£50 Note – A Collectors Item?

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£50 Note – A Collectors Item?

The new £50 Matthew Boulton and James Watt banknote should come into circulation today. It celebrates two British entrepreneurs and their partnership, that makes the Dragons Den look like amateurs. This is the first time that two portraits have appeared together on a British bank-note, so perhaps the £50 will be a collector’s item… as if we needed encouragement! This new £50 has added security features (though we have not yet reached the point where it requests owner ID information or a retinal scan). Gradually the new note will replace the existing John Houblon note, which will eventually become defunct.

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

£50 Note – A Collectors Item?Dominic2023-12-01T12:48:51+00:00

Creatives Required for Great Financial Planning

Like most people in work, my job involves rather more than simply the job description, which is a good thing I guess. By way of example, a typical week tends to involve at least one training seminar and probably one or two exploratory meetings with various industry consultants.

Last week I attended yet another training session about the retail distribution review (RDR) and the changes that impact me, the firm and our clients from 2013. The morning event was held at Grocers Hall, a fairly plush venue a stones throw from the Bank of England. The speakers were all of very high calibre, but all reflected on the sad state of the changes that are in motion but by no means finalised or clear. There are now only a few months to go (15 and a bit to be precise) yet there are still significant unresolved issues. This has considerable impact on financial advisers across the country. It is my belief that very little will change for our clients or our firm, after all we have always operated on a transparent fee system, however the bulk of advisers in Britain still operate on a commission basis. The change from one to another is considerable, and one that doesn’t take a couple of weeks to implement.

The new rules are probably beyond the reach of a considerable number of IFAs at present with many now taking early retirement and attempting to sell their business. There will be fewer advisers from 2013. I regularly receive emails that ask if I am seeking to sell my business (I’m not!).

Sadly, I do not believe that even with fewer and better qualified advisers to regulate, that all advice will be good. Technical knowledge is one thing, but being able to apply good financial planning principles based upon a deeper understanding of your objectives is vital. In reality, most of us have little interest in financial products or in financial services generally. What people are far more interested in is whether they will have enough money to have the life they want and guidance about what to do if not. The concept is pretty simple, the putting a great financial plan together requires thoughtful creativity as well as technical know-how.

If you have not seen the Warner Brothers film “The Bucket List” directed by Rob Reiner and starring Jack Nicholson and Morgan Freeman, here is the trailer, which may provide some thoughts.

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

Creatives Required for Great Financial PlanningDominic2023-12-01T12:49:09+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

Happy to be wrong – rates held at 0.5%

There are not that many occasions in my life when I am happy to be wrong, but today’s announcement to hold the Bank of England base rate at 0.5% is one of those occasions. I had previously suggested that I expected rates to rise in July 2011. This has yet to occur. Mind you, this is only good news for borrowers and not favourable for cash savers. The minutes of the meeting will be published by the Bank will be released on 20th July. For the record, last month of the seven members of the Monetary Policy Committee in June they voted 5:2 in favour of holding rates. It will be interesting to see if the vote was a little closer today.

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

Happy to be wrong – rates held at 0.5%Dominic2023-12-01T12:49:36+00:00

Bank of England Base Rate Held

Today’s announcement by the Bank of England that the base rate would be held at 0.50% is no surprise, despite the pressures that are evidently within the system in terms of higher prices for things that most of us have to pay for. Increasing interest rates at this point, whilst the economy is fragile would seem somewhat counter-productive. However, how much longer will the Bank hold out is now very limited. My guess is that original predictions for a rate rise in July seem likely, though I would be happy to be wrong.

If you wanted to know what quantitative easing is all about, the Bank of England have a short and snappy video which is worth a quick view. The sad reality though is that our recovery is based upon printing money and then effectively lending it out, which really just fuels a debt-based economy. True some assets are being purchased with the money, the crunch question being – are they over-priced?

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

Bank of England Base Rate HeldDominic2023-12-01T12:49:49+00:00

Rate Held Again… No Surprise

You will probably be aware though perhaps not with all the coverage of the AV referendum but the Bank of England yesterday announced that interest rates would be held at 0.5%. This was not a surprise and I have been suggesting that rates are unlikly to rise until July. So the plainly obvious is that we are closer… but not there yet. There are also facts trickling through to back up the theory that inflation is starting to become less of an issue here in the UK – not the case in many of the more exciting economies, where inflation is the subject of more active monetary policy.

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

Rate Held Again… No SurpriseDominic2023-12-01T12:51:21+00:00

Base Rate Held

The Bank of England decided to hold rates at 0.5% as expected. However, the city is generally of the view that a rise is likely in the summer. Given the warm weather here in London today, there was the slight chance that summer had come early, but fortunately borrowers have been given respite for a further month. It is likely that a rise will occur in June or July, but inflation figures whilst being somewhat alarming will improve naturally simply by mathematical inevitability. There is no real need for rates to rise at this point and whatever may be said in public, the truth is that a little inflation reduces debt and improves UK plc.

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

Base Rate HeldDominic2023-12-01T12:51:35+00:00

A Question of U Turn Economics?

It would appear that a room full of economists are about as good at predicting the future as the weather forecasters. We have all read and heard the arguments about inflation creeping (or spiking) into our spending patterns and having a negative effect upon the money in our pocket, but now it seems that several of them believe that inflation is under control and could even morph into deflation. Quite a U-Turn.

One does have to question the validity of such statements and I cannot help but feel that there is a degree of spin going on so as to push the Bank of England not to raise rates. Several of these economists met today and appear to agree that inflation will be pushed down sharply next year to move below the Bank of England’s 2 per cent target, and say it is possible we will see deflation next year. The wonderfully named “Office of Budget Responsibility” (sounds like a Two Ronnies sketch) has forecast that inflation will peak this year before starting to come down next year and returning to the 2 per cent target by 2013.

There was a Treasury select committee meeting today following the Budget. It was asked whether the basis for the Budget and forecasts were or are sound. The now famous Roger Bootle who predicted the crash and ended up having the last laugh on those that did not take his book too seriously, said: “My own view it is the standard thing to do to assume that inflation will go back to target. The forces are in place to bring inflation sharply down next year. I doubt it will stop at the target and we will actually end up with inflation much lower than 2 per cent and not only that but inflation will be driven into negative territory.”

The National Institute of Economic and Social Research (NIESR) also gave evidence to the committee and sugggested that the prospects for inflation were uncertain, with a 90 per cent chance that in 2012 inflation will be somewhere between 0 and 4 per cent. (I can hear you laughing!) Yes believe it or not a statement that a range of between 0% and 4% is what some people think is a reasonable outcome for their time and employment at NIESR.

This is all somewhat of an about turn at a time when the calculator gang over at the Office for National Statistics put a figure on the Consumer Prices Index measure of inflation which rose from 4 per cent to 4.4 per cent in February, the highest level since 2008.

Convinced enough to bet your mortgage on this? me neither.

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

A Question of U Turn Economics?Dominic2023-12-01T12:51:43+00:00

Rising Interest Rates – Summer 2011

I have been in semniar mode most of the day today. I have heard five presentations from some of the more currently successful fund managers. All of them were suggesting interest rates would rise this year. Prior to the horrendous Japanese disaster – six days of hell and counting.. the general sentiment was that they expected UK interest rates to rise in May. They were all of the view that this would probably now be delayed a little, perhaps until July. In terms of the size of rate rises, the only one willing to put a number on things suggested a rise of 0.75% this year (in all by the end of 2011) and a further 0.5% in 2012. If he is right, this would see the Bank of England base rate rise from 0.5% to 1.25% and then reach 1.75% by the end of 2012. Still incredibly low. Of course the consensus may be wrong and we shall have to see what happens at the next MPC meeting.

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

Rising Interest Rates – Summer 2011Dominic2023-12-01T12:51:48+00:00

Bank of England hint at Rate rise

The Governor of The Bank of England has written his “Dear George” letter to our Chancellor – George Osborne. If you want to see the copy just click here. He hints that inflation is likely to continue to rise within the 4%-5% range before falling back in 2012. He asserts that the rate of inflation is above the Bank’s target and sites various causes – commodity prices and taxation increases being two significant factors. The general sentiment is that the Bank is being careful, aware that raising interest rates can be detrimental to recovery, but are a necessary tool to control inflation. Cautious is probably the best way to describe Mr King’s approach and frankly this does seem very wise indeed.

City analysts have mixed views, but it would seem a fair representation to suggest that May is more likely to be the month when rates are increased, albeit marginally. This gives further time for accurate data to come through enabling more informed decisions to be reached.

This in mind, there is a great little video from M&G that is worth a look at. Ben Lord one of the managers of the M&G UK Inflation Linked Corporate Bond Fund gives a very quick and straight-forward summary of the concerns that inflation poses. M&G have permitted me to make this link available, it is generally only for professional advisers, but there is nothing terribly contentious or complex within the video. They are happy for your to view this. Thank you M&G.

I have also put the link to the Bank of England’s press conference today here so that you can also hear this from the horses mouth so-to-speak. Its a fairly lengthy briefing – but you may find it of interest. If you would rather just read the briefing summary click here.

Here is a BBC interview with the Chancellor.

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

Bank of England hint at Rate riseDominic2023-12-01T12:52:05+00:00