Public Sector Pensions – Goalposts Moving Again

2008: The Deal – Schachter

Public Service pension schemes are undergoing a huge amount of change at present. As you may know I advise many Consultant Doctors as well as quite a few people working within “public service”. Yesterday, the Government issued its Public Service Pensions Bill. This may seem like yet another cost cutting exercise, but I have serious concerns about it. In essence we all know that public service pensions are very good and most of us would be lucky to have one, however that does not mean that because we don’t, those that do need to be reprimanded, which is frankly what it looks like. There is a fundamental change to the way the schemes operate, switching from a final salary basis to a career average basis. This will almost certainly mean lower pensions for most members of the scheme. In addition the member contribution is also increasing signficantly, this is on the back of several “shake ups” previously.

Those within 10 years of retirement (generally aged 50+) will not be impacted by the new proposed rules. However everyone else is likely to pay more, get less and retire later. Not exactly a winning combination if you are trying to incentivise a workforce. I’m in the process of properly reading the Bill and will be outlining further thoughts in time. However, envy should have no part to play in policy making and I am concerned that this sort of goalpost moving is exactly the sort of ill conceived idea that makes normal, moderate people give up on the political classes, creating an unhealthy dynamic, which in a European context has resulted in some fairly dire consequences.

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

Public Sector Pensions – Goalposts Moving AgainDominic2023-12-01T12:22:48+00:00

Medics See-Through Outsourcing.

1963: The Man With The X-Ray Eyes

The medics amongst you may be interested in the changes that seem to taking hold of radiology departments. This is not a new story and I have talked at length with clients about the impact of the internal changes within the NHS due to outsourcing of services and and in some instances a potential reduced perceived need for certain Consultants.There’s a fairly pithy blog that I follow by a doctor which often points to the growing privatisation of NHS services. Retired Consultant Bob Bury writes an interesting piece in Hospital Doctor today. As you will be aware, I advise quite a number of Consultants and GPs who are all at the receiving end of a taxation assault against them, which I believe to be largely due to the last Governments inability to do the maths on the Consultant Contract and GP Contract. I have never met a doctor that is in pursuit of money, even those with very large private practice incomes are very “patient focused” the money just kind of follows. Of course if you are ever unfortunate enough to need their skills, then you really appreciate the training and experience that they have gained over many years.

Saving money (by buying cheaper) is not always a great way to operate. Nobody wants to be ripped off, but equally we know that cheap does not equal quality – just look at the row between Virgin Trains and the Government at the moment.

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

Medics See-Through Outsourcing.Dominic2023-12-01T12:22:48+00:00

You Are Being Watched

2008: Eagle Eye – Caruso

Death has just become more taxing. The HMRC are somewhat smug about their new computer upgrade which seems to work – perhaps the first state computer system to work properly? Its a strange world when you frame collecting tax as helping the nation to reduce its national deficit, yet that is precisely how HMRC seem to be portraying themselves. Now, I know that there are some people that dodge tax and of course should pay up – and there are those that hide vast sums offshore, however, collecting the right tax should be “normal” not seen as a positive move to reduce the debt reduction. The debt, which seems to be a constantly moving target, is reduced by repayment, which means in UK plc we need to produce more, sell more, and buy fewer imports. We need to create jobs and get good sustainable businesses started (yes, I know you know). So who has some good ideas about how to do this? apparently the politicians don’t have many.

The tax system is one that now seems to be increasingly moving to one of sentiment. Back in medieval times, of course it was the King that taxed the population, who is seems were largely poor. It would appear that something of a reversal is occurring, with a 75% tax rate in France. This is not much better than taxing the poor and frankly is simply a philosophy based on envy. The rich must pay their taxes, which should be fair to all. So I have little sympathy with those who pay less than their au pair, tax must be fair.

HMRC are claiming to have already recovered £26m in unpaid inheritance tax. This is because their new super computer (“The Connect“) made by Detica and owned by BAE systems, can sift through and cross reference bank accounts, employment history and company ownership and property purchases. So be warned, if you haven’t been declaring tax properly, you are now officially playing a game of “chicken” with HMRC. Don’t believe that HMRC won’t find out, this is the new technological age and one where advisers are culpable if they don’t whistle blow. Thankfully not an experience I have ever had. This is the age of the electonic eye…. just realised that my last post was about personal data security… I’m not getting paranoid (I hope). Anyway, for financial planning that is open, transparent and above board that won’t get you into problems with the taxman, well, you know where I am.

As its Friday, have a look at this trailer for Eagle Eye, not a bad film, topical for the times – particularly in light of news that Britain may become a CCTV drone nation in the next 5 years.

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

You Are Being WatchedDominic2023-12-01T12:22:47+00:00

Stop Your Junk Mail and Crank Calls and Crime Against You

2011: Anonymous – Emmerich

It may surprise you just how much information is “out there” about you. This is now being used by all sorts of people and the final straw that broke the camels back (mine) this week was a flurry of phone calls to my home telling us that there was something wrong with our computer. This was (and is) of course a complete scam. This leads the unsuspecting to download some software onto their computer for any number of potential crimes committed against you. Of course being criminal, they pay no attention to data protection laws (or any other) and persist with contact.

So what can you do? well start by having a look at 192.com. Try looking up yourself. If this worries you then you can opt out, something that 192.com have to comply with. To make your life a little easier, here is the form that you need to fax to them and the relevant page, which is buried within the site itself. Removing yourself from the Edited Electoral Register is also a shrewd move. It is your right under section 11 of the Data Protection Act 1998 to have your name and address excluded from the Edited Register on a permanent basis. Each person must inform the Electoral Registration Officer separately that they want to do this. I understand that this needs to be done with your local council, you can find out precisely where this is by going to this DirectGov link. You might want to send Keith Marsden, the MD of 192.com your thoughts on how you don’t want your data sold. I hope that it goes without saying, we protect our client data and never sell it to anyone.

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

Stop Your Junk Mail and Crank Calls and Crime Against YouDominic2023-12-01T12:22:47+00:00

Is It A Good Idea To Rename Something “Old”?

1943: Old Acquaintance – Sherman

Clients with Skandia policies or investments will be seeing a different name on their statements and documentation. Today, it was announced that the Skandia name will be gradually phased out in favour of its owner’s name Old Mutual. Whilst this will bring and end to questions like “are those the people that make trucks?” I have to admit that I don’t yet appreciate the purpose of this. Certainly those at Old Mutual have already begun the marketing initiative to reassure everyone and talking of “one business, one vision” but frankly Old Mutual is a much lesser name than Skandia and it seems a little odd to be promoting anything with the term “old” in it, particularly when the industry is one that is constantly changing. After all we don’t even call a State pensioner an O.A.P anymore. Not that there is anything wrong with being old.

I know that there will be a “business justification” for this, and I’m certain that someone from Skandia will attempt to persuade me that there is. However, I can’t help but think that multi-national branding has more to do with egos rather than anything else. Skandia are not alone in this, financial services is riddled with name changes and this leaves people confused and a little fed up that so much money is wasted on a new paint job. Of course this is not exclusive to financial services, the football stadiums around the country are gradually being renamed by corporate sponsors, though again, to what end. Does anyone really fly with Emirates because it is mentioned as the stadium? or Etihad? I’m not convinced that this is marketing money well spent, though I’m sure a those involved in the marketing process are all rather pleased.

Anyhow, over the next 2 years, we will all be changing references to Skandia to Old Mutual Wealth – OMW. So I did a quick google on OMW acronyms. On My Way, Oh My Word, Old Man Winter, Online Model World, One Minute Wonder, Oh My Wow, Oh My Waffle, Organizational Mastery Workshop and Observation Monitoring Well.

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 It A Good Idea To Rename Something “Old”?Dominic2023-12-01T12:22:46+00:00

A PB is a Team Event

2005: Tennis Anyone? – Logue

Well, he did it. Despite the critics that couldn’t swallow their own medicine, Andy Murray has broken through the British grand slam wall (of 76 years). He did this last night, by beating the defending champion Novak Djokovic in New York. When asked what he thought had taken him “suddenly” to this new higher level, he cited the improvement in his own game and his coach Ivan Lendl. Modern sport is very much a team effort and all those that we saw achieve a podium finish over the summer (and many that didn’t) are helped by a huge team of specialists. The right support can deliver the right results, but of course ultimately the individual will have to perform on the day, putting into practice all that the wider team have worked so hard to instill.

Financial planning could be viewed similarly. The planner and his or her team is providing the coaching, encouragement and sometimes “tough love” (of speaking the truth) but ultimately it is the client, you, that has to go out and earn the income, buy the house, run the business and so on. Its a team effort and I hope that our clients feel that we provide a support team to help them achieve great things too.

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 PB is a Team EventDominic2023-12-01T12:22:46+00:00

Paralympic Legacy? Starts in Life

2012: The Bourne Legacy – Gilroy

The “summer of sport” in London has now come to an end with a thrilling closing ceremony for the Paralympic Games. Now attention turns to the legacy that was promised and the hope that anyone with a disability is treated fairly. Politicians will be quick to capitalise on what they see as the virtues of the experience, as will many others. The Paralympics was quite simply brilliant. Witnessing the final stages of 4 years (more or less) of training to culminate in a truly awesome display of genuine friendly but serious competition was a lesson to world leaders and those that run any organisation, be it in the realm of business, politics, service or charity.

The Paralympics have caused many to pause to reflect on the way we view people with “disability” and “disability” itself. We are also reminded of the need for personal fitness and of course a sense of connection to a wider community. In terms of a legacy, well everyone will have their own opinion on this, but as with all legacies, the best are started in life, not in death. This plays neatly into the need to have a clear idea of where it is that you want to go, what you want to “achieve” – what you want to “succeed” in. All very loaded words, but of course have very different meanings to each person. This is an area that as a financial planner, I have experience in helping clients to reflect on their values and what it is that they truly want from life.

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

Paralympic Legacy? Starts in LifeDominic2023-12-01T12:22:45+00:00

Better Late Than Never

1949: Death of a Salesman – Miller

I have never liked commission. I don’t think its entirely bad, it does help people to pay for advice. However, I have always argued that if an adviser is paid to sell products, then it is hardly surprising that it is products that are advised. Hence when I set my own firm up in 1999, I did so without the normal problems inherent within financial advice. I charged fees for the work and a fixed implementation fee, which was the same irrespective of the type of product. This saved our clients thousands of pounds (and continues to do so).

Today the Managing Director Martin Wheatley of the FSA, soon to become the FCA, announced that he wants to see and end to mis-selling created by sales incentives. He is particularly concerned to tackle Bank staff who are incentivised to sell their products – everything from a bank account, credit card, cash ISA, loan all has a commission incentive to the Bank staff. He said:

“Why is it that every time I walk into the bank to do something simple, like pay my credit card bill, the person behind the counter asks me if I would like to extend my credit, take out more insurance or look at their competitive mortgage rates? When did this happen? Banks for me used to be a service – a place where you would go in, stand in a queue, have a pleasant chat with the clerk and go about your daily business. Some time ago, this changed – financial institutions have changed their view of consumers from someone to serve to someone to sell to.”

This does not apply solely to Banks, it applies to financial advisers, Fund Managers, Investment Companies and pretty much anyone within financial services. I’m with Mr Wheatley on this in principal, however we need to be careful not to throw the baby out with the bathwater. Motivations and incentives certainly need to be in place. People do not wake up and form a queue at my door for impartial fee based financial planning. I have to play my part to promote what I do and make people aware of why they should consider using my services. That’s even part of the motivation behind this blog post. So whilst I’m in full agreement, a note of caution as big budget Banks and Investment Companies may simply flood us all with information overload and of course if base salaries for these sorts of employees were to rise to offset the “lost” bonuses, it is likely to lead to either higher costs, passed on to us all or increased redundancies, which is passed on to us all in the form of additional State benefit burden. So yes Mr Wheatley I fully agree, but don’t let them get away with a smoke and mirrors dance on how this plays out.

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

Better Late Than NeverDominic2023-12-01T12:22:44+00:00

The Truth About Mortgages

1997: The Borrowers – Hewitt

The FSA published its review of the mortgage market on Friday. This did not make happy reading. Since the credit crunch crisis began (and yes I do not believe it is over) the difference between the rate that people borrow at and the Bank of England base rate has widened. Prior to the crunch, the average difference or “spread” between 2005-2007 was only 0.50%, it is now above 3.0%. The difference might be described as profit to the lender.

I’m still amazed to see that as of Q1 2012, income is only verified for around 70% of “low risk” borrowers – meaning that they are remortgagers and movers. “Higher” risk borrowers such as first time buyers have their incomes verified in 87% of cases, which the FSA think is an improvement on the lower level of around 70% in 2008. I don’t see why income is not verified in every case, unless there are exceptional circumstances. Even assuming sensible lending based on verified income, this would suggest that there is a margin for error of around 30% which is hardly inspiring confidence in the market.

Financial Advisers (rather than Banks) used to arrange around 64% of mortgages, now this has reduced to around 46%-56% according to the FSA. This reveals a growing market share of mortgages sold directly to consumers by Banks and Building Societies.

In terms of what people can borrow, there seems to be a shift by lenders, some of whom are lending 4.5x to 5.5x income. However compared to pre-crunch, lenders are not offering as many high multiple lending. This is precisely why a specialist mortgage broker (not me) is required to source the best mortgage based upon your circumstances, particularly as the number of mortgage products is returning to pre-crunch levels, but still lower at 2,991 different mortgages available. This is despite the fact that there are still relatively few mortgages requiring a deposit of 5% or less, although more are becoming available. The bulk of borrowers now have 25%-50% deposits. The proposition of interest-only mortgages has also reduced considerably, though this was a general trend over the last 10 years. The balance of power has altered, in part due to the collapse in the number of financial advisers offering mortgages, (which would include ourselves) almost halving since 2005. The result has been that the top 20 mortgage lenders have gained an increased market share, now at 94% of the entire mortgage market, I suspect you could name them all. On the whole, though mortgage sales have remained fairly static since 2009 at less than half the amount it was in 2005.

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

The Truth About MortgagesDominic2023-12-01T12:22:44+00:00

DomTom

Pensions for over 50’s

We have a unique system, which we call the DomTom system, (it’s a little tongue in cheek). Our approach does to financial services what SatNav did to maps and it is nothing short of revolutionary. Our approach connects your values and motivations to identify the route to reach your desired outcome, which for most people is a specific lifestyle. The best SatNav systems update regularly, helping you to avoid congestion and recalculates the route based on the latest information.

Financial Plan

Your Financial Plan needs to adapt its approach as circumstances alter, but if done properly, the principles behind your plan will not alter, because they reflect your personal values.

A great financial plan is a “living” document, something that requires updating and monitoring. It is true to say that “life is a journey” but we believe you need to know where you want to go and how to best get there. You can select the speed and whether you take the scenic or quick route, our job is also to monitor what lies ahead. Our approach provides you with the truth about your financial position.

We believe that you can only make two mistakes along the road to truth, not going all the way, and not starting.

DomTomDominic2023-12-01T12:22:43+00:00