August 2013 - Financial Planning in Wimbledon

The Lone Ranger

Many of you will remember the television series “The Lone Ranger” which was made from 1949-1957 starring Clayton Moore and Jay Silverheels. I remember watching the re-runs during school holidays. Well, Disney have now brought the story to the big screen and its rather long, but very watchable.

In essence, the story is set at the end of the 1860’s Wild West, when the railroads were being built across America. Set in the context of a new nation (the American civil war ended in 1865) but one where native Indians had been displaced by force and a variety of “Treaties” which were largely legitimising the land grab of the growing white population. The history as we have come to know, is like most, rather bewildering in the context of 2013. The film has not been warmly welcomed in the US, perhaps due to some historical inaccuracies (but its a story!) but probably due to the discomfort that stirs.

Step up small town, educated John Reid, lawman who believes in justice, not vengeance who is of course tested in his belief and thrown together with a tribe-less Comanche Indian. The plot isn’t complex – the usual face of respectability covering a menacing, corrupt heart of greed.

There’s a bit of John Reid in most of us. Hoping and seeking integrity, justice and fairness. Reluctant to use force, but aware of our human desire for “getting even”. Let me say this clearly. The stockmarket is no place for the lone ranger. Expecting companies to behave well and be fair is sadly only going to lead to a lot of disappointment. The ethics of trade are not easy to pin down – what is “fair” is not easy to define in a world where we all have very different resources. Its also inescapable – the markets are full of “good” and “bad” companies and of course often they are both and as complex as we are as individuals. There are many parallels today with 1860’s north America, substitute railways for domination or rather monopolization of any market and you get a sense of what I mean.

So, whilst this is not a plug for ethical investment (or socially responsible investing) it is a reminder that investing does carry some uncomfortable truths. We may disagree (thankfully!) on what is right or wrong in many instances. As a financial planner, my job is not to dig as much gold (or silver) as I can, but to ask you what life you want to live and point to the resources you have and how to grow these so that you have enough to sustain you… enough even to share. I attach no value judgement to lifestyle choices, but draw attention to the consequences of actions or inactions. I don’t possess abnormal heroic traits, the mystical powers of a shamen or an ability to rescue every situation, and I cannot predict the future. I highlight possible risks and potential solutions, seeking a “tolerable forbearance”. I have learned not to blow up bridges but to be wary of powerful large corporations. I’m signed up to the lawbook, but aware of its many inadequacies, and yes I would be able to suggest a few changes. Whilst being different, like Tonto and Reid, I work in partnership with clients (we are not the same) so experience occasional elements of “lost in translation” that needs revisiting. In other words, I believe that the value of financial planning is in partnering with you to help you chose the path you wish to travel and keeping you covered…and yes, I do value my independence (as will you).

Dominic Thomas: Solomons IFA

Another birthday….

Today is our birthday. Its 14 years since Solomons was granted permission to practice by the then regulator the PIA. It has been 14 years of fee based financial planning, serving a variety of clients, so we have something of a head start on most firms that have only been charging fees since forced to do so by the regulator at the start of this year. It has been a long path and one that has involved continual improvement and development and frankly I don’t see this ever changing.

I have to admit to being a little sceptical about business “failure rates” but I’m told that a very small percentage make it past 10 years. I imagine that the statistics are wrong (does the ending of a firm equate to “failure”? how about mergers and acquisitions? or simply deciding to end?). Defining success by not ending does not seem terribly thoughtful or contextualised. I might argue that “failure” is a great teacher and most business guru’s seem to think that “the path to success is littered with failure” and many believe the success requires failure. So whilst I am happy to be celebrating 14 years, I’m not suggesting that this is much of a measure of success. If the business folded today, what we have done for many clients has been to their advantage and therefore a form of success, which is obviously satisfying and our deliberate intention.

So as I listened to the news about Blackberry who appear to have put themselves up for sale in the hope that someone will rescue them from the abyss into which they seem to be slipping as another technological “used to be” I am reminded that things are temporary. Again. Change is a constant….and a verb. It is for this reason that reviewing your financial planning regularly is so important. Drivers are used to getting an MOT and service, yet it seems very few British adults have a proper annual review of their financial planning. To my mind this is strange – because one’s ability to even afford to run a car is based on the quality of your financial planning – a bit of cart before the horse. Yet I’m acutely aware that talking about money is often boring, full of jargon and can feel like a personal exam – which with A’level results out on Thursday is a reminder of the sense of anxiety that is created.

So for those of you that have read this far, here’s the thing…financial planning is not really about money… honestly it isn’t. Its actually about your values, goals, hopes, dreams, concerns, anxieties and well being. Its about your plan for the future. This is something that I have improved upon over the last 14 years and have come to deeply appreciate. It is not about the money. Its about your lifestyle. Its about you, which is just as well, as I’m interested in stories, in people. Sure the financial stuff is a part of what we do, but its the tool not the purpose. If you would like to really find out what I mean, just pick up the phone or send me an email and we can have a proper adult meeting to discuss what its really all about.

Dominic Thomas: Solomons IFA