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 ...