Klopp it

Dominic Thomas
April 2024  •  4 min read

Klopp it

Klopp’s kids beat a Chelsea team that cost a billion to win the League Cup final, confirming belief that Jurgen Klopp is a marvellous manager, one that Liverpool should not let go. I think you would agree that this probably fairly reflects the sentiment across most media platforms following Liverpool’s 1-0 victory over Chelsea.

If you don’t like football, like Ted Lasso, this is not really about football. Stay with me.

Any manager has to select players from his/her squad from those available (not injured).  Jurgen Klopp selected a team based on his own criteria, but suffice to say not all the regular stars were available due to injury. As a result, he had to look beyond the familiar, to the rising stars, untested for a big occasion. By the end of the match which predictably went into extra time, there were five Liverpool players under the age of 20 on the pitch bringing the average age of the 11 on the pitch to under 22.

There has been much praise for this bold approach and the legacy that the departing manager will have provided, a future that looks exceedingly bright. Credit where it is due, it was indeed an impressive result, though I think it fair to say that Chelsea are not at their best. However, the ages of players, cost and who won are not the issues here.

The tendency of the media is to move towards extremes, failing to retain a level head, seemingly stuck in an adolescent state of black or white. Much is being made of the success of Liverpool’s youngsters with euphoric sentiments about the future.

It is perfectly possible that Liverpool’s young players go on to have very successful (trophy winning) careers, but it also depends on undeniable luck. Skill as an athlete is the entry price, but luck will often feature. I mean luck in avoiding injury, having sufficient stability, opportunity to play. Typically players retire at around 35. James Milner is currently 38 and playing for Brighton, having moved from Liverpool at the end of the last season. He is one of the oldest and most successful premier league players. He was born in 1986 and his six minute Boxing Day debut for Leeds made him the second youngest premier league debutant, just nine days before his 17th birthday. Milner has won lots and has the second highest number of Premier League appearances and is closing in on the record of 653.

Milner, like most athletes, does what he can to ensure he stays fit and skilled, but he has also been lucky with his fitness that has enabled him to continue playing and moving between teams that have a real prospect of winning (Manchester City and Liverpool since 2010).

Football pundits and commentators tend to forget luck, they forget survivor bias and often make statements with such a degree of certainty as a voice of authority, that many or perhaps most assume them correct. In the end they may be, but it’s unknown and bluntly, unlikely.

Investing is the same. We all see charts on billboards, newspapers or the internet showing how wonderful a particular investor is. There is no guarantee at all that this will continue or be repeated. Certainly they may have a good succession program in place, or assistants making the results more collaborative, but the truth is that we simply don’t know how much was luck and good health (investment managers also get ill, cancer, stroke, mental health issues and so on). Many or most investors elect for the belief that it is possible to consistently beat the market … denial of reality is a thing.

When James Milner made his debut at Leeds in 2002, Liverpool’s most successful period was already in decline, indeed they had never won the Premier League in his entire career until he helped them do so in 2020 some 30 years since their last League win (a record that their arch rivals Manchester United hope they do not match, but are now approaching halfway).

Sport is fickle, so is investing. As much as we would prefer not to acknowledge it, preferring to believe that we make our own luck – or where opportunity meets preparedness. Luck is part of the reality.

That’s why we avoid costly investment strategies that rely on the luck of a Manager. Over a reasonable time, one that is the real experience of investors like you, only about 5% of managers beat the market. So are you willing to bet your family’s wealth in 2024 on who they will be by 2044?… and pay a hefty premium for the privilege?

No, neither are we. At this point I cannot even tell you who will win this season’s Premier League which is over halfway through and concluding this Summer …

Klopp it2024-04-04T15:15:37+01:00

Lost Gardens of Heligan

Debbie Harris 
August 2023  •  5 min read

Lost Gardens of Heligan

I spent last week in a beautiful part of the world called Gorran Haven, Cornwall.

I have been going there each year with my wider family for over 20 years – it’s our home from home (17 of us attended this year!).

Many years ago, we visited The Lost Gardens of Heligan which is (as their website says) an “astonishing story of regeneration”.

In the 1990s these Victorian productive and ornamental gardens were rediscovered in the grounds of an old mansion house under mountains of brambles and ivy and since then have been lovingly restored to something close to their former glory across 200 acres (so far).

On the estate, there are ‘living sculptures’, magnificent woodland walks, bee hives, farm animals, a ‘jungle’, giant rhubarb plants, enormous rhododendrons, productive gardens (herbs, vegetables, fruit), pleasure grounds, natural climbing trails for kids and adults alike and many ‘work’ areas that were used in Victorian times and have been left much as they were – all providing something of a glimpse back in time.

We went again this year and I was most inspired by the growth that had taken place since my last visit – the workforce there have managed to achieve an evolution of sorts without appearing to have interfered too much with nature’s processes.  It was as wonderful as I remembered; in fact it was better – largely not too much had been tampered with; but certain things had been tweaked, enhanced, emphasised and it was breathtaking.

On reflection, it reminded me (a little!) of why we tell our clients to trust the investment process – it’s a long-term endeavour; it only needs minor tweaks along the way; and can be managed effectively with mindful and careful ‘interference’.  Importantly it takes time and patience (and an expert hand).  Your financial plan may not look like a fine ornamental garden; it may not be an inspirational thing of beauty; but it is ultimately your creation and speaks of your life, your wishes, your legacy and ought therefore to be treated with respect and care by people who think it matters – you and us.

Lost Gardens of Heligan2023-12-01T12:12:29+00:00

Sweet charity

Alex Truesdale - sweet charity

Alex Truesdale 
April 2023  •  10 min read

Sweet Charity

Will writer Alex Truesdale has championed the inclusion of charitable giving in Wills since joining the “Remember a Charity in your Will” campaign in 2011. Alex prepared a Will for veteran stuntman Rocky Taylor, including a gift to the Variety Club of Great Britain, which he signed shortly before recreating an infamous stunt involving jumping off a 40 foot high inferno at Battersea Power Station.

Ten years later, the devastating impact of COVID upon the third sector means that it is ever more reliant on charitable donations – of which legacy giving makes up 16%. Thankfully HMRC recognises the importance of charitable giving, allowing an unlimited inheritance tax (“IHT”) exemption on gifts to UK registered charities – saving 40% IHT.

We asked Alex for her top tips when considering including legacies to charity in your Will:  

  • Remember to check that your chosen charity has been officially recognised and has a Registered Charity Number or “RCN” – this also helps with the identification of the recipient organisation if there has been a name change or an amalgamation;
  • If you wish to donate internationally, contact the charity – it may be possible to make the donation through a UK local branch or recipient charity in order to qualify for the IHT exemption;
  • Consider a Letter of Wishes to specify how you would like your donation to be applied by the recipient charity – you may wish to specify that it is directed to “charitable purposes” only, or to support a particular campaign or project, instead of covering administrative and staff costs;
  • Donations of 10% or more of your overall estate will not only qualify for an IHT exemption but, if drafted correctly, can also entitle your estate to a discounted rate of IHT of 36% on non exempt gifts, effectively bringing the estate’s tax bill down by 10%. You can consider capping the gift in the interests of certainty but remember this might cause the loss of the discounted IHT rate if your estate value rose by the time of your death;
  • If you are considering a donation of a percentage of your total estate, ramping this up from single digit percentages to 10% can result in a win-win whereby the charity (and in certain circumstances, your remaining beneficiaries!) all receive more at the expense of HMRC;
  • And finally…never leave your executors in the invidious position of having to decide which charitable beneficiaries should benefit in your Will. Once Wills are admitted to probate they are public documents – this can lead to a flood of “begging letters” by charities keen to press their case.

For further details or to order a copy of Alex Truesdale Wills Limited’s brand new 36-page Client Guide please contact Alex on 07887 946557 or alex@alextruesdalewills.com

*Please note that this content has been taken from our Autumn 2021 Spotlight edition, facts & figures may have altered*

Sweet charity2023-12-01T12:12:34+00:00

Leaving a legacy behind

Leaving a legacy behind

Most of us want to leave a legacy – whether that be children, grandchildren, a financial inheritance, making an impact in our job or the charity we support.  But what if our legacy can be bigger than that … ?

Having just had England’s hottest Summer on record, it feels poignant to think about the small steps we can take in the ‘here and now’ that lead to achieving bigger picture goals in the future. With harsher, colder Winters becoming a growing reality and hotter, drier Summers becoming the new norm, we must ask ourselves – what are the small things that we can do in our everyday lives that will help slow down these potentially drastic climate changes?

There are lots of things we can do and we know that many of our clients take this responsibility very seriously, but here are some of the things that are important to me personally and that I have made a conscious choice to be mindful about:

  • Reducing meat consumption

Cutting down on meat consumption is a big way that we can impact our environment – particularly since the way that we currently farm is not sustainable.  Forests and habitats are cut down to provide space and to grow feed for animals – which leads to reduced biodiversity. Cutting down rainforests to use the land for beef farms also has a direct link to how our water cycle works

  • Purchasing locally grown food

Eating local produce reduces fuel emissions that result from importing food from across the world

  • Supporting organic farmers

Whilst organic food is more expensive, it supports our ecosystems. Pesticides (used in producing non-organic products) have been linked to causing hormone imbalances (amongst other things) in the body, all of which can cause a whole host of health issues. It is currently legal in many countries across the world to use pesticides that kill pollinating insects – which as we know are crucial for the health and future of our ecosystems

  • Changing travel routines

Walking or using a bicycle is a great way to stay fit and healthy, as well as keeping our environment free of pollutants. Using public transport or car sharing is a good way to lower our carbon emissions. Thoughtfully choosing a car that can be charged using electricity or has a good C02 emissions rating or thinking about whether or not your family really requires multiple cars is all about being mindful of our decisions and the impact that they have globally

  • Reusing and recycling

There is so much unwanted household waste from clothes and furniture to broken TVs and toys that children have outgrown. Trying to fix things that are broken instead of automatically throwing them into landfill or giving things away to someone who might need them are two ways of getting the most use out of our possessions

I hope this brief look at the changes I am trying to make in my own life has motivated you to also think about the future we’re creating for the people we leave behind. Together hopefully we can begin to reverse some of the effects of climate change … small stones to create larger ripples.

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

Leaving a legacy behind2023-12-01T12:12:43+00:00

THE LEGACY CONVERSATION

TODAY’S BLOG

THE LEGACY CONVERSATION

As we age many of us wonder what our legacy will be. There will of course be a huge number of different responses, but perhaps in essence it might boil down to how our story is retold and therefore how we are remembered.

Over the years we have been encouraging clients to think about their legacy and to create a storybook of photographs that is nicely printed as a keepsake. These days due to the continued advancement of printing technology, the cost of printing one-off books (or more likely less than ten) is very inexpensive, yet it provides something of great worth to those you leave behind.

If your interest is at all peaked, it will likely be thwarted by the voice inside your head screaming that you simply do not have time to get such a project done properly, it will have to be done later. You are going to have to trust me on this…. Do it anyway. Even if the finished item isn’t quite as Photoshop perfect as you would wish, it is better to have something assembled that perhaps could be improved later.

None of us know how long we have, we all hope for a long, healthy life with the time to do the things that we deem to be valuable. The reality is often different. Here is a little video which promotes the same idea. There are lots of solutions, but just make a start. If you want a basic template of ideas, get in touch – email me for a template.

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?

THE LEGACY CONVERSATION2023-12-01T12:17:34+00:00

The Master Builder

The Master Plan

Perhaps it has something to do with the start of a New Year, or perhaps it is simply a case of my awareness of the ageing process is becoming more pertinent; but there seems to be a lot of “stuff” about ageing and the need for a master plan for life.

Ralph Fiennes is currently starring in Ibsen’s “The Master Builder” at the Old Vic. I managed to see this on Monday night, it was very well performed with Fiennes having a huge amount of dialogue to remember. However… perhaps I’m a philistine, but I simply didn’t get it.

The play, (which I haven’t read) centres on a man (Halvard Solness) who, frankly, has some “issues”. Somewhat of a control freak and ultimately has a bit of a god-complex. In essence he is a possessive man, who believes that by wishing something he makes it come true.

He has risen to “power” (in the days of small-town notoriety) through hard work and “good luck” (and the misfortune of others) despite having no qualifications, simply mastering the skills “on the job”. However, he holds the view that this success has a price, which I guess is Ibsen’s attempt at discussing the price of success. The price, that is paid, seems largely to be fear of the constant younger generation taking what he has.

Get out of the way…

Ultimately, Solness does indeed lose everything to the clamour of the younger generation, but totally through his own unfathomable actions. This involves a rather strange relationship with a young girl, Hilda Wangel, who can only be described as mad or at best delusional. Indeed at one point I wasn’t sure if she wasn’t simply meant to be a figment of his imagination, but as others talk with her, I assume that this isn’t the case.

I’m sure that some freudian references could be made to the relationship that Solness has with Wangel, her assertion of his ability to build towers, her apparent disregard for marriages and his confusion about his signficance, whilst she inspires him to new heights of potency.

A better bit of thoughtful planning?

I suppose the play reveals some lessons about marriage or relationships generally. The rather obvious need to communicate, and in particular not to avoid talking about the really important things (unlike Solness) which perhaps would have laid the foundations for a proper “life plan” to work on together.

Financial planning is essentially doing just that. If it’s done well, it will reflect your values. To date I haven’t discussed whether a successful financial plan has a price, in the sense of some form of karmic balance (a yin to the yang) but clearly any choice has a sense of this to it. Saving means not spending it all. Investing means taking a patient long-term view not than the short-term gain. Unlike Solness, wishful thinking has no part in a good financial plan – and a decent planner will help you remain grounded, not building castles in the sky.

The Master Builder is playing at the Old Vic until 19th March 2016. I’d be interested to hear your take on it! Fiennes is typically brilliant with a strong cast.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

The Master Builder2023-12-01T12:19:30+00:00
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