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Remember that an apprentice has much to learn

I wonder if you watch “The Apprentice” on BBC? I’m not an avid fan, but its an interesting show about how some people “do business”. I appreciate that this is a cut down, edited version of anything approaching reality, however the episode that I saw the other evening (8/14) was rather revealing about attitudes to the over 50’s.

The task for the two teams was to design a dating website, make an accompanying video and outline a promotion or marketing plan to a group of advertising experts. Not terribly difficult one would think – the sort of stuff that many school age children do as part of their learning process and team work. Sadly, this was beyond the abilities of the two teams, or at least this is what was suggested. However, despite the collapsing team leadership, inability to think creatively or understand the purpose of market research or frankly how to “pitch an idea” what was more disturbing was that these “self appointed hot shots” had little or no understanding of anyone over the age of 50. The team that selected this group as their target audience, completely failed to gain a modicum of clarity about lifestyles for those over 50 years old. Essentially the assumption was that they were very dull and not interesting.

As someone that is closing in on a half century myself and generally works with those older than 50, I am alarmed at how short-sighted the next generation of “hot shots” are. Anyone with an ounce of understanding will probably appreciate that the vast majority of “successful” people are over 50 and by successful I could mean have achieved financial success, but frankly simply having a body of work to show for effort is generally only beginning to show at 50. Most business people, academics, medics, professionals, civil servants, politicians do not reach “fame” until in their 50’s (if fame is even sought). Even Hollywood’s most adored men Brad Pitt and Johnny Depp turn 50 this year (George Clooney already being 52). The most age biased industry (popular music) is full of people over 50 (Mick Jagger is 70 next month).

Of course, those over 50 may have a different outlook on life (they may not) but life certainly does not stop. My clients lead full and interesting lives, those that are retired often complain to me that they are busier than they ever were when they were working for a living. I don’t agree that 50 is the new 30, that seems to merely ignore the point and arguably reinforce a stereotype. 50 is 50, however old you are, attitude and lifestyle are choices. As for the young apprentices, one can only hope that they garner some wisdom quickly and perhaps reflect on the question… if you are so great at business, why are you on a TV game show?

Dominic Thomas – Solomons IFA

Remember that an apprentice has much to learnDominic2023-12-01T12:23:42+00:00

Noises Off – Successful Investing

I imagine that you will be aware that the world stock markets have been rising, but “readjusted” overnight and today. There has also been concern over the price of gold and a possible Bond bubble (nothing to do with 007). May I speak plainly? the vast majority of the stuff you hear in the media in all its forms, in relation to markets is largely irrelevant to you and I – unless you are trading shares and funds on not simply a daily basis, but throughout the day. This is, in my humble opinion and 20+ years of lessons learned, is a “mugs game”. It remains decidedly unclear whose interests are being served with a constant barrage of “news” about funds and investment markets – but certainly not yours or mine. This news is only really relevant to gamblers and “professional” traders.

Successful investing requires you and I to act with reason and frankly – devoid of all emotion. We all know the obvious – buy at the bottom, sell at the top – but this is rather a pointless statement as so few people actually behave in such a way – in any event, we don’t know what the “top” or the “bottom” is until after the event. Anyway, if selling helps you sleep, then who is to say that it isn’t a “good decision”. Nobody – yes nobody, can successfully consistently time the market. Nobody. There is a mountain of information on this stuff – we call it behavioural finance (google it if you like).

Successful investing means taking a long-term view. The longer investments are held, the less likelihood there is of loss. This is proven statistically. However many investors (professional and private) constantly chase the next idea or the “best performing” investment in the hope of not missing the boat. This results in under-performance, research in the US by Dalbar would suggest a significant under-performance each year by around 4% a year – yes that’s 4% a year less than the market by chasing ideas and attempting to time the market. For those of you that worry about me citing the US, it is the largest market by a country mile – 46% of market capitalisation (the sum of the value of shares) at the end of 2012… the UK was 7%, Japan 7%, Germany 3%, France 3%, Australia 3% and China 2%… just to give you some perspective.

Anyhow, whilst I find this fascinating, you may not. My role as a planner is to help clients minimise their mistakes and reduce the costs relating to investment. It is also to help figure out what returns are needed and therefore how much “risk is required” to ensure that you don’t run out of money. It is not about beating the market (which can only be done with additional risk, luck and skill – but be warned, very few investors – including the professionals actually beat the market). So please take the vast majority of investment advice and “news” with a big pinch of salt.

Have a plan
Know what return you need
Know what risk you can cope with
Think long term (10 years+)
Avoid attempting to time the market
Implement cost-effective investments
Diversity your portfolio – ie, not all your eggs in one basket

Dominic Thomas – Solomons IFA

Noises Off – Successful InvestingDominic2023-12-01T12:23:37+00:00

End of the Bank Advisers

Financial advice continues to become expensive. Sadly, despite numerous warnings from advisers about the impact of RDR which came into effect from 31 December 2013, the number of advisers continues to fall. This has particularly impacted the main high street banks and building societies. Today AXA announced that they are closing their relationship with Banks, citing the cost of getting advisers to comply with regulations profitably. AXA provide the financial advisory staff in a “restricted advice” form for the Co-Operative, Yorkshire Bank and Clydesdale it is being suggested that this represents about 450 advisers, not a huge number (unless you are one of the 450) but then again there are only around 30,000 advisers of all descriptions and the numbers are reducing all the time. The number of bank advisers appears to have halved in the last 12 months and I am yet to see a clear adviser charging schedule or fee menu from any bank, that doesn’t simply look like a rehashing of their old commissions.

The regulator (the FCA) is in a difficult position, the goal of creating an environment of clearly charged advice appears to have back-fired, with fewer people able to afford good financial planning. It is probably fair to say that most of the “problems” have been created by banks, which seems to be backed up by complaint data yet again (out today as well). I believe that the UK needs good regulation, but this has become increasingly costly and the new levy for my regulatory fees is reported to be rising an extra 15% this year. This is likely to get worse before it gets better as there are fewer firms to pay the regulatory costs.

Many advisers have been pretty scathing about RDR. Whilst I can understand many of their points, the truth is that clients / investors want clear charges and not fudged information. Commission in its various forms does not provide clarity, neither do the charges applied by Fund Managers, where in fact the costs can be considerably higher than the stated annual management charge. I am also rather sad to report that the regulator had very good reason to challenge how advisers were paid, there were lots of products that paid high commission levels and in my opinion this resulted in bad advice. However banning commission was probably not the answer, but a well regulated, level playing field with clients fully informed and the inability for product or provider bias would have been far simpler. Of course, it was possible to be impartial – I was operating in a transparent fee system from the formation of the company in 1999.

Dominic Thomas: Solomons IFA

End of the Bank AdvisersDominic2023-12-01T12:23:32+00:00

Cash ISA Rates

Here is a list of some of the better Cash ISA rates that are widely available to most people within the retail banking and building society sphere. Remember this is a list, is not advice and merely for information so that you have a guide to the general level of better rates of interest widely available.

Instant Access Accounts

Building Society: Leeds 2.00%
Bank: Virgin Money 2.00%
On-line: National Counties 2.25%

Cash ISAs – Fixed Rates of interest

Building Society: Leek United 2.75% (3 years)
Bank: Bank of Scotland 2.80% (4 years)
On-line: Bank of Scotland 2.80% (4 years)

Cash ISAs – Variable Rates of interest

Building Society: Earl Shilton 2.70% (90 day notice)
Bank: Virgin Money 2.00%
On-line: Monmouthshire Building Society 2.50% (30 day notice)

Of course rates change regularly, though this tends to be in response to announcements from the Bank of England. I would remind you that the Bank of England base rate is currently 0.50%. Once again your attention is drawn to compensation limits of £85,000 per person per banking license. So given the instability of the global economy and the potential for claims, diversifying your cash holdings is arguably as important (if not more so) than diversifying your investment portfolio. See the FSCS website for more information. Remember that you have until 5th April to use your ISA allowance for 2012/13.

Cash ISA RatesDominic2023-12-01T12:23:14+00:00

Alarm Bells For Charity Accounts

1998: Lock, Stock – Ritchie

This is a very odd tale. It is reported that a Bristol Accountant was sacked for forging a charity’s fire alarm certificates. However after his departure it emerged that over a period of about 5 years he has misappropriated over £560,000 from the Charity “Above and Beyond”, a reasonably large sum of money. Mr Brendan Joyce from Bristol used the money to fund his lifestyle which surprised many. He was something of a car collector, but perhaps not the sort of cars you might expect, his choice was more run of the mill Vauxhall Carlton type. It is reported that he kept over 100 cars in lock-up garages across Bristol and had eventually found the monthly rental payments beyond his means. Mr Joyce has been sentenced to three years in prison.

The Above and Beyond Charity does some really great work raising money for nine of Bristol’s hospitals to improve the hospital environment, fund research, support and train staff and provide equipment. The charity provides over £3m to hospitals in Bristol each year, with 11 employees and over 400 volunteers. It is perhaps due to the financial cunning of Mr Joyce that the theft was not discovered sooner. However, this should be another reminder to business owners and charities to ensure that the Accounts are understood and checked thoroughly, which is also the responsibility of the auditors for charities, which in this case was Grant Thornton. As someone that serves on a charity Risk and Audit committee, the importance of this no small undertaking.

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

Alarm Bells For Charity AccountsDominic2023-12-01T12:22:34+00:00

Permission To Carry On Doctor

1967: Carry On Doctor – Thomas

Doctors have to be revalidated. In other words, they have to regain GMC approval to practice. This is a result of the Government’s decision to have a revalidation process beginning from the end of this year. I understand that the revalidation will need to be reviewed every five years, which whilst being an irritation to many already over-worked doctors, will be a relief that at least it will not be an annual process. A part of the RDR (Retail Distribution Review) is that advisers must effectively attain an annual Statement of Professional Standing certificate, provided by one of a few organisations licensed as a provider.

Doctors will get six months notice of their revalidation dates. The GMC have advised that revalidation dates for currently licensed doctors would likely be within the next three years to March 2016, with this possibly stretched over a five-year period for trainees.

Whilst there is clearly merit in ensuring that skills and competence is maintained and kept up to date, one does begin to wonder if we have simply created more form-filling and form vetting jobs without actually ensuring any significant improvements. This isn’t just an issue for doctors or financial advisers, similar principles are being adopted in many fields. I suspect that the cost of all this validation is fairly significant. I have tremendous respect for doctors, but I really don’t believe that revalidation will make any difference to the confidence I have in them and I imagine that my SPS will not provide greater confidence in me.

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

Permission To Carry On DoctorDominic2023-12-01T12:22:32+00:00

Mortgage Comparison Tool

2009: Which Way Home – Cammisa

Which? Money has launched an interactive mortgage tool. They claim that this covers the whole of the market, which by my definition means every possible mortgage available. I’m not entirely convinced, but it is certainly a good place to start your research once you have spoken to your existing lender.

Frankly my advice is to speak to a mortgage broker and I do know a good one that I can refer you to (we don’t arrange mortgages). You can spend hours doing your own research only to find that the lender doesn’t really deal with people like you because of something about your income, credit history or the property. If you are happy spending your time doing this sort of thing, then fine, but for those that want to spend their time enjoying life or otherwise working on your life, then a mortgage broker can be a very worthwhile investment. Which? freely admit in their FAQs that their results may differ from those of a mortgage broker as “they will reflect things like availability and affordability in their advice”- which is surely the point of a mortgage search to my mind. However, this is a helpful tool.

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

Mortgage Comparison ToolDominic2023-12-01T12:22:20+00:00

More Pain For Doctors – Breaking Trust

1963: Doctor in Distress – Thomas

As you may have gathered, I advise quite a number of medical professionals. I came across a concerning piece of news that was published in “Hospital Doctor” today. It seems that your pay is under threat from cash stretched hospital Trusts. The report suggests that this is being considered in some Surrey hospitals with potentially renegotiated terms for those earning over £55,000 – which is pretty much all senior doctors. The “cards on the table” negotiations also include changes to overtime, weekends and Bank Holidays as well as reductions in sick pay and annual leave entitlement. It would appear that the NHS continues to be a political punch bag and clearly there is increased concern about good Trust management following the first NHS Trust to be placed into administration (last week South London Healthcare Trust which is the old Princess Royal Orpington, Queen Mary’s Sidcup and Queen Elizabeth in Woolwich). It seems that having a Royal title will not save hospitals, who seem to be facing the equivalent prospect of the guillotine.

The Pay Review bodies are due to report to the Government this week on the impact of introducing regional pay rates after the public sector pay freeze, which is due to end in April. It needs to be said, that Doctors and Consultants in particular have been hit very hard by cuts and tax increases over the last three years. I imagine that many of you will be feeling rather “frustrated” at yet further meddling with a system that seems to have less to do with providing high quality medical care and more to do with budget manipulation by whoever is in office.

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

More Pain For Doctors – Breaking TrustDominic2023-12-01T12:22:17+00:00

What Theatre Can Learn From Financial Services

1954: There’s No Business Like.- Lang

I have a love-hate relationship with the West End. I love live performances which I why I love the theatre or a musical. However, what frustrates me is its inability to adapt. Many of us have comfortable homes with audio visual systems that are phenomenal, yet we will often leave the comfort of home for a trip to the theatre. There are lots of really great shows to see in London and some amazing sets. However, what I am regularly disappointed by is the seating, which is often cramped, uncomfortable and sometimes does not even provide a good view of the stage. The theatre going experience is worsened by the overpriced drinks – where even a bottle of water is about 300 percent more expensive than the equivalent unit of petrol or diesel. If you want to know who is performing, then shell out more for a programme and I think very few women would suggest that there anything like enough toilets (there aren’t enough even for the men). Ok, the buildings are old and so some restrictions are inevitable, but surely a view of the stage shouldn’t be one of them!

So what’s my point? Theatre doesn’t have to be this way. It can and should adapt. Make audiences move in their seats because of the performances not because they are uncomfortable. Discount tickets would not be necessary if the theatre was full of people that were keen to turn up. How about making the programme work for the advertisers, performers and audience? by providing it “free of charge” as they do on Broadway (though of course the cost is really part of the ticket price – don’t get me started on “booking fee” charges). If the theatre was the financial services industry it would be dead and buried. We cannot afford to constantly mess up the client experience (though I admit that some Insurance companies do have a very good go at this). I put a lot of thought into this and am constantly looking at ways to improve the experience – which isn’t as simple as “razzle dazzle them”. Yet few people “love” financial services – thousands, perhaps millions, love theatre, yet I would suggest that for all the problems within financial services, I rarely come across an organisation that takes so much advantage of its audience as the theatre. I say this as someone that sees a lot of West End productions with a deep affection for it.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting

What Theatre Can Learn From Financial ServicesDominic2023-12-01T12:22:10+00:00

Medical NHS Clients – Award Time

Whilst GP’s may be in the news for strikes over the NHS Pension changes, don’t forget that the NHS Leadership Recognition Awards are back. The 2012 nominations for the nine categories close on 29th June (just a week away). So get those nominations in and let me know if you get nominated. The nine categories are for Board, Community Leader, Innovator, Inspiration, Leader, Mentor, Newcomer, Partnership and finally Quality Champion. More information can be found at the dedicated website.

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

Medical NHS Clients – Award TimeDominic2023-12-01T12:22:03+00:00