The Best Laid Plans Might Involve An Alternative Or Two

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The Best Laid Plans Might Involve An Alternative Or Two

Yesterdays stock market falls are very unwelcome news, but perhaps it will cajole the politicians and bureaucrats into action to address the problems within global economies. As a part of my role, I seek out a range of investment opportunities, besides those simply of shares. Shares (or equities) are obviously volatile but have a proven long-term track record, however there are other forms of investing that can be helpful to those looking to diversify beyond the available cash, bonds, property and equity funds. One such opportunity might be to consider investing in the film industry.

Most people will be aware that there are many films that don’t make it to the big screen – a serious number. This may have little to do with the quality of the film (think of all the dire blockbusters that you have seen over the years) yet every once in a while a “small film” finds massive commercial success. In recent years, from a British perspective this might have included “Slumdog Millionaire” and “The Kings Speech“. These are generally unexpected and very welcome successes. Most of the time, films do not find such international success.

That said, success is a term that can be rather misleading. As an investor what one really wants to achieve is a positive return on capital. Investing in film needs to be done carefully, largely due to the way that films are financed, not the way they are edited. Commercial and financial success hang upon the way a film is distributed and in 2011 this includes DVD, rental, pay-per-view, download and cinema release as well as the possibility of merchandising.

Last night I was doing some research on your behalf at a private screening of “Best Laid Plans” which is produced by Molifilms, whose MD, Mark Foligno also executive produced “The Kings Speech“. The film is one of several that are part of a financing investing opportunity for those with a minimum of £25,000. This would be an investment in an Enterprise Investment Scheme and therefore would qualify for tax relief on the investment of up to 30% (this was increased from 20% in the last Budget but not yet finalised). So a £25,000 investment ought to see £7,500 returned to the investor in tax relief (a net investment of £19,250). In addition, provided the shares are held in the company for 3 years there is no capital gains to pay. Sounding better still. Of course how the EIS is structured, the underlying financing and management of the business (Mark Foligno who has a strong pedigree with considerable success) are all vital elements in assessing whether this is a good investment, let alone an appropriate one.

As for the film itself, it is a pithy, dark tale of a life of grime and crime in Nottingham. In many ways not unlike “One Flew Over The Cuckoos Nest” with one of the main characters having significant learning difficulties – the gentle giant who is taken advantage of my some fairly unsavoury characters. Unlikely to have box office “success” but a movie that many will probably see. The lead actor, Stephen Graham, who recently appeared in “Tinker Tailor Soldier Spy” is particularly good. It is not everyone’s cup of tea, it’s a raw life urban Brit flick.

As an investment – well I’m still conducting my “due diligence” but if this sort of investment appeals to you, then you could have a look at the prospectus yourself, or call me once I have completed my research. This article is in no way advice, merely commentary on the diversity of investments available and the sort of things I get up to seeking out opportunities for clients.

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 info@solomonsifa.co.uk

The Best Laid Plans Might Involve An Alternative Or TwoDominic2023-12-01T12:49:04+00:00

Cash ISAs and the Bank Job

Cash ISAs And The Bank Job?

It is evident that I am in film linking mode (see the movie poster of “The Bank Job” set in 1970’s London and starring Jason Statham, which seems appropriate given the release of “Tinker, Tailor, Soldier, Spy” and a general concern that we may begin to see a return to the 1970’s in many other respects). There were considerably more Banks and Building Societies in the 1970’s than there are now. Anyway, here are some of the current top rates for various deposit accounts. This is not in any way advice. You should always check the detail, less the Bank (or Building Society) pull the proverbial wool over your eyes. A site that I find very helpful is moneyfacts.co.uk which is a fairly decent comparison site for deposit accounts of various shapes and sizes. Be warned that anyone holding a modicum of cash will invariably be solicited by a Bank (or Building Society) to use a “better” account. The key question is – better for whom?

One Year Deposit

Online: Leeds Building Society 3.46%

Bank: Santander 4.20%

Building Society: Barnsley 5.00%

Two Year Deposit

Online: Post Office 3.96%

Bank: Clydesdale 3.82%

Building Society: National Counties 3.76%

Instant Access

Online: Derbyshire 3.18%

Bank: Santander 2.50%

Building Society: Nottingham 3.25%

Fixed Rate Cash ISA

Online: Clydesdale 4.50%

Bank: Clydesdale 4.50%

Building Society: Barnsley 5.00%

Variable Rate Cash ISA

Online: AA 3.05%

Bank: Santander: 4.00%

Building Society: Newcastle 3.00%

So not that much change over the last seven days or so.

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 info@solomonsifa.co.uk

Cash ISAs and the Bank JobDominic2023-12-01T12:49:05+00:00

Cash ISAs – All You Need To Know

A Cash ISA is basically just a deposit account where the interest is paid without being taxed. It won’t be taxed either – provided that it remains in the ISA. A Cash ISA is a great place to park money (as it is not taxed) for those unlikely to use much of the full £10,680 (2011/12) ISA allowance. You can only contribute £5,340 towards a Cash ISA during the 2011/12 tax year. If you take money out of a Cash ISA that’s too bad (in terms of the allowance) – its measured on what you put in, not what you take out.

For example, if you put £3000 into a Cash ISA and withdraw £1,000, you have still used £3,000 of your allowance for the year.

As ISAs are individual and relate to a tax year, you can build up quite a number of them, perhaps with different Banks. This is not a problem, but you can only have one per tax year. So you couldn’t for example put £3000 with Nationwide and £2000 with Halifax during the same tax year (into a Cash ISA).

If your Cash ISA now has a poor rate of interest you can do one of two things. You may for example now have over £20,000 in various Cash ISAs. You could transfer it to another Cash ISA paying a better rate, the important thing is that you do not cash in your Cash ISA in order to move the money to a better Cash ISA – otherwise you are stuck with the same annual allowance of £5,340. In other words if you cash in your £20,000 in Cash ISAs, you lose the ISA status of that money. Moneyfacts.co.uk is a good place to seek out Cash ISA Transfer rates. I suggest doing their search rather than simply viewing their best buy list.

Alternatively, you could transfer a Cash ISA into a stocks and shares ISA, a form would be required for this, but if this would move the entire Cash ISA. If you only wanted to move £2000 or so from a Cash ISA you would be better off simply withdrawing this from your Cash ISA and writing out a cheque. This is an investment and so can (will) rise and fall in value. However, be warned that you cannot reverse this action. It is possible to hold “low risk” funds within a stocks and shares ISA, but technically you cannot hold cash within one. This can be a good option if you do not expect to use or need the funds for the long-term (over 5 years). An investment should provide a higher sum over the long-term as opposed to cash, not always, but in the majority of cases. You would be wise to see my guide called “Our Approach to Investing” for more information on this.

A Stocks and Shares ISA can have the full £10,680 allowance but only £5,340 if you have used any (even £1) of the Cash ISA allowance in the same tax year. Here is a link to the HMRC ISA factsheet.

It is worth noting that if you are not a taxpayer, then your interest on deposit accounts should not be taxed (unless it is so great that you have to). If you don’t earn enough to pay tax then the Bank or Building Society can provide you with an R85 form which means that your interest will be paid gross (untaxed). You are of course personally responsible for ensuring that you pay the right amount of tax under HMRC self assessment rules. I have put lots of links to the HMRC documents, so do use these sources.

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

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 info@solomonsifa.co.uk

Cash ISAs – All You Need To KnowDominic2023-12-01T12:49:05+00:00

10,000 hits on our Financial Advice blog how do we do it?

We have reached over 10,000 visits to our Solomons IFA blog and we are every proud of it. It’s probably because we have got something to say! This is what our customers have to say about us:

Dominic has been my financial adviser for 7 years. I have found his advice, in the minefield of financial regulation and option, to be invaluable. He has an approachable manner, which allows one to ask the silliest of questions without feeling foolish. He does not talk in jargon and always explains things in a financial language I can understand. And, perhaps above all, he is scrupulously honest. I know that he will give me objective advise that will always be in my interest. I simply could not have asked for a better financial adviser.

Martin Evans September 2011

We have been with Dominic for over 10 years, recommended by my late father. His advice is always clear, straightforward and to the point backed up by obvious in-depth knowledge and research. You feel you are in the hands of an expert – and one who cares!

Jamie and Ruth Lyons July 2011

I want to thank you for your help, advice and very smooth running of my planning, especially in these last few months building up to my retirement. It has been excellent. My only regret is that I wish I had been with you years earlier…

Steve Hepden: July 2011

We have been with Solomon’s for over ten years; Dominic has been an excellent financial advisor. He is good at making you think about your financial priorities over the coming years, and seems to get the balance of portfolios just right. He is easy to talk to, and has an excellent knowledge of a range of financial products. He has always made us feel comfortable with our decisions, and never pushed us to take on more risk than we were happy with. He is reliable and efficient and I would highly recommend Solomon’s and especially Dominic.

Fiona Middleton & Henry Dowson: 2011

We met Dominic and Solomon’s in 2004 when our family finances were in a state of transition, as we had both recently lost parents. We were dealing with paying off a mortgage, receiving inheritances and disposing of family properties. We had a collection of policies acquired piecemeal over the years and Jo was having to negotiate a redundancy package. Seven years on, with Solomon’s help, we have a well-structured portfolio of savings and investments, have become adept at budgeting and have put two children through higher education. We have rationalised pension plans and put a retirement strategy in place. But it’s not all been about saving – we’ve spent money on property development as well as hobbies and holidays, having acquired a better sense of our resources and how we want to use them, both now and in the future. t’s been immensely helpful to be able to talk about finances with a trustworthy and knowledgeable source, and to place decisions in a wider context than just the nature of financial products.

Jo and Chris Walker – May 2011

We are celebrating by enjoying a nice cup of espresso coffee from aromo coffee – a great place to get your ESE easy serving espresso pods in the UK – another great website designed by Solomons Design.

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

10,000 hits on our Financial Advice blog how do we do it?Dominic2023-12-01T12:49:06+00:00

European Lottery – All In The Numbers

You will be familiar with all the doom and gloom surrounding the financial system and in particular the European region. There are a plethora of statistics about each country and I have recently been reviewing data from “The Economist“, the IMF and the World Bank.

One of the basic economic measures of a nation is their GDP – Gross Domestic Product, which broadly means the market value of all goods and services produced by the nation. This is where statisticians have a field day – because bigger means more (by and large). If you have a big population, more is produced – well maybe, maybe not. The biggest populations are found in China (1.33bn) and India (1.18bn) which accounts for about a third (37%) of the planet’s population. However between them they “only” account for about 1/8th of the worlds GDP – though this proportion is rising rapidly. India has a younger population with a median age of 25 – one of the very lowest (15 being the lowest in Niger). None of the top fifty countries (on GDP terms) has a median age below 21.

Over the last 3 years or so, GDP in Europe has generally been falling (comparing different sources of data). The bulk of the growth has come from emerging nations in the Far East / Pacific and South America. This is where my attention has been focused over the same period. These nations have a median age of population of 29.4 against a median of 37.4 for the worst of the top 50 performing nations in the same period.

The data suggests that younger populations (but old enough to be established economies) are rising in their economic productivity and power. The older economies are less productive by comparison. Reading that sentence back to myself, would draw the conclusion – isn’t that obvious? Here in the UK we have a median age of 39.9 reflecting our ageing population. For the record, France have a median age of 40.1; Spain 40.2, Denmark 40.8, Portugal 41, Greece is 41.6, Switzerland 41.9 Italy 43.3, Germany 44.3 and Japan 44.7. In the US, the median age is 36.6 – lower than Taiwan’s.

I appreciate that one must be careful extrapolating too much from statistics. This is evidenced by the best performing GDP per head of population with Norway, United Arab Emirates, Singapore, USA, Hong Kong and Switzerland all appearing to be rather “superior”. However with the exception of the USA, all have small populations of under 10 million – most being under 5 million.

Perhaps rather than comparing the UK against the world, we should attempt to compare like with like. Those closest to the UK in terms of GDP and population size and age are France and Italy. So perhaps our politicians should choose their words rather more carefully when likening economics to war…. after all there are 4 Chinese for every American and about 25 for every Briton. The balance of power is shifting.

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 info@solomonsifa.co.uk

European Lottery – All In The NumbersDominic2023-12-01T12:49:07+00:00

Hope For Europe This Weekend?….Always.

The constant news about economic troubles around the world is depressing. There is a fairly high chance that the eurozone will have to alter dramatically – many will say “not before time” and probably “we told you so”. There are obvious advantages to a stable European market and it is certainly helpful to commerce and travellers to have reduced complexity with a single currency.

The problem though is something rather more fundamental that Europe seems to forget on a frequent basis. One size does not fit all. There are cultural differences and ways of living that differ between nations (indeed we are aware of this even within our own small island). We can be thankful to Gordon Brown for not taking the UK into the Euro, which his then boss (Tony Blair) was very keen to do. Certainly it would be nice to live in a world where each nation values life and personal freedoms, but we are acutely aware that this is not the case in many parts of the world, including Europe and on occasion even here within Britain.

This weekend, finance ministers will be meeting in Poland to discuss and hopefully take action on the problems relating to the Greek national debt. However, before we rush to chasten the Greeks, our own situation is not that much better and the North American (USA) numbers are even more terrifying. Change is needed and this needs to be done thoughtfully and carefully. The problems are enormous, but we are (well I certainly include myself) not without hope, which reminded me of this rather powerful little poem.

https://www.youtube.com/watch?v=42E2fAWM6rA

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 info@solomonsifa.co.uk

Hope For Europe This Weekend?….Always.Dominic2023-12-01T12:49:08+00:00

Gold and all that glistens

Image from WGC website

If the markets and the general debate about the merits of Eurozone leave you feeling rather cold, perhaps some inspirational gold accessories will brighten up life… The World Gold Council produce a variety of information about gold, including fashion designs of a rather high quality. Given the current price of gold I would advise being careful about where such pieces are worn and you may wish to secure a price in advance.

Designers in the latest WGC issue include Tre Spighe, Malcolm Betts, Paloma Picasso, Fred, Lorenz Baumer, Solange Azagury-Partridge, Pomellato and Kim Kaufman.

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

Gold and all that glistensDominic2023-12-01T12:49:09+00:00

Top Rates for Cash ISA Rates

Here are some of the top rates at the moment. Please remember that this is not advice and I’m not paid by any of these organisations to plug their accounts. I would advise great caution when dealing with any Bank or Building Society. Try to keep a balance at no more than £85,000 in a single account so that you are covered by the compensation scheme. Be warned that often when it comes to banking products, you do not always get what it says on the tin… at least the large print.

Key things to reflect on are the ACCESS you want to the funds. Many accounts need 30 days, 60 days or longer to make a withdrawal, which is not always possible when your boiler needs replacing. Cash ISAs are great places to park money so that interest (which is pitiful at present) is paid without tax. However, this is only really sensible for short-term holdings (under 5 years) and assuming that you are not using your stocks and shares ISA – which would generally be a better long-term investment.

One Year Deposit

Online: Skipton 3.45%
Bank: Santander 4.20%
Building Society Barnsley 5.00%

Two Year Deposit
Online: Nottingham 4.00%
Bank: Yorkshire 3.82%
Building Society: National Counties 3.76%

Instant Access
Online: Derbyshire 3.18%
Bank: Santander 2.50%
Building Society: Nottingham 3.25%

Fixed Rate Cash ISA
Online: Clydesdale 4.50%
Bank: Clydesdale 4.50%
Building Society: Barnsley 5.00%

Variable Rate Cash ISA
Online: AA 3.05%
Bank: Santander 4.00%
Building Society: Newcastle 3.00%

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 info@solomonsifa.co.uk

Top Rates for Cash ISA RatesDominic2023-12-01T12:49:10+00:00

Base Rate Held

Following a turbulent time on the markets and the Americans effectively outlining that they will hold their rates for 2 years, it was little surprise that the Bank of England announced that the base rate would remain at 0.50% today. The economic data about the UK and other economies is looking pretty poor and whilst normally rates should be rising (to dampen inflationary pressures) they are “unable” to do so without potentially damaging growth.

The Federal Reserve committee members have been pushing for the Fed to produce more explicit information about longer-term interest rate plans. They made positive steps forward in this regard by agreeing that the target range for Fed rates is 0 – 0.25% until mid 2013.

There is a little bit of smoke and mirrors going on though. Rising inflation is good for debt as it reduces it in real terms. The concern about inflation seems to be evident in that National Savings (NS&I) withdrew their index-linked (inflation-linked) certificates, which suggests that a good deal should not be too good.

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 info@solomonsifa.co.uk

Base Rate HeldDominic2023-12-01T12:49:12+00:00

Top Cash ISA Rates – Car Crash Waiting to Happen?

One Year Deposit
Online: Vanquis 3.45%
Bank: Santander 4.05%
Building Society: Barnsley 5.00%

Two Year Deposit
Online: Nottingham 4.00%
Bank: The Co-Operative 3.75%
Building Society: National Counties 3.76%

Instant Access
Online: West Bromwich 3.17%
Bank: Santander 2.50%
Building Society: Nottingham 3.25%

Fixed Rate Cash ISA
Online: Clydesdale 4.50%
Bank: Clydesdale 4.50%
Building Society: Barnsley 5.00%

Variable Rate Cash ISA
Online: AA 3.05%
Bank: Santander 4.00%
Building Society: Newcastle 3.00%

Of course none of these rates look good when you consider that RPI is currently running at 5.0% and CPI is 4.40% (according the Office for National Statistics). In fact cash currently locks into a guaranteed loss in real terms.

At the risk of sounding stupid, this is not advice. It is merely a list of some of the best rates currently available. However I advise caution, some banks and building society accounts are not quite what it says on the tin. Some are linked to the stock market – which to my mind is virtually the opposite of deposit. The FSA know this, but so far I have not seen any action by them, though in fairness they are keen to prevent misleading advertising within financial

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 info@solomonsifa.co.uk

Top Cash ISA Rates – Car Crash Waiting to Happen?Dominic2023-12-01T12:49:12+00:00