May 2024: Introducing Wealthwide’s monthly newsletter
A while back, I met with Simon Hocken from Now Breathe, who has been coaching dentists for 20 years and has written hundreds of newsletters to dentists.
This inspired me to start writing my own – so here it is!
Each month I’ll include a short company update, explain a financial concept (without the jargon), and share interesting content. Whether you’re an associate or a practice owner, I hope you find this useful.
You’ll note the absence of market commentary and predictions. We avoid short-term forecasts, not only because the economy is unpredictable, but we believe they’re just not relevant to your long-term life and financial goals.
It’s not often we go back as the 15th Century for financial tips, but German cleric and merchant Jakob Fugger had this sage advice which still resonates today:
“Divide your fortune into four equal parts: stocks, estate, bonds and gold coins. Be prepared to lose on one of them most of the time… Whenever performance differences cause major imbalance, re-balance your fortunes to the four equal parts.”
In essence, Fugger is saying that it’s not enough to have a good portfolio – it needs to be maintained.
Who wants average returns?
Did you know that, since 1950, only six calendar years have given a return between 6% and 10% – the range of the return typically expected by financial advisers?
This graphic shows the wide range of returns experienced by investors since then.
While we set averages when we plan, almost no year is ‘average’.
Therefore, we should control our enthusiasm when things look great and hold onto a more positive outlook when things look bad.
It’s key to stay focused on your long-term investment plan and the goals you’re keen to fulfil.
Unlocking the perfect retirement
We recently advised two practice owners who really weren’t keen on working for a corporate and being involved in maintaining or growing the practice post-sale.
We were able to crunch the numbers for both of these clients and prove to them that, with their other savings and pensions, they didn’t need to maximise the sale value to live the life in retirement they wanted.
Given how stressful this period can be, I’d always recommend basing any financial projections on the up-front payments rather than relying on any deferred consideration – which is always at risk.
Spending the kids’ inheritance (or SKI-ing…)
One of our clients recently told me that, despite using the valet parking at an airport, his car got scratched and he wasn’t able to claim back the repair costs from the parking company.
He’s now decided that when he and his partner travel abroad, they’re going to take a limo to the airport and stay the night before to avoid the morning traffic. Likely to add a couple of £100s to the overall holiday cost but a great example of SKI-ing!
Remember if you don’t spend it... your kids will.
If you’ve got any ideas of great ways to spend (or gift) your money, please hit reply and let me know.
Coming up
Many of you will know Emily who’s been working with me for over 10 years, and I’m delighted to announce she’s due to have a baby in a few weeks.
Having originally trained to be a Combat Medical Technician for the Army Reserves, Kelly Blaymire has joined the team to cover Emily’s maternity – she’s lovely to work with and has already proven to be a great asset.
In case you missed it…
Back in March, I presented a webinar with Dentistry.com, exploring how you can make the most from your practice sale proceeds, ensure you have a great investment experience and understand how to plan towards the best life possible – without running out of money or time.
You can watch the recording here.
Quote Time
“You only have to do a very few things right in your life so long as you don't do too many things wrong.”
Warren Buffett
Thanks for taking the time to read the first edition of our monthly newsletter. If you know someone who you think would benefit from these, please do feel free to forward this email on.