Remembering Childhood

Remembering childhood

Last night I went with friends to the National Trust site of Box Hill, in Surrey, to see an open air showing of “Finding Neverland”. Its a story of how “Peter Pan” came to be written by JM Barrie. The accuracy of the story is subject to the usual artistic licenses and too much attention to detail may rather miss the point of the story.

In essence, this is a tale of recapturing childhood. Barrie, (played by Johnny Depp) was struggling to write a commercially successful play and happens upon the Llewelyn-Davies family, who become the inspiration for the story. The story itself (in the film rather than reality) is born out of struggle – Barrie’s own marriage is far from happy, the Llewelyn-Davies family have suffered the loss of a father and Barrie himself needed a successful play for his theatrical producer Charles Frohman.

Barrie is inspired by the imagination of the Llewelyn-Davies boys and becomes a significant figure in their lives. In meeting with them, he is both a willing participant and ring-leader in their play, recalling something of his own childhood and confronting the reality of what has been lost in the transition to adulthood, in so doing, his behaviour is frowned upon by the socialites of the day, including his wife who eventually divorces him for a man more present.

Childhood is precious and brief, but so too is life – coming to terms with loss and grief is experienced differently by all, yet all undergo this very adult experience. This is poignantly reflected in the movie with the mother, Sylvia, played by Kate Winslet, who also dies fairly suddenly from cancer and whose friendship with Barrie has been something of a talking point much to the chagrin of Mary Barrie and Emma du Maurier.

Worse than fiction?

Despite being a moving tale of loss, where the only relief seems to be found in friendship and escape into imagination, the real story is even more painful. It transpires that lives of the four brothers all met with significant sadness.

In reality the boys’ father barrister Arthur Llewelyn-Davies died in 1907, age 44, some three years after the play was first performed. JM Barrie divorced his wife in 1909. Sylvia died in 1910 aged 43. Barrie didn’t publish Peter Pan as a book until 1911 having made numerous revisions of the play.

The second eldest Jack, actually left home shortly before his mother died in 1910 to join the Navy. George, the eldest, was killed in Flanders in 1915 at the age of 21, the second youngest Michael aged 20 drowned in suspicious circumstances (thought to be suicide) in 1921.

Peter grew up apparently very unhappy about the constant references of him with Peter Pan, eventually falling out with Barrie over a relationship that Peter had with illustrator Vera Willoughby whilst Peter was 20 and still serving in the military, the argument is presumed to have been that  Vera was 20 years older and married.  Peter went on to form his own publishing company, which the film suggests as a nod to the influence of Barrie and his late mother, his company published work by his cousin Daphne du Maurier. When Barrie died age 77 in 1937, his estate passed largely to his secretary, the royalties of Peter Pan were gifted to Great Ormond Street.

Jack died when he was 65 in 1959, Peter committed suicide just 7 months later, age 63. It was discovered that he had been working on a piece about his family entitled “Morgue” and had reached the point where he was confronted by the prospect that his youngest brother may have committed suicide. Peter was married with three children. The youngest brother, Nicholas died in 1980 and doesn’t feature in the film as this would have revealed the problematic chronology within the movie, havng been born in 1903.

And the financial planning lesson?

For some of us childhood was an experience lacking responsibility. At times, when life can feel overwhelming it is tempting to recall such childhood freedoms. The path to adulthood is rarely an instant marvel, and in reality childhood contains all sorts of trauma and experience. Growing up can be hard, taking responsibility can be difficult.

Enjoy life whilst you have it, treasure your friendships and loved ones, don’t count on inheritances and ensure that your family (and/or friends) are adequately financially protected…. and remember that stories aren’t always factually accurate….even our own. Finally, your financial planning really shouldn’t be based on fiction, but it should contain a considerable amount of imagination.

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

Remembering Childhood2023-12-01T12:19:56+00:00

Auto Enrolment – the rising tide

Auto Enrolment – the rising tide

Auto enrolment pretty much effects everyone that isn’t yet retired. In a nutshell, having faffed around with pensions for the last 30 years the Government are now forcing employers to offer pensions to their staff. Employers will be required to contribute 3% of salary… employees 5%.

It’s true that this is not a compulsory pension. Employees can opt out. Employers cannot. There are hefty daily fines for those that fail to meet the deadline to implement their new, qualifying staff pension. Everyone has to comply…. not doing so isn’t an option.

All the UKs biggest businesses have now set up their auto enrolment pensions (also called workplace pensions…. helpful eh?). Just pause to think what an administrative nightmare this is… staff coming and going on a daily basis, all needing to comply else suffer fines. What a headache… thankfully technology will reduce the headache, but action still needs to be taken.

Now small and medium-sized firms are gradually reaching their “staging date” (start date) and there will be a massive number of them. Few realise that there are implications for contracts of employment and of course operating costs. However the biggest issue is technology as all staff need to have a working email address… presumably a work email address is easiest to monitor and demonstrate that information has been sent by the employer.

Pain Relief

Most financial advisers and Accountants aren’t getting too involved in auto enrolment. Frankly because the work can be expensive and small firms don’t want that. So we have found a solution – a bit of really good IT. Its called AE in a Box. It isn’t a pension. It’s a project management tool that ensures that you are compliant with the rules, makes it easy to set up a scheme and communicate with your staff.

If you are an employer (even if you run a Limited company with only one other Director or member of staff) you have to comply. So check out the very easy to use tool. It is a monthly license subscription (and you will need the ongoing support) as even those that opt out of your pension, will need to be opted back in every 3 years… the Government hope that inertia will ensure more people join pensions and thus build up their own resources, rather than relying solely on the State Pension… which is already over-stretched.

Are you an Employee?

Do your boss a favour, point them to our tool and earn some brownie points. I promise you that auto enrolment is a headache and leaving it until thousands of employers are trying to do the same thing at the same time will end in tears…. and fines. As an employer myself, I really value people who bring me solutions not problems.

Are you an Accountant?

The tool enables Accountants to assist in the process, providing and checking data. This will make your life much easier on so many levels when dealing with your small firm clients.

Click this link to get more information, its low-cost with a single sign up fee. The monthly fee isn’t taken until 6 months before your scheduled staging date. But whatever you do, now is the time to take action.

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

Auto Enrolment – the rising tide2023-12-01T12:19:57+00:00

Q-Tips – Write on Kew

Q-Tips, Write on Kew

There’s a new literary festival in town… well in West London, Kew to be precise. It looks set to be a good event towards the end of the month (24-28 September). There’s a jam-packed schedule with lots of well-known authors in attendance… including Richard E Grant, Rufus Norris, Sandi Toksvig, Andrew Marr, Raymond Blanc, Peter Snow, Max Hastings, Vince Cable, Ella Woodward, Tracy Chevalier and Mel Giedroyc…. to name just a few. There are over 80 events.

So for those of you in or near West London, perhaps consider a visit. Tickets and further information can be found by clicking here.

 

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

Q-Tips – Write on Kew2023-12-01T12:19:57+00:00

Honesty Report

Honesty Report

I was listening to the radio on Wednesday morning and a story that caught my attention was about a report published by Noddle, the credit rating agency. In essence their report is perhaps best described as an honesty report.

The research reveals something that anecdotally, most of us probably know already. The data, when extrapolated suggests that something approaching 1.9million couples keep financial information secret from one another. The suggestion being that this isn’t simply a case of not fully admitting how much was actually spent at the shops, or how much those birthday gifts really cost, but a rather more concerning inability or unwillingness to reveal the degree of personal debt.

The report found that 44% of married couples do not know how much their spouse earned. Relate therapist Arabella Russell and MD of Noddle Jacqueline Dewey briefly discussed some of the issues about couples struggling with honesty about money on the Radio 4 Today programme with Justin Webb. The BBC remove programming after a while, but the link is here.

Over the years I have observed many different approaches that couples take to the subject of money, all have their presumptions and “baggage” and I try to gently discover attitudes towards money, it is, as Arabella Russell outlines, so much more than simply an accounting system, how we think and talk about money connects deeply with how we think of and value ourselves (and others).

Common language

It isn’t quite the case that talking more honestly about money would save marriages, how couples communicate is more complex and frankly the territory of therapists not financial planners. However, it is clear (and obvious) that money is a one of the most significant “stress points” in any relationship. Relate’s own report “The Way We Are Now” found that 61% of adults with children, found that money worries was the greatest strain on their relationship, for those without children the figure reduced to 47%. That said, the report does provide some good news – 87% of people in couples are happy with their relationship.

Speaking Safely

When I meet with couples, it is important that both people are able to express themselves in relation to money and their hopes and fears about the future. I am often told at the end of our meeting that the experience wasn’t what had been expected… despite the website and this blog, most new prospects seem to assume that this is all “marketing” and that in fact I will “revert to type” and just talk about numbers, products and bore them to tears. For many, simply sitting down together with an impartial third (me) who asks pertinent questions about their past, present and future is a rarity. It’s different for each, but it is certainly clear that it is a welcome experience and the opportunity to get some clarity of how things really are.

Of course such a discussion needs to be conducted thoughtfully and sensitively. It isn’t therapy and it isn’t confession, to my mind its a safe space, to clarify… the issues that are raised may or may not be then requiring either therapy or confession, that is naturally dependent completely upon the couple and the information revealed. Of course this is not limited to couples, I would argue that anyone should benefit from “speaking out” what they think, feel and have experienced about money. To my mind self-awareness is vital for any financial planner operating in this way, ensuring that the discussion is about the couple or individual concerned, not their own projections.

Why is it important?

Saving relationships is simply not the domain of a financial planner, however anything that helps improve the lives of our clients – understanding their own truths and being able to reflect back the reality of things is invaluable. We all know that life can be messy, some relationships end, some very painfully, some can be improved… but we can all probably improve how we listen to one another. I have no doubt that having clarity about money (financial planning) will reduce financial stress for everyone, the real question is can you make the time to listen and be heard?

If you or someone you know are seeking therapy or couples counselling, I suggest visiting the websites of the BACP and Relate for couples.

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

Honesty Report2023-12-01T12:19:58+00:00

70 is the new 60…. well for the State Pension

70 is the new 60….for the State Pension

One wonders what we are doing to future generations. Today I read an article suggesting that the State pension age will inevitably become 70, all due to the fact that more people are living longer. The State pension age used to be 60 for women and 65 for men, this has undergone a period of “equalisation” and will be 65 for both men and women from 2018. As this ideological “hurdle” was achieved some time ago, successive Governments have simply made plans to extend the age at which a State pension is provided. The State pension age will be 66 by 2020 and 67 from 2028.

The reason is really two-fold, cost and longevity. The State pays pensions in various forms, the most obvious being the State pension, which now costs about £110bn a year. Disability pensions costs around £42.2bn and survivors pensions about £1.1bn, amounting to roughly £153.3bn which is about 20% of all Government spending and by far the largest component of Government spending. Details here (click).

Looking ahead

In essence anyone born since 1960 can expect to have to work longer. Given the increasing life expectancy and inherent problems with ageing, care costs are expected to soar, resulting in further dilemmas for Government about how to meet costs…. from a population that is having fewer children.

Episode IV – A New Hope

Consider those that graduated this summer and are just starting out on their careers, born in the early 1990’s they were only just teenagers when the credit crunch occurred the property boom had happened. If you understand my heading (refering to the very first Star Wars movie in 1977) this generation can be forgiven for thinking that the Star Wars films were made sequentially when episode I was actually released in 1999 – they were 7). Student loans are now part of their deductions each month, along with compulsory pensions. I don’t like to be a pessimist, but the generation just starting out have inherited the debts of previous Governments (currently interest payments are around £40bn a year), have little prospect of “getting on the property ladder” and an ageing population that received their State pension many years younger than they will. Any academic results they achieve are met with accusations of “easy exams” and employers seem almost eager to say “we cannot find good enough people”. Not even to mention the problems with the environment. I appreciate that you already know this.

The Breakfast Club

I am reminded of the 1985 film, “The Breakfast Club” written and directed by John Hughes, which recently celebrated its 30th anniversary. This was a group of teenagers held back in detention one Saturday morning and who eventually reveal the stories that brought them there. Vernon, the supervising teacher, representative of a now uncaring, disillusioned, bored older generation loathes the fact that he is also forced to spend his Saturday supervising misfits. He is caught by Carl, the caretaker, fishing through the personnel files hoping to find scandal that he can use against his peers. This results in a conversation between the two, in which he complains about the youth of today and ends with this dialogue.

VERNON: You think about this…when you get old, these kids; when I get old, they’re gonna be runnin’ the country.

CARL: Yeah?

VERNON: Now this is the thought that wakes me up in the middle of the night…That when I get older, these kids are gonna take care of me…

CARL: I wouldn’t count on it!

No… neither would I…. perhaps we all need to think rather more carefully about how we are planing not just our own future, but that of future generations… as Simple Minds remind in the closing title music – Don’t You Forget About Me. Perhaps there could be some redemption… even Darth Vader managed to salvage something with his own offspring.

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

70 is the new 60…. well for the State Pension2023-12-01T12:19:59+00:00

The Patience Principle

The Patience Principle

Global markets are providing investors a rough ride at the moment, as the focus turns to China’s economic outlook. But while falling markets can be worrisome, maintaining a longer-term perspective makes the volatility easier to handle.

A typical response to unsettling markets is an emotional one. We quit risky assets when prices are down and wait for more “certainty”.

These timing strategies can take a few forms. One is to use forecasting to get out when the market is judged as “over-bought” and then to buy back in when the signals tell you it is “over-sold”.

A second strategy might be to undertake a comprehensive macro-economic analysis of the Chinese economy, its monetary policy, global trade and investment linkages and how the various scenarios around these issues might play out in global markets.

In the first instance, there is very little evidence that these forecast-based timing decisions work with any consistency. And even if people manage to luck their way out of the market at the right time, they still have to decide when to get back in.

In the second instance, you can be the world’s best economist and make an accurate assessment of the growth trajectory of China, together with the policy response. But that still doesn’t mean the markets will react as you assume.

A third way is to reflect on how markets price risk. Over the long term, we know there is a return on capital. But those returns are rarely delivered in an even pattern. There are periods when markets fall precipitously and others where they rise inexorably.

The only way of getting that “average” return is to go with the flow. Think about it this way. A sign at the river’s edge reads: “Average depth: three feet”. Reading the sign, the hiker thinks: “OK, I can wade across”. But he soon discovers the “average” masks a range of everything from 6 inches to 15 feet.

Likewise, financial products are frequently advertised as offering “average” returns of, say, 8%, without the promoters acknowledging in a prominent way that individual year returns can be many multiples of that average in either direction.

Now there may be nothing wrong with that sort of volatility if the individual can stomach it. But others can feel uncomfortable. And that’s OK too. The important point is being prepared about possible outcomes from your investment choices.

Markets rarely move in one direction for long. If they did, there would be little risk in investing. And in the absence of risk, there would be no return. One element of risk, although not the whole story, is the volatility of an investment.

Look at a world share market benchmark such as the MSCI World Index, in US dollars. In the 45 years from 1970 to 2014, the index has registered annual gains of as high as 41.9% (in 1986) and losses of as much as 40.7% (2008).

But over that full period, the index delivered an annualised rate of return of 8.9%. To earn that return, you had to remain fully invested, taking the unsettling down periods with the heartening up markets, but also rebalancing each year to return your desired asset allocation back to where you want it to be.

Timing your exit and entry successfully is a tough ask. Look at 2008, the year of the global financial crisis and the worst single year in our sample. Yet, the MSCI World index in the following year registered one of its best-ever gains.

Best and worst

Now, none of this is to imply that the market is due for a rebound anytime soon. It might. It might not. The fact is no-one can be sure. But we do know that whenever there is a great deal of uncertainty, there will be a great deal of volatility.

Second-guessing markets means second-guessing news. What has happened is already priced in. What happens next is what we don’t know, so we diversify and spread our risk to match our own appetite and expectations.

Spreading risk can mean diversifying within equities across different stocks, sectors, industries and countries. It also means diversifying across asset classes. For instance, while shares have been performing poorly, bonds have been doing well.

Markets are constantly adjusting to news. A fall in prices means investors are collectively demanding an additional return for the risk of owning equities. But for the individual investor, the price decline only matters if they need the money today.

If your horizon is five, 10, 15 or 20 years, the uncertainty will soon fade and the markets will go onto worrying about something else. Ultimately what drives your return is how you allocate your capital across different assets, how much you invest over time and the power of compounding.

But in the short-term, the greatest contribution you can make to your long-term wealth is exercising patience. And that’s where your adviser comes in.

Jim Parker

Vice President, Dimensional

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

The Patience Principle2023-12-01T12:19:59+00:00

New Term, New Start

New Term, New Start?

So its September. A new term is about to start (it has already in Scotland). As someone with children much of my life has been demarked by the term timetable, this year its a little different… my eldest daughter begins her career as a teacher…. wow, where did the time go?

Time Flies

I’m reminded of a new play “Everyman” which I was lucky enough to catch it at the weekend – in fact the penultimate performance. The ensemble cast is headed by Chiwetel Ejiofor in the title role (you may have seen him in “Twelve Years A Slave” for which he was short-listed for an Oscar). The play confronts the familiar big existential questions in a contemporary and provocative way. Everyman’s journey is brief, confronting his values and their eternal significance. At his 40th birthday party he is forced to confront the question – Where did the time go?

There are some memorable scenes – with friends, family, discarded refuse (his and ours) and the checkout of consumer validation – the shopping store. The 2009 Poet Laureate Carol Ann Duffy pieces together some innovative rhyme, providing a 2015 upgrade to an otherwise familiar tale…. of God, the Devil and everyman…. and reposes the riddled question “have you lived a good life?”.

The stage is itself an almost ghostly reminder of morality plays of old, (stage with pit). Sadly the play is also out of time at the National Theatre, but those that saw it will be haunted by Death’s final call… eeny, meeny, miney.. mo… and the thought that invariably we only confront the value of life in death.

A plan that reflects your values

Whatever your thoughts about the meaning of life, a life well lived will mean different things to each. In an age of 24 hour “news” and the appearance of a shrinking world, we are regularly confronted with the hardship that others endure or suffer, whether on our doorstep or someone else’s. Invariably I find myself wrestling with the guilt of advantages that I have compared to many.

We live in an imperfect world and I have yet to write anything other than an imperfect financial plan. However I firmly believe that the effort made to ensure that your financial plan is based upon your values is more than “a nice thing” to my mind it is of significant importance – helping us come to terms with both our luck and our lack.

So may this term, or new academic year be time well spent…. and full of good performances! (let me know of those you enjoy).

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

New Term, New Start2023-12-01T12:20:00+00:00
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