Shares Magazine – May 23, 2019

MONEY MATTERS

23 May 2019 | SHARES | 39

Helping you with personal finance issues

^ƚĞĂĚLJĚĚŝĞƐĂŶĚĂƌĞĨŽĐƵƐĞĚ

ŽŶĂŐŽŽĚĚŝǀŝĚĞŶĚƉŽůŝĐLJ͕Žƌ

ĨƵŶĚƐƚŚĂƚŝŶǀĞƐƚŝŶƚŚĞƐĞƐƚŽĐŬƐ͘

ƐƚŚĞLJŐƌŽǁĂŶĚŝŶĐƌĞĂƐĞƚŚĞŝƌ

ƌĞǀĞŶƵĞƐ͕ƚŚĞLJ͛ůůĂůƐŽďĞĂďůĞƚŽ

ŐƌŽǁƚŚĞŝƌƉĂLJŽƵƚƐĨĂƐƚĞƌ͘

ĨƵŶĚ͕ĂŶĚƚŚĞLJĞīĞĐƟǀĞƐĞůů

some of the future capital

ŐƌŽǁƚŚŽĨƚŚĞĨƵŶĚŝŶĞdžĐŚĂŶŐĞ

ĨŽƌŚŝŐŚĞƌŝŶĐŽŵĞƚŽĚĂLJ͘

>ŝŬĞƚŚĞƐƚŽĐŬƐĂďŽǀĞ͕ƚŚĞLJ

ĂƌĞƌŝƐŬŝĞƌ͘

By Laura Suter

AJ Bell Personal

Finance Analyst

you also need to

think about whether

you’re willing to

sacrifice capital

growth today for a

higher income, or if

you’re more reliant

on growing the

income in the future

y

ure

dŚĞƐĞƐƚŽĐŬƐŽƌĨƵŶĚƐŵŝŐŚƚŶŽƚ
ďĞLJŝĞůĚŝŶŐĞŶŽƵŐŚƚŽĚĂLJĨŽƌLJŽƵ
ƚŽƚŚŝŶŬŽĨƚŚĞŵďĞŝŶŐǁŽƌƚŚLJŽĨ
ŝŶĐůƵƐŝŽŶŝŶĂŶŝŶĐŽŵĞƉŽƌƞŽůŝŽ͕
ďƵƚƚŚĞƐĞĂƌĞLJŽƵƌǁŝŶŶĞƌƐŽĨ
ƚŽŵŽƌƌŽǁ͘
dŚĂŶŬƐƚŽƚŚĞĂĨŽƌĞŵĞŶƟŽŶĞĚ
ƐŽůŝĚďĂĐŬďŽŶĞŽĨŝŶǀĞƐƚŵĞŶƚƐ
;ĂŶĚƚŚĞŶĞdžƚŐƌŽƵƉďĞůŽǁͿ͕
LJŽƵĐĂŶĂīŽƌĚĂƐůŝŐŚƚůLJůŽǁĞƌ
ŝŶĐŽŵĞƚŽĚĂLJĨƌŽŵƚŚŝƐŐƌŽƵƉŽĨ
ĐŽŵƉĂŶŝĞƐŽƌĨƵŶĚƐ͘,ŽǁĞǀĞƌ͕
ǁŚĂƚLJŽƵ͛ƌĞůŽŽŬŝŶŐĨŽƌŚĞƌĞ
ŝƐƚŚĞĂďŝůŝƚLJƚŽŝŶĐƌĞĂƐĞƚŚĞ
ĚŝǀŝĚĞŶĚĂŚĞĂĚŽĨŝŶŇĂƟŽŶŝŶ
ĨƵƚƵƌĞLJĞĂƌƐ͘
These are the assets that
ǁŝůůŚĞůƉLJŽƵƚŽŐĞƚĂŐƌŽǁŝŶŐ
ŝŶĐŽŵĞŝŶƚŚĞĨƵƚƵƌĞ͘dŚĞLJĂƌĞ
ůŝŬĞůLJƚŽďĞLJŽƵŶŐĞƌ͕ƐŵĂůůĞƌ
ĐŽŵƉĂŶŝĞƐ;ďƵƚŶŽƚĂůǁĂLJƐͿǁŚŽ
ĂƌĞŐƌŽǁŝŶŐĨĂƐƚĞƌƚŚĂŶLJŽƵƌ

THE BIG

PAY E RS TODAY

HOW DO I

BALANCE THESE

THREE GROUPS?

dŽďĂůĂŶĐĞŽƵƚƚŚĞƐĞůŽǁĞƌ

ƉĂLJĞƌƐƚŽĚĂLJLJŽƵǁŝůůǁĂŶƚƚŽ

allocate to some companies or

ĨƵŶĚƐƚŚĂƚĂƌĞĚĞůŝǀĞƌŝŶŐĂŚŝŐŚ

LJŝĞůĚƌŝŐŚƚŶŽǁ͘

/ĨƐƚŽĐŬƐ͕ƚŚĞLJǁŝůůďĞ

ŚĂŶĚŝŶŐŽƵƚĚĞĐĞŶƚĚŝǀŝĚĞŶĚƐ

in comparison to their share

ƉƌŝĐĞĂŶĚǁŝůůŚĞůƉďŽůƐƚĞƌ

LJŽƵƌƉŽƌƞŽůŝŽƐ͛ƉĂLJŽƵƚƐŝŶƚŚĞ

ƐŚŽƌƚƚĞƌŵ͘

dLJƉŝĐĂůůLJƐƚŽĐŬƐǁŝƚŚůĂƌŐĞƌ

LJŝĞůĚƐĂƌĞŚŝŐŚĞƌƌŝƐŬ͕ĂƐƚŚĞ

ŵĂƌŬĞƚŚĂƐƉƵƐŚĞĚĚŽǁŶƚŚĞŝƌ

ƐŚĂƌĞƉƌŝĐĞĚƵĞƚŽƵŶĐĞƌƚĂŝŶƚLJ

ĂƌŽƵŶĚƚŚĞĨƵƚƵƌĞĞĂƌŶŝŶŐƐŽƌ

ŐƌŽǁƚŚƉƌŽƐƉĞĐƚƐ͘

/ĨLJŽƵŐŽĚŽǁŶƚŚĞĨƵŶĚƌŽƵƚĞ͕

ƚŚĞŐƌŽƵƉLJŽƵ͛ƌĞůŝŬĞůLJƚŽďĞ

ůŽŽŬŝŶŐĂƚĂƌĞƐŽͲĐĂůůĞĚ͚ŝŶĐŽŵĞ

ŵĂdžŝŵŝƐĞƌ͛ĨƵŶĚƐĨŽƌƚŚŝƐƐĞĐƟŽŶ

ŽĨLJŽƵƌƉŽƌƞŽůŝŽ͘

dŚĞƐĞĨƵŶĚƐƵƐĞĚĞƌŝǀĂƟǀĞƐ͕

ĂŶĚƐŽĂƌĞĂďŝƚŵŽƌĞ

ĐŽŵƉůŝĐĂƚĞĚƚŚĂŶLJŽƵƌĂǀĞƌĂŐĞ

,ŽǁŵƵĐŚLJŽƵĂůůŽĐĂƚĞƚŽ

ĞĂĐŚŐƌŽƵƉĚĞƉĞŶĚƐŽŶŵLJƌŝĂĚ

ĨĂĐƚŽƌƐ͘DŽƐƚŝŵƉŽƌƚĂŶƚůLJ

LJŽƵŶĞĞĚƚŽůŽŽŬĂƚƚŚĞƌŝƐŬ

LJŽƵ͛ƌĞǁŝůůŝŶŐƚŽƚĂŬĞǁŝƚŚ

LJŽƵƌŝŶĐŽŵĞƉŽƌƞŽůŝŽ͕ďƵƚĂůƐŽ

ƚŚĞůĞǀĞůŽĨŝŶĐŽŵĞLJŽƵǁĂŶƚ

ƚŽĚĂLJĂŶĚŚŽǁƌĞůŝĂŶƚLJŽƵĂƌĞ

ŽŶƚŚĂƚ͘

zŽƵĂůƐŽŶĞĞĚƚŽƚŚŝŶŬ

ĂďŽƵƚǁŚĞƚŚĞƌLJŽƵ͛ƌĞǁŝůůŝŶŐ

ƚŽƐĂĐƌŝĮĐĞĐĂƉŝƚĂůŐƌŽǁƚŚ

ƚŽĚĂLJĨŽƌĂŚŝŐŚĞƌŝŶĐŽŵĞ͕ŽƌŝĨ

LJŽƵ͛ƌĞŵŽƌĞƌĞůŝĂŶƚŽŶŐƌŽǁŝŶŐ

ƚŚĞŝŶĐŽŵĞŝŶƚŚĞĨƵƚƵƌĞ͘

tŚĂƚĞǀĞƌƐƉůŝƚLJŽƵĚĞĐŝĚĞŽŶ͕

ŵĂŬĞƐƵƌĞLJŽƵŵŽŶŝƚŽƌĂůůŽĨ

ƚŚĞĐŽŶƐƟƚƵĞŶƚƉĂƌƚƐƚŽŵĂŬĞ

ƐƵƌĞƚŚĞLJ͛ƌĞůŝǀŝŶŐƵƉƚŽLJŽƵƌ

ĞdžƉĞĐƚĂƟŽŶƐ͘

THE YOUNG

UPSTARTS