You can now get Wagga's beloved Lebanese chicken in Melbourne

2026 Ford Territory revealed: Familiar name for fresh-faced SUV

Perth Now

3 days ago

Perth Now

2026 Ford Territory revealed: Familiar name for fresh-faced SUV

A new Ford Territory is scheduled to land showrooms in South America, Southeast Asia and South Africa from next month, the famous Australian name now applied to a Chinese-made SUV. There are no plans to bring the Territory to local showrooms, and the updated model is not related – apart from its name – to the Australian-made Territory sold here between 2004 and 2016. With sales kicking off in Brazil in July 2025, the 'Novo Territory' is a mid-life update of the current model. Ford is looking to capitalise on the SUV's strong sales, which quadrupled in Brazil over the last 12 months. 'Territory is the model of our portfolio that has grown the most in the last year in Brazil and South America and has room to advance even further,' Antonio Baltar Junior, Ford South America director of sales, marketing and services, said in a statement. Supplied Credit: CarExpert The Territory continues with a single model grade in Brazil, the Titanium Turbo EcoBoost priced at R$215,001 ($60,372) before on-road costs – R$3001 ($800) more than the previous model – with only key details announced so far. The biggest change is the new squared-off styling with redesigned bumpers front and rear featuring integrated fog lamps, while L-shaped 'optical' LED headlights with LED daytime running lights extend into the lower front bumper. The front also sees a new thinner, black front grille and central but raised Ford blue-oval logo in a similar style to the final Ford Escape SUV – and Fiesta and Focus hatchbacks – dropped from Australian showrooms. There are also 19-inch silver alloy wheels – bigger than any standard showroom wheel fitted to the previous Australian Territory – and more colour coding for the mirrors and door handles, peppered with chrome elements such as the side window surrounds. Supplied Credit: CarExpert The design follows the late 2024 facelift of the Chinese-market Equator Sport SUV, which is the same vehicle by another name. This model has been on sale since 2018, with the current, second generation launching in 2022. There are no changes to the key dimensions – with a 4630mm length making it 10mm longer than the previous Escape and 15mm longer than a Toyota RAV4 – and a significant 258mm shorter than the final Australian Territory (4888mm) sold in 2016. Ford Brazil says the cabin benefits from new finishes, such as new grey and brown colours, with electrically adjustable seats with 'micro-perforated' leather upholstery as well as cooling. A panoramic sunroof, rotary gear shifter and 12.3-inch centre touchscreen with Ford Co-Pilot 360 driver assist tech – including Parking Assist – are also standard, along with a 12.3-inch configurable digital instrument cluster and wireless smartphone charging. Supplied Credit: CarExpert The turbocharged 1.5-litre four-cylinder petrol engine, producing 124kW of power and 250Nm of torque, and the seven-speed dual-clutch automatic carry over unchanged. Only front-wheel drive is available. The Ford Territory was introduced in Australia in 2004 and is one of the automaker's key masterstrokes. The Australian-made SUV was also exported to multiple markets, including South America and South Africa where it introduced the Territory name which remains in showrooms today. The rear-wheel drive Ford Falcon family sedan/wagon/ute was the basis for the Australian-made Territory. The large crossover SUV offered a masterclass in exterior design with 178mm of ground clearance and up to seven seats, combined with clever features such as an opening rear windscreen and 'wet area', all while using the Falcon's powerful 4.0-litre in-line six-cylinder petrol engine and offering strong 2300kg towing capability. From a manufacturing viewpoint, it also allowed parts sharing and development cost efficiencies, with the Territory and Falcon's corresponding improvements feeding into each other. Supplied Credit: CarExpert It won significant praise from the motoring media at its launch, catching arch-rival Holden flat-footed despite it cleverly using the Falcon-rivalling Commodore for a raft of different body types – yet not a thoroughly executed SUV like Territory. Holden did offer the Adventra, a jacked-up version of the Commodore wagon with all-wheel drive, but it was short-lived and its sales numbers paled in comparison to those of the Territory. A turbo-diesel version of the Territory added in 2011 helped improve fuel economy as well as increase its braked towing capacity to 2700kg for all-wheel drive variants. While Falcon sales tailed off as Ford Australia production wound down, the Territory remained a strong seller for the brand until production ended in October 2016 – easily outlasting its short-lived replacement, the Canadian-built Ford Endura (Ford Edge overseas) sold here between 2018-2020. MORE: Everything Ford

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3 days ago

The Advertiser

2026 Ford Territory revealed: Familiar name for fresh-faced SUV

A new Ford Territory is scheduled to land showrooms in South America, Southeast Asia and South Africa from next month, the famous Australian name now applied to a Chinese-made SUV. There are no plans to bring the Territory to local showrooms, and the updated model is not related – apart from its name – to the Australian-made Territory sold here between 2004 and 2016. With sales kicking off in Brazil in July 2025, the 'Novo Territory' is a mid-life update of the current model. Ford is looking to capitalise on the SUV's strong sales, which quadrupled in Brazil over the last 12 months. "Territory is the model of our portfolio that has grown the most in the last year in Brazil and South America and has room to advance even further," Antonio Baltar Junior, Ford South America director of sales, marketing and services, said in a statement. The Territory continues with a single model grade in Brazil, the Titanium Turbo EcoBoost priced at R$215,001 ($60,372) before on-road costs – R$3001 ($800) more than the previous model – with only key details announced so far. The biggest change is the new squared-off styling with redesigned bumpers front and rear featuring integrated fog lamps, while L-shaped 'optical' LED headlights with LED daytime running lights extend into the lower front bumper. The front also sees a new thinner, black front grille and central but raised Ford blue-oval logo in a similar style to the final Ford Escape SUV – and Fiesta and Focus hatchbacks – dropped from Australian showrooms. There are also 19-inch silver alloy wheels – bigger than any standard showroom wheel fitted to the previous Australian Territory – and more colour coding for the mirrors and door handles, peppered with chrome elements such as the side window surrounds. The design follows the late 2024 facelift of the Chinese-market Equator Sport SUV, which is the same vehicle by another name. This model has been on sale since 2018, with the current, second generation launching in 2022. There are no changes to the key dimensions – with a 4630mm length making it 10mm longer than the previous Escape and 15mm longer than a Toyota RAV4 – and a significant 258mm shorter than the final Australian Territory (4888mm) sold in 2016. Ford Brazil says the cabin benefits from new finishes, such as new grey and brown colours, with electrically adjustable seats with 'micro-perforated' leather upholstery as well as cooling. A panoramic sunroof, rotary gear shifter and 12.3-inch centre touchscreen with Ford Co-Pilot 360 driver assist tech – including Parking Assist – are also standard, along with a 12.3-inch configurable digital instrument cluster and wireless smartphone charging. The turbocharged 1.5-litre four-cylinder petrol engine, producing 124kW of power and 250Nm of torque, and the seven-speed dual-clutch automatic carry over unchanged. Only front-wheel drive is available. The Ford Territory was introduced in Australia in 2004 and is one of the automaker's key masterstrokes. The Australian-made SUV was also exported to multiple markets, including South America and South Africa where it introduced the Territory name which remains in showrooms today. The rear-wheel drive Ford Falcon family sedan/wagon/ute was the basis for the Australian-made Territory. The large crossover SUV offered a masterclass in exterior design with 178mm of ground clearance and up to seven seats, combined with clever features such as an opening rear windscreen and 'wet area', all while using the Falcon's powerful 4.0-litre in-line six-cylinder petrol engine and offering strong 2300kg towing capability. From a manufacturing viewpoint, it also allowed parts sharing and development cost efficiencies, with the Territory and Falcon's corresponding improvements feeding into each other. It won significant praise from the motoring media at its launch, catching arch-rival Holden flat-footed despite it cleverly using the Falcon-rivalling Commodore for a raft of different body types – yet not a thoroughly executed SUV like Territory. Holden did offer the Adventra, a jacked-up version of the Commodore wagon with all-wheel drive, but it was short-lived and its sales numbers paled in comparison to those of the Territory. A turbo-diesel version of the Territory added in 2011 helped improve fuel economy as well as increase its braked towing capacity to 2700kg for all-wheel drive variants. While Falcon sales tailed off as Ford Australia production wound down, the Territory remained a strong seller for the brand until production ended in October 2016 – easily outlasting its short-lived replacement, the Canadian-built Ford Endura (Ford Edge overseas) sold here between 2018-2020. MORE: Everything Ford Content originally sourced from: A new Ford Territory is scheduled to land showrooms in South America, Southeast Asia and South Africa from next month, the famous Australian name now applied to a Chinese-made SUV. There are no plans to bring the Territory to local showrooms, and the updated model is not related – apart from its name – to the Australian-made Territory sold here between 2004 and 2016. With sales kicking off in Brazil in July 2025, the 'Novo Territory' is a mid-life update of the current model. Ford is looking to capitalise on the SUV's strong sales, which quadrupled in Brazil over the last 12 months. "Territory is the model of our portfolio that has grown the most in the last year in Brazil and South America and has room to advance even further," Antonio Baltar Junior, Ford South America director of sales, marketing and services, said in a statement. The Territory continues with a single model grade in Brazil, the Titanium Turbo EcoBoost priced at R$215,001 ($60,372) before on-road costs – R$3001 ($800) more than the previous model – with only key details announced so far. The biggest change is the new squared-off styling with redesigned bumpers front and rear featuring integrated fog lamps, while L-shaped 'optical' LED headlights with LED daytime running lights extend into the lower front bumper. The front also sees a new thinner, black front grille and central but raised Ford blue-oval logo in a similar style to the final Ford Escape SUV – and Fiesta and Focus hatchbacks – dropped from Australian showrooms. There are also 19-inch silver alloy wheels – bigger than any standard showroom wheel fitted to the previous Australian Territory – and more colour coding for the mirrors and door handles, peppered with chrome elements such as the side window surrounds. The design follows the late 2024 facelift of the Chinese-market Equator Sport SUV, which is the same vehicle by another name. This model has been on sale since 2018, with the current, second generation launching in 2022. There are no changes to the key dimensions – with a 4630mm length making it 10mm longer than the previous Escape and 15mm longer than a Toyota RAV4 – and a significant 258mm shorter than the final Australian Territory (4888mm) sold in 2016. Ford Brazil says the cabin benefits from new finishes, such as new grey and brown colours, with electrically adjustable seats with 'micro-perforated' leather upholstery as well as cooling. A panoramic sunroof, rotary gear shifter and 12.3-inch centre touchscreen with Ford Co-Pilot 360 driver assist tech – including Parking Assist – are also standard, along with a 12.3-inch configurable digital instrument cluster and wireless smartphone charging. The turbocharged 1.5-litre four-cylinder petrol engine, producing 124kW of power and 250Nm of torque, and the seven-speed dual-clutch automatic carry over unchanged. Only front-wheel drive is available. The Ford Territory was introduced in Australia in 2004 and is one of the automaker's key masterstrokes. The Australian-made SUV was also exported to multiple markets, including South America and South Africa where it introduced the Territory name which remains in showrooms today. The rear-wheel drive Ford Falcon family sedan/wagon/ute was the basis for the Australian-made Territory. The large crossover SUV offered a masterclass in exterior design with 178mm of ground clearance and up to seven seats, combined with clever features such as an opening rear windscreen and 'wet area', all while using the Falcon's powerful 4.0-litre in-line six-cylinder petrol engine and offering strong 2300kg towing capability. From a manufacturing viewpoint, it also allowed parts sharing and development cost efficiencies, with the Territory and Falcon's corresponding improvements feeding into each other. It won significant praise from the motoring media at its launch, catching arch-rival Holden flat-footed despite it cleverly using the Falcon-rivalling Commodore for a raft of different body types – yet not a thoroughly executed SUV like Territory. Holden did offer the Adventra, a jacked-up version of the Commodore wagon with all-wheel drive, but it was short-lived and its sales numbers paled in comparison to those of the Territory. A turbo-diesel version of the Territory added in 2011 helped improve fuel economy as well as increase its braked towing capacity to 2700kg for all-wheel drive variants. While Falcon sales tailed off as Ford Australia production wound down, the Territory remained a strong seller for the brand until production ended in October 2016 – easily outlasting its short-lived replacement, the Canadian-built Ford Endura (Ford Edge overseas) sold here between 2018-2020. MORE: Everything Ford Content originally sourced from: A new Ford Territory is scheduled to land showrooms in South America, Southeast Asia and South Africa from next month, the famous Australian name now applied to a Chinese-made SUV. There are no plans to bring the Territory to local showrooms, and the updated model is not related – apart from its name – to the Australian-made Territory sold here between 2004 and 2016. With sales kicking off in Brazil in July 2025, the 'Novo Territory' is a mid-life update of the current model. Ford is looking to capitalise on the SUV's strong sales, which quadrupled in Brazil over the last 12 months. "Territory is the model of our portfolio that has grown the most in the last year in Brazil and South America and has room to advance even further," Antonio Baltar Junior, Ford South America director of sales, marketing and services, said in a statement. The Territory continues with a single model grade in Brazil, the Titanium Turbo EcoBoost priced at R$215,001 ($60,372) before on-road costs – R$3001 ($800) more than the previous model – with only key details announced so far. The biggest change is the new squared-off styling with redesigned bumpers front and rear featuring integrated fog lamps, while L-shaped 'optical' LED headlights with LED daytime running lights extend into the lower front bumper. The front also sees a new thinner, black front grille and central but raised Ford blue-oval logo in a similar style to the final Ford Escape SUV – and Fiesta and Focus hatchbacks – dropped from Australian showrooms. There are also 19-inch silver alloy wheels – bigger than any standard showroom wheel fitted to the previous Australian Territory – and more colour coding for the mirrors and door handles, peppered with chrome elements such as the side window surrounds. The design follows the late 2024 facelift of the Chinese-market Equator Sport SUV, which is the same vehicle by another name. This model has been on sale since 2018, with the current, second generation launching in 2022. There are no changes to the key dimensions – with a 4630mm length making it 10mm longer than the previous Escape and 15mm longer than a Toyota RAV4 – and a significant 258mm shorter than the final Australian Territory (4888mm) sold in 2016. Ford Brazil says the cabin benefits from new finishes, such as new grey and brown colours, with electrically adjustable seats with 'micro-perforated' leather upholstery as well as cooling. A panoramic sunroof, rotary gear shifter and 12.3-inch centre touchscreen with Ford Co-Pilot 360 driver assist tech – including Parking Assist – are also standard, along with a 12.3-inch configurable digital instrument cluster and wireless smartphone charging. The turbocharged 1.5-litre four-cylinder petrol engine, producing 124kW of power and 250Nm of torque, and the seven-speed dual-clutch automatic carry over unchanged. Only front-wheel drive is available. The Ford Territory was introduced in Australia in 2004 and is one of the automaker's key masterstrokes. The Australian-made SUV was also exported to multiple markets, including South America and South Africa where it introduced the Territory name which remains in showrooms today. The rear-wheel drive Ford Falcon family sedan/wagon/ute was the basis for the Australian-made Territory. The large crossover SUV offered a masterclass in exterior design with 178mm of ground clearance and up to seven seats, combined with clever features such as an opening rear windscreen and 'wet area', all while using the Falcon's powerful 4.0-litre in-line six-cylinder petrol engine and offering strong 2300kg towing capability. From a manufacturing viewpoint, it also allowed parts sharing and development cost efficiencies, with the Territory and Falcon's corresponding improvements feeding into each other. It won significant praise from the motoring media at its launch, catching arch-rival Holden flat-footed despite it cleverly using the Falcon-rivalling Commodore for a raft of different body types – yet not a thoroughly executed SUV like Territory. Holden did offer the Adventra, a jacked-up version of the Commodore wagon with all-wheel drive, but it was short-lived and its sales numbers paled in comparison to those of the Territory. A turbo-diesel version of the Territory added in 2011 helped improve fuel economy as well as increase its braked towing capacity to 2700kg for all-wheel drive variants. While Falcon sales tailed off as Ford Australia production wound down, the Territory remained a strong seller for the brand until production ended in October 2016 – easily outlasting its short-lived replacement, the Canadian-built Ford Endura (Ford Edge overseas) sold here between 2018-2020. MORE: Everything Ford Content originally sourced from: A new Ford Territory is scheduled to land showrooms in South America, Southeast Asia and South Africa from next month, the famous Australian name now applied to a Chinese-made SUV. There are no plans to bring the Territory to local showrooms, and the updated model is not related – apart from its name – to the Australian-made Territory sold here between 2004 and 2016. With sales kicking off in Brazil in July 2025, the 'Novo Territory' is a mid-life update of the current model. Ford is looking to capitalise on the SUV's strong sales, which quadrupled in Brazil over the last 12 months. "Territory is the model of our portfolio that has grown the most in the last year in Brazil and South America and has room to advance even further," Antonio Baltar Junior, Ford South America director of sales, marketing and services, said in a statement. The Territory continues with a single model grade in Brazil, the Titanium Turbo EcoBoost priced at R$215,001 ($60,372) before on-road costs – R$3001 ($800) more than the previous model – with only key details announced so far. The biggest change is the new squared-off styling with redesigned bumpers front and rear featuring integrated fog lamps, while L-shaped 'optical' LED headlights with LED daytime running lights extend into the lower front bumper. The front also sees a new thinner, black front grille and central but raised Ford blue-oval logo in a similar style to the final Ford Escape SUV – and Fiesta and Focus hatchbacks – dropped from Australian showrooms. There are also 19-inch silver alloy wheels – bigger than any standard showroom wheel fitted to the previous Australian Territory – and more colour coding for the mirrors and door handles, peppered with chrome elements such as the side window surrounds. The design follows the late 2024 facelift of the Chinese-market Equator Sport SUV, which is the same vehicle by another name. This model has been on sale since 2018, with the current, second generation launching in 2022. There are no changes to the key dimensions – with a 4630mm length making it 10mm longer than the previous Escape and 15mm longer than a Toyota RAV4 – and a significant 258mm shorter than the final Australian Territory (4888mm) sold in 2016. Ford Brazil says the cabin benefits from new finishes, such as new grey and brown colours, with electrically adjustable seats with 'micro-perforated' leather upholstery as well as cooling. A panoramic sunroof, rotary gear shifter and 12.3-inch centre touchscreen with Ford Co-Pilot 360 driver assist tech – including Parking Assist – are also standard, along with a 12.3-inch configurable digital instrument cluster and wireless smartphone charging. The turbocharged 1.5-litre four-cylinder petrol engine, producing 124kW of power and 250Nm of torque, and the seven-speed dual-clutch automatic carry over unchanged. Only front-wheel drive is available. The Ford Territory was introduced in Australia in 2004 and is one of the automaker's key masterstrokes. The Australian-made SUV was also exported to multiple markets, including South America and South Africa where it introduced the Territory name which remains in showrooms today. The rear-wheel drive Ford Falcon family sedan/wagon/ute was the basis for the Australian-made Territory. The large crossover SUV offered a masterclass in exterior design with 178mm of ground clearance and up to seven seats, combined with clever features such as an opening rear windscreen and 'wet area', all while using the Falcon's powerful 4.0-litre in-line six-cylinder petrol engine and offering strong 2300kg towing capability. From a manufacturing viewpoint, it also allowed parts sharing and development cost efficiencies, with the Territory and Falcon's corresponding improvements feeding into each other. It won significant praise from the motoring media at its launch, catching arch-rival Holden flat-footed despite it cleverly using the Falcon-rivalling Commodore for a raft of different body types – yet not a thoroughly executed SUV like Territory. Holden did offer the Adventra, a jacked-up version of the Commodore wagon with all-wheel drive, but it was short-lived and its sales numbers paled in comparison to those of the Territory. A turbo-diesel version of the Territory added in 2011 helped improve fuel economy as well as increase its braked towing capacity to 2700kg for all-wheel drive variants. While Falcon sales tailed off as Ford Australia production wound down, the Territory remained a strong seller for the brand until production ended in October 2016 – easily outlasting its short-lived replacement, the Canadian-built Ford Endura (Ford Edge overseas) sold here between 2018-2020. MORE: Everything Ford Content originally sourced from:

THE ECONOMIST: How to invest your huge inheritance. Don't make mistakes of Gilded Age with generational wealth

West Australian

4 days ago

West Australian

THE ECONOMIST: How to invest your huge inheritance. Don't make mistakes of Gilded Age with generational wealth

What do you stand to inherit? It still feels like a question from a different age, despite its growing importance today. In 2025 people across the rich world will inherit some $US6t, or around 10 per cent of GDP — a figure that has climbed sharply in recent decades. French bequests have doubled as a share of national output since the 1960s; those in Germany have tripled since the 1970s; Italian inheritances are now worth around 20 per cent of GDP There are two entirely reasonable responses to this. One is to worry about the new inheritocracy harming society: how it could corrode incentives to work, say, or widen inequality and distort the marriage market. The other, if a windfall is coming your way, is to rub your hands in glee and ponder what you ought to do with it. The typical inheritance is closer to the value of a typical home than to a Vanderbilt-style fortune. Even so, a rising number of people are in line for a bonanza. UBS, a bank, reckons that 53 people became billionaires in 2023 by inheriting money; many more will have received amounts in the hundreds of millions. Asset prices have climbed so high in recent decades, and inheritance taxes have fallen so low, that the number of very wealthy scions is growing all the time. Descend from the stratosphere, and a sizeable cohort is set to receive far lower sums that will nevertheless be life-changing. In Britain, for instance, a quarter of 35- to 45-year-olds are expected to inherit more than £280,000 ($586,000). For these lucky people, the experience of the Vanderbilts and their contemporaries offers a cautionary tale. At the turn of the 20th century, America's census recorded about 4,000 millionaires, note Victor Haghani and James White, two wealth managers, in their book, 'The Missing Billionaires'. Suppose a quarter of them had at least $US5m (the richest had hundreds) and had invested it in America's stockmarket. Had they then procreated at the average rate, paid their taxes and spent two per cent of their capital each year, their descendants today would include nearly 16,000 old-money billionaires. In reality, it is a struggle to find a single one who traces their fortune back to the first Gilded Age. That is not down to inflation or the 20th century's wars, but to poor investment and spending decisions. After all, spending 2 per cent of $US5m ($7.68m) in 1900 — that is, $US3.8m in today's money — would not exactly have consigned anyone to penury. The big question for a 21st-century heir is how to avoid the mistakes of those of the past. In other words, how can you enjoy a nice life while ensuring your inheritance lasts for ever? Silver spoons for all Some cheery news is that the question of how to invest, which sounds like the hardest part, need not be solved perfectly. In theory, this would mean finding the blend of risky assets with the best volatility-adjusted return, and comparing it with the 'safe' return on inflation-protected government bonds. You would then solve for an optimal split between the two, which would vary with market conditions. Thankfully, far simpler procedures can produce spectacular results. Our putative 20th-centurymaires just plonked everything in America's stockmarket, and did very well. Today, we know they could have done even better without much more effort. A simple rule-of-thumb known as the 'Merton share' can approximate the optimal split between stocks and inflation-protected government bonds, by comparing their expected returns and volatility. Messrs Haghani and White have calculated the annualised returns on such a strategy since 1900 (using a proxy for inflation-linked bonds for before 1997, when they were first issued). Had the Gilded Age crowd and their descendants invested in this manner, they would have scored an annualised real return of 10 per cent, compared with 6.6 per cent from the all-stock strategy. Remarkably, it would also have been 40 per cent less volatile. That would have produced vastly more old-money billionaires today. The worse news is that deciding how much to spend is trickier than it sounds. Popular rules for drawing down retirement savings, such as spending a largish fixed percentage of the initial value each year, are definitely out. In truth, these are not wise even for pensioners. Suppose you had kept a classic 60/40 split between American stocks and government bonds, starting in 2000, and drawn down 5 per cent of the value of your initial savings a year. You would have run out of money in 2019, despite earning an annualised return of 5.25 per cent, since you would have depleted too much capital in the market's 'down' years. Even if you spent only 4 per cent of the initial value each year — well below the portfolio's return — you would run a high risk of going bust. Simulate many different market outcomes, based on the 60/40 portfolio's expected return and volatility, and the 4 per cent spending rule leads to ruin within three decades about a third of the time. To avoid this trap, the optimal amount to spend each year must be a percentage of the portfolio's value at that point (the 'spending ratio'), not of its initial value. In other words, if you want to take the risk required to generate outsize returns, you must vary your (maximum) spending from year to year. That way, after a bad spell for the markets, you will not deplete too much of the remaining pot, allowing it to recover. Each year you could, for example, spend a proportion of the portfolio's value equal to its annualised expected return. This is similar to the spending rule adopted by university endowments, which aim to solve the same problem. The median outcome is that the fund's value, and hence annual spending, stays roughly constant with time (provided you have not been overly optimistic about your returns). Nice — but hardly enough to start a dynasty. Ideally, you want to increase your portfolio's value, which means spending less to let the returns rack up. The trade-offs here are difficult to parse. You will get pleasure (or, in economists' jargon, 'utility') from spending more today, albeit with diminishing marginal returns as you get more and more profligate. Doing so will also trim your descendants' purchasing power, especially if the portfolio has a large expected return, which you in part forgo by spending now. Yet such returns are inherently uncertain. In any case, it is only human to prefer an immediate pay-off to a delayed one ('time preference'). The solution is to plug these dynamics into a mathematical model, simulate possible paths for financial markets and calculate the utility derived from each for a given level of spending. You can then calculate the expected utility for each rule and pick the one that maximises this. Unsurprisingly, the procedure is hard, and generates results that are sensitive to the inputs. Maybe spend some of your money on an excellent financial adviser. Yet there are straightforward lessons that everyone can absorb. Although greater expected returns allow you to spend more, they do not do so by as much as you might think. With higher returns, the gap between these and the optimal spending ratio widens (since there is more value in sacrificing spending to let the portfolio grow). Higher volatility means lower spending, since it drags on your annualised return. The more reluctant you are to vary year-to-year outlays, the less you can tolerate investing in stocks, since their value fluctuates. The smaller your minimum spending requirement, the more risk you can take, meaning your expected returns, and hence your overall spending, can rise. A more important lesson is that making your inheritance last for ever means spending far less than its expected return. Exactly how much less depends on market conditions and your risk and time preference. But under reasonable assumptions, a near-optimal portfolio might have an expected annualised return of 4.1 per cent and an optimal pre-tax spending ratio of 2.4 per cent per year. Even that is before allowing for how much your family tree might grow, cutting whatever you pass on into smaller chunks. 'People often want to know how much they need to have to give each member of their family's next few generations a modest income,' says Mr Haghani. 'The answer is: a lot more than most anyone thinks.'

You can now get Wagga's beloved Lebanese chicken in Melbourne

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2026 Ford Territory revealed: Familiar name for fresh-faced SUV

2026 Ford Territory revealed: Familiar name for fresh-faced SUV

THE ECONOMIST: How to invest your huge inheritance. Don't make mistakes of Gilded Age with generational wealth

You can now get Wagga's beloved Lebanese chicken in Melbourne

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2026 Ford Territory revealed: Familiar name for fresh-faced SUV

2026 Ford Territory revealed: Familiar name for fresh-faced SUV

THE ECONOMIST: How to invest your huge inheritance. Don't make mistakes of Gilded Age with generational wealth

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