Sentimental Fool?

To The Church

Last night I went to the church, to the Union Chapel in Highbury, according to one Time Out review I saw, one of the best gig venues in London. Having been to the chapel several times before, I can vouch for its internal acoustics and rather splendid stained glass window. Perhaps it’s just me, but the pews aren’t that bad either –more comfortable than in many theatres or cinemas. Anyway, last night was an opportunity to hear Lloyd Cole, who was playing a couple of tracks from his rather good new album “Standards” as well as diving into a nearly 30 year back catalogue that extends from 1984.

Perfect Blue

Many of you will know his classic hits, such as “Perfect Skin”; “Are You Ready to be Heartbroken?”; “Brand New Friend”; “From the Hip” and “Jennifer She Said” when he fronted Lloyd Cole and the Commotions. By 1989 he had begun a solo career releasing 9 albums over 16 years with “Antidepressant” in 2006. Two albums later he “returns” with “Standards”. Now at 52 his latest work seems less melancholic and a more upbeat outlook and sound, though certainly there is something very familiar about “Blue Like Mars”. I’m taken with “Period Piece”.

Photograph by Philip Seymour

These Days

The solo acoustic performance was a great experience. Lloyd (if I may presume) was very down-to-earth and humble. His own website reinforces a sense of “normality”. Reflecting at points on a long career that he joked was finding its way into obscurity. He also talked of the double edged sword of social media, where engagement with fans can be a mixed blessing. He’s generally not one to be definitive about the meaning of his lyrics, which I believe is appropriate for someone that I would really categorise (if I must) as a poet with a guitar and distinctive sound. He explained that one fan suggested a rather rude double-entendre in one of his songs, which he didn’t spot or mean and now struggles to find a way to sing. A lot has happened since 1984, for me LC and the Commotions was part of my adolescence and a suitable background track. Now we are all much older and not so fresh faced, with many shared life experiences that Lloyd expresses through his lyrics.

Mainstream Afterthought

So what has this got to do with financial planning? nothing. Other than perhaps a reminder that time travel is possible only in our memories and time is fleeting. Perhaps too, that our personal journey sometimes doesn’t work out as expected, for Lloyd the music industry has undergone a revolution due to new technology and record sales are not based on what you have to say or ask, but how much attention you get. So whilst he’s probably no longer “mainstream” there is something unmistakably truthful, genuine and grounding about a good man with a guitar, singing in church…. From one sentimental fool to another.

Be There

Lloyd is performing all of the new tracks from “Standards” on 31st January 2014 (his 53rd birthday and tax payment day) at the Shepherds Bush Empire. I’m hoping to book my tickets shortly, perhaps you will join me too. Oh and yes, the sub-headings are all song tracks.

Dominic Thomas: Solomons IFA

Life Expectancy Assumptions

Born Before 1962? under-estimating life expectancy may be…. fatal?

If you were born before 1962 there is mixed news, according to a report by the National Association of Pension Funds (NAPF). This is a rather concerning but important report. In essence most people over 50 years old today are under-estimating how long they will live whilst being over-optimistic about how well off they will be in retirement. This of course on the face of it is a fairly disastrous mix. That said, I have to say that I’m rather wary when contemplating reports that suggest forecasts are accurate (which is the fundamental flaw within the report). Whilst clients will testify to my rather unusual approach of discussing life expectancy at a fairly early stage of the financial planning process, it is important that you understand the implications. However, to pretend or suggest that the future is predictable in this way is really rather silly. We use life expectancy as a guide, nothing more. In reality our assumptions ought to be reviewed annually, because of a very strange quirk of life called “mortality drag” which is the statistical notion that the longer you live, the longer you will live. Strange but true. Great financial planning when all is said and done, means making your money last a bit longer than you.

Start with the end in mind

The report suggests that people in their 50’s underestimate life expectancy, though to my mind the data is somewhat open to interpretation. The most important finding was that 59% of people surveyed (aged 50-64) had not given thought to how long they might live. The ONS 2010 figures should be applied carefully and based on current age. They are also based upon statistics of people that have already died having lived a long life. So it would be reasonable to assume that thanks to those wonderful people at the NHS that we are all kept going a little longer and if we live a healthy lifestyle, perhaps longer still. However the principle is quite right in planning life, but this needs to be done with the knowledge that any such forecast will be wrong. It is a guide and nothing more. All life expectancy data is historical and can be used for is to identify national historical averages.

Born in 1961 or earlier

So for those born in 1961 such as Lloyd Cole, Peter Beardsley, George Clooney, Tim Roth, Enya, Heather Locklear, Michael J Fox, Meera Syal and Meg Ryan (who all became 51 in 2012) the UK ONS statisticians would cite historical data that for those born in the UK and living there the men have an average of 29.73 years left and the women have another 32.96 years. However, as we all know, this is no way to plan a life, indeed one might suggest that it is utterly silly. Well, I would largely agree, but for good financial planning it is helpful to at least put some sensible parameters in place that we review each year.