Tilly – the day my dog died

The day my dog died

You may have met Tilly, my golden cocker spaniel… well in truth she was a mix between a Cocker and Springer (a ‘Sprocker’). She often came with me to the office and (being a little too friendly) may have greeted you or been ushered into one of the other rooms.

Tilly was my first dog, after much ‘discussion’ and persuasion, I eventually capitulated to the calls from my family to take the plunge. That was back in 2009. I can tell you that the reasons for my reluctance to become a dog owner were largely right, but also totally wrong. The daily walks come rain, shine or snow did me enormous good – indeed much of this quiet time was spent thinking about how I could help clients, develop the business or simply be a better human.

Tilly became a companion and the phrase ‘a man’s best friend’ resonated. Not a human friendship of course, but one of complete acceptance of me. During lockdown, I took to posting rather more pictures of our walks together as I’d been encouraged to do so – some found it helpful to see the normality of a middle-aged bloke walking his dog. You can see many of them on my social media accounts should you wish to.

On holiday this summer it became evident that Tilly was not well. We returned home a day earlier than planned for a trip to the vet. Suspicions were confirmed and drugs to help with eating and weight loss prescribed. A couple of weeks later, she was in a poor state and reluctantly we made the decision to say goodbye. The vet said that this was definitely the right thing to be doing. I called my family so that they could all come home to say goodbye.

It was horrible. I suspect many of you have had such an experience, it’s horrid. There is the lingering feeling of ‘was this really the right thing to have done?’; to have been alive one moment and gone the next, so suddenly.

I was struck by my own feelings about the loss; genuinely deeply sorrowful. I could reflect on many lovely memories, but was acutely aware that this part of my journey was at an end. I found myself replaying that last day over and over in my mind – could I and should I have done things differently? The thing is, as we all know, it’s all so final isn’t it?

To be clear, grief isn’t a new experience for me. Sadly, over the last 30 years I have lost several close family and friends, and another dear friend in February. Not people from the expected older generation and not dying of ‘old age’, but invariably very sudden and catastrophic changes in health. These are experiences that many of us have had, and all of us have in the end.

Tilly

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

Tilly – the day my dog died2023-12-01T12:12:43+00:00

A HOLIDAY IN CORNWALL

TODAY’S BLOG

A HOLIDAY IN CORNWALL…

Most mere mortals are creatures of habit – we like routine; we relish familiarity – often even our ‘spontaneity’ is planned in advance (think booking day trips whilst abroad).

This year – like every other year for the last two decades – my family is looking forward to our annual visit to a little tiny village in deepest darkest Cornwall.

It’s not just routine that keeps us going to the same place – Gorran Haven is home to several of the most beautiful beaches in the UK, rolling hills and fabulous cliff walks. The sound, smell and feel of the place is what keeps us going back there.

It has now become a tradition for all three generations of my family. At most, there have been 17 of us holidaying together – playing cricket on the beach, or boules (even swingball one year!). The kids (now all nearly adults) cannot remember not ‘doing Cornwall’ and most of them still venture into the very cold sea at the first opportunity.

I am very aware that I am exceedingly lucky and blessed to count my siblings and my parents as my friends – I know so many families who can’t take more than a few hours in the company of some of their relatives let alone an entire week; and so I do know that my situation is rather unusual.

Anyway – I digress – our annual beano now is always tinged with a little sadness as we reflect on the one very precious family member who will always be missing and also on the fact that there will come a day when the top tier generation will no longer be with us.

It’s important that we embrace all these moments when we can. And to do that in a beautiful place like Gorran Haven … priceless!

Debbie Harris
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on our blog which gets updated every week. If you would like to talk to us 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

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The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

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A HOLIDAY IN CORNWALL2023-12-01T12:12:47+00:00

WINNING TICKET

TODAY’S BLOG

WINNING TICKET…

You may have seen that an enormous record-breaking amount was recently won on the EuroMillions lottery. That would certainly help with the inflation on your utility bills!  It would seem that Joe and Jess Thwaite have picked up an oversized cheque for an oversized amount of £184,262,899.

Obviously suddenly winning a large sum of money is going to be life-changing despite what some may think, say or perhaps wish; there’s no doubt in my mind that life would change dramatically. The adjustment to sudden wealth is not easy. We see it in literature, history and contemporary culture. Few people are able to cope with the changes as well as they may have imagined.

I’m not convinced that it’s a good idea to even reveal in public that you have won. Life will certainly not be able to continue as it was. I don’t mean just the jobs that winners had, but many of their relationships will be altered.

Winning a large amount of money will provide a very large number of choices. Things that yesterday seemed very relevant are suddenly surpassed by a plethora of options. These, as ever, are reduced to spending, giving, saving and investing. How would YOU use £184m? As a financial planner, it’s a bit of fun to work out strategies for what could be achieved within the added complexity of tax rules and allowances.

It’s nice to dream a little about this sort of choice, but I suspect that you and I will not have the problem that the Thwaites’ now face. It’s unlikely that you’ll be worrying about the colour of your Learjet or your third Ferrari. There are countless luxury brands that would be all too keen to swap trinkets and toys for cash.

Yet we all have choices about how to use the funds that we DO have. In comparison to most of the world, here in the UK most of the population are ‘rich’. Our choices, however insignificant they may seem, are likely to be envied by billions of people around the world. We may bemoan the standard of service, waiting times or general ineptitude we receive from various organisations, but we are in fact rather lucky to be living at a point in history when we can do so.

The truth is that we all have choices about how we spend, give, save and invest, though it may not feel like we do because living in the UK is expensive. The average house in the UK was £278,000 in March 2022 according to the ONS, up 9.8% over 12 months (but slowing). London averages are an awful lot higher than this … and if you google SW20 8BT you will see that the approximate price of a residential property in Edna Road (where our office is currently located), is about three times the national average!

Our choices are therefore often governed by our location.  We have clients around the country and it is remarkable just how differently property is valued. Many have to live and work in a specific area, some do so to maintain relationships more easily, there’s a plethora of reasons, but these are choices.  Whilst you and I may never have the choice of how to use £184m, we do get to make choices each day. Money should serve, not be served; so to my mind – how it is used, deployed and shared, is rather more important than the toys I can buy with it, as nice as some of them may be.

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

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Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

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The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

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WINNING TICKET2023-12-01T12:12:49+00:00

Money is not a peace of mind, it’s a choice

Jemima Thomas
May 2022  •  5 min read

Money is not peace of mind, it’s a choice

If you are looking for a gritty (anxiety inducing) series to binge, then Ozark on Netflix is for you. The series is about a financial adviser who drags his family from Chicago to the Missouri Ozarks, where he must launder money to appease a drug boss. So basically it’s a show about Solomon’s! (Please note this is very clearly a joke and we are not affiliated to this fictional TV series).

I was very pleased to see how many hits (yes, I stalk this on the regular) my first blog post ‘Slow and Steady’ got a few months ago, and I’m hoping that my youthful (and often under-represented) perspective will be mildly interesting to read again …

Amusing to some I’m sure, but I’ve always used the backdrop of art mediums such as film and TV to understand more about life, and there are a huge amount of personal parallels that resonated with me whilst watching Ozark. For one, the show is filled with financial lessons and quotes that have stuck with me. One of my favourites comes from lead character Marty: “Patience. Frugality. Sacrifice. When you boil it down, what do those three things have in common? Those are choices. Money is not peace of mind. Money is, at its essence that measure of a man’s choices.” For me this completely encompasses why we do what we do here at Solomon’s, and why great financial planning is so important.

Finding a good financial planner is a choice. And I truly believe it’s one of the best and often life-changing decisions you can make. Aside from the obvious differences of what Solomon’s does and what character Marty does (we aren’t laundering money, killing people, or secretly working for drug lords), we are however helping our clients invest their money wisely, something that I have begun to do myself. Perhaps I’m avidly searching for advice more often now both in ‘life’ and when it comes to my own finances, but I am acutely aware of the importance of having a financial plan.

Life isn’t always straightforward and is constantly changing, but some financial lessons are staple and vital in the long-run. Much like what happens to Marty and his family throughout each season, they are constantly having to adapt under severe life or death scenarios, and it’s eye-opening to see (although fictional) what people choose to do to save themselves financially.

Choices are also wrapped up in mistakes – mistakes are wrapped up in choices

Advice isn’t something I take lightly. I used to despise unwarranted advice, especially in my teenage years where I probably had a chip on my shoulder and felt most lost. But as I’m getting older, it’s something I welcome with open arms, and usually ask for. Other people’s mistakes often teach the biggest life lessons, and an open mind allows the space for us to learn from one another.

I get to read and listen to clients’ stories regularly as part of my work on Spotlight (our client magazine), and we often ask ‘’If you could go back and give your 20-year old self advice, what would it be?” and the responses are always helpful and interesting. When people feel comfortable and safe enough to talk about their financial mistakes (or any mistake for that matter), I am reminded that every day is a school day.

Money is not a peace of mind, it’s a choice2023-12-01T12:12:50+00:00

WHY YOU REALLY DON’T WANT A FAKE GUCCI

TODAY’S BLOG

WHY YOU REALLY DON’T WANT A FAKE GUCCI

I imagine you have been around long enough to know the name of fashion house Gucci; you are likely to have come across the occasional Gucci store in one of our big cities or at an airport, the familiar logo and green/burgundy stripes. I very much doubt that your first experience of Gucci is a poster for the new film by Ridley Scott, who once again proves an inability for editing a film under 2 hours, which is a little amusing when there isn’t a single stitch or fabric cut in the film either.

Anyway, I did not know the story of Gucci (sorry) and to be plain, I am not sure I do now. The Romans were responsible for many myths and yet it appears that successful families in Italia (and elsewhere) continue to ignore all the warnings about families, legacy and wealth.

Despite its length, I enjoyed the telling of a family determined to self-destruct, failing to communicate about anything important, all the while offering the appearance of family unity. The hills of Rome, Tuscany or Milan are insufficient to bury the deeply seated gripes that one branch has against the other. Like lonely Jupiter, judging from on high, nursing grievances about the trivial yet punishing with wrath.

No Fake Gucci

THE OBSESSION WITH CONTROL

It often all boils down to control. We are all probably tempted to believe that we have rather more control over things than we really do. Money corrupts most people, not everyone. I would suggest that it is more likely to corrupt those that seek to control (or power).

I believe that there is very little in life that we can control. I say this as a planner, presumably yours. Hopefully you have heard me say something like this before. I cannot control the markets (nobody really thinks that I can) I cannot control the future and I certainly cannot control who is elected and the policies that are introduced. We can all agree on this. Yet the truth is we cannot control very much of anything. We can try, we can plan, we can prepare, we can repeat, learn, gain experience but I cannot even really control how my body reacts or functions. I know its not popular to say so, but that doesn’t make it untrue.

Acknowledging how little I can actually control has been a lifelong journey for me, one that I suspect and hope is far from over. Obviously within a financial planning context we have “controls” and monitor these, responding appropriately based upon accumulated experience. Truthfully, we control costs as far as possible (I cannot control what others charge). We control asset allocation within a comfortable range. We control our own output, but not entirely devoid of externalities that dictate a degree of what makes up “advice”.

CATWALK VALUES

To my mind, we focus on what is important and attempt to encourage our clients to do the same – whatever “important” means to you. In the main, the common themes are relationships and a self-identity, not yachts, grand gestures or bank balances. Yet we cannot control relationships either, at least, not in any healthy way. The uncomfortable truth is that it has something to do with letting go. Something our clients have to sit with on occasion, letting go of control, trusting our advice and processes to ultimately come good. This is always easier to do when things are going well and tested when they do not.

Sadly, the Gucci family, at least in the film-story, forgot all that was important. The fake Gucci bags being a metaphor for their own lives. Quality comes from crafted time, not short-cuts. I’d suggest that the things that are truly important to you are products of time, probably many, many years.

The House of Gucci is streaming at a platform to your living room. The makeup is certainly impressive. Here is the trailer, the film stars Lady Gaga, Adam Driver, Al Pacino, Jeremy Irons, Salma Hayek and Jared Leto.

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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

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Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

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WHY YOU REALLY DON’T WANT A FAKE GUCCI2025-01-28T10:05:36+00:00

RESCUE ME

TODAY’S BLOG

RESCUE ME…

Five months ago, my family and I finally decided (after years of discussion!) to foster a rescue dog.

Within three weeks of the decision being made, and all applications & home checks completed, we collected the lovely Bella. A 15 month old collie/greyhound mix, she had been found in a field in Romania as a 4-month old pup.  She had been in the UK with another foster family for about a year before we got her.

The first few weeks were immensely stressful – you can never be entirely prepared for this adjustment!  It took a huge amount of effort and a ton of patience to get through those early days.

Bella has ‘stranger anxiety’.  And it’s severe.  I’m not talking about ‘a bit of barking’ here; I’m talking about unadulterated terror.  It was heartbreaking to see her freaking out at the mere sight of a stranger (human or animal) passing the house or on the other side of the street.

Scroll forward a few more weeks (and a bunch of dog-training sessions later) and Bella had made huge improvements – we could see her trust in us (her ‘hoomans’) growing and she was starting to allow herself to be reassured by our reassurances.  We couldn’t let up on our efforts however and I have to be frank … it was exhausting.

Fast forward a few more months to today and she’s like a different animal.  She still has the ‘stranger anxiety’ but it’s much less fearful and much less ‘robust’!  She is happy and settled.

Now I could give you #637 reasons for NOT having a dog, but there are only two reasons for having a dog and they trump all 637 of these … hugs and love!  And Bella is all over these – she is the only dog I have ever known to enjoy having her paws massaged!  Whatever love and affection is on offer … she’ll take it!

She loves playing chase and finding random socks (from goodness only knows where); she is a cheeky, soppy girl who will be an absolutely awesome dog in her forever home.  We only have her as a foster; and we know there will be a big hole in our family when she leaves us (and the house will feel painfully quiet!).

We are still waiting for her to be re-homed and every extra day we have her is a blessing – she is so trusting; so adoring; so vulnerable.

But we started with the end in mind.  We knew it would be temporary; we knew it would be challenging; we knew it would be heartwrenching; we knew it would be worth it.

So where is the connection between my ramblings and financial planning … ?!

  1. It’s a big decision
  2. It’s a big step
  3. It’s hard work in the early days
  4. It gets easier
  5. It’s rewarding
  6. It’s absolutely worth it

And for the dog-lovers among you – here are a couple of my favourite shots of our girl …

Debbie Harris
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on our blog which gets updated every week. If you would like to talk to us 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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

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Are we a good fit for you?

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

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RESCUE ME2023-12-01T12:12:54+00:00

VEGANUARY

TODAY’S BLOG

VEGANUARY

Food is such an integral part of life. I have many nostalgic memories of meals shared with friends and family, filled with laughter and storytelling. My Father was a particularly impressive cook, always experimenting with new flavours; he loved impressing people with unique dishes using unusual fruits and vegetables. When I went to university, meals at home became sacred. My favourite meal upon my return was beef stew, usually accompanied by a glass of red … the ultimate in Winter comfort food.

A few years ago I got sick and after much research looking for things that could ‘heal’ me, a lot of data suggested a vegan diet. My deep love of charcuterie boards, roast beef, steak, lasagna, cheese would make it hard to cut out – but I was also desperate to feel well again. I’d reached a place where it was difficult to work, difficult to eat and was often in and out of hospitals and doctors’ surgeries – so I took the plunge.

Following a vegan diet means not eating meat, fish, dairy or animal biproducts such as eggs, honey or gelatine. I seem to have inherited my Dad’s love of cooking, so the creative side of trying new dishes was fun, but I felt like I had to keep reading research papers to convince myself I was doing the right thing. Not eating a meal made up of meat, carbs and vegetables on the side, felt wrong, as though I would somehow be weakening my body, not strengthening it.

One thing that is important if you give up meat (vegetarians listen up!), is to take a daily B12 supplement (in liquid form) as it is an important part of helping the nerves work and without it can lead to nerve damage. I have to plan meals thoughtfully to ensure that I’m getting the right nutrients from the food I eat but, after several months of experimenting with new vegan dishes, I began to feel better. I’m not ‘healed’, but I was able to return to work, eat solid food again, and even start weaning off some of the medication I’d been put on. I’ve found new favourite meals and enjoyed taste-testing lots of different products to find replacements for the foods I ‘miss’ the most.

In all honesty I don’t think I expected changing my diet to improve my health this drastically, but here I am almost a year later with no desire to revert back. Food should be nourishing and delicious and that is very achievable on a vegan diet.

So what does this have to do with financial planning, you might well ask!?  Well, if you try and compare being physically unwell and being financially unwell (lots of debt perhaps; no clear direction; no idea what the best path is; no idea where to start; how and when should I invest…) then the analogy begins to reveal itself!

Depending on what financial problems you have, a personal plan is crucial.  A financial plan is different for everyone (although just as with physical health … there are some recurring themes).  As with physical problems, the relief from financial ‘pain’ isn’t instant – you aren’t ‘healed’ just because you have a treatment/lifestyle plan. It can take quite some time for the plan to take effect and for you to feel the benefits. As with treatments for physical ailments, sometimes you have to tweak your financial plan to ensure that you remain on track. As time goes by and the ‘treatment’ becomes habitual, you don’t even really have to work that hard at it.  In the beginning, there can feel like a long road to travel and a lot of learning to do, but once you’re on your way … it’s liberating and empowering.

This is why we do what we do (and why we love doing it!) – financial freedom and financial wellbeing are absolutely our goals for all of our clients, whatever their financial ‘ailments’ may be.

Abigail Liddicott
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on our blog which gets updated every week. If you would like to talk to us 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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

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Are we a good fit for you?

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

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VEGANUARY2023-12-01T12:12:56+00:00

CHRISTMAS BUDGETING

TODAY’S BLOG

SO, WHAT WAS YOUR BUDGET FOR CHRISTMAS? DID YOU EVEN HAVE ONE? AND HAVE YOU KEPT TO IT?…

I have to confess … I’ve gone over mine ever so slightly. I always forget how expensive the ‘treat foods’ are … not just the turkey and all the trimmings, but the nibbles you tend to leave dotted around the place in the run up to the big day; the spare bottle of bubbly (just in case); the oversized tin of Quality Street – that seems to be devoid of toffee pennies within minutes of opening (I always feel a bit sorry for the strawberry creams that get thrown away in the New Year when I’m sick of the sight of the tin loitering on the kitchen worktop!); don’t even get me started on Turkish Delight (about which I find not one delightful thing!)

This year I congratulated myself for managing to stay within my budget for ‘gifts’, but then I chastised myself because I failed miserably (as every other year) to budget for wrapping paper, ribbons, tags, tape etc.  (Anyone who has ever received a gift from me will tell you that I take the presentation of gifts quite seriously, so this is a rookie oversight on my part!)

What does all this boil down to in the context of what we do at Solomon’s? Simple answer … contingency planning (you knew the P-word was coming surely?!).

It’s about knowing that you are never going to remember every little cost. And planning accordingly. Giving yourself wiggle room. It’s something that every builder on the planet will tell you to do. Every project manager. Every business executive. We all KNOW this. But knowing what is good for us is the easy part. It’s the following through on that knowledge that is the tricky bit!

When we talk about ‘budgeting’ in general here at Solomon’s – we are encouraging our clients to be realistic and to err on the side of ‘over-estimating costs’ … thereby giving that wiggle room to the numbers.

We recently had some new clients who put together a really detailed and carefully considered analysis of their ‘normal’ spending. The numbers revealed that they potentially have a considerable sum ‘left over’ each month. When we presented this to them, they were stunned as this was not a fair reflection of their lived experience. So they had to look again and see where they were spending and not accounting for things. It was a revelatory experience … for them and for us!  It was a really good reminder that this is an incredibly difficult but vital component of the financial planning process.

If you haven’t updated your expenditure figures for us recently – we would encourage you to be brave and have a go at this in 2022 (but maybe don’t use your December transactions as a reflection of your ‘normal monthly spending’!!)

If you need a template to work from – please click here or you can have a go at using our portal to record your numbers. Or you can just let us have your own budget/bank statements and we’ll do the legwork for you.

However you choose to do it; please just have a go. After all – it is the foundation stone of the framework that is your financial plan and it’s vital that we place it in the correct position for you, so that it can bear the weight of whatever needs to go on top.

Debbie Harris
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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

CHRISTMAS BUDGETING2023-12-01T12:12:58+00:00

HEARTS, MINDS AND EQUITY RELEASE

TODAY’S BLOG

EQUITY RELEASE SURGE

A surge in homeowners looking to free up cash from their properties propelled the figure for equity release to £1.05bn in the three months to the end of September, driven by high house prices, gifts to family members and uncertainty induced by the coronavirus pandemic. The value of equity released jumped by nearly one-fifth from £884m in the third quarter of 2020.

While the number of loans taken out was slightly down year on year, the average amount of housing wealth freed up was 23% higher, at £101,593 per borrower. Data published this month by one of the main equity release providers (Key) suggested many borrowers were taking advantage of recent house price gains to help family members climb the housing ladder. “Big-ticket items” such as debt management and gifting were behind nearly two-thirds of the equity released in the third quarter. More than two-fifths (42%) of the cash given to family and friends was used for house deposits.

For homeowners over the age of 55, equity release offers a way of unlocking the value of their properties, whether for home improvements, paying off other debts or to help family members. Interest on the loan is paid through the sale of the house at the end of the term, so unlike a conventional mortgage a borrower is not required to demonstrate a minimum level of income to qualify. Interest rates are higher for these “lifetime mortgages” than for most mainstream mortgages. Interest rates are low by historic terms, but equity release is a not straight-forward.

Hearts, Minds and Equity Release

THE POWER OF COMPOUNDING INTEREST

Equity release is not like a normal mortgage, repaid over a set time. It is generally a loan which is only repaid when the property is sold. Overall, no payments are made, the interest merely compounds. By now you know the miracle of compounding interest – which works wonderfully for your investments and does precisely the opposite for your debt.

The risks you need to consider are future interest rates, the future value of your home and how long you will live or anyone else that you share it with. The earlier you release equity, the bigger your total debt in the end. Admittedly this helps reduce the value of an estate for inheritance tax, but in practice it can simply mean that there is nothing to inherit.

Some of you may remember the significant property crash in the late 1980s. At the time equity release was very popular and many people got caught out by the reduced value in their home and the increasing interest rates. All conspired to create genuine stress and financial hardship for some. There have been reforms, but I would urge caution – a lot of it. This should always be considered in the context of your total financial planning, not simply a desire to help a family member.

We do not provide advice about equity release but can refer you to a specialist. However, you should exercise great caution and have a clear plan and reason about why you want the funds. Interest rates are normally higher than a typical mortgage. The fact that around half of those using equity release are between 65 and 74 does not bode well for those that may live for 2 or 3 decades.

As ever, good financial management starts with good budgeting and a proper plan.

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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

HEARTS, MINDS AND EQUITY RELEASE2025-01-21T16:33:30+00:00

INHERITANCE – THE KNIVES ARE OUT

TODAY’S BLOG

INHERITANCE – DISPUTES AT ALL TIME HIGH

Perhaps you have heard the saying “Where there’s a Will there’s a crowd” the idea being that when money is on the table, people gather. Of course, there may be very good legitimate reasons for doing so – perhaps during lockdown you have watched “Knives Out” a comedic story about family dysfunction and the quest to understand what happened.

Whilst I am not suggesting murder is on the cards for most families, though I imagine that lockdown has provided more moments of stress, clearly one of the current terms of the hour is “entitled”. To my mind such a word is particularly relevant here. The Ministry of Justice published figures showing a record 188 cases went to the High Court in 2019, by individuals claiming to be entitled to a share or larger share of a deceased’s estate.

KNIVES OUT

EVERYONE HAS A STORY

There are a variety of reasons for this of course, behind each is at least one story (much like the film). Family structures are certainly more complex, with multiple marriages, children from different relationships and so on. Whilst this is obviously more commonplace since divorce law evolved from 1857, 1937, 1969 (Divorce Reform Act) and 1973 (Matrimonial Causes Act), the context is nothing new as many of Shakespeare’s play will attest.

“BETTER THREE HOURS TOO SOON THAN A MINUTE TOO LATE”

The motivation may be more encouraged by the sums involved which has made the prospect of costly legal representation more appealing. Having your Will properly written is also important. Those making “last minute” homemade Wills are more obviously subject to challenge, being invariably poorly prepared and badly thought through. I don’t think anyone likes preparing their Will, it’s a fairly morbid task, but there is a huge sense of peace of mind once you have done so properly. It is part of what our Ten Minute Challenge has been leading towards – getting the difficult, uncomfortable and perhaps “boring” stuff done. There may be many gifts you wish to leave your loved ones upon your demise, but I can assure you that clarity is one of the best.

So – if your Will has not been reviewed since 2015 when the rules about property changed, now is the time to do so. We can put you in touch with a specialist. Please attempt our 10 Minute Challenge, it could be the most helpful set of final documents you provide.

As for the film, staring Daniel Craig, Ana de Armas, Chris Evans, Don Johnson, Jamie Lee Curtis, Michael Shannon, Toni Collette and Christopher Plummer (a cast to die for!) well, its available on all the usual platforms, here is the trailer.

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

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

INHERITANCE – THE KNIVES ARE OUT2025-01-21T15:48:28+00:00
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