What Can Surgeons Teach IFAs?

1944: The Tree Surgeon – Gordon
You may be aware that, whilst I work with many people from different walks of life, I have advised Consultant Doctors for over 20 years. I was interested to read an article that outlined the problems that surgeons are currently having which resonate with independent financial advisers. It seems that surgeons are also in a bit of a battle to protect the use of a word that describes what they do. A surgeon is someone that has a medical Degree and has undergone postgraduate surgical training. Yet there are a variety of people that also use the term “surgeon” such as a podiatrist surgeon, who is unlikely to hold a medical Degree, but may have spent 12 years training in the surgical and no-surgical treatment of the foot.
What I had not realised was that at the moment, anyone can call themselves a surgeon but are not able to portray themselves as a registered medical practitioner. There was I worrying about how the term independent has been abused and from 2013 will be further confused. I have a great deal of sympathy for medical surgeons on this matter, but probably the ability to use a title to describe a skill is best clearly defined, with room for the term to be applied to other disciplines too, only a fool would want open heart surgery from a tree surgeon. In January financial advisers will be either independent or restricted. Sadly a Bank adviser can be a restricted adviser in the same way that a really good financial planner that does not arrange or advise on “unregulated collective investment schemes” will also be a restricted adviser, yet there is a huge difference between the two.
The power of words and their usage is always important, but as one very sensible commentator wrote, “This all demonstrates the importance of ‘language’ – and the correct use of words; so that people can understand one another, knowing what specific words actually mean. Sadly today, our press and politicians seem adopt the Humpty Dumpty attitude towards words: “When I use a word, it means what I chose it to mean”! But then are they in the business of portraying clarity or confusion?”
The law (and regulator) needs to be very clear about definitions and sadly this is not the case at present for either financial planners or surgeons. It also needs to be remembered that there are some that will always seek to exploit vagueness in terminology. An independent licensed credit broker, is able to offer loans and mortgages, but it does not mean that they are independent and able to offer mortgages from the entire (or whole) market. As ever, caveat emptor – even when you are going for surgery. For the record, from 2013 my firm will remain Independent.
 
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 Can Surgeons Teach IFAs?2025-02-04T15:00:03+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 Trust2023-12-01T12:22:17+00:00

NHS Pension Scheme Costs Increase

1963: Doctor in Distress – Thomas
As the end of the month approaches, many NHS employees will be reflecting on a fairly significant financial planning matter – in that your net pay will reduce due to the increases in pension payments towards the NHS Pension (which is excellent) which took effect from 1st April 2012. Contribution rates are based upon full-time salary levels and the larger increases impact those with higher NHS pensionable pay. Your pensionable pay does not include all of your income and it is best to review your March payslip (the end of the NHS financial year) where you will see a total pensionable pay figure for the year. This is the amount that your NHS Trust employer report to the NHS Pensions Agency at Hesketh House.
Anyway, for those earning £26,558 – £48,982 of pensionable pay, your payments will increase by 1.5% to a total of 8.0% of your pensionable pay each month. All those earning more that £48,983 have had their payments increase by 2.4% of salary. This means a total of 8.9% a month for those earning £43,983 to £69,931; 9.9% for those with pensionable incomes between £69,932 and £110,273 which will cover most senior staff. Those earning over £110,273 will now pay 10.9% this is generally Consultants and those with Merit Awards etc. The number crunchers estimate that 52% of NHS staff will pay more towards their pension, estimated to be approximately 682,500 people. You can see a table form of this by clicking this link.
It is important that you keep your payslips and P60’s safely, clients should send me a copy of their March 2012 payslip and ideally this should be sent as a pdf scan. This is vital information to enable us to calculate pension contributions for the annual allowance and lifetime allowance, which obviously helps us to do a thorough job in relation to your financial planning, and in particular your pension.
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
NHS Pension Scheme Costs Increase2025-01-27T16:19:10+00:00

Doctors to the Ballot?

1932: Doctor X – Michael Curtiz
The report from the BMA that was released yesterday suggested that the changes to the NHS Pension Scheme will, as predicted, be a long battle. The BMA survey which was sent to members and associates in the first few days of the year had a very high level of respondents. There were 46,300 responses to the online and postal questionnaire. The results claim that 84% believe the Government’s proposals for further reform of the NHS Pension Scheme were unacceptable, with 63% willing to take industrial action over the issue. This has given the BMA and Unions the necessary mandate to examine options for a ballot about possible industrial action, should the Government continue to press ahead. This is scheduled to be held on Saturday 25th February.
Those caught by the proposals most impacted are 10 years or more away from retirement. The BMA suggest that over a third of doctors would consider early retirement if the changes proceed, this is also my own experience having met with a considerable number. In essence for most the scheme will become more expensive, have a later retirement date and be based upon career average earnings for all doctors (whichever scheme they are currently members).
The NHS Pension scheme has had significant reforms already and the previous Government with intentions to restrict tax relief to high earners, scored something of an own-goal with the reduction in the annual allowance and the way that this is calculated for members of pension schemes like the NHS. An own goal, because it was poorly thought through and could lead to double-taxation of many Doctors – particularly high earning Consultants with Awards. The NHS Pensions Agency have not been able to adapt their IT systems quickly enough to provide the necessary information in time for the tax year end, last suggestions were that such information would not be available until July.
As a consequence, advice for doctors in the NHS pension scheme has become an awful lot more complex. This is of course made worse by the proposals which have not been agreed. The NHS Pension Scheme is one of the largest in Britain and one of the best. Every pay rise makes it increasingly valuable. I have over 20 years of experience advising on the scheme, if you need to discuss your options about retirement please get in touch. 
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
Doctors to the Ballot?2023-12-01T12:48:07+00:00

Divorcing Doctors or Teachers

1996: The First Wives Club – Wilson
If you are going through the experience of a divorce as either a member of the NHS pension scheme or Teachers pension scheme, be prepared for the process to take a little longer. Both the NHS and Teachers pension schemes are updating their systems which produce the valuation of pension rights that need to be considered in a divorce. This is known as the Cash Equivalent Transfer Value, essentially putting a financial figure on the pension benefits that you accrue.
The reason behind this is the changes that the Government announced in March last year and finally published towards the end of October. The pension administrators naturally want to get this rather important detail right and it has taken some time for systems to be assessed and updated. At the moment expect delays. Indeed if you have already had a CETV statement and it was dated before 26th October 2011 and had a 3 month guarantee and you submitted the request to transfer benefits, then this will be honoured provided the 3-month time-frame has not expired. This means that in practical terms there are about 2 weeks left for anyone that was in this position. If you are one of those, I suggest contacting the relevant pensions agency.
In addition anyone that is moving benefits from one State Employer to another (eg Local Government to Teacher) the same problem will persist. These Public Sector Club transfers are all delayed until the software works to permit the transfers.

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
Divorcing Doctors or Teachers2023-12-01T12:48:12+00:00

Sign for the Times

As I was driving past my local hospital this morning I reflected on the signage for the hospital. Those travelling to a hospital are often stressed, perhaps due to anxiety about an appointment or visiting a relative. There may be other reasons too, perhaps being rushed to A&E or maternity. In short the sign that effectively says “there is a hospital here” is accurate but missing the point that because there is a hospital here, people in the vicinity, on the way to or from it, may be in a heightened state of anxiety. As a consequence they may not be as focused on their driving, parking or walking as much as they normally would be. The sign then becomes a warning to others in the vicinity to also take more care as a result. I know that as many of you work in a hospital, that this will be all too familiar and indeed the trip to your place of work may also be fairly stressful.
Today is simply another day, but today’s context is different from a couple of weeks ago. Today there is further cleaning up of damage, there is some reflection on how we reached this point as a society. The stockmarkets around the world remain highly volatile and nervous, we have deep seated economic problems. The world is not as it “should be”. It would be rather helpful if the stockmarket came with helpful signage – or indeed our society. So we look for other signs, which is really what investors are currently attempting to see. There will be further volatility, there are no certainties, sadly that is part of life. However, we are not impotently standing by, but continuously reviewing the situation and acting with caution and I am doing my best to protect clients from making poor decisions. Hindsight is a gift only to those that live in the past, so as the media noise rumbles on, remember that to date nobody has successfully predicted the future consistently. The market is essentially a place where different (perhaps opposing) views are given shape in the form of a price, not value. So as you listen, read or watch reporters attempt to make sense of what is going on, remember the Hospital sign.
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
Sign for the Times2025-02-04T16:08:13+00:00
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