A: Market Turmoil?

Question: Is the market turmoil a sign that markets are not efficient? Answer: The market turmoil is caused by some combination of (i) quickly fluctuating changes in expected cashflows (future profitability), and (ii) variation in investor risk aversion that leads to variation in expected returns (the discount rates for expected cashflows). Both responses can be […]