Trick or Treat? Eurozone is no Cinderella Pumpkin

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Trick or Treat? Eurozone is no cinderella pumpkin

I have to admit that I cannot stand Halloween. It seems that we become increasingly Americanised each year, giving way to allow children and teens to believe that it is perfectly acceptable to extract a “treat” from a stranger else suffer a “trick” the severity of which depends upon the age and upbringing of the “child”. Sorry to be a killjoy, but I don’t think threatening people to hand over something or be put upon, is in any way a behaviour that we should encourage.

As if to spurn all the good work from agreements in Europe, media pundits are left wondering on Halloween night just how deep the rabbit hole goes in Europe. Now resembling something akin to a Nightmare on Wall Street (as opposed to Elm Street) or a reality that is offered up in “The Matrix” the world is left to wonder just how many other Investment Banks like MF Global, bit off far more than they could chew and will themselves find a new reality of bankruptcy – or Chapter 11 as it is known in the US. The inter-connectedness (is that a phrase?) of investment bankers means that there is something of a domino effect – let’s hope that it is not a house of cards. The markets are scary enough without more bad news like this. We could all do with rather less horror and rather more common sense prevailing in the financial world, which seems to become more like fiction and less like reality with each passing week at present. The Warner Brothers film “The Matrix” is one of my favourite films offering some interesting questions about the human condition and frankly seems sadly appropriate for the moment. Unlike in the fairy tales, a pumpkin remains a pumpkin. It doesn’t matter what time it is – the strike of midnight does not magically alter the state of pumpkins, but pumpkins can be used for more down-to-earth purposes.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Trick or Treat? Eurozone is no Cinderella PumpkinDominic2023-12-01T12:48:52+00:00

Is Your Bank Account In Trouble? How Does It Measure Up?

Today the FSA have warned Banks offering current accounts with “added extras”. You are probably familiar with the sort of thing – travel insurance, accidental death cover, discounted tickets, gadget insurance as so on. Apparently whilst well aware that many of the features may be very good value and help you on your life journey, the FSA are concerned that some people are not able to claim on the “free cover” and some rarely or never use any of the features, therefore question the merit of providing the add-ons as “standard features”.

The FSA is moving to ensure that three key steps are put in the path of eager Bank staff.

The Bank should check to ensure that the customer is eligible to claim under the cover that they are being offered, based upon the information provided.

Provide customers with an annual eligibility statement, reminding them of the cover and acting as prompt to see if circumstances have change that might invalidate the cover.

If a Bank staff member/sales adviser is recommending the product, they must establish that it is suitable.

This has a potential mis-selling scandal for the usual suspects (again) as in reality Bank staff are partly remunerated based upon the products that they sell – you may not think of it as a sale or purchase, but the Bank does. Hence the FSA are “concerned” particularly as they estimate that 20% of us now have these types of accounts. You may have gathered that I become rather like Victor Meldrew when I see adverts from Banks offering x,y and z all of which have nothing to do with banking, frankly because I believe that it is precisely this reason why Banks lost their way – failing to understand or remember what their main purpose is for customers, rather than simply seeking to add yet another money spinning idea and income stream to keep shareholders appropriately misinformed that “all is well”. I still don’t understand why nationalised banks advertise in a way that competes with one another, perhaps a marketing expert could let me know the rational – beyond retaining the facade of “brand”.

Perhaps you have a Silver, Gold, Platinum, Black or Red (and so on) account that provides a long list of features you don’t really need. Then again, maybe you are making dramatic savings on other insurance products. Do let me know – though I do wonder if, much like the film “The Usual Suspects” (with Gabriel Byrne and Kevin Spacey) everyone ends up losing except the one that got away…

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Is Your Bank Account In Trouble? How Does It Measure Up?Dominic2023-12-01T12:48:53+00:00

Best Cash ISA Rates

Best Cash ISA Rates?

This is an up to date list of some of the top rates for a variety of accounts, it is not an exhaustive list, it is not advice and you need to check the detail – I suggest using the moneyfacts website, which is reasonably good at cutting to the chase. Banks and Building Societies are not alike. The parentage of Banks needs to be considered for proper protection under the FSCS. Rates remain poor and despite rising inflation, there is little appetite amongst banks for providing higher rates of interest.

Make sure that you are not paying tax on interest if it can be avoided (accounts held in non taxpayer or basic rate taxpayer name for spouses).

Two Year Deposit

Online: Post Office 3.96%

Bank: Clydesdale 3.82%

Building Society: National Counties 3.76%

One Year Deposit

Online: Derbyshire 3.55%

Bank: Santander 4.20%

Building Society: Barnsley 5.00%

Cash ISA – Fixed Rate

Online: Governor Money Progessive BS 4.50%

Bank: Halifax 4.40%

Building Society: Barnsley 5.00%

Instant Access

Online: Derbyshire 3.16%

Bank: Santander 2.50%

Building Society: Nottingham 3.25%

Cash ISA – Variable Rate

Online: AA Savings 3.05%

Bank: Santander 4.00%

Building Society: Newcastle 3.05%

You will recall from your history lessons that the English and Spanish had a few scraps at sea. It has been 423 years since the Spanish Armada attempted to remove Queen Elizabeth I from the throne after she refused the offer of marriage from Philip II. Today the relationship between Spain and England is significantly better. Santander, a global Spanish bank now has a significant high street presence her in Britain, not to mention appearances as the lead sponsor of the McLaren Formula One team. Their advert suggests that they are driven to do better than other banks, I wonder if you have any thoughts on this? Investor compensation was not really that widely available in 1588 but in 2011 you would be wise to check what compensation and investor protection is available for your deposits – in Spanish banks or anyone else’s. Details are found at the FSCS website. You have been warned. One of their adverts appears below, this is not an endorsement or advice to use Santander.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Best Cash ISA RatesDominic2023-12-01T12:48:53+00:00

Population Warning – 007 billion

The UN is due to produce a report any day now stating that the population of planet earth has reached 7 billion people. The rise in the global population is something like 200,000 a day which has seen the population dramatically increase over the last 50 years. That said, the forecasts for the future are about as helpful as the weather forecast (or an economic one for that matter!) with estimates ranging from falling populations (due to lower birth rates) to a continued increase at an alarming pace. The BBC has a short piece on their i-player for some interesting graphics. It remains unclear if politicians believe population increase is a good thing (more voters, more tax revenue) or not (more pressure on resources). The rest of us will begin to wonder if the world has enough space.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Population Warning – 007 billionDominic2023-12-01T12:48:54+00:00

New Ethical Funds

Historically ethical or Socially Responsible Investment (SRI) funds have been fairly pricey due to all the extra work that the Fund Managers have to do in terms of research and having stock lists approved. Vanguard have just launched two new SRI funds that buck this trend and combine a passive investment strategy. The funds launched yesterday – though perhaps launching them last week during National Ethical Investment Week might have been a more productive idea in terms of added PR and newsworthiness. Anyway, the two funds SRI European Stock Fund and SRI Global Stock Fund, both have a minimum investment of £100,000 and very low charges of 0.35% and 0.40% respectively.

It will be interesting to see how quickly the funds gather support which will probably reduce the minimum investment requirements. Vanguard is one of the biggest index tracking / passive investment Houses in the world with $1.7trillion in assets, starting life in 1975 and launching a tracker fund in 1976 (500 Index Fund). Vanguard is reasonably new to the UK, launching here in June 2009. This is a company that is serious about challenging the status quo of investing.

DT

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

New Ethical FundsDominic2023-12-01T12:48:54+00:00

When Values Are Challenged – Paying The Price

When Values Are Challenged – Paying The Price?

Every once in a while you get the sense that someone is valued for the wrong things. This occurred to me as I watched a special preview of a new George Clooney movie “The Descendants“. Mr Clooney is probably known to most for his debonair looks and appeal to women – which is not really in question, but much more importantly, the guy is a really good actor and makes some cracking movies, yet this often seems to be overlooked by film critics. In time, I believe his work will make him one of the great movie stars. Anyhow, the new movie is about how a family come to terms with a very real crisis. I won’t give the plot away, but it touches on key themes about the choices we make, the paths we follow and their consequences. This is examined within the context of a family living in “paradise” (Hawaii) and loosely plays with the ideas of inheritance. A good line that struck a chord with me was “I believe that you should give your children enough money to do something, but not enough to do nothing”. A pretty good piece of advice when it comes to inheritance planning and something that George’s character Matt King, finds woefully lacking in his extended family as the majority of them squander what they have and fail to understand the meaning of entrust or steward.

The film, directed by Alexander Payne, is not on general release here in the UK until 27th January next year, but when it comes out, it is well worth a look.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

When Values Are Challenged – Paying The PriceDominic2023-12-01T12:48:55+00:00

National Ethical Investment Week

Yesterday I was at the Houses of Parliament for a function as a part of NEIW2011. Social Impact investing was very much on the agenda as was helping to spread the word that there are choices about investments that the vast majority of people do not access. I’ve been advising on ethical investment since 1992 and much has changed over the years. If ethical investing or even, alternative investing is something that you would like to explore in more detail with me do get in touch. Here is a short video from NEIW.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

National Ethical Investment WeekDominic2023-12-01T12:48:55+00:00

Private Medical Insurance – Review Your Cover

Private Medical Insurance (PMI) is not an area of expertise – there are too many other things to master. Fortunately I do have a really good expert in this field that I refer work to. Private Medical Insurance can be very expensive – but so can the cost of private healthcare. We all know that some things are worth paying more for – in the case of PMI, this is particularly true, provided that you understand what you are covered for. This is one type of insurance that a comparison website is of little real value – because the key issue is whether the cover is any good.

Stephen Freedman is a Senior Account Manager with The Health Insurance Group, who specialize in both corporate and individual health insurance. Stephen, is a real expert in this field and is well worth speaking to about any PMI cover that you already have or if you are thinking of applying for cover.

This is an area of cover that is widely misunderstood. An FSA report from 2010 with data from 2008 reveals that the average PMI premium was £1,604 (which was an increase of 6.3% on the previous year, faster than inflation). In 2008 only 26% of all PMI was bought via an expert broker, the vast majority was bought online or direct. This probably explains the low average premium – which would be effected by the significant “direct sales”. My concern is that it is probable that most cover is not that good, being cost driven (cheapest) rather than quality driven – which is what this sort of cover is really all about. Obviously, if lower premiums for high quality cover can be achieved then this ought to be the goal, but this is where a thorough discussion of what is and what is not included is pretty vital.

If you would like Stephen’s details please send me an email and I can get him to contact you for a review of your cover

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Private Medical Insurance – Review Your CoverDominic2023-12-01T12:48:56+00:00

Monthly Market Report

The monthly market report is now available. This shows what happened in September and looks back over the years as though investing in the same month. What will be of no surprise is that September 2011 was a pretty dreadful month for investors with pretty much every market index and asset class falling in value. The biggest fall in value was in Russia seeing a reduction in value of 21.9%. All of Latin America saw falls in the teens. The FTSE100 dropped 4.7%, with smaller/mid-cap companies (FTSE250) reducing 6.4% in value. Most markets and asset classes are negative in the year to date and it will take quite a year end surge to turn the year into a positive one.

Against this backdrop it will be of little comfort that the 2012/13 ISA allowance has been increased from £10,680 to £11,280 following publication of the inflation rates, which are now being used to determine many of our (UK) allowances. An increase of £600 or 5.6%

DT

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Monthly Market ReportDominic2023-12-01T12:48:56+00:00

Best Cash ISA rates

As ever, this is not advice – you should always check the detail of any account that you consider using. Personally if you have not heard of the bank, I suggest you do not use it, if you are still tempted by the rate make sure you do some proper research… don’t forget the lessons from the recent past…Iceland.. not the frozen food retailer.

One Year Deposit Account

Online: Derbyshire 3.55%

Bank: Santander 4.20%

Building Society: Barnsley 5.00%

Two Year Deposit

Online: The Post Office 3.96% (yes Postman Pat finally delivers!)

Bank: Yorkshire 3.82%

Building Society: National Counties 3.76%

Instant Access Account

Online: Nationwide 3.12%

Bank: Santander 2.50%

Building Society: Nottingham 3.25%

Cash ISA – Fixed Rate

Online: Governor Money Progessive 4.50%

Bank: Halifax 4.40%

Building Society: Barnsley 5.00%

Cash ISA – Variable Rate

Online: AA Internet 3.05%

Bank: Santander 4.00%

Building Society: Newcastle 3.05%

Remember, look below the surface of the account, some Banks are marketing accounts as deposit accounts, when they are not really deposit accounts at all but investment linked products. Remember that deposits up to £85,000 are covered by the FSCS. So there’s some protection if a Bank fails. None of the rates are terribly attractive, and these days I do have sympathy with those that suggest the Banks have turned the tables and are now the robbers. Somewhat harsh, but the sentiment is fairly widespread, hence the picture of “Public Enemies” a Johnny Depp film about American gangster/bank robber John Dillinger from the 1930s.

DT

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

Best Cash ISA ratesDominic2023-12-01T12:48:57+00:00