February 2012 - Page 3 of 4 - Financial Planning in Wimbledon

Something for the Weekend – Winning Awards

2011: The Artist – Hazanavicius

As you will be aware, it is award season and the BAFTAs are held on Sunday. As a financial planner based here in south London it will be interesting to see who picks up the awards which are perhaps a pointer towards the Oscars at the end of the month. Hopefully it won’t be too cold for those seeking to have a chat with a movie star along the red carpet.

Investing in film is not for those unwilling to take investment risk. Rather like actors at award ceremonies, it doesn’t always go as planned. However, unlike the awards, investing is not necessarily about winning – it is about getting the results you need from your portfolio to achieve other rather more interesting things – which is really what money is for. So whilst the prizes are handed out on Sunday night, remember that to become a winner at investing you don’t have to beat everyone else, in fact you don’t even compete. A good financial plan is designed to achieve the right results for you – the only ones that are actually important.

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

Something for the Weekend – Winning AwardsDominic2017-01-06T14:40:09+00:00

Critical Difference in Financial Protection

2011: The Good Doctor – Lance Daly

As Independent Financial Planners that protect our clients, it is important that there is a good understanding of the different types of financial protection. Those that cause the most confusion tend to be Income Protection (unhelpfully sometimes called Permanent Health Insurance – PHI) and Critical Illness Cover (CIC or sometimes called Serious Illness Cover).

In simple terms, Income Protection would provide you with a regular monthly income if you are unable to work due to a long-term or serious illness. It would pay this until you are better or you reach the policy end date (normally your retirement date) whichever is the soonest. It does not cover all of your income – as this might be a deterrent to attempting to return to work (perhaps the State system could learn from this). The benefits are paid directly to you personally if you took out the cover, if your employer did, then it pays the employer who then passes it on via payroll. Typically claims are due to back problems, long-term illness such as depression, ME and disability.

Critical Illness cover is completely different, it provides (generally) a one off lump sum of money. This can be used however you like. Some would use it to clear a mortgage or debts, thereby reducing financial pressure. It could be used for a variety of things – medical treatment, care, something you always wanted to do, providing income – whatever – it is up to you. The reason it pays out is because you have a serious illness – by which I mean something like cancer, heart attack or stroke. Life threatening.

The two types of cover might overlap – the thing about medics these days is that they are very good at their jobs and keep us alive, which is good surely… well of course, but being seriously ill and unable to work is not that great unless you have resources. This is where you either have insurance (as above) or you use your savings and investments to do the same job – we call this “self-insuring”. The problem with financial protection insurance is simply that you need it most when you can least afford it. Sad reality. I have never met someone that wanted to claim against a policy when taking one out – but its there if they need the cover. Of course how much cover is needed is a different discussion and something that needs to be thought through. After all, what would you do if you were told your spouse has cancer and 6 months to live? you may want to reflect on life, your values, commitments and your work. This is also where our advice is invaluable.

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

Critical Difference in Financial ProtectionDominic2017-01-06T14:40:09+00:00

NEST: News from The Pensions Regulator

2009: Bureaucracy – Mark Perreault

As an independent financial planner based in Wimbledon (well only a mile away) I am working with a number of employers to ensure that they are ready and properly set up for auto-enrolment or NEST. This is in essence the Government’s long overdue introduction of compulsory contributions towards a pension. Well, not quite – actually all it means is that you will be automatically enrolled unless you opt out. The contributions will eventually work the way to 3% from the employer and 5% from the employee. More can be contributed, but not less – unless you opt out. Many financial planners are not getting involved with this sort of work as it is fairly time consuming and not terribly profitable – but that’s not really an issue for advisers that operate on a fee basis, which is something we do at Solomon’s – so there’s no issue about ensuring you get the right and best pension arrangement for staff.

The Pensions Regulator has published some up to date information, quite a lot of pdf’s to download and read – remember that this is a system that impacts every employer, even those with a single member of staff. Importantly as the work will be primarily conducted online and records of contributions need to be maintained properly (like PAYE) this has implications for IT and virus software at every business in the land. So make sure you get some decent IT advice.

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

NEST: News from The Pensions RegulatorDominic2017-01-06T14:40:09+00:00

Figures and Ships that Pass in the Night

2006: Cargo – Clive Gordon

Financial Planning done well, takes a long-term perspective, however it is within the context of the short-term. I have now added the figures for what happened in January across global markets. As an Independent Financial Adviser it is important that we remain mindful of the current economic climate globally. In January the FTSE100 rose 2.1%, the largest gains were made in China and the Emerging Markets. The Baltic Dry index fell 60% in January which is an indication that demand for global shipping halved (and some) which of course eventually filters through to imports and exports, although clearly impacting differently across nations. The thing about huge cargo ships is that they take a very long time to turn and require an excellent captain. We all witnessed what can happen when a Captain gets this wrong in January. However one of the other lessons that a cargo ship might also offer is that small adjustments along the way lead to successfully reaching the desired destination, much like a good financial plan, which should be regularly reviewed to ensure that it is on track and adjusted to correct the course, making allowances for “choppy conditions”. Other than the Baltic Dry Index, the world markets had a pretty good January 2012.

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

Figures and Ships that Pass in the NightDominic2017-01-06T14:40:09+00:00

Is This A Country for Old Men?

2007: No Country for Old Men – Coen’s

As an Independent Financial Adviser with a focus on pension planning, today’s news that the Bank of England are going to throw yet more money into the economy (some £50bn worth) is a mixed blessing. In theory the purpose of the exercise is to stimulate economic activity and help get banks lending and people spending. Yes, more of the “same old, same old” and single-track thinking. An economy built and fuelled by debt cannot really be good for anyone in the long-run. However, for those approaching or in retirement, one does begin to wonder if this is actually helping.

It is particularly unhelpful to those about to retire and are considering buying an annuity. An annuity is one of a range of options at retirement. In essence it is nothing more than an income paid for the remainder of your life in exchange for your pension fund. You can build options into the annuity – have it rise each year so that it keeps pace with inflation, have it continue payment to a spouse in the event of death. The more bells and whistles added the worse (smaller) the annuity (income) you get.

So how is this connected to quantitative easing? well there’s a very good brief interview with Roz Altmann, someone that I respect enormously and who has done a huge amount of good work to improve and explain pensions. She is interviewed briefly on the BBC today and discusses how more quantitative easing leads to lower Government Gilt yields, which leads to lower annuities, which is bad news for anyone planning to take an annuity right now. There are alternatives, but these are thin on the ground and in reality there is no certainty that delaying taking your pension (by buying an annuity) will be any better. It ought to be (because you would be older) but it might not be – depending on interest rates, gilt yields and so on.

This is precisely where a proper discussion with an Independent Financial Adviser can be vital, ensuring that your options are properly explored. Of significant value is a cash-flow plan which enables you to identify stress points and enables me to help find solutions for clients. A pension is one way of building up income for retirement, a good way (because of tax relief) but not the only way.

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

Is This A Country for Old Men?Dominic2017-01-06T14:40:09+00:00

Grace Extended for Confessing to HMRC

1937: True Confession – Ruggles

Financial Planners are duty bound to help clients make wise decisions when it comes to how money is handled. We are also duty bound to report any fraud or tax evasion to the relevant authorities, which is not something that I have ever had to do to date. HMRC are in a precarious position at the moment, on the one hand they need to raise money (tax) properly so that our ailing economy can still pay its way and so must appear tough on those that pay late or evade their taxes. At the same time, this is set against initiatives to encourage honest reporting of income with sweeteners to help the decision to “come clean” rather easier. Hence the decision today to extend the LDF Leichtenstein Disclosure Facility. The LDF is such a sweetener that enables taxpayers to declare previously undeclared or unremitted income and associated tax. The sweetener is that the penalties are reduced dramatically by 80%. To date over 2000 people have taken the opportunity to confess all and this tactic has worked rather better than probably HMRC imagined. As a result the sweetener has today been extended by a further year until 5th April 2016. This follows double taxation agreements with Liechtenstein. There is a real sense that HMRC will now be able to accurately trace such funds and therefore common sense would suggest, coming clean is the least punitive option.

This has nothing to do with the Spurs Manager, Harry Redknapp case, which came to an end today. This is an entirely different matter where Mr Redknapp didn’t pretend that money had not changed hands, but the purpose behind the transaction was rather vital for taxation purposes – was it connected to employment or not? which has taxation implications. Mr Redknapp won his case today. Given Mr Redknapp’s profile, it is surprising that this went to a Criminal Court rather than a taxation tribunal, but presumably HMRC were attempting to convey a message to the wider population.

If you are in any doubt about tax matters, I can put you in touch with a variety of Accountancy firms with relevant expertise. Most importantly please understand that tax evasion is illegal and can carry a custodial sentence.

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

Grace Extended for Confessing to HMRCDominic2017-01-06T14:40:09+00:00

Prophetic Manic Street Preachers?

2011: Machine Gun Preacher – Forster

OK, I know its not the role of an Independent Financial Adviser to turn music critic, but as I was listening to the “A Design For Life” on my ipod, I was reminded that perhaps good financial planning is a bit of a design for life as well. I suspect though that the Manic Street Preachers, who have certainly seen some difficult times in their collective history, may have intended different meaning behind the lyrics for their song. However in 2012 one might be forgiven for thinking that they seem to sum up the current difficulties that many students and young people are facing. Namely, that their futures look pretty difficult. Many have “done the right thing” – by going to University to develop their skills, but this year many graduates are failing to secure the jobs and careers that they thought would be available. Yes we all face setbacks, but this generation face spiralling costs of a society that lost the plot and overspent big time. Home ownership difficulty, lack of jobs, late retirement and picking up the bill for poor economic management – no wonder that so many are finding commitments hard to keep and the dulling painkiller of excessive alcohol a very real temptation. I fully accept that this may not be remotely how Nicky Wire intended the lyrics to be interpreted, which it reported in Q Magazine as suggesting the middle class high jacking working-class culture typified at the time by Blur’s “Girls and Boys” single. So I guess I’m playing into a debate on that one. However, perhaps their sentiments are broader than they imagined. There are now 2.62million economically inactive 16-24 year olds, up 52,000 from the three months to August 2011. The unemployment rate for 16-24 year olds is 22.3% which is nearly three times the national average of 8.4%.

The song “A Design For Life” is from the Epic 1996 album “Everything Must Go” by the Manic Street Preachers. More recently the band have put a collection of their singles together with Sony called “National Treasures“.

“Libraries gave us power
Then work came and made us free
What price now for a shallow piece of dignity

I wish I had a bottle
Right here in my dirty face to wear the scars
To show from where I came

We don’t talk about love we only want to get drunk
And we are not allowed to spend
As we are told this is the end

A design for life
A design for life

A design for life…”

Lyrics by Nicky Wire. From the album Everything Must Go by the Manic Street Preachers
1996, Epic record label.

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

Prophetic Manic Street Preachers?Dominic2017-01-06T14:40:09+00:00

What the Dickens?

1935: David Copperfield – George Cukor

Financial Planners often quote Mr Micawber a character created by Charles Dickens who would be 200 years old today, born 7th February 1812. The quote often referred to is commonly known as the Micawber principle.

“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

In short, spend less than you earn. However Mr Micawber was also something of an optimist, or hopefully expectant, asserting that “something will turn up”. However Micawber experienced various financial difficulties and eventually emigrated to Australia. Whilst fresh starts are certainly possible, emigration is perhaps a little extreme in 2012, though I’m sure that many Greeks may be considering just this over the coming weeks. Most of us probably would find ourselves rather like Oliver Twist asking for a little more. However a good financial plan will help identify the bumps in the road before you reach them and also help provide information about how to reduce or even avoid them entirely. Good financial planning is not optimistic maths, but the thoughtful and realistic application of assumptions (which are reviewed) and then structured around your specific goals and ambitions, paying close attention to your personal values.

There are celebrations throughout the year to mark the 200th birthday of one of England’s most celebrated writers. The Charles Dickens Museum in London is running various events throughout the year.

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

What the Dickens?Dominic2023-12-01T12:47:55+00:00

Hampton Court – A Wealth of History

2007: The Tudors – Michael Hirst

Financial planning done well might include planning ahead for those special events in life. As an Independent Financial Adviser based locally near Wimbledon, I’m on the doorstep of many wonderful treats. One is Hampton Court Palace, which is only a few minutes away and is obviously of great historical significance. Hampton Court was originally effectively a Bank and Accounts depot – well storage and accounting, used by the Knights Hospitallers since 1236. It wasn’t for about another 300 years before Cardinal Wolsey, the Lord Chancellor of England transformed the buildings into a Palace (designed for diplomatic entertaining) though of course famously lost the favour of Henry VIII.

Wolsey himself was rather wealthy, in his day a career in the church was highly lucrative. As a Cardinal he was arguably superior to even the Archbishop of Canterbury. Wolsey was also responsible for introducing better accounting of personal wealth – so that it could be properly taxed with his tax “The Subsidy” which was at a rate of one shilling per pound. This made taxes rather fairer to the poor and enabled significant sums to be collected to fund Henry VIII’s lifestyle and exploits.

Every year Hampton Court welcomes thousands of new visitors to experience a taste of history and the magnificent Palace created by Wolsey and Henry VIII. Given the passage of time and it is possible to turn a one time accountancy hall into a vibrant festival of music. The Hampton Court Palace Festival has announced that Liza Minnelli will be performing the opening act of the 2012 festival on Thursday 14th June. It is the 20th anniversary of the festival this year and the organisers are delighted to have Liza Minnelli begin the celebrations. The festival runs throughout June and the line up of acts is increasing. So far these include Jools Holland and His Rhythm and Blues Orchestra, a Classical Gala and Fireworks, James Morrison, Caro Emerald, Katie Melua, Franki Valli and the Four Seasons. Tickets are now on sale.

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

Hampton Court – A Wealth of HistoryDominic2023-12-01T12:47:56+00:00

A Royal Service

I appreciate that not everyone is in favour of a monarchy and perhaps if we were to set up a new country today we might not have one. However, Her Majesty Queen Elizabeth II has served our nation without choice for the last sixty years. Living her life in public display, serving and working for the good of us all. She is hugely significant in the lives of many British people and members of the Commonwealth. The vast majority of her work is unseen by most of us and few of us would enjoy it for a month, let alone 60 years. She is a fantastic example of true service and dedication in a culture where politicians constantly remind us that a week is a long time. Perhaps more of them should be mindful of her example. Here is the press release from Her Majesty today.

“Today, as I mark 60 years as your Queen, I am writing to thank you for the wonderful support and encouragement that you have given to me and Prince Philip over these years and to tell you how deeply moved we have been to receive so many kind messages about the Diamond Jubilee.

In this special year, as I dedicate myself anew to your service, I hope we will all be reminded of the power of togetherness and the convening strength of family, friendship and good neighbourliness, examples of which I have been fortunate to see throughout my reign and which my family and I look forward to seeing in many forms as we travel throughout the United Kingdom and the wider Commonwealth.

I hope also that this Jubilee year will be a time to give thanks for the great advances that have been made since 1952 and to look forward to the future with clear head and warm heart as we join together in our celebrations.

I send my sincere good wishes to you all.

ELIZABETH R.”

Like you, today I awoke in a free country, with a democratically elected Government and a nation that permits free speech. Like every other nation, we have had a mixed history, but our Queen is a legacy that reminds us of our past and inspires our future, repairing our errors and blunders whilst seeking to build upon the successes and strong relationships that have been forged over the years. Something that I reflected on this morning at 7.15am as I walked my dog through snow covered Richmond Park, the stomping ground of Henry VIII surrounded by fabulous ancient oak trees and attempting to avoid the Royal Stags. I am fortunate enough to be able to take my liberty for granted.

To celebrate the Diamond Jubilee, The Royal Mail and Bank of England have worked together to produce a commemorative set of stamps with the Queen as she has appeared on coins and banknotes. The Diamond Jubilee Minature Sheet is available from today and this is the first time that such images have been brought together.

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

A Royal ServiceDominic2023-12-01T12:47:56+00:00