Good Money Week 2016

Solomons-financial-advisor-wimbledon-blogger

Good Money Week 2016

Sorry, I’m a bit late in the week to give a mention to Good Money Week 2016. If you are a client or have been following my blog over the years, you will know that I have been an advocate of what used to go by a different name, but is essentially the same National Ethical Investment Week.

Let’s start by stating the obvious, not all businesses are terribly “nice” some are run by people that can only be described as “psychopaths” (see book by Jon Ronson) and others are simply all about extracting as much profit without any regard for people or the planet. However, when it comes to defininig “good” and “bad” we all know that life gets somewhat complex.

Ethical investment began life really as a way of not investing in certain industries – typically, gambling, pornography, weapons and alcohol. Since then things have moved on, the world has become more complex and Governance has become arguably the key issue for businesses.

Ethical or Socially Responsible Investing (SRI) offers a range of options to best suit your values. It is not necessarily the case that these will perform worse than “non ethical” investments, which is often a misconception. In any event looking long-term, one can surely make the argument that sustainable businesses, services and products are highly likely to be profitable in the future.

SRI and Ethical Portfolios

Anyhow, quite a number of our clients express the view that they would like ethical criteria applied to their investments. Now it isnt a perfect world with perfect solutions, but certainly much can be done.

We offer ethically screened portfolios for those that want them and for those with assets under £100,000 we offer a low cost service with ethical options too – just have a look at our 100 Club, if you are looking for an ethical ISA or General Investment Account… and no need to even speak to us if you dont wish to. Click here for more.

Of course if you wish to discuss this in more detail, just send me an email or better still, pick up the phone!

Call me on 020 8542 8084

As you probably gather from this blog, I like movies and see a fair few of them. This short fairytale is perhaps one of the strangest I have seen in a while, but its the one that Good Money Week are using… so in the spirit of co-operation, here it is.

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

Good Money Week 2016Dominic2023-12-01T12:19:00+00:00

More thoughts on Brexit

I have spoken to a number of clients, all of whom expressed great sadness at the outcome of the EU referendum. I’m sure that some of our clients voted to leave for very good reasons (such as the EU being a huge bureaucracy that seems unwilling to change its ways). If you could cut through the bile of the media and politicians, then there was a debate to be had. Sadly, many are ill-informed about the actual issues, facts, experts, historical context and any sense of idea about what the impact really might be.

Many are still deeply distressed about the result, because it feels wrong. It feels as though something has been stolen from us all. Our nation, which is one of the most tolerant and safest places for anyone to live, has appeared to give the impression that we simply don’t care about others any more. We have had enough… “we want to take our country back”.

I am one of those that is deeply angry. At times, I have lost the internal conflict and said some things which probably doesn’t help. I apologise. I have been fed up that most of the commentary within my sector is written by white men, who are fairly wealthy and have little experience of racism in person and because they don’t see it, assume its not very bad.

Another stereotype – give me a badge

I am deeply concerned about the way that the far right appear to have been given permission to behave in a manner which feels like a threat to the core of this country, or what I think this country is. I have watched and read in dismay at stories and videos of some horrible incidents. There is an air of menace, interrogation and intimidation. As a large, bald, white male, sadly I appear to match the general stereotype of a thug. I feel the need to wear a badge that says the equivalent of “I didn’t vote for this, I don’t want you to leave, you are safe with me”. What I still fail to understand is why so few seem so unwilling to recognise that this was always the likely outcome. People that I respect and admire greatly, of all creeds and ethnicity.

I know full well that Westminster has condemned racist acts in the past, and did so again yesterday (Monday) but to be blunt, lots of white middle class men (largely) invariably move their lips to a soundtrack that seems at odds with their actions. However “good” a Prime Minister David Cameron has been (which is of course subjective) he was the one that agreed to run the referendum and its result has created this deep state of unease.

We have clients from all backgrounds. We have friends, colleagues and neighbours. Many are deeply worried for their future because of the newfound “courage” that fascists have been handed with a vote to “leave” for which they read – tell everyone to go (it seems). We have to stand up against this, not afterwards, but in the moment, during. If that is a frightening prospect, well that’s the practice of standing in another’s shoes and what it means to stand against racism.

Yes there is a reason…

I understand that most of these people are poor, often poorly educated, a product of their circumstances and if they are constantly told that they are worthless they tend to believe that lie until someone else, proclaiming nationalistic values, provides a form of antidote with a sense of identity. However this is no excuse, just an explanation.

So however you voted, the reasons why those of us that voted “remain” were invariably beyond the mere numbers of costs, economics and bureaucracy. We know that immigration needs careful controlling, we know that integration could and should be far better than it is. But we also know that we are all lucky to be born here, which is all it is, a random roll of the dice.

Business is more than money, its also community

Perhaps this is not the place to talk about “my feelings” after all, I run a business designed to serve you to make better financial decisions. However to be candid again, the financial planning I do, that works best is all about personal values – yours (and mine) and invariably the money is the least important bit. If my job is simply to protect your wealth, then frankly this is also a part of that.

and here is an oldie… The Power of 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 info@solomonsifa.co.uk

More thoughts on BrexitDominic2025-01-21T15:43:59+00:00

Liquid Gold

I came across an item that made me think. You may remember the Nescafe Gold Blend adverts from years ago, well coffee as we all know, has moved on since then. We have a Nespresso coffee machine here at the office, which dispenses some very nice coffee, but I’ve been challenged to think if I should make a small stand by not buying anything from Nestlé. The challenge is acutally two-fold – the recycling of the pods and also the information that I have been presented with about Nestlé.. who appear to have spotted that water is the new gold blend – liquid gold.

The story is a familiar one, large multi-national company, exerting its power in a way that appears to put profit before people or the environment. Nestlé is a familiar giant such a discussion, if you recall the way in which they marketed substitute (powdered) breast milk in poor countries, where breast-feeding was sufficient. This began in 1977 and as far as I can tell continues to rumble on.

This is a story about bottled water, which is probably one of the best scams of modern times – more expensive than oil, invariably sold in plastic bottles that can make the water more toxic when warm (think container ships, lorries, trains, hot days)… when the water in your tap is probably better. Anyhow, Nestlé want to bottle water from a town in Oregon. I don’t know the facts about this case, I am merely sharing them to prompt a few thoughts.

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

Liquid GoldDominic2023-12-01T12:19:19+00:00

We all make mistakes

We all make mistakes. One of my recent blunders involved failing to pay proper attention to the warning signs.

I had hired a van to help my one of my daughters move into her new flat. It was the end of a long day and I was on the way back to the rental company to drop off the van, but needed a lift back home…so I hooked up with my lift and followed.

Unfortunately the person I was following knew the most direct route. As we approached a railway bridge I saw the warning sign “low bridge” but it looked high enough, in fact it looked as though it was aimed at lorries rather than vans. I was also aware of the van height and knew that I could get through.

I had forgotten that for some reason, this van had roof bars… there was a loud bang and clatter as the aforementioned roof rails were held stationary, whilst the hapless driver (me) and rest of the van continued forwards. An alarmed glance in the mirrors confirmed what I knew – the roof rails were now lying in the road.

How high or how low?

I was relieved that they had not hit anyone or the car behind me and thankfully the “damage” to the van was minor…. Somewhat sheepishly I pulled over, gathered up the stricken rails, checked with the driver behind and apologised for my stupidity. A labourer who had heard the clatter peered over and shouted “that’s the third one today!”… presumably to reassure me that I was just one of several muppets that day.

I was cross with myself for forgetting about the roof rails, or rather not being cautious enough. As I pulled into the rental company forecourt, I reflected on what a daft thing I had just done. As I handed in the keys I told the attendant what had happened and we went to inspect the damage more closely. Nothing major… but as they had a security deposit they would take the repair cost out of that. “I wouldn’t have noticed” he told me… “You could have got away with it!”. That may have been true, but I was at fault and the damage would cost his small local business something to repair, I’m well aware that running a business can be tough and when your customers aren’t honest it makes life unnecessarily harder. In any event, if I don’t have my integrity what do I have?

My lift home was very apologetic, thinking that it was their fault for going under the bridge. In my youth I would probably have had the same sentiment, but the little wisdom I have picked up is that I’m responsible for my own choices, to follow was my choice.

Assumptions can be dangerous – as can failing to take proper note of warning signs.

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

We all make mistakesDominic2023-12-01T12:19:35+00:00

Credit Crunched – 99 Homes

The Credit Crunch may well be one of the defining moments of a generation, it has certainly altered the way many view investment and retail banks. The institute of which I have been a member for a number of years (The Institute of Financial Planning) merged this month with CISI – the Chartered Institute for Securities and Investment having been agreed in September.

One of the many good things about the IFP, who I regard(ed) as the best of the best, was the willingness of other members (in theory competitors) to share best practice. Indeed many have become valuable sources of wisdom for me (in what I hope is a two-way street) and have become professional friends. Understandably, many of us were surprised and perhaps concerned about the changes that the merger may bring about. After all, investment bankers were part of the problem that caused the credit crunch and haven’t we now just “got into bed with them”?

Ethics

In order to migrate my membership over to CISI I had to pass an ethics test. Being candid, it has always been something of a struggle to find and complete any CPD type stuff for the IFP on the topic of ethics – for which there is a required minimum of 2 hours a year (no that doesn’t mean being ethical for 2 hours a year, but demonstrating learning and application of the broad topic of ethical dilemmas).

I followed the online resource and was presented with a series of case studies, which I am pleased to say were interesting and based in the world of real life rather than a purely theoretical one. The overwhelming perspective being that if others follow the same path, I have had my faith and optimism significantly increased in the investment world, which if I’m being honest, I didn’t have before.

99 Homes

I have been greatly deflated and frustrated by the greed and bullying exhibited by large corporations and the relentless pursuit of gain without any thought of others. My opinion of the investment world, is almost certainly not that much different from yours. A recent film that captured this is called “99 Homes”. It stars Andrew Garfield, who you may have seen as Spiderman (perhaps not) or as Eduardo Saverin in The Social Network (the film about Facebook). Anyway, Garfield plays a character that has his home repossessed and, well… shall we say something of the gamekeeper turned poacher occurs. I found the film compelling and perfectly exposing the moral maze and ethical dilemma that people find themselves in. Here is the trailer…. seriously a good watch.

You can get the film on DVD 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 info@solomonsifa.co.uk

Credit Crunched – 99 HomesDominic2023-12-01T12:19:50+00:00

Co-Op has lost the plot and now follows Animal Farm

Co-Op has lost the plot and now follows the one for Animal Farm?

A considerable proportion of investors do not want returns at any cost. This has resulted in a considerable growth in the number and range of ethical investment funds since the first (Stewardship) was offered in 1984 by Friends Provident. The year has today provided an unhelpful Orwellian twist in the tale as I read with jaw-dropping bewilderment at the poor judgement that has been on public display in the once warm and cuddly “Co-Operative”. The news re-reported within my own trade press (FT Money Marketing) cites the story broken by the Observer which makes Animal Farm an even more vibrant metaphor for the suggestion that some are more equal than others.

The report that Euan Sutherland is set to pick up a financial package of £3.66m this year with a basic salary of £1.5m will surely make blood boil as savers and investors are left wondering how on earth a co-operative could possibly end up with such a disparate share of risk and reward. Nothing good can come from the report that suggests that more than £24million will be paid to 8 (eight) Co-Op executives over the next 2 years, despite the Bank almost collapsing in spectacular style (with a £1.5bn black hole) and making thousands of redundancies.

The Co-operative online bank customers at Smile will presumably provide a quick migration to any other bank that at least isn’t attempting to claim being anything other than a Bank. Any informed customer will be rather outraged by what has been going on at the helm of what used to be an “ethical Bank”. It has been saved by private equity and the cultural shift or rather “modus operandi” has surely begun to reveal itself. To even have the nerve to have something called the “Ethical Plan” with the strap line “good things happen when we work together” one can only assume that they mean colluding with each other in the Board room rather than being “the most socially responsible business in the UK” you must be joking right?..

I found reading the Observer’s report “hugely disappointing” that yet again managers, not the owners are taking the lion share of the rewards, and so far being rewarded for failure with severance packages that could have only been dreamed up in the disconnected clubroom of arrogance and remuneration packages drawn up by “you scratch mine & I’ll scratch yours Ltd”. Yes I’m angry. Angry because Banking in Britain could be a lot better than this. Business is tarnished with understandable claims of greed and corruption. It doesn’t have to be this way, business should be leading not scoffing at the trough of self-interest.

If you are fed up with the Co-Operative, have a look at Triodos Bank, based in Bristol. This isn’t advice, merely a suggestion to have look and make up your own mind. To my mind, the grass is certainly greener… (the glass is anyhow).

Dominic Thomas: Solomons IFA

Co-Op has lost the plot and now follows Animal FarmDominic2023-12-01T12:39:01+00:00

Representing Independence

So 2013 is drawing to a close and the Christmas cards are starting to arrive. Universities and schools are drawing the term to an end and we are all hoping that the winter break isn’t too cold and that our boilers don’t give up under the pressure of winter, just when there is a house full of guests. Sadly, one of the changes for 2014 is the representation of IFAs and investors by IFA Centre. It is the only obvious advocate for independent financial advice, which has had to scale back due to a lack of support from IFAs in Britain. This is a real shame as Gill Cardy who in 2011 formed (the not-for-profit membership organisation) and runs it has worked hard to promote the importance of independent advice and championed causes to help investors receive fair treatment when they have been royally fleeced. This is the sort of change that the financial services industry has been crying out for and sadly it will not continue in the way it was hoped. The IFA Centre, of which I am a member isn’t closing completely, but will now focus on providing resources, events and other benefits to firms like ours. This will still be of benefit, but I greatly appreciated the work that Gill was doing in making representation for IFAs. Sadly, this does not seem to be of sufficient interest to enough advisers. I’m hoping that this isn’t simply an appalling attitude of not being bothered by the majority of IFA firms, but rather a “not knowing what you’ve got until it’s gone” situation.

Gill said “After over 2 years of personal and financial commitment IFA Centre’s membership does not provide the financial resources for my full time commitment to protecting advisers’ interests, let alone the resources to provide research, policy development and a member events programme. Worse, irrespective of our funding, with so few firms prepared to stand together to improve how our businesses are regulated, I simply do not have enough members to provide the decisive mandate needed to provide the representation that Independent advisers so badly need.”

She added : “IFA Centre was only launched because so many IFAs were unhappy with existing representation and told me how important trade bodies with knowledgeable, experienced and passionate leadership are. However, many of these advisers have not joined and I am forced to review what services IFA Centre can continue to provide to IFAs”.

Public thank you to IFA Centre

Anyway I would like to thank Gill for all the hard work she has done to promote and further the benefits of impartial independent financial advice and attempts to restore some credibility and trust in a largely untrusted sector. Our clients benefit from independent advice and I wish everyone else’s did too… sadly they don’t.

Dominic Thomas: Solomons IFA

Representing IndependenceDominic2023-12-01T12:38:43+00:00

Financial Advisers – on best behaviour?

Have financial advisers changed their behaviour?

There are days when I breathe a sigh of relief. Days when I find reasons to take heart in the financial services industry. Today was one of those days. I spent the morning with a small group of some really good financial planners. They talk sense and certainly convey the impression that they do what they say. I know that my industry is full of some very good salespeople, so sometimes deciphering the fact from fiction is not easy and I’m not going to pretend that I have mastered the art of doing so, but some days, I get a sense that if all advisers were like this, there would be little need for a regulator or compensation system. Sadly, history gives the regulator good reason to be concerned. So I admit, it isn’t always easy to tell if financial advisers aren’t simply on their best behaviour, but some days – well, you just know it isn’t faked.

Small fish in a small pond?

Now its true that I attend events that probably only the better financial planners go to, so I do tend to meet some very good people within the “industry”. I haven’t met everyone and I haven’t met some of the most well-known, but I can say that the days of being embarrassed by my peers are largely long gone. Indeed many are inspirational, encouraging and willing to help me to build a better business and serve my clients even better.

Isn’t it terrible….

This flies directly in the face of stories I read in my trade press “pinks” that highlight FSA fines, advisers being imprisoned and generally outlining the “dark side” of financial services. Trust is a big deal and something that has to be earned and is very difficult to measure. So I was heartened to read in “The Behavior Gap” (American) by Carl Richards a delightfully honest take on conflicts of interest. Something that I have blogged about before, but not sure that I have conveyed terribly well. Here’s what Carl says:

“Here’s my take: conflicts of interest are inherent in almost any situation when you’re paying for advice. Lawyers, accountants, financial advisors, auto-mechanics…we all have to cope with situations when our interests may not fully align with the interests of our clients, at least in the short run“.

Chapter 8: You’re Responsible For Your Own Behavior, The Behavior Gap, Carl Richards Published by the Penguin Group 2012.

Something about reaping and sowing…

Carl goes on to make some great points, but he doesn’t fudge the issue. In a world where advisers are generally paid to invest money, it is no surprise that they attempt to control it and perhaps attempt to grow it in a way that doesn’t suit the client, or could be used more thoughtfully (such as clearing debt or giving it away). You only find out what your adviser will do when you get to such a point. My approach is to clear debt first as I hope is obvious from the website. This is because of my beliefs about good financial planning, which means that many people are not able to invest with me until this has been done. This is very much to my short-term detriment, but I believe that it is absolutely in the best interests of my clients – and those that are not able to be clients.

Holding onto principles

This cropped up again this week. An email from a prospective client asking for help which essentially wanted to know how to make a little bit of money into a lot more money over 3 years. This is not what I do. It is also not what I believe to be good for anyone except those that really are able to gamble without damaging their own security. The email wasn’t from a place of greed, but a place of speed and sadly some things simply take time, which is true of good financial planning as well, it takes time – and time as we all know, costs money.

Financial Advisers – on best behaviour?Dominic2023-12-01T12:23:03+00:00