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The Financial Times Guide to Wealth Management, 2nd Edition by Jason Butler

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CHAPTER 12

OTHER INVESTMENT CONSIDERATIONS

‘By all means let’s be open-minded, but not so open-minded that our brains drop out.’

Richard Dawkins, English ethologist, evolutionary biologist and writer

There are a number of other issues that you need to consider in relation to your investment strategy and these include:

  • the impact of dividends on investment returns
  • the impact of regular withdrawals from your portfolio
  • the importance of rebalancing your portfolio
  • the use of debt with investing.

Impact of dividends on overall investment returns

It is regularly stated that reinvested dividends make a big difference to overall equity investment returns over the medium to long term. This is well illustrated by Figure 12.1, which shows the FTSE ...

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