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الأربعاء، 27 يونيو 2018

Don’t Throw Away Your Shot: Here’s How to Audition for the ‘Hamilton’ Tour


You are not throwing away your shot.

Hey yo, if you’re unlike much of the country:

You’re a singer, rapper and actor.

Then you should not throw away your shot.

The mega-hit Broadway musical “Hamilton” is holding auditions for its national touring production, so here’s your chance to blow us all away with your talent.

The best part? Auditions are via email, so you don’t have to wait for them to come to your town.

Instead, send your submission to casting@hamiltonmusical.com and include the following:

  • An unlisted YouTube page or Vimeo link with brief videos of you rapping and singing a pop/rock song.
  • An up-to-date photo and a resume that includes your height and weight.
  • Contact and location information and your date of birth if you’re under 18.
  • Optional: Signing your email “Your Obedient Servant.”

Tiffany Wendeln Connors is a staff writer at The Penny Hoarder. She hopes this post will score some cool mom points with her 9-year-old “Hamilton” superfan.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.



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How to Get Your First Sale for Your New Ecommerce Website

Your new ecommerce site has finally launched. Congratulations!

Now you have the ability to sell to a huge potential audience. Whether you have a completely new business or an existing brand that just launched an ecommerce site, getting your first few sales can be intimidating.

Existing businesses that expanded to the Internet, using it as an additional sales platform, will have an easier time with this.

That’s because they already have current customers familiar with the brand. For the most part, they’ll just need to let those customers know they’re selling online, and sales should follow.

With that in mind, this guide is designed mostly for those startups that just launched an ecommerce site.

Or maybe you’ve had a website for a while, but you’re just now adding an ecommerce feature to it.

Regardless of your situation, this guide will help anyone looking to increase conversions in their ecommerce stores, ultimately generating more sales.

Once you get that first sale out of the way, others will continue. Here are some tips to get you started in the right direction.

Start a blog

There is a big difference between website traffic and sales.

You may have noticed in the early days of your site launch that you’ve gotten some traffic. That’s great. But nobody is buying anything.

Don’t worry. It’s a game of numbers. No website has a 100% conversion rate.

But the more traffic you can drive to your site, the greater your chances of getting sales will be. It’s all about understanding the customer conversion funnel.

The top of the funnel is the awareness stage. Blog posts help create brand awareness and generate more site traffic.

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That’s why blogging is absolutely necessary for all ecommerce sites.

Think of it like this. What are you selling? Is it so important that people are going to shop every day for it? Probably not.

But your blog gives people a reason to visit your site on a regular basis, even if they didn’t plan on buying anything.

Blogging also improves your organic search ranking. When consumers look for products on a search engine, your site will have a greater chance of being a top hit.

Your blog can also serve as a channel for product promotion. Pitch whatever you’re selling within the content of your posts, and add hyperlinks to a landing page where the products can be purchased.

Build a list of email subscribers

Email marketing needs to be a major part of your content strategy.

If you just launched your ecommerce site, chances are you probably don’t have an active list of email subscribers yet. Before you start focusing on getting your first sale, you should learn how to build your first email list from scratch.

Again, starting from scratch can be intimidating. The number zero is tough to look at. But don’t worry, the only way to go from here is up.

I know what some of you might be thinking. Why focus on building an email list instead of working on sales?

It’s simple. Your email list will make it easier for you to generate sales.

Email marketing is the top digital tactic that drives both customer acquisition and retention, according to a recent survey of online retailers.

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This means your email list will not only help you drive your first sales but also increase the chances that those customers will continue to buy in the future.

That’s because once people sign up to receive emails, they are already interested in your brand.

Even if they haven’t bought anything yet, you can start to prime them to make a purchase. Create an actionable drip campaign, beginning with a welcome message. Follow that up with promotional emails.

You’ve got direct access to your subscribers’ inboxes, so take advantage of it. Just don’t push your luck by sending too many messages or spam.

Consumers may not visit your website every day, but they will definitely check your emails. Offer them a discount, which I’ll discuss in greater detail shortly.

Send products to social influencers

Influencer marketing has become one of the top trends of the year.

People may not know who you are or that your brand even exists. But they follow influencers on social media.

The reason why working with influencers is so beneficial is because the pay rates are low and the engagement rates are high.

For just a few hundred bucks you could get your product exposed to thousands of prospective buyers. It’s important for you as a new brand to keep your costs low in the early stages.

Without any sales, you won’t be able to survive since you don’t have a steady cash flow.

Look at the way Thompson Tee used this strategy to promote its brand on Instagram by partnering with James Tollefson:

image3 6

James has nearly 20,000 Instagram followers. So this post is great exposure for the brand.

As you can see, the post includes a purchase link and a discount code. This makes it easier and more enticing for a prospective customer to make a purchase.

It’s a cost-effective strategy. Make sure you’re smart with your marketing budget.

Have influencers wear your product, use it, or demonstrate how it works, just like in the example above.

But do your research before sending your product to just anyone. You want to make sure the influencers you’re partnering with fit your target audience and brand strategy.

Offer discounts

As a new brand, you don’t have a reputation yet.

Why should someone be the first person to buy something from your website?

They don’t see any product reviews or anything else from previous customers since there aren’t any. So it’s hard to justify paying full price for something from a brand with no reputation and no sales.

As long as it doesn’t interfere with your brand image, I recommend slashing your prices in the initial stages.

I get it. Some of you may have a luxury brand that doesn’t plan on putting items on sale.

But to get people familiar with your products and generate sales, it’s a viable strategy early on.

Here’s something else to consider. Offering a discount code increases the chances that you’ll make a sale:

image2 6

That’s because people love getting deals. Mark up your initial prices higher than you initially planned to turn a profit with the discount.

Want to get $40 for an item on your site? It’s simple. Then list it for $60 and make the sale price $40.

It’s an age-old marketing trick.

Market to prospective B2B clients

All too often I see businesses focus strictly on direct to consumer sales.

While there is nothing wrong with this strategy and its higher profit margins, it doesn’t mean you should completely dismiss the idea of targeting other businesses.

Consider selling your products at a wholesale rate to retailers.

For example, let’s say you’ve got a brand new ecommerce company that sells clothing. You don’t have any physical store locations.

To get your products into the public eye, you can reach out to local, national, and international retailers. Try to get your products in their stores.

Sure, you won’t get as much of a profit per item. But bulk orders will be much larger than those from consumers who just want to buy one shirt a time.

Once your product starts selling in one store, other retailers will want it as well. Now that consumers are familiar with your product, they’ll look to buy it on your ecommerce site.

Create social media profiles

This is something that should have been done before your site launched.

But for those of you who haven’t created social media profiles yet, it’s not too late to start. Set up accounts on the most popular platforms:

  • Facebook
  • Instagram
  • YouTube
  • Twitter

You need to have active profiles on all these channels. That said, find out which platform your target market uses the most, and prioritize those efforts first.

Once the profiles are up and running, you can leverage social commerce to drive your first sale.

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Try to increase your followers and create brand awareness.

Drive traffic to your site through these distribution channels. Once you have an active social media presence, it opens the doors for additional marketing opportunities.

Create a simple website design

Simple websites have higher conversion rates.

Take a look at your ecommerce site. Is it simple?

Yes, you might be selling hundreds or potentially thousands of products. But you can’t try to fit every single item on your homepage.

Reduce clutter. Get rid of ads.

Include a search bar and menu options for easy navigation. It’s okay to have blank space on your site. This will help focus the visitors’ attention on your CTA buttons.

You definitely want product images. But don’t include large pictures on each page – it’ll slow down page loading times.

A simple design translates to a faster loading page. You’ll get fewer page abandonments and increase the chances of getting a sale.

Giveaways

Let me clarify what I mean by this. I’m not saying you should just give your product away with no questions asked.

But now that you have your social media channels set up, you can use them to facilitate contests and similar promotions.

The winners of these contests can get your products free. Here’s an example of this strategy used by Knockaround on its Instagram profile:

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In the early stages of your business, you need to be more willing to give things away. It doesn’t have to be your most expensive products, but as long as you’re doing something, it will generate some buzz.

You could consider running weekly giveaways or even daily giveaways to put your name out there. This will accomplish a few things.

First, it puts your products into the hands of the consumer. They’ll be familiar with it and potentially buy something else as a result of their free gift. These people will also share it with their friends and family, who could also become paying customers.

Even those who didn’t win the giveaway now have some interest in your brand. These consumers are also more likely to buy now because your product is on their minds.

Attend a trade show

Many people who have an ecommerce site act as if their business runs strictly online.

Just because you don’t have a physical store doesn’t mean you can’t get out there and sell. Trade shows are a great place for ecommerce brands.

Look for local, regional, and national events to attend. They’re everywhere.

Having a presence at one of these events gives your brand exposure to attendees as well as other vendors.

You could potentially meet a vendor interested in buying products at a wholesale rate, which I previously discussed.

Trade shows aren’t necessarily the place to sell products. But you’ll give away things there to gain exposure.

You could offer some free samples of your products. Or maybe just give away some t-shirts, key chains, stickers, phone cases, and other smaller promotional items with your logo and website to encourage sales.

Give exclusive coupons and promo codes to people who visit your booth at a trade show. It could even be something as drastic as 50% off one item.

Remember, you need to do everything possible to close that first sale.

Reduce friction in your checkout process

So, you’ve been able to draw traffic to your website with the help of other promotions.

But you’re still having trouble getting those visitors to buy something. What’s wrong? Perhaps your checkout process is not optimized.

Get rid of unnecessary steps. Once a visitor decides they want a product, you need them to be able to complete the purchase with just a few clicks.

Take a look at the top reasons for shopping cart abandonment:

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Besides cost, which ranked first on the list, the next two top reasons both involve a complicated checkout process.

If you’re forcing visitors to create an account or answer tons of questions, you are crushing your conversions.

Ask only for the essentials. Get their billing information and shipping info. That’s it.

No need to ask them for their mother’s maiden name. The whole process should be a few clicks and done.

Each additional step gives the customer a chance to change their mind and abandon the sale.

Conclusion

Your new ecommerce site doesn’t have any sales yet.

That’s okay. Everyone started from zero at the beginning. The idea is to get your first few sales rolling to pick up some momentum.

Start blogging to create brand awareness, promote your products, and increase traffic to your website.

Focus on building a list of email subscribers. Work with influencers to promote your brand on social media.

Discount your prices. Simplify your website design. Attend trade shows.

Think outside the box. You can look for alternative ways to generate sales. Consider B2B brands that you could sell products to in bulk.

Increase your social media presence. Run contests and giveaways through those marketing channels.

Simplify your checkout process.

If you follow the tips and advice I’ve outlined above, it will sustain your ecommerce site far beyond your first sale.

What type of marketing strategy is your new ecommerce site using to drive your first sales?



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Financial Improvement and Self-Confidence

Several months ago, my mother-in-law made an interesting offhand comment that has tossed around in my head ever since. We were talking about my career path and how I went from being incredibly crushed at work – to the point of skipping a weekend visiting them because of work crises – to gradually standing up for myself at work and eventually quitting and starting my own business. When I sold that business and returned to an employment state, I did it exclusively on my own terms.

She made the point that, as my financial health improved, my self-confidence in my professional life also improved, which opened a ton of career doors for me.

When I was pushed up against the wall financially, I was basically scared to step out of line at all at work. If someone told me to do something, I did it, without question. I didn’t argue about it. I didn’t stand up for what I felt was right, nor did I do anything about what I felt was wrong.

I tolerated a poisonous coworker that nearly derailed a multi-year project and didn’t really say anything about it. I worked some ridiculous hours completing project elements that other people probably should have covered. I traveled a ton when I didn’t really want to travel at all.

I did that because I needed that salary. I was pressed up against the wall financially, mostly due to my awful spending habits but also because of my outstanding student loan debts and my outstanding car loan, and I lived in fear that I would lose this job and I’d basically be homeless. This obviously created a lot of stress, which I glossed over with yet more spending. It wasn’t a good cycle.

However, it was a cycle I was determined to break after the birth of my first child. Sarah and I buckled down and made some real financial changes to our life. We paid off all of our debt over the course of a little over a year and started making real concrete financial plans for the future.

In parallel with that came some professional changes. I had established a reputation at work of just being someone upon whom miserable tasks could be dumped and over the course of a couple of years, I started bristling against those tasks and standing up for myself more and more. This eventually came to a head at a meeting where I openly criticized a particular workplace policy in a way that I figured would get me into hot water, but instead I found that it actually raised my professional profile a little.

I began to be more and more assertive as time went on. I demanded extensive time off for the birth of our second child and I received it. I started openly suggesting some significant changes in the project I was working on. Along the way, I was invited to meetings and other forums that had previously been closed to me. I was dissatisfied with my career, but it seemed to be going better than ever.

It was that same self-confidence that led me to walking away from that job shortly thereafter, mostly because I wasn’t happy with what my role had become and where things seemed to be heading. Instead, I took up a full time gig as a writer.

It was a leap that took a ton of self-confidence, which I didn’t have just a few years before. If anything, having an infant and a toddler at home should have made me even less self-confident about taking professional risks.

What changed? I had righted my financial ship. That was the big change. I was no longer in fear of everything collapsing if I lost my job. Yes, it might be rough for a little while, but I had a firm financial foundation under me. I didn’t have debts hanging around my neck. I had a nice emergency fund in place. I had solid retirement savings under my belt. I also had a couple of moderately successful side businesses growing (one of which was The Simple Dollar itself). Not only that, I was spending a lot less than I earned – things were improving literally every month. Things would be okay.

That sense that my finances were in good shape and that my world wouldn’t collapse if I lost that job made me feel more comfortable asserting myself at work. I felt more self-confident in everything I did there because I knew that the threat of a job loss was far less powerful than it once had been.

That self-confidence was transformative. Not only did it make the final year or so at my previous job much more tolerable than it would have been, it also gave me the courage to try other endeavors, which led me to jumping to The Simple Dollar full time when it began to look feasible.

The self-confidence that came from knowing that it wouldn’t be a disaster if I had to change jobs, along with knowing that I could easily take the risk to change jobs without upsetting my apple cart, enabled me to not only advocate for myself at work, but it gave me the confidence to leap into a major career shift that was good for my health, happiness, and finances.

What’s the take home lesson here?

First of all, don’t let yourself get into a situation where you absolutely have to keep your job or else your life falls apart. When you’re in that position, you’ve allowed your job to have an enormous degree of power over your life, which means you simply have to accept what your boss shoves in your direction. Absurd overtime hours? Drudgery work? Poor treatment? You’re in a position where you have to accept it or add additional stress to an already fragile life and financial situation. Avoid this at all costs.

The easiest way to avoid this scenario is by living on less than you earn at all times. Never, ever, ever spend as much as you earn. Always spend less. Put aside parts of your paycheck for retirement and for an emergency fund. At the same time, don’t allow your debts to grow; instead, pay them down rapidly. When you pay off a car loan, don’t look at it as an opportunity for lifestyle inflation – instead, start saving an amount equal to your car payment so that in a few years you can just pay cash for the replacement.

The reality is that whenever you assert yourself in the workplace, there’s an upside and a downside to it. The upside is that if you have a legitimate and well-articulated concern, you’re likely to see at least some degree of improvement in whatever it is you’re concerned with, particularly if you have a good record as an employee. You’re also likely to be seen in a more positive and proactive light by others, provided you carefully choose what things to stand up for and don’t complain about everything. The downside, of course, is that you can potentially create conflict while being assertive, which has some risk of having a negative impact on your career. Being in a poor financial situation causes that downside to magnify, increasing the risks associated with standing up for yourself. Financial self-control makes it easier for you to be more self-confident at work.

So, my career advice to anyone and everyone out there is to get in control of your finances. Spend less than you earn, have a healthy emergency fund, and know that your world won’t fall apart if you were to lose your job. This makes the risk of taking a stand at work much less, and taking a stand can have some tremendous upside for your career.

Good luck!

The post Financial Improvement and Self-Confidence appeared first on The Simple Dollar.



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US Debt Bomb? CBO Predicts Dangerous National Debt Spike

The CBO predicts that in 10 years, the national debt will reach nearly 100 percent of the gross domestic product...

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How to Shrink Your Dry-Cleaning Bill Without Shrinking Your Clothes

Who’s the Boss? Not Me: Why I Turned Down a Big Promotion

For the first nine years of my working life, I had one goal: Move up the ladder as fast as possible. If I wasn’t making quick progress through the ranks of my profession, I didn’t see the point of sticking with a line of work for more than a few years.

Lately, though, my thoughts on this matter have evolved. I’m now happy to hang around the middle levels of an organization, even if I end up doing so for my entire career. Below, I’ll explore how I got to this point and, with the help of a professional career coach, I’ll discuss why others might want to consider a similar path.

Missing the Forest for the Trees

My first post-college job was as a professional basketball player in Israel.

In the fall of 2012, after completing my third season as a player, I had a big decision to make. I was offered a contract to play for a fourth year, but I didn’t know if I wanted to take it. My issue was with the fact that I would be making the same amount of money I’d earned the previous year. I would also be on the same team, and I’d have the same general responsibilities on the court.

All of those factors made me feel like my career had plateaued. I felt like I would never achieve my real goal, which was to play on a more prestigious team and make a lot more money.

I didn’t care that I was making a pretty good salary to play a sport I loved. I didn’t care that my job offered me ample free time to socialize, explore, and work on side projects. I didn’t care about the relationships I’d built or my deep ties to the local community. All that mattered was my lack of upward mobility with my job.

I decided to stop playing basketball at that point. While I’m happy with how everything turned out, I have regrets about the decision-making process that led me to quit. I was looking at my career through a very restrictive lens. I should have stopped playing if I didn’t love basketball anymore, or if my work situation was toxic — not because I wasn’t hitting arbitrary career benchmarks I’d set in my head.

Changing How You Define Success

A few months ago, I was offered a promotion. The new role promised more money, but also substantially more responsibilities. I was perfectly happy at my current level, so I declined. I knew full well that the new role would not be a good fit for me. Every step up the ladder comes with a new set of new headaches, and I just don’t care to deal with those at this time.

Making the most money, or having the fanciest title, is no longer my goal. I am happy to be a career subordinate.

This is a contrarian stance to take. When I told my parents about my decision, they both immediately asked, “Why would you not accept a promotion?!” The dominant message in our culture is that we should be pushing ourselves to greater and greater heights in the workplace, regardless of the consequences.

Irina Pichura, a career coach and founder of Career Manifestations, realizes that it can be difficult to combat such messages. She thinks the key to your workplace happiness lies in figuring out how you define success, a process that will be unique to each individual. “Success is different for everyone, depending on their core values,” Pichura said.

Basically, you have to do an honest assessment of what matters to you. “Not everyone wants to be a manager or a high-level executive and take on that responsibility,” Pichura told me. “It’s important to think about your individual goals and what’s going to be fulfilling to you. Everyone has different aspirations in life.”

Like a lot of good advice, it sounds so simple but it’s hard to execute. When you’re swimming in a sea of people who all have the same aspirations, it can be hard to step back and figure out what you really want. But if you make the time to do so, the results might surprise you.

Finding the Right Fit

There are people who should be pushing their careers forward at full speed, and please, don’t let me stop you. If you love what you do and you like the responsibilities that come with increasingly high-level roles, then go for it! Many people have very good reasons to tip the work-life balance further toward work.

The key is in making sure you truly are that type of person. As Pichura told me, “It’s important for people to listen, be honest, and honor what balance looks like to them as an individual, and then find a company or workplace that gives you that.”

In the real estate world, the famous mantra is, “Location, location, location.” Most buyers are willing to sacrifice quite a bit so they can live in an area they absolutely love. It seems the job-hunting mantra should be all about, “Fit, fit, fit.” Even if you don’t make the most money or have the most exciting role, if your job perfectly suits your particular skill set and personality, well, that’s pretty darn important.

My best fit is at my current company in my current role. I’d truly be happy to spend the rest of my career in my position, regardless of what my parents, friends, or the “Hustlers,” “Ninjas,” and “Growth Hackers” on LinkedIn think.

The Grass Isn’t Always Greener

Many people have found out the hard way that a higher paycheck and a new role doesn’t always make them happier. Or, as the rapper Notorious BIG famously put it, “Mo’ money, mo’ problems.”

Pichura told me a story that illustrates this point. She knew a sales representative that was very happy in her role as an individual contributor. She made good money and liked the work. She was also very successful, and her bosses repeatedly asked her if she wanted to take on the role of District Sales Manager. She finally relented and accepted the job. Then, she instantly regretted it.

“She now has the stress of managing six other sales representatives who have to produce and hit their quotas,” Pichura said. “She never wanted the position and only took it because of pressure from the company and the prestige of a higher role. I think it would have been better in her case to stick to what she originally doing and listen to her intuition.”

Whenever I consider taking on a new role at my company, I have to actively remind myself that I have it very good and that the grass isn’t always greener on the other side.

Summing Up

I recently learned a new word that I love: satisfice. It means “to accept an available option as satisfactory,” and people who strive to be satisficers tend to be happier with their decisions. As someone who used to be a perfectionist, I now see the beauty in being a satisficer, whether it’s in where I live or where I work.

When I made my decision to quit basketball, things like work-life balance were not considerations. I had a one-track mind. Now, success in my eyes is more about having a good work-life balance than in moving up the ladder. I truly feel like I know when something is good enough, and no amount of societal pressure can sway me to think differently.

Related Reading:

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This Founder Wants to Help You Save for Retirement Without the Hassle

Investment trust managers reveal their longest-held stocks

Investment trust managers reveal their longest-held stocks

If you’re in it for the long haul, well-managed investment trusts based on solid, market-leading businesses can deliver excellent returns

Investment trusts are one of the oldest investment vehicles, public limited companies that are celebrating their 150th anniversary this year.

The closed-ended structure of these trusts (there are a fixed number of shares, no more can be issued after the initial offering and they can be traded on the stock exchange) is a key benefit, allowing managers to hold on to stocks from drinks manufacturers to engineering companies to airport operators for long periods of time.

Because of the fixed number of shares, unlike their open-ended (OEIC) fund counterparts, the managers of these vehicles are not under pressure to act on investor inflows and outflows.

Investment trust managers, therefore, have the option to hold on to their favoured stocks for longer, as there is less pressure to sell investments at short notice if the investors suddenly fall out of favour with the asset class and want to withdraw their money.

Of the Moneywise First 50 Funds for beginner investors’ 10 investment trusts, 70% have been around for more than 90 years. Three of these investment companies – Finsbury Growth & Income Trust, Murray International Trust and Scottish Mortgage Investment Trust – highlight some of their longest-held stocks and the benefits of a closed-ended structure when investing over the long term.

“Their closed-ended structure is a key benefit”

Bruce Stout, manager of Murray International Trust since 2004, suggests today’s world of commerce and finance might be unrecognisable to the founders of the Scottish Western Investment Company, now Murray International, when they established the company in 1907 with an initial share capital of £500,000 (it now has total assets of £1.65 billion).

But, he points out, the investment philosophy of the trust, which focuses on global income, has “never wavered during more than a century of constantly changing and often extremely challenging times”.

Data from the investment trust trade body, the Association of Investment Companies (AIC), shows the trust has delivered a share price total return of 924.67% for the 25 years to 31 March 2018.

Mr Stout says: “Steel and railways in North and South America represented the vanguard of progress at the beginning of the 20th century, and the original investment portfolio had a predominately transatlantic bias, with a heavy emphasis on the bonds and preference stocks of railroad and tramway companies.

“Fast-forward 100 years, and while the engines of growth may have changed, the investment spirit to seek out value in emerging markets remains as vibrant as ever.”

The trust currently holds almost a fifth (17%) of its assets in Latin America and emerging market equities, and a further 25% is invested in Asia Pacific ex Japan equities, according to the AIC.

Mr Stout adds: “Current holdings such as Grupo Asur, Unilever Indonesia and Taiwan Semiconductor have been held in our portfolio for over 10 years. We continue to do so in the belief that there are still significant growth opportunities ahead.”

Grupo Asur, for example, which is the second-largest holding in the portfolio, operates airports in Mexico, and, through its presence in popular resorts such as Cancun and Cozumel, benefits from the continuing rise in visitors to Mexico. It is therefore well positioned to experience stronger growth as the global leisure industry continues to expand.

Meanwhile, Catharine Flood, client service director for Scottish Mortgage Investment Trust, which invests in global companies with radical growth opportunities, says its longest holding is the Swedish industrial company Atlas Copco, which has been in the portfolio since 1995.

She explains: “The company is one of Europe’s highest-quality engineering groups. Its flagship segments are its industrial compressors and vacuum businesses and it also possesses leading positions in industrial tools and in construction and mining equipment. Atlas Copco has an excellent record of generating returns, backed by strong cashflow generation and cost controls.”

“Scottish Mortgage recorded a total return over 25 years of 1,759.56%”

As a result, the stock has been a strong contributor to the performance of the trust, generating 18% on an annualised basis to the end of February 2018. For the 25 years to 31 March 2018, the trust, which was first established in 1909 and has been managed by James Anderson since 2000, has recorded a share price total return of 1,759.56%, according to data from the AIC.

Ms Flood adds: “It is a good example of the returns which are possible from committed long-term holdings in strong, growing businesses with durable competitive advantages, which are run by great management teams whose time horizons are aligned with those of our shareholders.”

In the UK income sector, Nick Train, manager of Finsbury Growth & Income Trust, is equally clear about the benefits of a closed-ended structure for long-term investing.

The trust, which was launched in 1926, has delivered a share price total return of 1,478.43% for the 25 years to 31 March 2018, data from the AIC shows.

He says: “[My company] Lindsell Train was appointed investment adviser to Finsbury Growth & Income Trust in 2001. One of the first investments we made was into AG Barr, the maker of the wondrous Irn-Bru. This was and remains the number one soft drink in Scotland, making Scotland, as a result, one of the very few countries in the world where Coke is available but not the top seller.

“For decades, Warren Buffett had been explaining the merits of investing in leading beverage brands – cost of ingredients very low: consumer loyalty to the brands very high. And we chose to follow his general advice by buying Barr, which is still in the portfolio 17 years later.”

Mr Train notes the value of the shares has increased nearly ninefold since it was first purchased for the portfolio. But he adds: “The statistic I like is this: if you compare Barr’s 2017 dividend payment to our average book cost for the holding, we are now earning a dividend yield of about 19% on the original investment. Only long-term equity investing can do this for you and closed-end investment trusts are some of the best-designed vehicles for long-term equity investing.

“Barr has recently cut the sugar content of Irn-Bru, so you have no excuse not to keep supping the nectar. We’ll see what that does for the shares over the next 17 years.”

Performance of Moneywise’s First 50 investment trusts over 25 years

Investment trust AIC sector Three-year performance Five-year performance 10-year performance 20-year performance 25-year performance
City of London UK Equity Income 15.84 42.88 132.21 287.13 693.92
F&C Commercial Property Property Direct - UK 18.11 71.81 155.52 N/A N/A
F&C Global Smaller Companies Global 33.94 75.03 300.69 859.09 1,250.99
Finsbury Growth & Income UK Equity Income 35.15 79.78 304.89 642.64 1,478.43
Henderson Smaller Companies UK Smaller Companies 53.47 115.44 319 398.41 644.22
Jupiter European Opportunities Europe 34.54 84.18 269.25 N/A N/A
Murray International Global Equity Income 34.14 25.94 158.74 483.42 924.67
Picton Property Income Property Direct - UK 34.15 167.04 148.38 N/A N/A
Scottish Mortgage Global 70.25 184.52 334.74 853.86 1,759.56
Witan Global 33.59 91.5 196.95 407.95 852.55

All data to 31 March 2018 using the share price total return (SPTR). N/A applies where funds haven’t existed for this length of time. Source: Morningstar, 11 April 2018.

NYREE STEWART is a freelance personal finance journalist who has written for the Financial Times and Money Observer

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Get the retirement you want

Get the retirement you want

I once heard retirement described as 500 holidays: if you retire at 65 and live for 20 years, that’s 7,305 days to fill. Break this up into two-week holidays and you have to plan for about 500.

It’s the most engaging way I’ve found of broaching the subject of pensions and long-term saving – topics doomed to languish at the bottom of “interesting conversations I’ve had” lists. If nothing else, it fills the imagination and makes us think about what we aspire to do when we stop working.

It also gives us an idea of how expensive retirement might be, which is extremely important, as most of us underestimate how much money we may need to live on.

So what’s the action plan?

I’m a firm believer in the principle that the earlier we start saving the better. The power of compounding is not to be underestimated and even small amounts can add up over time. But, in reality, it’s not until we reach our forties, or even fifties, that most people have enough disposable income to start saving seriously. At this age, we’ve got used to accounting for mortgage payments, childcare costs are usually less of an issue, and we’re hitting our peak earnings.

It’s not too late if you haven’t started, but it is crunch time. You have 15 to 20 years of earning to sort out your finances so that you can live comfortably when you stop working and start having all those holidays.

The big number

How much you need to save depends on what type of holidays you want. Have you dreamed of retirement being the time you finally travel the globe? Or do you want to take up a hobby closer to home and the family? There is no right or wrong answer – different things make different people happy. But if you want to live your dreams you need to be able to fund them.

Arriving at your final number can be a bit daunting. To give you an idea, a very simple calculation is that £100,000 could give you 3% to 5% a year to live on – mainly from income with a bit of capital thrown in for difficult years.

So if I need £30,000 a year to live on, I need to save between £600,000 to £1 million.

How to get there

Don’t despair: with a 20-year investment time horizon, a significant pot of money can be achieved. If you had invested £40,000 in a UK equity fund back in 1998 – 20 years ago and two bull and bear markets later – and not added a penny since, you could still have been between a quarter and a third of the way towards your goal. As you can see from the table, the best-performing funds* would have turned that initial investment into a pot worth more than £314,000.

That said, most investors wouldn’t, and shouldn’t, rely on just one investment. We all know what can happen if you have all your eggs in one basket. So, as your investment grows, so should its diversification.

Early on in your 20-year timeframe, you could choose to invest in global equities or smaller companies, for example. Funds that encapsulate both ideas are Rathbone Global Opportunities – a fund that invests in companies of all sizes but has a bias to smaller and medium-sized ones – and Baillie Gifford Global Discovery, which looks for fast growth, smaller businesses and invests in them as they grow. For those who prefer investment trusts, F&C Global Smaller Companies** is worth a look.

Best-perfoming UK funds over the last 20 years

Fund name Value of £40,000 invested 20 years ago
Fidelity Special Situations £314,312.09
TM Cavendish Opportunities £277,781.86
Schroder Recovery £256,680.37
GAM UK Diversified £251,074.07
Marlborough UK Multi-Cap Growth £244,303.44
BlackRock UK Special Situations £232,041.51
Artemis UK Select £230,020.60
Invesco Perpetual High Income £219,871.91

Source: FE Analytics, total returns on £40,000 invested, 25 May 1998 to 25 May 2018

Later on, you may wish to add some lower-risk fixed income funds such as Fidelity Strategic Bond or AXA Sterling Credit Short Duration. Or you may like to leave the asset allocation to a professional and invest in a multi-asset fund such as Premier Growth & Income or Jupiter Merlin Income.

“To live your dreams you have to fund them”

Whatever products or funds you decide to invest in, make sure you review your holdings at least once or twice a year to ensure your portfolio is still on track to meet your goal.

Bonnes vacances!

*Source FE Analytics, total returns of funds in the IA All Companies and IA UK Equity Income sectors over 20 years to 25 May 2018. These funds existed in 1998 and still exist today.

** Denotes a member of the Moneywise First 50 funds for beginner investors: Moneywise.co.uk/first-50-funds.

Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. Mr McDermott’s views are his own and do not constitute financial advice.

DARIUS MCDERMOTT is managing director at Chelsea Financial Services and FundCalibre

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