Avoidance is not in your Interest

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Avoidance is not in your Interest

We have had a sustained and long-lasting (by comparison) level of very low interest rates. This has been bad news for those with cash savings, but good for those with mortgages or loans, at least regular “mainstream” ones. However a lot of borrowers have mortgages that are interest-only mortgages. This means that they are only paying the servicing interest each month, not actually repaying any of the loan. As rates have fallen, many have failed to use this as an opportunity to make some progress clearing the debt.

The credit crunch had lots of far-reaching effects on most of us, we are still living with the official Government response to it, which is one of austerity. An attempt to keep expenditure lower than income, which for you and I make a lot of sense, as a nation it ought to, but of course the Government has lots of ways of “making money”.

Anyhow, there are a whopping 1.67m mortgages that are either entirely or partly interest-only. The regulator is rightly concerned that borrowers are not engaging with the problem and without any plan to clear the loan will utlimately be subject to discovering the joys of Court and perhaps repossession of their homes.

70% Ignore the Lender

The research conducted, reveals that a staggering 70% of borrowers that fall into the category of an interest-only mortgage never respond to requests from their lenders suggesting a proper review. This is collective denial on a massive scale. Everyone is presumably hoping for one of several possible outcomes.

That they have a plan in place that will clear the debt, they simply haven’t told anyone
That they intend to sell their property and downsize once clearing the mortgage
That they have every intention of doing something, just never got around to it.
That the lure of gambling or lottery, cryptocurrency winnings will be the answer
That they expect the world to end, so who is really bothered…..

As you may have gathered, I’m probably offering thoughts that aren’t written down in the report, though I suspect I’m not far off the truth. Denial is a very powerful force and many people are, frankly taking their future all too lightly.

I will sell up and then rent, what’s the big deal?

Of course selling the property, hopefully for a figure larger than the loan, may work for some, but for others there is unlikely to be much left over to buy a house. So perhaps renting is a consideration, after all, interest-only mortgages are a bit like renting, except the borrower also has all the upkeep and insurance. However, renting is not as easy as you may think. Most agents apply a multiple of secure income (pensions) to determine if the rent is affordable. As a guide, expect to prove that your income is 30x the monthly rent…. most will not be able to do so. If you are over 70, then add in the lack of suitable property and landlords willing to rent to people more likely to fall and hurt themselves… well, let’s just say that renting becomes harder.

As is probably obvious, the regulator is concerned about the lack of engagement. I suspect that this might lead to some new initiatives to “encourage” borrowers to take action. You have been warned.

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 [email protected]

Email me to get in touch

Avoidance is not in your InterestDominic2025-02-03T10:37:21+00:00

Three Billboards

Perhaps Three Billboards Outside Ebbing Missouri is the ultimate signposting movie ever made. It certainly doesn’t do much to alter any preconceptions about certain segments of American society, however it is a work a fiction, albeit with an alarming gritty realism. However, despite the gasps of shock within the audience at some utterly backwards attitudes. The most striking aspect about this film for me was the lack of any action.

In the film various characters are assaulted, verbally and physically, yet witnesses basically remain as bystanders, doing absolutely nothing, apart perhaps, from a disapproving “tut”. I comfort myself that this is fictional, it’s a movie, people don’t’ stand and gawp, doing nothing… do they? I mean I know we are all able to witness terrible scenes from around the world in a voyeuristic sense, but we aren’t right there on the spot, we are unable to immediately intervene… but if that happened within our own home, street or park, we would intervene right? To me, the lack of engagement or outrage was worse to witness than the racism or violence itself.

Engage with Other

It is surely our involvement and engagement, that provide us with a sense of our humanity. This was demonstrated in a CCTV clip that I saw this week of a person saving the life of a man about to throw himself in front of a train. Many do care and do get involved, but some seem to be happy to be mere bystanders in life. Maybe this is what the Director intended, given the politics of the day, perhaps this is a commentary on those that make claims about a President and turn a blind eye, frequently, to the continuous blatant hypocrisy. The movie certainly has the title and whiff of a “based on true events” tale. In short, I guess they could be, which is deeply worrying. Indeed, the very premise of the story is around the lack of action by the local police.

This is Hollywood, not Missouri… right?

As for the film itself, there are two very strong performances. The lead character Mildred (Frances McDormand 60) gives a very “real” depth to the characterisation and Sam Rockwell (49) nails his performance of Dixon, the cop you hope to never meet. There are some notable choices for the cast, Abbie Cornish (35) plays the wife of Police Chief Willoughby, (Woody Harrelson 56) she was 3 when he started his role in the bar sitcom “Cheers”. The white middle-aged men are hopefully too clichéd with Mildred’s former husband (wife/probably anyone-beating) Charlie, (John Hawkes 58) now with Penelope, (Samara Weaving 25) a woman considerably younger and more the age of their murdered daughter Angela (Kathryn Newton 20). Perhaps this too is deliberate characterisation of men unable to cope with ageing.

One of the talking points of the movie will likely be the actions of the Police Chief Willoughby, who takes a view on terminal illness and sets his mind to dealing with loose ends. His words to Dixon and the subsequent events seem unlikely and have caused controversy in various circles. However plausible, clearly each character is responding differently to stress, turning to their known and learned patterns from some rather poor parenting, at least that is what I assume it is.

Serious Stress Test

How we respond to stress when it arrives is hard to predict. However much we plan or prepare, the reality can be different. Life can provide us with unrelenting strain, serious illness, financial ruin, loss of a loved one – much of our ability to control these things is as fictional as the movies. Yet, we can plan, doing so in our more thoughtful moments, so that we can fall back on who we are, not what our surging biology deems us to be in the crucible of the furnace. It is easy to put off difficult things in life, we may get warning signs – even billboards, but sometimes even three at once isn’t enough in this modern twist on “don’t kill the messenger”.

So here I am…. have you got your stuff together?

Here’s the official trailer, the movie is tipped to do well in the award season, partly because it seems to reflect the moment in America today. Oh… and the language is certainly….. colourful.

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 [email protected]

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Three BillboardsDominic2025-02-03T10:37:21+00:00

Coco

It has been a while since the regulator (FCA) warned and restricted the sale of COCOs (Contingent Convertible Securities) in fact it was October 2014. We have never advised anyone to buy CoCos, however, this blog is about a very different Coco, the new animation film from Disney and Pixar.

I know, you are a “grown up” and don’t go to see a cartoon at the cinema unless you must do so, accompanied by your children or perhaps grandchildren, but as usual with Pixar, this is really a film for adults and reminding us to reconnect with and aspect of ourselves that often the daily grind of life wears down.

So yes, I went to see this at the BFI Director Q&A Preview early on Saturday morning, with one of my daughters, who at 22 isn’t the obvious excuse as accompanying a “child”. So, hands up, yes I have been to see this already – and for the record, the distinction between a cartoon and animation is pretty important to film folk. To me it is another artform.

The Spice of Life

Coco is a colourful, vibrant story about a family in Mexico. It is laced with Mexican traditions and beliefs without judgement, because the people at Pixar invariably see past all our “stuff” to the core of what it is to be human. Miguel, is the central character, attempting to find the essence of who he is, whilst trying to be observant and respectful of his family context. As with most families, much is unsaid and assumed and we all have ways of living and seeing the world based upon a collection of lifetime experiences, sometimes the lifetimes of others too, hence inter-generational traditions.

Set against the backdrop of “Dia de los Muertos” the Day of the Dead, we get a rather better understanding of what this means to Latins in particular. A Day to remember and be thankful for those members of our families that have deceased. A touch of flair and a big dose of imagination creates a powerful world, in which even the most fixed in their chosen religion would find hard to resist a sense of appeal. However, this is not a theological piece.

Familiar Myths

In a rather classical myth form, Miguel risks his soul in pursuit of who he is and in the process, discovers more than he bargained for and is faced with information that contradicts and challenges what he already believes or “knows”.

The film is an opportunity to reflect on the family and friends that you have, to remember them, “warts and all”. We are also reminded of the impact that choices we all make each day have on others and how every family narrative has many limitations. The animators use forgetting as the vehicle to deliver a message that we all know, but often… well… forget.

Who will tell your Story?

We all face mortality, financial planning will help prepare you, your family, your business for any disaster financially, but of course it cannot help you reclaim time with those you care about. At best a planner can help remind you of your own values, by reflecting them back to you and embedding them in your plan, but time is brief. We can also point out how little time there is and help you plan to enjoy more of it by figuring out how much money is enough for you.

Over the last 3 years or so I have encouraged clients to make a “life book”. A short book about who they are (through their own eyes). This is a way of passing on your own story to those that matter most to you. Of course, most of us put off such a thing – “one day I will get around to it”. Sadly, a different day can arrive without warning, very suddenly. This isn’t meant to be schmaltz, but somewhere in our culture, the idea of story has become diluted or perhaps lost, by celebrating, celebrity or projecting a hollow version of life that has little resemblance to reality. Like Miguel, you may discover that some of your greatest heroes are those nearest to you.

Here’s the trailer. I dare you.

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 [email protected]

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CocoDominic2025-02-03T10:37:22+00:00

All the Money in The World

A film with a title to grab attention is currently on release. You may recall the story (from 1973 – which may test your grey matter) of a ransom kidnapping for $17million, add the spice of a well-known Director deciding to reshoot significant segments of the film due to revelations about the original actor Kevin Spacey and there is a bubble of interest. Captain Von Trapp himself, (Christopher Plummer) a man still obviously enjoying working at the age of 89 stepped in for the reshoots.

Much like the story of Titanic, I’m not too worried about spoilers on this one, I assume that most know the basics of the story. The clear interest in this version of events is the struggle between Gail Harris, ex-wife of one of Getty’s sons (Jean Paul II), to persuade Getty to pay the ransom. Getty, whilst being probably the richest man alive, was a modern-day Scrooge. One can scarcely believe the red phone box installed at Sutton Place, just off the A3 before Guildford – his British home, for his guests to use, but it is an alarming accuracy.

Last on the list

I think it fair to say that the audience I was with were somewhat shocked by Getty. He is portrayed as a man that seems to care little for people, admitting that he had no time for his family as he had to focus on his business. He is reduced to a character that prefers possessions, very beautiful and expensive ones (he was an avid collector) over people. I cannot remember accurately what he says, but effectively that things don’t change, they cannot let you down, they are what they appear to be. In short, his experience of people (from his point of view) has been obviously disappointing. He was married 5 times, the first four each lasting 2-4 years, his final marriage to Louise Lynch lasted 19 years, though ended shortly after their son Timothy died from a brain tumour at the age 12 in 1958, Getty did not even attend his funeral. So, by the time of this story, Getty is divorced 5 times

Reflections Today

In many respects, Getty is Trump-like, in that he seems to have a very small circle of people that he trusts and lacks any significant depth of emotional intelligence. If Trump has read a book it was probably “How to be Rich” written by Getty.

The gasps from the audience at some of Getty’s actions and statements reflect the mood of today, mostly connected with the ultra-rich avoiding any taxes and structuring their affairs in a way that will ensure their preservation. The film suggests that Getty only eventually agrees to pay a reduced ransom as he is informed that there are tax advantages….

The sadness is the simple lack of any evident connectedness to another person. Money is simply a way of Getty feeling good about himself and importantly to him, making his own father seem like a pauper.

The Bully and the Buck

The ransom itself is largely about power, money is wanted by everyone, as one communist attests in the film. The very rich want more, perhaps because it increases their sense of security. It is implied that the mafia eventually takeover the ransom, like a business venture, resulting in entire communities unwilling to help a frightened juvenile. A by-product of successfully bullying is wealth.

As for Getty, here is a quick quote from the film, which is of course dramatized, based on true events but by no means a documentary.

Fletcher Chase: Nobody has ever been richer than you are at this moment.
Jean Paul Getty: I have no money to spare.
Fletcher Chase: What would it take for you to feel secure?
Jean Paul Getty: More.

Getty wouldn’t get it

Clearly as a financial planner, my role is to help you figure out how much is enough. Getty would not understand such a conversation because he also doesn’t understand living a successful life. There would never be enough, never any satisfaction, never any sense of contentment, never any rest.

Fortunately, a successful life is possible, and a great financial plan can help bring this into reality and last. You don’t need the fortune of Getty, you need ears to hear and eyes to see and the ability to verbalise what is important to you.

Here’s the official trailer. I gave the movie 6/10. Its too long at 2 hours 12 minutes, you feel a little captive yourself.

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 [email protected]

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All the Money in The WorldDominic2025-02-03T10:37:22+00:00

Glengarry Glen Ross

The 1984 play by David Mamet opened in London last week. I had seen the 1992 film but had not the play. They are certainly different. To my mind the characters in the film generated more sympathy than those in the play. Whatever your view, the performances are strong, but perhaps not as strong as the language which is about as “locker room” as you can get, as clashing egos and dysfunctional ideas about masculinity are spat across the space between characters.

These are “men” that have a fluid understanding of truth, it seems that they believe that it serves their purpose to be economical with the truth. Selling whatever they can for as much as they can to whomever they can. We are all probably familiar with the hard sell and yet despite it being largely frowned upon here in Britain, we are all still regularly blitzed by people trying to grab our attention. This week I’ve had the customary junk emails, a few text messages and a call or two about an accident that wasn’t my fault and never happened. Selling, sadly, is a regular bedfellow of scamming.

Always Closing

Anyone in business will recognise the constant problem of attracting and obtaining new customers. Those that provide a particular product may only ever sell it once, as opposed to those that sell a service. It is telling that in the play, none of the characters really possess much by way of a sense of ethics. Sadly this is nothing new and of course the notion of hypocrisy (at best) lying (at worst) is familiar in almost any sector of society and unique to none. To the salesman (person) the enquiry or “lead” is their opportunity to close a sale. However bad or unethical selling can only lead to a failed business and one that closes.

A Brood of Vipers

I have never really understood those that knowingly and deliberately lie in order to make a sale. Financial services (my sector) is of course one where many sharks and charlatans have resided. Life may be harder for them now, but invariably they exist and find a way to part people from their money with apparent ease. Some “advisers” often refer to the “good old days” of financial services, by which they mean earning a commission for selling products. It may interest you to know that back in those good old days there were about 250,000 people selling financial products, primarily in person, often at your doorstep. Today there are around 25,000 authorised individuals who are able to provide advice and arrange “stuff”. Of those probably no more than 5,000 are financial planners, who, like me, don’t need to arrange “stuff” to get paid and provide a valuable service to clients, but of course most of us will arrange investments and the like as required.

Money Interest

Money is invariably the barrier to an honest conversation. In 2013 after much mucking around the regulator of the day banned most forms of commission (note I started the firm in 1999 completely removing commission). In January 2018 the rules will be taken to a higher level due to a European agreement (MIFID2). This will mean advisers and product providers need to be crystal clear about their charges and agree terms for their service. This is coming from a sensible, laudable intention of protecting investors, unfortunately I can see very few benefits at this stage, at least for those that are already provided with a costed and agreed service, as our clients are. If anything, people are more likely to make more bad decisions, focussed on cost rather than value. One of the new rules is quarterly valuations and prompt/immediate notification if a portfolio falls by 10%. These sort of actions tend to panic investors and shift their focus to the short-term rather than the long-term benefits of disciplined investing and having a proper financial plan.

Unintended Consequences… again

Your in-boxes will become fuller of correspondence, which will in turn lead to either inertia or anxiety, perhaps both. This is likely to be followed by the current serpent de jour, dressed as a helpful paramedic, but actually seeking to suck a pint of blood or two for themselves – the ambulance chasers will find some way to bombard you and convince some, many perhaps that their portfolio will only ever rise and if it doesn’t or didn’t, please take a ticket and join the queue for those seeking remedy or the fantasy of one. To my mind the equivalent of worrying that an egg was broken when the intention is to make an omelette. If I’m sounding fed up or perhaps “aggressive” this is because, well I am certainly tired of pointless changes, but equally aware that we will need to do more work, for no benefit, which will result in higher costs and fees, which will inevitably be passed on to clients. It won’t really deter the liars or crooks, perhaps it will make like marginally harder, but those are people that never play by the rules and would never offer you anything of value.

As for the play, well it’s on in London near Embankment tube. It has not been updated (if it has I cannot see where). It has contains some very uncomfortable language – racism and sexism which jar and are not helpful to the underlying message of the play. Of course it deals with bigger topics such as the dog-eat-dog world that forms of capitalism create, where collaboration isn’t in evidence, but rather ruining your peers helps your own cause. Starring Christian Slater, Kris Marshall, Oliver Ryan and Don Warrington to name a few. Get your tickets here – (warning – very sweary!)

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 [email protected]

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Glengarry Glen RossDominic2023-12-01T12:18:21+00:00

Downsizing

Imagine a world where your wealth is sufficient for the rest of your life to fully support your lifestyle. Throw in the benefit of massive improvements to the environment and waste reduction and you have the plot summary of Alexander Payne’s new movie “Downsizing”.

This is a movie that is tipped for the OSCARS, given that it will be released in December in the US and January 2018 over here in the UK. Whilst having potential for perhaps both comedy and a sense of hope, this is a film that gets loses itself in a story that is both too big and too small. It’s a pity as the premise is pretty good and the trailer is typically engaging

As a financial planner, my job is to help clients figure out how much is enough to support their lifestyle (as they determine it) for the remainder of their lives. Most people do not appear to have a financial plan, very few have a clear idea about how much would be enough.

Side Effects

Downsizing begins with the scientific discovery that means it is possible to shrink cells without harm or side effect to about 3% of their original size. The one problem being that it is an irreversible process and not available to anyone that has a body with additions (implants, prosthetics, pace-maker etc) as these will not shrink.

Living the Dream

Paul Safranek (Matt Damon) is your average American, he was once on the path to a career in medicine, but his dreams were thwarted by an ill mother who needed his care. Now a somewhat frustrated physiotherapist, he is living in his late mother’s home, with wife Audrey (Kristen Wiig) and struggling to get by. At the perfectly imperfect setting of a school reunion, he is persuaded to consider Downsizing, the solution to his financial struggles.

Paul and Audrey head off to Leisure Land and receive a masterful sales pitch that extols merely the benefits of Downsizing, ignoring all of the drawbacks. The Safranek’s have assets of $52,000 but in the Downsized world this translates to $12.5million, to live on for life! The numbers do all the talking. Packing a delightful red keepsake box with their family treasures (wedding rings etc) the same box is delivered to the house in Leisure Land, but of course gold wedding rings now appear the size of buoyancy rings. I have to admit, that if I could arrange such a return for our clients I’d be winning every award under the sun. However, as with all things, there are no guarantees.

The Bigger Picture

The plan to save the world is to gradually miniaturise everyone over the course of 200 years. Despite a safe procedure (assuming removal of fillings etc) there are very real side effects in the larger world – economic, political and social. Its all very well that a mansion may now only require the space of a dining table, but property in the larger world still needs to be sold and therefore bought. Taxes need to be paid, production needs to continue and there is a debate about whether the Lilliputians should have a full-sized vote.

The film attempts a stab at all these issues as well as a rather fruitless assessment of a life of pleasure, the poverty divide, immigration and those that remain outside the system, where standards are never the same. Add a touch of impending environmental disaster and the naive, blancmange-like character of Paul Safranek who seems to lack either any sense of self-determination or self-awareness, chasing every ball thrown by anyone willing to bother. Ironically, all of the issues are far too big for the film which becomes as microscopic as its characters, lost in a world of complexity. It’s a pity. Much like Safranek, it appears nobody asked what it was that Alexander Payne wanted from this. Instead it’s a journey of happenstance, rather than any course being plotted. I suppose that this is the reality for most people, who live from day to day, month to month, year to year without any deeper sense of direction, like Safranek, frustrated through not identifying purpose. Nobody asks the right questions and so the thinking is as shrunken as the inhabitants of Leisure Land.

Here’s the trailer, the film is released in the UK in January (following its showing at the London Film Festival this month). Oh yes, the trailer is the best bit.

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 [email protected]

Email me to get in touch

DownsizingDominic2025-02-03T10:37:22+00:00

Film Stars Don’t Die in Liverpool

I have been enjoying several films at the BFI London Film Festival. One that stood out for me was “Film Stars Don’t Die in Liverpool” which is adapted from the book by Peter Turner. It tells of the unusual relationship between a young Peter Turner and former film noir femme fatale, who most are likely to have seen but perhaps not remember – Gloria Grahame.

Grahame’s career in film began with a small part in “It’s A Wonderful Life” you may recall how George Bailey gives Violet Bick funds to escape the small town and make a name for herself elsewhere. She won an OSCAR for her role on The Bad and the Beautiful and performed with some of the leading lights of the 1950s.

In A Lonely Place

The film is based on her encounter and 2-year relationship with Turner, who she initially meets in London whilst back treading the boards. Then in her mid-fifties, divorced 4 times and surrounded in scandal she begins a relationship with Turner, who at 27 wasn’t even born when Grahame had completed work on The Bad and the Beautiful. We are shown brief insights into her chaotic world and the scandals that inevitably ended her career in film. Her last husband, Anthony Ray, was her stepson (from her second husband) and the marriage lasted from 1960 until 1974 resulting in two children.

A Woman’s Secret

The film implies that Grahame was pretty much financially ruined, appearing to possess a mobile home / caravan on the Californian coastline. Perhaps because of 4 divorces or a career that was cut short, or even because of illness, but clearly the glamour and glitter of her star had burned out. (Spoiler) Ultimately her life is cut short due to a recurrence of cancer, though this is fairly evident as the likely outcome from the start of the film, so I’m not really spoiling it for you.

Odds Against Tomorrow

There are some broad financial lessons here. The audience laughter at a scene where two pints of beer are ordered for 90 pence, was probably the loudest in a film that clearly isn’t designed to be funny; but the long-term impact of inflation is not really the most obvious lesson here. Fame that brings financial success can be very short-lived. Life as an actor can be very harsh. Divorce is financially expensive, but of course the toll on emotional reserves may also be overwhelming. Love and tenderness are often found in unexpected places and whilst care costs, it may not have a monetary price. In a world of appearances many are in danger of making similar “mistakes” or having similar experiences.

The Cobweb

Financial protection is a modern-day (or should that be post-modern?) wonder for those without capital – providing financial stability in the event of life presenting “challenges”. Running out of money isn’t as bad as running out of time, but it’s probably a pretty close race. A proper financial plan will help reveal where your resources are and what you can do to sure them up. It enables you to take a look at the future and make some adjustments in advance if you don’t like the prospects.

Here’s the trailer for the movie, which reunites Jamie Bell and Julie Walters, this time as mother and son, whilst Annette Bening gives a great performance as Gloria Grahame.

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 [email protected]

Email me to get in touch

Film Stars Don’t Die in LiverpoolDominic2025-02-03T10:37:22+00:00

The Trouble With…

It seems impossible not to feel a sense of despair sometimes when you see, read or hear the news. When there are atrocities on our own streets or we see yet further mindless violence in countries with whom we have deep and long connections, the sense of despair is palpable. However bad or inept the reporting, I remain thankful that I live here in the UK.

I’m not alone in thinking that the man currently elected as President of the United States is simply not fit for the task. He is out of his depth and displays his evident lack on a daily basis. We have come, (well…I have) to expect very little from him.

Viva Espana?

Spain on the other hand, is a country that most of us know almost as well and the US. Our language barrier is possibly helpful as we tend not to make too many assumptions about each other. Yet I am struggling to understand what goes through the mind of a policeman in the Spanish Civil Guard who appears to enjoy stamping, beating and fighting anyone he deems to be “opposition”. The images that have crossed a multitude of screens are truly horrifying. Whilst the vote for independence may be “illegal” it is clear that a very significant proportion of those living in Catalonia do not wish to remain part of Spain.

Splitting Heirs

As an Englishman and a British citizen, I’m aware of the calls for devolution of power and potential independence of Scotland, Wales, Northern Ireland and perhaps Cornwall. This is unsettling to my sense of what is “normal” but of course the history of our own union is relatively recent and things were different before, much as they were in Spain, Italy, Germany, France, Prussia and so on… borders change. We do not keep the peace by pretending that all is well. We do so by listening to the perspective of the other. As in a marriage that reaches the point of irreconcilable differences, we need to acknowledge that sadly (perhaps) the best course of action is to separate and ultimately to agree to the new legal state of all parties concerned. This will have some genuine difficulties, just like a divorce, the division of resources and accounting for what belongs to who is painful. Those of you that have been through a divorce will understand this more pertinently than those that have not.

Head of State or State of Mind?

The suggestion that “the law” is to be upheld as though it is never altered based upon real experience is nonsense. The law is formed from experience and always evolves to reflect the changing nature of society. When a Monarch, President or Prime Minister fails to grasp the sense of unfairness felt by “their own people” preferring to support aggressive legitimised bullies, it seems to me only right to call them to account.

Ceteris Paribus

What has this to do with financial planning? We make assumptions about the future all the time. The biggest ones are those we don’t even verbalise – such as a relationship lasting. At my annual Institute’s Conference, last week, I expressed this view and to be honest, it didn’t seem to “land” with the small group that I was with. We talk of risk – typically investment risk, but also political and economic risk, occasionally the risk of health or redundancy, but rarely the risk of relationships ending. It is the elephant in the room with all couples, do we talk about the risk of irreconcilable differences?

I’m reminded of the saying “the pessimist complains about the wind, the optimist expects it to change, the realist adjusts the sails“.

Feedback welcome, but not for a debate on the issues of Scottish Independence or devolution, or even what’s going on “abroad”. We can only control a very small number of things, but our ability to face up to our assumptions is one of them. For the record, I “love” Britain, Spain, the US but I prefer human dignity over any flag.

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 [email protected]

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The Trouble With…Dominic2025-02-03T10:37:23+00:00

Cold Feet

Perhaps you have been watching the new series of Cold Feet. The original series began in 1997 – some 20 years ago and ran until 2003. It was revived last year. Originally a series about three thirtysomething couples living in Manchester, we have seen the usual plethora of “dramatic” storylines. Any significant exploration of characters or plot reveals a number of gaping holes and sadly even in the decade or so of a break, the writers have continued to fail to redeem themselves.

The Hapless David

David Marsden, the character played by Robert Bathurst has had to contend with a fair amount of turmoil in his life. Now, two marriages, various affairs and of no fixed abode later, his already somewhat questionable career (from anything believable) has now developed into that of Independent Financial Adviser.

Financial Planning for the Filthy Rich

In the latest series (7) we have seen Mr Marsden provide a presentation to a collection Manchester’s wealthy women, held in the plush executive home of Nikki Kirkbright, with Champagne freely flowing and perhaps more like an Anne Summers party, he proceeds to rename his “talk” financial planning for the filthy rich. David meets with Nikki who clearly wishes to keep the matter from her husband who returns home and results in David being asked to leave quickly to avoid meeting him. The latest episode had David meeting discreetly with Nikki, a meeting which he claims he has all the forms for the Unit Trusts. Her husband finds out and has David collected for a “meeting”.

David wouldn’t be an “Approved Person”

I don’t really know where to begin with this, save that David would not be a financial adviser having been arrested, charged and imprisoned for fraud – for his arrangement of what can only be unregulated investments whilst working for a firm that clearly are equally as inept at understanding financial regulation. His firm leaves him to “hang out to dry” and of course David attempts to pass the buck and record his boss admitting liability. His only obvious punishment is that at the start of series 7 he is to be found visiting very elderly ladies and encouraging them to sign application forms to release equity from their home or buy life assurance.

David Marsden is without shame, without qualification and frankly without any credibility. Someone in the writing team must have had a rather bad experience, but has clearly allowed that experience to dictate terms that no further understanding of finance shall be permitted. David is utterly incompetent, totally untrustworthy and completely delusional.

Trust Me, I’m A….

Of course, misrepresentation on television is nothing new, (ask Doctors, Lawyers, Nurses, Teachers, Ministers, Police and anyone in the Armed forces) and yes, it’s just light-weight comedy-drama, designed to amuse, not inform. Fair enough. I’m more concerned at the continued lack of understanding of finance and whilst yes, these characters aren’t real, they really don’t help anyone improve their own understanding of financial services, but merely compound the problems with misinformation. Dont get me wrong, I quite enjoy the series, I simply wish that there was rather more credibility in the characters…. you can watch it 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 [email protected]

Email me to get in touch

Cold FeetDominic2025-02-03T10:37:23+00:00

Another Concerning Survey

If you have followed me for any reasonable time, you will have gathered that I am fairly suspicious about surveys and opinion polls, primarily due to the very small sample sizes and the eagerness to extrapolate data from, well, frankly not very much.

That said, yet another survey has revealed more of the problems that, if correct, are concerning for the country. Paymentsense (a card payment service) clearly have an insight into how people spend money. They surveyed 1000 people last month (July 2017) of all ages, whether this is a truly representative sample… well, it won’t be. However, the findings are certainly of concern.

30% of UK Have No Savings

Firstly 30% have no savings at all for a “rainy day”. Of those that had savings 21% used them for a holiday and only 17% put savings towards their retirement. Here is where I also have an issue with the line of questioning (which is unclear from what I have seen) but this could have been interpreted as using cash deposits to add to a pension (into which they may already be saving). Some people may of course be already retired and have no purpose in “saving for retirement”. In any event, a pension would be what springs to mind when asked about saving for retirement, but of course there are a huge number of ways to invest into something which will ultimately provide an income and/or capital.

Nothing in reserve?

However, the headline grabbing figure is really the extrapolation of the data. This leads to the conclusion that some 45.5m people have less than one month’s salary set aside in “savings”. The population is now an estimated 65.6m, which obviously includes children, pensioners and anyone simply unable to work and “earn” income. The current “unemployment” rate is 4.4% (for 16-64 year-olds). In short, a significant economic blip would be likely to cause significant hardship for a lot of people if they lost their income for whatever reason.

Signs of uncertainty shown in house sales

As Government continue with plans to leave the EU and a growing awareness of the likely implications for UK jobs, it would appear logical to be concerned. Hence the property market isn’t exactly booming, but property prices do continue to rise (4.9% over 12 months to June 2017) according to the Land Registry, however the number of sales continues to fall from 98,152 in August 2016 to 69,545 in April 2017. As a matter of note, the lowest number of house sales was in 32,752 in January 2009. The highest was June 2006 with 153,465 (for all the UK). If it is of interest, over the last 20 years, the average property in the UK was £65,092 in August 1997 and now stands at £223,257 (June 2017).

If you like short animated films, then Borrowed Time is a delightful one and a powerful message. Here is the trailer (almost as long as the film).

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 [email protected]

Email me to get in touch

Another Concerning SurveyDominic2023-12-01T12:18:26+00:00