cash

Inflation is in the news again. Many prices are rising even before we can physically get out and spend, and governments are pouring vast amounts into the economy.

Whichever side of the inflation debate you are on, it makes sense to assess the impact inflation could have on portfolios. Most of today’s investors have never seen meaningful inflation in the whole of their professional careers. So, as we emerge from lockdowns and pent-up demand meets ongoing supply constraints, we consider how different asset classes might fare if inflation does return.

A significant number of family businesses do not have a succession plan in place. Failure to address this is likely to be to the detriment of the business in the long-run. The family need to decide what the future of the business looks like, and crucially which family members, if any, wish to be involved.

On a recent trip to Australia I met an entrepreneurial couple who talked about the annual cash flush they provide to their children. When digging deeper the conversation touched on topics of ‘how much is enough’ and ‘how to keep them responsible citizens in their communities despite the money’. In our advisory work we often get involved in such discussions. Conflicts in families mainly centre about two issues: power (who leads the family company) and money (who gets how much access to cash). Let’s focus on the money for now.