Time for the Oscars

Solomons-financial-advisor-wimbledon-blogger

Time for the Oscars

The Oscars take place on Sunday night. To my mind, this always signals the end of the awards season. It also acts as a reminder and marker about certain years. Its 20 years since The English Patient picked up a bunch of Oscars. Frances McDormand, Juliette Binoche, Geoffrey Rush and Cuba Gooding Junior. Twenty years since Jerry Maguire and “Show me the money”. How time flies.

As you will have gathered I use film to explore various financial planning issues. At times I admit the links are a little stretched, but in essence a client comes to me with a story in progress and seeking help with how it turns out. There is some required editing, script writing, direction and the key characters all need to play their part. Of course original and unique content is always preferred.

So here are my posts for some of those nominated for the 2017 Oscar ceremonies. If I were a betting man, I’d suggest that La La Land are likely to take a bunch of awards. I enjoyed it greatly, but for me Hidden Figures, Hacksaw Ridge and Elle all had more of a profound impact. It was a shame that “I, Daniel Blake” didn’t get picked up in the US but was recognised at the BAFTAs.

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]

Time for the OscarsDominic2023-12-01T12:18:41+00:00

Dancing in the Moonlight

Moonlight

Imagine being unable to give voice to your dreams, let alone be permitted to live them. Doing so would result in physical violence, exclusion, prison and perhaps death. Moonlight. This is a sadly familiar story. Throughout history we have seen the cost of standing up for fairness, equality and dignity. Yet today, there are many countries where freedoms that most of us take for granted are prohibited.

However, even within more egalitarian countries, there are pockets of fear and suspicion, where freedoms are not as available as they might be. You know the freedoms I’m talking about, for gender, ethnicity and sexuality. The movie “Moonlight” explores the taboo of homosexuality within American black culture. It is a powerful and moving story of one man’s struggle with his identity and is effort to build himself and find somewhere where he fits.

Being true to yourself

There is very little in the film that I can possibly hook onto for a financial planning angle. The best I can do is remind you that whoever you are, you have a story and as a financial planner my role also involves helping you to write and live the story you wish to be told of your life. This means being true to yourself, not simply accepting the social norms of what the majority expect from working life and a lengthy retirement. What others think is not as important as your own integrity and an authentic walk, which I concede is pretty easy for a white, English speaking, able-bodied, heterosexual, married male to say.

Freedom is more than spending power

I am utterly fed up with hearing negative pointed comments about feminism or political correctness. As far as I can tell, both simply seek fairness, respect and civility and anyone that thinks those are not worthy aspirations really does need to rethink their values. OK, so Moonlight won’t be for everyone, but the non-acceptance of difference should be a cause for concern to us all. British, Sri-Lankan comedian Romesh Ranganathan challenged me (and the audience) about this last night at a small cabaret near Victoria. Much like the Lear’s Fool, he pulled no punches with some harsh truths about what we find offensive or normal, whilst wrapped in the the mirth of comedy. It seems that the world is currently attempting to turn back time on the progressive changes that have been hard-won. Why people cannot live in peace is a mystery that I will never fathom. If money is meant to bring freedom, then some of the richest still have much to learn.

Here is the trailer for Moonlight.

and here is a short video of Romesh Ranganatham at the Royal Variety Show.

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]

Dancing in the MoonlightDominic2023-12-01T12:18:47+00:00

Awards Season

Award Season

It is the awards season, in many aspects of life there are now annual awards. I recognize that this isn’t everyone’s “cup of tea”, many are highly subjective and some…well frankly they are bought marketing manipulations. Some argue that successful people have already had their rewards by virtue of a swollen bank balance. I have some sympathy with those points of view.

There are of course good and “bad” awards, sometimes you may have a preference about who wins, sometimes… not so much. It wont surprise you that I enjoy awards for music, art, film and theatre which are arguably daft as they are completely subjective… so perhaps I’m a little daft too

Presidential Medal of Freedom

One award ceremony that I saw recently was the 2016 Presidential Medal of Freedom. Critics of awards tend to dismiss them as unnecessary fluff for people that are already thanked and seem to miss the point of the hard work, often selfless struggles that expose the true nature and values of the individual concerned and their impact on others.

Inspired to greatness

Watching reactions, hearing snippets of their stories is both moving and inspirational. They affirm what we hope to be and inspire us to greater things… (I can’t believe its just me that feels that way). To my mind one of the great attributes of President Obama was (is) his integrity and his ability to relate to ordinary people in a quite extraordinary manner. All of us probably want recognition for our efforts, few of us are likely to receive this in any form other than our wages, except perhaps from our small group of friends and family.

The contrast could not be greater

Watching the clip of the event I was encouraged and inspired, informed and moved. A humorous, personal speech from Obama along with a clear affection for those that were being recognized. This is the America that most of us wish to see, that is the world leader of inspiration and reflects the source of the special connection that in reality most nations probably feel to some extent. Whilst I recognize it is full of contradictions, (as am I) this is the version of America that today feels rather different and lost under the new President. In time we shall see what sort of President Mr Trump makes, but an inability to understand, empathize or appreciate the difference between facts and lies does not bode well.

I suspect that you don’t spend hours watching reality TV shows, but if you do have about an hour this video is worth seeing, even if you have it on in the background as you work. For more about the 2016 recipients click 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]

Awards SeasonDominic2023-12-01T12:18:53+00:00

Money Box – Interest Only Mortgages

Money Box- Interest only mortgages

If you follow me on twitter you may be aware that I was raising some concerns about the reporting of an item on BBC Radio 4 Money Box and BBC1 Breakfast about interest-only mortgages. Let me be clear I do not provide mortgage advice – we refer this to someone that does – should anyone require it, we encourage clients to clear off debt and mortgages as quickly as possible.

Paul Lewis relates the story of Christine, a woman now 70 years old, bought her flat in Liverpool in August 2004 at the age (I assume) of 58 with a ten-year mortgage of £151,774. It was an interest only mortgage, meaning that she was only paying interest, not the loan which would need repaying at the end of 10 years. Having had 2 years extra time to repay the money, her lender (Santander) has now given her until 24th November 2016 to do so or face legal proceedings.

There is not enough information (as ever) in the story presented to be able to provide any solid advice. We are told that there is no equity in the property (the value of the flat less the mortgage). This could be because the flat has not increased in value at all since 2004 (which whilst possible seems a little unlikely) or it could be that she has amassed other debt which has wiped out any equity that built up over the last 12 years. The reality is we don’t know and in any event, this is the situation she is now in.

We are told that Christine now (in 2016) has an income from pensions of £1,100 a month and her mortgage costs her £600 a month. It is unclear if she has any other savings. The story is clearly upsetting to Christine, but I am suspicious of what is being reported.

What is missing?

If the angle for Money Box is the possible miss-selling of the mortgage then some better factual information is really required. As I have said I don’t arrange mortgages, but it would be unusual for someone to borrow £151,744 without an income to justify this (typically 3.25x income, which would mean requiring an income of about £46,700. Being 58 at the time she was only 2 years away from receiving her State pension. So what income did she declare? And was the lender really offering a 58-year old a 100% mortgage within 2 years of retirement? Now that would have some grounds for complaint about bad advice. She cannot “recall” being offered a repayment mortgage or anyone asking her how it would be repaid.

But there was a foreign property…

Christine is certainly very unclear about what an interest-only mortgage is, thinking (for a some reason that it would continue) when she knows it wouldn’t (not outstanding until she dies) and of course would be clearly stated on the annual statements and original mortgage offer. Christine provides what appears to be conflicting information, recalling when asked how she expected the mortgage to be repaid, she mentions an intention to sell a foreign property to help do so. Sadly this “crashed” but again merely demonstrates that rather more (and better) questions need to be asked. More information is needed, but is woefully lacking.

Clarity or Charity?

When Christine was asked a direct question “Did you not understand what interest only meant?” she replies “Yes, you were just paying off interest that they were charging on the house itself and not off the property. That is how it was sold to me”. The reporter does not challenge her statement which makes no sense at all unless by “house” and “property” she really means mortgage/loan or capital (read it back to yourself).

The Coming Mortgage Apocalypse….

The only clear thing is that she appears confused, not fully understanding how mortgages work and is certainly distressed. Money Box seem concerned that lots of people are in a similar position, reporting that over 160,000 interest-only mortgages are due for repayment within the next 2 years. Money Box report that about 2million people have interest-only mortgages and that 1 in 8 (12.5%) of them appear to be like Christine, not realising that the money needs to be repaid (though presumably having been asked the question they do now know). Importantly 40% claim that they will struggle to repay the mortgage in full.

This of course is probably the real scare story or anxiety that Money Box wishes to convey and the implication being that this is the fault of unsafe products and a bad industry of bad lenders and bad mortgage advisers…. which will lead to are creating more homelessness. Well as with all things, there are likely to be some, (bad ones) but such generalisations and calling for yet more regulation is a far stretch, when in practice this has more to do with some people not understanding the commitment that they are making or claiming not to understand.

There are more options than you think

Christine is very worried, understandably, she has my sympathy, yet it seems that the only options she has discussed (remember there is a financial adviser “on hand”) is going into an old peoples home or a hostel. It sounds to me as though her adviser is pretty useless if this is the case. A quick search of properties to rent in Liverpool for £600 or less reveals over 2,000 listed as available.

The Power of Denial

“It’s a terrible thing that’s happened, that I never thought it would come to this”. Well it is certainly hard, but Christine has £1100 a month of income and can chose how to use it. Renting is a viable option. So I am left feeling that this is more a report on the power of denial – denial of reality. Something has clearly gone very wrong, with poor budgeting and planning. This does not make Christine innumerate, frankly successive Governments fail far more spectacularly and one wouldn’t really accuse them of innumeracy or financial illiteracy, as tempting as it may be.

I’m left with the impression that this is a story of not wanting to understand, rather than not being able to understand, which is perhaps true of Money Box as well. Accusing lenders or advisers of mis-selling is a very lazy approach, when actually Santander has been providing information and already extended the deadline by 2 years.

Paul Lewis ends the piece with a nod to the debt-counselling charity Step Change, which implies an awareness that there is rather more here than simply clearing the mortgage by selling the flat and what is actually missing is a fundamental grasp of a budget and the reality of consequences. Getting out of depth financially is not a sin, it can easily happen to anyone, (and I do mean anyone… even billionaires!) the key is facing the truth and exploring options carefully.

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]

Money Box – Interest Only MortgagesDominic2023-12-01T12:19:03+00:00

Captain Fantastic

The new movie Captain Fantastic won’t be everyone’s proverbial “cup of tea” but it is perhaps one of the better movies that I have seen over the last few months. In essence it is the challenge that we all face, (not merely parents) about how to carve out a life worth living from the plethora of choices that exist.

In the film, a couple (Ben and Trin) decide to go “off grid” to educate their children in the things that they believe to be truly important. There is much to their credit, not least of which is the relationships that they build between each other. Of course not all the decisions are wise, sometimes getting lucky, narrowly avoiding disaster. Their choices are grounded in beliefs, naturally rather leftist and alternative to the mainstream, but are a welcome and timely reminder that the status quo or indeed the general culture of the day, clearly hasn’t really achieved its promises, which often seem as empty as the off casts and refuse that at best, are redirected to landfill. This is a vivid reflection of the tension within the American dream, though of course, could equally be a British one.

Values, norms and challenges

This is not a comfortable watch, there are a plethora of challenges, notably the physical endurance challenges that the children face, but also our own cultural comforts and inability to face some of the glaring facts of modern, or post-modern life. One cannot help but admire the comprehension, creativity and engaged accomplishment achieved by all the children, albeit without the context of wider “socialisation”.

I’m not giving anything away by outlining a plot which centres around Ben, (Captain Fantastic) trying to look after his children following the death of their mother. Cultural values collide within the wider family leading to the inevitable flashpoint. Whatever you think of Ben’s methods or values (played by Viggo Mortensen – you may know from Lord of the Rings) there is a very moving penultimate scene in which he provides some parting words as he “blesses” his son Bo (George MacKay). Words that perhaps we all long to hear.

So, as ever, this prompted me to consider the choices we (ok…. I) make all the time. Invariably clients want to protect the lifestyle that they have, but perhaps it is worth pausing to reflect if this is really what you want. We all tend to live within what is familiar and shy away from giving ourselves too much creative leeway to construct a life that may look and feel considerably different from the one we currently live. I’m not passing any value judgement, merely reminding you (and myself) to pause to consider if we are conforming to expectations rather than forming them.

Here’s the trailer, the film is officially released on Friday 9th September. The American “child actors” are typically brilliant, but 24 year-old London born George MacKay is exceptional and certainly has a very bright future as an actor and continues to make some very sensible role choices.

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]

Captain FantasticDominic2025-01-28T10:00:31+00:00

So, you know what I did this summer…

So, you know what I did this summer..

This summer reminded me that active experience of something is more helpful than a knowledge of it. I have not moved house for 21 years and this summer, circumstances were right for a move.

On average, people move house every 7 years. At least that’s one statistic that I heard proclaimed with great certainty. Obviously many of our clients have moved over the years, and I have also spent the last five summers moving my daughters between home, university, student houses and a first new flat. So the physical hauling of stuff and the “letting everyone know” is certainly a current, up to date experience.

We haven’t provided mortgage advice for a reasonable number of years and have referred this service to a very good adviser that does. However I am very glad we don’t, because the degree of uncertainty is far too uncomfortable for me. Selling and buying houses brings out some rather unpleasant aspects of characters and I was reminded that just because someone agrees a deal, doesn’t mean that they will keep their word. Dishonest buyer intentions and motivations, attempting to manipulate every opportunity to their full advantage….perhaps I am just a bit naïve and not “cut-throat” enough.

Agents and disruption

The process was helped to some extent by technology, but if ever there was a case for some much overdue “disruption” the conveyancing and payment of funds process must surely warrant some smart techno-genius with ample opportunity to shake things up. Waiting for responses to questions, funds to clear, agreements to be honoured felt far removed from this instant internet age. Apparently nobody knows a conveyancer that is any good… (least of all Estate Agents who deal with them all the time). I did not know this.

Still, we got there in the end, happy enough with the agreement. Like everyone else I don’t want to have “paid too much” or “bought at the wrong time” but equally, this is a house for a home, not a share. Sure we are investing in the future, but there’s rather more to it than simply the price tag of a house isn’t there.

As for the Estate Agents… despite the general national view, I found all of them to be genuinely helpful and decent people, sure there was incredibly good use of photography and a couple were poorly informed, but my experience was pretty good, I have no complaints…. And I now have far greater empathy for those of you that have been through this process in the last few years. Stress levels get tested needlessly, I certainly hope that when it comes to financial planning, we remove all unnecessary stress.

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]

So, you know what I did this summer…Dominic2023-12-01T12:19:04+00:00

A Day of Infamy – Alex Massie

Like any normal person, I was appalled by the murder of one of our politicians, Jo Cox, yesterday. I came across a very good piece online by Alex Massie, writing in The Spectator on this subject which he wrote yesterday. I’m not an expert in copyright and have no desire to plagiarise his content, but would simply encourage you to read it if you can.

He writes movingly and powerfully about the way the EU referendum has impacted us all. Whichever side of the debate you are on, this is one piece that is perhaps most sobering of all.

You can read the full article by clicking here.

Oh – the image I used is from the cover of 6th June, not the current one.

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]

A Day of Infamy – Alex MassieDominic2023-12-01T12:19:09+00:00

Life is journey… and the new Momondo viral ad

Life is a journey and that new viral ad

I came across a powerful new advert, shared within social media. This seems like perfect timing for the message of a common humanity as we are only a few days away from voting about continued membership of the European Union, a battle that seems largely to hinge upon immigration and border control, which is fairly odd given that when asked about immigrants most of those opposed seem to always cite people from Syria, Africa (apparently many think this is a country rather than a continent), Pakistan or India… which I believe are still some distance outside of the EU, but hey let’s not confuse ranting with facts.

There is no doubting that it has a great value as a message. However after digging around a little, it seems that all is not quite as it appears. For starters, there’s something to sell. There are actors, not samples of the general population and in fact, DNA is not quite so straight-forward. As I advise some fairly senior medical people, I’ve also asked for some thoughts about it… from a professional medical perspective.

However, that doesn’t undermine the value of the message, we are all connected.

Here is that viral ad…

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]

Life is journey… and the new Momondo viral adDominic2023-12-01T12:19:12+00:00

Eddie the Eagle

I wonder if you’ve come across the new film – Eddie the Eagle. You will probably remember the something about Eddie Edwards from Cheltenham who became the British ski jump representative in the 1988 Winter Olympics

You will recall that Eddie was something of a comic figure, who arguably couldn’t be anything other than British. He was self-funded, largely self-taught and started learning to ski jump relatively late in life. However, the indisputable “have a go” attitude won him numerous fans and despite being less than an underdog (there was no chance he could actually win) he holds a place in our memories. How many Olympic ski jumpers can you name? I dare say that Eddie the Eagle is one on a very short list… unless you are an avid skiing fan.

In fact Eddie was pretty good at skiing anyway – a decent downhill skiier – competing successfully, he missed out (the film suggests excluded) on the national squad based on aspects that were little to do with ability. He was certainly motivated and someone that deserves huge praise for his determination, a trait that seems in woefully short supply.

Soaring Success

Success then, might be considered differently. It is not simply about winning a gold medal or having an enormous house, yacht, car or looking a certain way to fit into certain clothes. Success is far broader and plainly ought to be determined by our own goals and values, not those of others.

Whatever you believe about wealth, and it seems many believe some fairly strange things, the reality is that wealth is also defined broadly. Financial planning is not about making you the richest person in your community, it is about helping you to identify those things that are actually of value to you, invariably these have little to do with money, but rather more to do with relationship, values and legacy.

Unlike Eddie, your financial planning will probably not be televised, but like him, you can achieve some pretty impressive personal goals – but inevitably there will be some risks, some resistance, perhaps some detractors and plenty of distraction.

As for the movie, to be honest it took ages to get going, and it was painful viewing at times, but in the end it turned out to be an uplifting, warm-hearted story, albeit with some artistic license. The reminder that you should never allow others to determine what you are capable of.

Here’s the trailer for the movie.

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]

Eddie the EagleDominic2025-01-27T16:09:19+00:00

Sunset Boulevard

There is something deeply unsettling about the musical Sunset Boulevard which I saw recently. It is currently on at the London Coliseum and stars Glenn Close, (now 69) who most will know from the 1987 movie Fatal Attraction.

The story is one that examines the Hollywood life, or more accurately, the very short shelf-life of movie stars, particularly female ones. Spoiler alert – this is not a new musical, so I will assume its ok to outline the plot. In essence movie star Norma Desmond (Greatest Star of All) of yester-year has long since been discarded and “forgotten” (personally I’m not convinced that this really rings true). The new generation of actors “who need words” are currently all competing for the limited number of roles… and we all know the stories about the casting couch. As with many things in life, the Hollywood honeypot attracts a great variety of bees, the talent pool is more than sufficient, yet to get a good idea or script turned into a good movie – that’s another matter entirely….”Every Movie’s A Circus”.

Money and Happiness

Money or the lack of it, poses problems for “our hero” Joe Gillis, a cynical and weary writer who sees both Hollywood and himself for what they are. Lack or perhaps need (or even desire) leads to compromise. Our writer hooks up with the much older actress Norma, who is portrayed as delusional, perhaps mad, but certainly someone with narcissistic problems. A relationship follows, built upon mutual desperation for something the other appears to provide, yet both are caught up in a self-serving but deceptive story that they tell themselves. “The Lady’s Paying” is a song reflecting Joe’s willingness to let someone else pay… perhaps some self-reflection on this point might result in better questions which move us all forwards about the Panama Papers rather than “how much?”

Whilst I will admit that this is an old story (originally produced as a movie in 1950 by Billy Wilder) so set with that world view, it is frankly all rather too familiar and depressing that older women pairing up with younger men, to feel young are “mad” yet in the very same breath all the male characters pair up with younger women – for the same reasons, and this is “macho”. A woman wanting something, particularly her youth or at least not to be forgotten is typically portrayed as struggling with mental health issues. Yet this is of course an issue that men and women face, with double standards applied by men. The number “Eternal Youth Is Worth a Little Suffering” seems only to point to the outward. Whilst I recognise that this is a period story, it is surely attempting to prompt questions of today… in a culture that is obsessed with appearances, selfies and celebrity…. “I’m ready for my close-up”.

Caught in the Spotlight

The irony of an audience in 2016 largely turning up to see Glenn Close in the title role, merely confirms our fascination with the stars, who now bring considerable ker-ching to the boxes offices of the West End. The audience was enraptured, yet this is certainly not one of the better musicals in the West End, and I was left wondering if the sun had not set on this portrayal of “older” “mad” women. In fairness, it is not clear how old Norma is meant to be, at one point Joe implies that she is 50… (but even in this comment, it is unclear if he is still being “nice”)… so the mere fact that an actress aged 69 playing a 50 year-old rather suggests we have moved forwards, back then women over 35 “didn’t exist”…

Of course, the truth that we all know is that life is short, we cannot deny the aging process and at some point we will become a memory. Hence having a financial plan that reflects your values, not merely your “value” and being in control of your money, rather than it being in control of you, is my way of attempting to address the money/happiness question.

As for the original, here’s the trailer.

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]

Sunset BoulevardDominic2023-12-01T12:19:17+00:00