Tempus Fugit

Tempus fugit – time flies

One of the things that age affords us is the ability to remark how quickly time passes, so when my daughters begin to talk of how quickly the year has gone, I am given cause for reflection. These days we seem to measure pretty much everything – because we can, as though the measurement will reveal the secrets to success. Sport has taken this to an incredible level – as we begin yet another football season, how many passes, kicks, assists, false starts… blades of grass… all of it is turned into “big data”. Financial services is a world obsessed with measurement and metrics and as I begin the tedium of another annual return for my professional indemnity insurance I note how what is being measured changes. The Freudians amongst you might have an inkling about why so much time is spent measuring – pretty much anything.

The belief that “you get what you measure” is rife in our culture, but is it even vaguely accurate? We are nationally obsessed with house prices, inflation, GDP and the national debt and momentarily the number of A’Level passes at A*-C. Are we measuring the right things? David Cameron attempted to introduce a “happiness” measure, which I think was well-meaning but many have mocked. My in-box, twitter account and pretty much every form of media is deluged with data. Performance indicators, past present and future, but are they any good really?

So, somewhat controversially I am going to suggest that most of the data probably isn’t very important or useful at all. It tells us what happened, rarely why. If you are a client, you will have gathered that I have an enjoyment of history. We print our own birthday and Christmas cards, which we design. I fill these with what I hope are interesting “historical facts”… interesting to me anyhow. Why? well… if I’m serious about “lifestyle financial planning”, yes numbers are important, but surely life itself is rather more important. What we should measure is the content of our lives, not the content of our pension funds. I have never been to a funeral, where the focus was on how well someone managed their money or how much time was spent at work.

I think it fair to say that we are all largely unable to escape 24/7 reporting, yet a great deal of wisdom is required to determine what is actually important. My children will tell you that a phrase I use all too regularly is “everybody dies”. This is not meant to minimise death, quite the reverse, it is the great leveller and a part of life, yours and mine. I am merely trying, probably poorly, to point out that life is brief, so live it well, but it is the content of life not the accumulation of stuff, or social position that I believe is where a life well spent resonates.

So of late, I have tended to tweet simple facts. Reminders of people that are alive or perhaps dead, but who have done something extra-ordinary, none of them are perfect (nobody is right!). Of course, the irony is that many of these people are famous and don’t appear to be “ordinary”. I’m also mindful of a white, western male perspective, which I have grown up in. Its also a reminder that life is brief, that change is often painfully slow and the present is built upon the past. So as we see yet more racial trouble in Ferguson the not-so United States, where arms manufacturers seem to be equipping police forces for wars as opposed to communities, I am reminded of the struggles of the civil rights movement in the US and how the struggle is clearly not over and how much more there is to do in the world…and timely that Rosalynn Carter is celebrating her 87th birthday today…another inspirational woman who has been waging peace, fighting disease and building hope – for a lifetime.

I know its possibly “commercially dangerous” to comment on politics, religion, gender, race…. but whilst I don’t expect everyone to agree with me (heck, I often don’t!) it does reflect rather more about who I am, rather than some glossy, corporate sanitised version of who I am. I’m told that I should build my “brand” which is well-meaning advice, but seems to somehow miss that I run a small (tiny) company, primarily serving local people to make better decisions about their money so that they can get on with living their lives more fully. I don’t know the future, don’t promise huge rewards, merely to remain disciplined to sensible principles that work, all in the context of a world of options, which we can sift through together calmly.

Dominic Thomas

Tempus FugitDominic2023-12-01T12:39:27+00:00

Explosive ideas

I think I may be on a theme at the moment – something is gnawing at me and it’s not the occasional mosquito. Perhaps I am concerned about my own mid-life stage and seeing my children head off to University (that’s probably something to do with it). Perhaps it is meeting with clients and prospects who give me cause to wonder if only… if only I had met them 10 years earlier. Whatever the cause, I’m conscious that time is a very valuable resource and you don’t want to spend too much more of it reading a ramble.

Long story short… well that’s kind of the point. Most of our lives we live as though we have a long time left, “all the time in the world” but the reality is that life is very fleeting. So we need to enjoy what there is and plan for our futures as best we can with what we have today. I heard a phrase the other day which went along these lines “people value present money much more than they value future money”. I think pretty much every financial planner will probably agree that this is the case. Getting some people to take action about their future can be very difficult. Take fees for example, this is invariably a tiny proportion of the difference that good financial planning will make. I’m not talking £000’s but many £000’s of £000’s. Yet for many the fee is the number that they really “feel” and relate to. Its now, it’s present. The future – well that’s some way down the track.

The future is of course made up of from a history of “the present” the “now’s”. I am struggling to convey the importance of getting the present sorted out properly so that the future is much better. I’m not sure where I’m failing in this regard, but I am. Perhaps my copy writing could do with a serious spruce up, perhaps I need to try a different approach… yet I am struggling to win you over aren’t I. By win, I mean persuade. Persuade that taking action today about your future is just as important as the tasks you are actually doing today. So I’m declaring open season on ideas. If you have any that you believe convey the notion of long-term thinking and future value being as valid as present value, I’d love to hear from you.

Too many of us seem to think that the future will simply look after itself. We are more like Allan Karlsson, from “The 100 Year Old Man Who Climbed Out the Window and Disappeared” who bumbles from one incident to another, narrowly avoiding disaster served by a helpful side order of luck and naivety. It’s a delightful movie, but it is fantasy, yet it would seem that many of us prefer the fantasy that things will work out ok, as opposed to working to make them ok. I wonder what explosive I might use to shift some thinking.

Dominic Thomas: Solomons IFA

Explosive ideasDominic2023-12-01T12:39:24+00:00

Chasing Gold – That Night in Rio

Chasing Gold

So Germany won the World Cup, deservedly so. A final game of 120 minutes chasing gold. However, as if to underline my previous post about the tournament, I came across a useful piece on the BBC website. This also suggests that it is not about one month in Brazil – that is merely the end of the competition. Of the German squad that picked up winners medals last night in Rio, six of them were members of the 2009 Under 21 European Championship – who beat England 4-0 in the final to win the tournament. They were Neuer, Ozil, Howedes, Boatend, Khedira and Hummels. By comparison only one Englishman from that same match made it to Rio – James Milner. Unfortunately Theo Walcott was injured, but the rest did not feature in the squad.

Success in football or indeed in any walk of life is not easy. Last night we saw one of the best players in the world walk away with a trophy that could have gone to a number of other players, who probably all had better tournaments. There is no doubt that Lionel Messi is one of the most talented players, but simply being so, does not guarantee success. Those that made the decision to give him the golden ball award, should have thought again, Messi from all accounts is a very decent man and looked uncomfortable collecting the award, and yes, whilst I don’t know that he was (who does?) one got the sense that it was more than simply being on the losing team, this smacked of marketing and nothing more.

The same is true with investing, you can simply look up the top performing funds, but this is historic data and any good portfolio is more than a collection of historically well performing funds. It’s about getting the right mix (asset allocation) and then the right level of risk (defence and growth) and then the best value for money that will do the job (so none of the “stars” that played for Brazil). Certainly there are moments when you are likely to need to hold you nerve, but that is all part of the long-term thinking rather than a constant chop/change trying to chase the gold.

Dominic Thomas: Solomons IFA

Chasing Gold – That Night in RioDominic2023-12-01T12:39:24+00:00

World Cup Winning by elimination – the final 4

The thing I still don’t really understand is the way most sports are reported in the media. Take the #WorldCup2014 as an example, (why not, it seems everyone else has). Anyhow, we were told that the tournament started in June, this isn’t really the case. Brazil is simply the nation that is holding the final stages of the competition. In fact the “World Cup 2014” started in September 2012, perhaps you recall Bosnia’s 8-1 win over Liechtenstein? No… perhaps you remember the 5-0 England victory over Moldova. This is a lengthy process of elimination. Now it is early July the final stages have been reached, with four teams remaining, all 4 are ranked in the top 15 (of 207) and if world rankings are anything to go by, Germany will win this evening and meet Argentina in the final.

My point? Well – many people seem to forget that the road to “victory” is rather long and involves knocking out the competition. It’s a rather sad state of affairs when the so-called experts suggest that going for a draw is either sporting or genuinely helpful. The challenge, (to win) as with most sports is to out-score your opponent (unless your game is golf) yet we seem to have entered a sporting age of rather than trying to win, it is more important not to lose, hence the defensive tactics and the inevitable penalty shoot-outs.

Has sport become unsporting?

I couldn’t help but wonder when one pundit and former player suggested that people will forget about how the game was won… but that it was won, then proceeded to wax lyrical about a great Brazilian team of the past that didn’t win the World Cup… not exactly forgotten then? Yes it is possible in sport, particularly in football, to win without being the best –Chelsea’s Champions League, Greece winning the Euro’s, supporters will have a different perspective, but the neutral remembers these finals for their lack of memorable moments, 90 minutes (usually 120) lost forever. However this is just the last 90 or 120 minutes of a tournament and doesn’t reflect the full story, but as humans we remember and focus on the loudest noise (the final). This seems ably displayed by football pundits who regularly write off the USA team, who certainly played with sporting spirit against Belgium but who are in fact ranked 13th best in the FIFA World Rankings, just 3 places behind England (10th) and ahead of France, Chile, Netherlands, Mexico, Croatia and…

There can be only one..

Only one team can win the World Cup and then once this has been achieved, the entire process restarts. We hope that the best team wins, but history reminds us otherwise. How on earth am I going to link this to financial planning? Well… the same sort of enthusiastic optimism creeps in. Many hope for a “win” despite the track record and they tend to only get engaged at the latter stages – when the finish line is in sight – the final straight so to speak. We are by nature, sadly rather short-sighted, forgetting the daily routines that need to be applied to deliver the results we seek. Unlike sport, everyone can actually “win” with their financial planning – provided that they start, know the rules and have an objective in mind. It doesn’t come down to penalties and when your time is up… well its up. We might have our favourites that we would like to win in sport, but only one will (ok there are some exceptions – cricket being one). Make sure your financial plan is not stuck on the bench, left at home or disqualified, it is a “game” that can be won by all, but of course you’ve got to have some goals. OK, so consider this last sporting analogy – reflect on how old you are today and your life expectancy… if this were a sport, how long do you have left? How many minutes of play are left to make a difference? Time for a change of tactics? Time to get in touch…

Dominic Thomas: Solomons IFA

World Cup Winning by elimination – the final 4Dominic2023-12-01T12:39:23+00:00

Social Media can kill

Social media can kill

Social media is a mixed blessing, it is almost unparalleled in unforgiving speed, much like an F1 car in the wrong hands. In a climate of assessing the value that we all bring to the smorgasbord of life, the mixture of new technology, aspiration and creativity form the backdrop for a new movie called Chef.

Chef puts heart on the menu

Chef is one man’s journey of rediscovering who he really is, or perhaps more accurately who he could be. Many of us will have harboured dreams of “doing our own thing” some of us get to do this. Most do not; for a vast array of reasons, perhaps “financial security” being one of the more obvious and understandable concerns. This is not quite the usual “American Dream” yarn, but it certainly holds onto the vital ingredients of one.

In essence, we have a man trapped without realising that he is holding the keys. It takes a fairly pithy exchange on social media to expose his repressed feelings about the life he is leading, which catapults him into taking stock and renewing his passion for life….and love. Why I like the film, is that, ok it’s sentimental, (so what!) but in fairness, the main character is a decent guy, he works hard, he’s present, though not always available for his son and he’s making a good living by making great meals. He’s a good chef. Normally films of this genre are more heavy-handed, with the character in crisis at the bottom of his “luck”. This isn’t really the case in Chef.

What Chef offers is the view that life can be more fulfilling…. More flavoursome!…and that perhaps many of the answers are close at hand – perhaps close at home. That the skills you have are enough, but the courage of self belief is lacking. This is not a rags to riches story in the traditional sense, but an unveiling of life’s riches. It combines a sense of the authentic, natural but doesn’t lay waste to, or pour scorn on, the many advantages that modern technology can bring and its ability to make viable “new communities”.

Making a killing?

On one hand, this could be seen as a story about entrepreneurialism, though I don’t think this is really the case, there are admittedly similarities. Rather like entrepreneurs, there is a sense of creating a better future and making choices about it and then decisions to act. This reminded me of a podcast I recently listened to by Dan Sullivan who outlined the difference between choices and decisions. He argues that these are not interchangeable terms, but that a choice is about the future. A decision is about how much of the past you want to take into that future. He reminds us of the Latin root word for “decide” is found in patricide, suicide and so on, a sense of putting to death or killing parts of the past that are not welcomed into the future. So I wonder how many of us are living out a future that hasn’t properly been “chosen” and has yet to “kill off” the unhelpful elements of the past? How might this be the case in your financial planning?

Dominic Thomas: Solomons IFA

Social Media can killDominic2023-12-01T12:39:23+00:00

Wimbledon 2014

For me, many of life’s milestone’s are based upon the sporting calendar. Its Wimbledon 2014 and its not so much that I watch every shot but that it signifies that the English summer is really here (despite the weather). It acts as a reminder of years gone by, stretching all the way back to childhood and watching coverage on the BBC or even listening to games on the radio. It isn’t even as though I’m particularly recalling all the great tennis players of the past, merely that it, like so many other events is another way of marking time and moments in my life.

As we are based in Wimbledon, well… next door. It seemed like a good idea to create a small campaign. So I have put together a free report that you can download for free. This explores the 5 most common mistakes that investor make. I have probably got a lot to learn in terms of making the report punchy or marketing friendly. Its a genuine attempt to provide something of use to anyone that has any intention of investing.

Do have a look at the report, I’d welcome any feedback, more importantly though, pass on the link to your friends that you believe could benefit. Here is the link

Dominic Thomas: Solomons IFA

Wimbledon 2014Dominic2023-12-01T12:39:20+00:00

Great Expectations

Solomons-financial-advisor-guest-blogger-SB2

Predictably, the English football team’s performance last night did not meet the expectations of many, despite being apparently low. Sarah Benamer is today’s guest blogger examining our expectations, thankfully not discussing football. Here she is with a thoughtful approach to our relationship with self, others and money.

Great Expectations

In times of uncertainty human beings tend to respond (often through necessity) from a defensive place, from their most insecure internal structures. In this place we forget about quality of life in favour of survival mode, a place of reaction and just ‘getting by’ rather than engaging bodily, emotionally, and thoughtfully. We often feel that we are alone and that life is living us rather than the other way around.

The strong desire that every human being has to attach and belong takes us to the heart of what it means to be vulnerable, to feel like a child again, and is highly susceptible to suggestion or manipulation when we feel insecure. This is evident on our ballot papers in the presence of the more nationalist political parties, which tell us that we can feel better, and be stronger through collaborating to exclude rather than tackling the feelings of vulnerability associated with living in a period of rapid change. This epoch of great uncertainty in our work, environment and even the way we relate seems to be leaving many of us behaving as if we are under siege; financially, practically, and personally; ultimately disconnected from ourselves and our communities.

These demands of 21st century living are not going to go away and opting out is not feasible for most, so I am wondering how we free ourselves from the rigidity of survival of the fittest to experience our lives more fully without needing to marginalize others or ourselves? How do we keep ourselves orientated towards quality of life?

Earlier this year whilst travelling in Asia I was reminded of how our expectations and desires must essentially be shaped by our culture and circumstance. Watching someone wash or brush their teeth in river water in proximity to the largest mobile phone factory in the world gave me pause to reflect. I thought about my irritation at the sporadic nature of the boiler in my shower back in the UK. Frustration at clean, drinkable water not fulfilling the brief of the ‘H’ on the tap. What a princess! I thought about the outlook of the workers in that locality, and the differing prospects that their children might have. I pondered how many generations it might take to forget and to experience the successes of ones forefathers as disappointments in our own lives?

My expectations and disappointments like those of all of us have been shaped by my context, a western consumerist milieu that structures my emotional experience. So how can I/we short-circuit this to find our way back to quality of life? To compare ourselves to others across the world from a privileged viewpoint is patronizing and inevitably does little but describe the status quo. Comparison and competition with others (and in deference to The World Cup by this I do not mean in sport!) disenfranchises us from the very essence of who we are. It also sets up the very ‘them and us’ dynamic that at its least is lonely and at its worst becomes bigotry and hatred.

In her recent book ‘Thrive’ Arianna Huffington writes of ‘The Third Metric’ of coming to appreciate different measures than wealth and power in shaping our sense of ourselves and our happiness, not least of which is physical wellbeing and sleep. In this (albeit from a very privileged place) she now rejects the ‘have it all’ dogma, recognizing that there is always a price to be paid. Brene Brown speaks compellingly of embracing our vulnerability and forgetting who we are supposed to be in favour of who we are. I am deliberating about something that takes from the psychotherapeutic tradition of self knowledge, of taking time to reflect, moment to moment whatever our circumstance. Of remembering all that we are and all that we hope to be, of connection to our bodies and locating ourselves in our moment and place in time with understanding and compassion. It is in reminding ourselves of these very personal details – our individuality, history, beliefs, desires and aspirations that I suspect we might find empowerment to quality of life.

In the words of the late Maya Angelou…“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” We are often our harshest critics and under pressure lose sight of what makes us who we are in favour of feeling ‘less than’. So as you approach your summer holiday, start the hellish school run or tackle a particularly busy or challenging time in work can you carve out a place for reflection and choice rather than the ultimatum of survival mode? Can you remember where you come from; the choices that you made that brought you to this point, or the regrets that can perhaps inform you in your future? Can you stay with what it feels like to be you? I say this not from the point of knowing, but as one who is still searching.

Sarah Benamer: The Intimacy Clinic

Great ExpectationsDominic2023-12-01T12:39:19+00:00

Clarence Darrow

I was very fortunate to have friends in the right places who managed to get tickets for Clarence Darrow, a one-man show at the Old Vic, London. The “one-man” being the highly impressive Kevin Spacey, who many will know from a considerable film career, as well as many television appearances. However, much like the character he has inspired others. In his case, much to the delight of audiences, he has inspired many leading film actors from the US to tread the West-End boards of London, at the Old Vic and elsewhere.

Courageous walk into the future

Spacey’s performance of Clarence Darrow was such that a full-house, standing ovation was highly deserved and assured. He magnified the wonderfully written legal history into a compelling story of one man’s stand for the little guy, the underdog. The text is littered with wonderful lines and I’m not sure whether this is the work of the writer David Rintel or Mr Darrow himself (as is often the case, when a great writer meets a great professional). Darrow (1857-1938) was a leading member of the American Civil Liberties Union, ahead of his time fighting injustice and prejudice. Naturally whilst the context may have been different, many of the themes sadly remain current, which is perhaps why Spacey decided to revive the role he first performed 23 years ago in the 1991 film Darrow. Darrow reminds us of our humanity when we are tempted to get caught up in blaming others, seeking to understand, be understood and ultimately to walk with integrity, appealing to take a courageous walk into the future rather than a “backward and barbarous” walk into the past.

Lessons learned and learned lessons

As we appear to be at yet other cross-roads in the Middle East and global markets react to news of extremists that step into the void created by fear, it is worth remembering that knowledge is the antidote to fear, not annihilation. This is unfortunately a well worn path that appears to be forgotten and buried much like the desert winds that shift the sands. As Darrow said “History repeats itself. That’s one of the things wrong with history”.

Dominic Thomas: Solomons

Clarence DarrowDominic2023-12-01T12:39:19+00:00

Hard work

Hard Work

I was talking over supper last night with my daughters and one remarked on her observations about hard work, money and value which prompted some further discussion about working hard, price, fairness and ethics. I should probably say that my daughters are now 19 and 21 and doing the University thing. As a parent I’m mindful of wanting to encourage “hard work” but also allow freedom to experiment, fail and change. Every parent will appreciate that on occasion these sorts of discussions are finely balanced, words impact, actions reveal.

The trappings of hard work

Anyhow, I made a bit of a hash of things trying to explain that what many refer to as “hard work” is often unhelpful. There are millions of people that work incredibly “hard” and very long hours (think of most manual labourers) however most of them earn very little. Equally, I know many very well paid people that work very “hard” and are paid a lot of money (by comparison). Often it can be observed that both feel “trapped” by their circumstances, the difference being that invariably, the richer person can “give it up and live a more simple life in the country” which we often see cited in the press, particularly here in London.

Money of course provides choices; in this scenario the “rich person” has a genuine choice to change their circumstances. The low paid person often does not, despite what many coaches, and motivational speakers may say and perhaps want to be true, a single parent, working 16 hours a day on minimum wage (or there about) has few choices. It isn’t fair; it is what it is – life. Some of us can improve our circumstances, by education first, but thereafter, it’s the books you read and the people you meet that will probably change your perspective and options.

How about smart work?

Hard work? well that’s an unhelpful phrase. A better one is smart work, by which I mean working in a way that uses your unique abilities to their best advantage. Sometimes we are lucky that our unique abilities are rewarded well, sometimes they are not. I would like to believe that everyone’s unique abilities once found, employed and experienced would all be well rewarded, but I’m also a realist. Smart work then changes the paradigm of “working all hours” to making your hours count. Think of a record album, lasting about an hour or so, perhaps recorded 30 years ago, recorded once (which may have taken weeks or months to put together) but once published generates revenue sale after sale, play after play. That’s smart work.

Can you hear the future?

The world is changing, we are experiencing a technological revolution that is far more world changing than the industrial revolution. My daughters and their generation have different challenges, competing in a global market with unprecedented reach. I’m not going to tell them to “work hard” it doesn’t really mean anything. I’d like for them to have a fulfilling life, that they love, doing things that they are passionate about (by which I mean they value) and to do it in a way that is “smart working”. You see, I believe that the nagging feeling I have about their future, is probably more of a sound….of opportunity knocking at the door.

Dominic Thomas: Solomons

Hard workDominic2023-12-01T12:39:17+00:00

Summers here… thinking of foreign currency?

The summer is here and thoughts begin to turn towards holidays. Many people use their holiday as a chance to reflect on their future, perhaps browsing the local estate agents and casting an eye on some rather nice villas. So I thought that you might be interested to know that your foreign currency requirements don’t have to be met just by your regular bank, indeed they are often the most expensive option.

I was recently approached by a global payments specialist firm called AFEX (www.afex.com) who were keen to talk to me about any of my clients who made regular or one-off international transactions; either privately or as part of their company’s activities. During the course of the discussions and our face-to-face meeting I was given a run down on the need for clients to properly plan for and manage these transactions to avoid needlessly wasting money. The services and benefits they could provide fell into three broad categories:

IMPROVED RATES AND CHARGES

Almost every bank will charge around £25 per transaction you make in an upfront fee. AFEX only charge £3 and even then only on transactions under £5,000. However, most of the costs and charges associated with making international transactions through your bank are hidden in the terrible rates of exchange they offer clients. The difference between the ‘interbank’ rate (which is the rate banks and firms like AFEX buy currency at) and the rate at which they sell it to you is called ‘the spread’. This is essentially the profit margin they make on your transaction. Banks normally take about 3%-4% profit margin whereas AFEX typically take under 1% – how much under depends on the amount you’re sending.

MARKET GUIDANCE

Advice can be crucial, unlike your bank, most foreign exchange firms will provide your very own dedicated account manager who will be able to give you guidance on where they see the market heading. In the case of AFEX they draw on all of the firm’s 35 years of operating experience and knowledge to ensure you trade at the right time, not just the right price. You’ll have your account managers direct dial phone number so there will be no more switch boards, automated messages or account numbers. As he or she gets to know you and the type of transactions you do better they will also be able to pro-actively advise you on when a good time to trade will be. This typically saves another 2-3%.

HEDGING AND RISK MANAGEMENT TOOLS

AFEX can offer you free to use tools to take the volatility and unpredictability out of your transactions. Simple tools like forward contracts lock in rates when they’re in your favour and you can trade up to 12 months into the future. Ensuring that the dream home you want overseas remains affordable regardless of what happens in the currency markets.

Remember, this is not advice, I’m merely drawing your attention to the fact that as an independent financial adviser we have access to the entire market, providing solutions to financial problems that are often not first thought of when you think “IFA”… which is far more than pensions and investments. You will be familiar with the phrase, “its not what you know, but who you know”. For a leading “plugged-in” IFA firm, we have the connections to make life considerably better.

Dominic Thomas: Solomons IFA

Summers here… thinking of foreign currency?Dominic2023-12-01T12:39:15+00:00

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