Vivian Slattery, Author at monetarysolutions

Reviewing our goals

28 March 202215 May 2020 by Vivian Slattery

Life in recent weeks has changed for us all, with some affected worse than others especially those who have lost loved ones. I do think it will change the way we approach life – at least I know it will for me. I never thought I would see the day that I would be restricted from leaving my home but grateful, because I am not ill and safe in the knowledge that unlike some I don’t have to leave my house to work. Also I have never been so grateful to the key workers who are ensuring that people are receiving the care they require and that we receive the basic essentials we need.

I have read a lot in the last few weeks and the one thing that has really made me stop and think were the comments saying that we all want our lives to return to normal. But take a moment and work out what parts of normal life you want to rush back to.

I do believe that we need to stay positive during what is a stressful time for many of us and take some time to work out any changes we would like to make when life is back to normal. I can think of a number of changes that I will make. Coming out of this is not going to be easy for any of us and financially many of us have had to face some losses. I have always been a firm believer that having goals gives us direction, focus and the strength to get through tough times. This may not be the answer for everyone but for many of us it could help us to get through the hard times ahead.

Many goals will need a financial plan in place to help us to achieve them. You may be setting new goals, or your progress towards existing goals may have been affected. If you need a hand with these please give us a call.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Keep calm and carry on

28 March 202217 March 2020 by Vivian Slattery

Well just as we thought things were going to settle down after Brexit the coronavirus hit. There’s been so much information it’s hard to know the truth and the markets have gone mad because like us all, they have no idea how it’s going to affect us. I have been amazed by the panic buying and one of the best marketing tools I have seen this week is a stationery company giving out sanitiser with every order. But what would our advice be as Financial Advisers?

My thoughts follow that it is the virus that’s causing the financial market to go down and I do believe that when life gets back to normal so will the markets. But no one knows what’s going to happen in the markets.

Many disasters in the past have had similar looking knock-on effects, for example 9/11 caused the Dow Jones (US stock market index) to plummet: having closed on the 10th September, 2001 at just over 9600*¹, it fell following the attack and closed on the 1st October at just over 8800*².However, it rebounded quickly and on the 9th November, 2001 it closed at just over 9600*³.

There was a similar story with the Gulf war: on the 17 July, 1990 the FTSE closed at just over 2400*4, falling to just over 2000*5 on 1st October, but closing at just under 2500*6 on 15th March, 1991.

But when the markets fall they can also rebound within days: as I am writing this the market has had huge falls within the last week but the Dow Jones surged nearly 200 points yesterday*7 (13th March 2020). Although this was not back to its high of over 29,500*8 on 12th February 2020 it was still a big increase for one day.

This is why investors have to be careful when markets tumble, if they take money out of the market and the market then has a big increase they will lose out. The same goes for switches and transfers, most will take funds out of the market for a few days until they are completed. So our advice is always to sit tight.

Also, the last few weeks have reminded us that we never know what’s around the corner and the importance of planning ahead as markets can turn very quickly.

It is at worrying times like this, that financial advice can be essential. As I have said many times before I see the most important role for us is being a sounding board, and as the saying goes “a problem shared is a problem halved”. So if you would like to review your investment please give us a call. We offer a free without obligation consultation.

*1Dow Jones opened 10th Sept 2001: 9603.36, and closed: 9605.51
*2Dow Jones opened 24th Sept 2001: 8,242.32, and closed: 8603.86
*3Dow Jones opened 9th November 2001: 9586.96, and closed: 9608
*4FTSE 100 opened 17th July 1990: 2407.60, and closed: 2415
*5FTSE 100 opened 1st Oct 1990: 2006.30, and closed: 2030.90
*6FTSE 100 opened 15th March 1991: 2500.50, and closed: 2494.20
*7Dow Jones opened 13th March 2020: 21973.82, and closed: 23185.62
*8Dow Jones opened: 12th Feb 2020: 29406.75, and closed: 29551.42

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

What is an ISA?

28 March 202217 February 2020 by Vivian Slattery

As I am writing this article what I term as our ‘mad season’ is just about to start. This is when we have many requests from individuals wishing to utilise different allowances before the end of the tax year. One of these being their ISA allowance.

So what is an ISA?
There are 5 main types: Cash, Stocks and Share, Help to buy ISA (which is now closed to new investors), Lifetime and Innovative Finance. You can invest up to £20,000 into one ISA or a mixture, apart from a Lifetime ISA where you are limited to £4,000 pa, however you can invest the remaining £16,000 into other ISAs.

Here’s a simple definition of the different types of ISA:

Cash ISAs – Interest on deposit is taxable above the personal saving allowance which is
dependent on your tax rate Cash ISAs are not subject to tax.

Help to Buy ISAs – You could open before the 30th November 2019 (for first time buyers only). The state adds a bonus (maximum £3,000) of 25% of the amount you have saved, when this is used to purchase a property that meets certain criteria.

Innovative Finance ISAs – This covers a multitude of products and it means that any interest you get from lending money to other people or companies is not taxed (Peer to Peer lending).

Lifetime ISAs – This is open to individuals between the ages of 18 and 40 years old. You can save up to £4,000 per year in these and the state will give you a 25% bonus on each contribution, up to the age of 50. The purpose is to save for retirement or your first house, if you withdraw funds for any other purpose you will be penalised and this cost may be more then the bonus you have received.

Stocks and Share ISAs – This is used to invest into a range of investments including cash, stocks and shares and pooled investments tax efficiently.

So should you be considering one of these prior to the end of the tax year and if so which one?
Everyone’s situation is different and this is why we would recommend you seek advice.

This is based on our understanding of current taxation, legislation and HM Revenue & Customs practice and limits, all of which are liable to change without notice.
The value of your investment can go down as well as up and you may get back less than the amount invested.
The Financial Conduct Authority does not regulate taxation and trust advice.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

A financial education

28 March 202217 January 2020 by Vivian Slattery

Time and time again people tell me how little they understand about money, a matter that consumes such a major part of our lives and helps us to achieve our goals. It has been reported that money worries have topped a poll of the biggest triggers of stress in the UK1*. Many people claim they wish they were taught about finances at school but it has only been part of the National Curriculum since 2014.

For example, statistics reported*2 last year are alarming: In 2017 around 6.5 million adults in the UK had no cash savings. Also, with those aged 18-24 having the lowest average amount saved.

A charity carried out a survey to see what people’s understanding of finances was and the results were as follows:

17% of under 35’s thought that the bank of England base rate was over 10% (it was 0.75%)

14% of under 35’s think it is better to start saving for a pension in your 50’s rather than 20’s (this will make it much harder to save enough).

43% of under 35’s don’t understand that inflation of 5% would erode the purchasing power of money in a savings account which pays 3% interest.*3

So does a lack of financial understanding lead to stress?

Well, perhaps a good question for people to start with would be, “If your income was to stop tomorrow, for example due to sickness or redundancy, how would you survive?” A good education in finances could help people to plan to make sure they are prepared for these kind of dilemmas.

So what would our advice be, if you want to achieve a better understanding of this subject?
The first step would be to seek help. At Monetary Solutions we offer a free without obligation consultation, which an individual can utilise to help educate themselves on what’s available.

*1Independent 28th May 2018
*2Statista 5th Nov 2019
*3Money Charity 15th January 2020

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

New Year’s Resolution

28 March 202218 December 2019 by Vivian Slattery

I am sitting writing this article just before Christmas. Last week we had the General Election and whether we are happy or not with the result I am sure most would agree that the people of this country sent a clear message that they wanted the Government to sort things out so that we can move forward.

As we enter a new year it’s a time when we consider our New Year’s resolutions. What are yours going to be this year? If you’re having difficulties deciding what they should be and need some help, here’s our advice.

I always think there should be something that we could do to improve our lives or position in life. There are certainly ways in which as individuals we can move forward. So what do I feel is a good starting point? This would be to look back at last year and ask yourself whether you were happy with the way it went, and if not what could you do to improve it. Then try to make your resolution based upon how to improve. For example if you believe you worked too hard and you should have more downtime make it your resolution and include how much downtime you should have.

This will be more meaningful than just saying I am going to give up chocolate for example, and I believe the more meaningful the resolutions, the more likely you will achieve them and hopefully next year when you complete the same exercise you will be more prepared.

As an adviser, I always feel you should include a financial resolution. This should not be just what you are going to improve upon but should also outline exactly what you want to achieve. With our clients we hold annual reviews and this is what we try to do as part of this review.

Also, I believe that any goal or resolution needs to be written down and clear about how it can be achieved. So don’t leave them to the last minute, take the time to sit down and really think about what you want and if you feel this is too much to expect to achieve in one year, consider what steps you can take to make it happen.

We do offer a free, without obligation consultation so if you need a hand give us a call and hopefully we can hold your hand through the process and help you to reach your goal.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Can you afford your care?

28 March 202221 November 2019 by Vivian Slattery

Are you paying to have care, either in a care home or in your own home? How confident are you that your money won’t run out? Will you have to sell your own home to pay for care?

At this time of year families tend to get together, and it’s then we may realise a family member isn’t managing as well as we thought they were.

So often, the need for care comes suddenly and the first priority has to be where and how to provide care. However, don’t overlook the need to plan finances. If you are self-funding your savings may go down fast.

Too many people approach us for advice when the money is already running out, by which time it’s too late to do anything about it.

As soon as the right care is in place, that’s the time to make sure the ability to pay for it is guaranteed. If you can plan ahead, that’s even better. You may be eligible for Local Authority financial support, but if you’re not paying the bills, you may have less choice about where you are cared for. If you start out paying for your care, you risk that if the Local Authority step in later, they may not be prepared to pay the fees for where you are. What happens then?

This is a worry for some people, but with the right advice from a specialist financial adviser, you can plan your financial affairs so that your money will last as long as possible. It’s even possible in many cases to buy a guaranteed income for the rest of your life, which could remove the risk of the money running out.

Your adviser will consider the options, make sure you’re claiming the state funding you’re entitled to, and help you to understand how the care funding system works. Not all financial advisers are qualified in this area, so check your adviser is qualified to advise on Long Term Care planning, and preferably accredited by the Society of Later Life Advisers* (SOLLA).

Whether you are facing the prospect of needing care, have a loved one in hospital needing to sort out their next steps, or you’ve been settled in a care home for some time, make sure your money will last as long as possible. If you would like to discuss the above we do offer a free, without obligation consultation to discuss our advice process with you.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Cashflow planning

28 March 202214 October 2019 by Vivian Slattery

Well, the holiday period is over for most and it’s back to school. While thinking about what topics are seasonal, Christmas came to mind. My initial reaction was it’s far too early to start thinking about that, but after spending a little time researching it, I decided my views were different to others. In fact it has been reported that Selfridges opened its Christmas Store in Oxford Street on Monday the 29th July. I was quite shocked, but apparently it was only 2 days earlier than last year. *1

After one major chain went under it was remarked that the only time it made a profit was at Christmas. The reason for the store going under was that it didn’t do so that year. Whether this is true or not I am sure that most, if not all of us, would agree that we spend more at Christmas than at any other time of the year. I have to say I am always amazed at the madness in the shops.

But is the high street shop also a thing of the past?
According to another source, 87% of retail goods (not including food) are now bought online, with us using laptops in the evening, smartphones and tablets during the day. *2

Having said that it has been reported that last Black Friday Argos had over a million customers visit the store. Even so 71% of customers visited via a mobile device. *3

So what would my advice be?

Well, before all the hype of Christmas begins, plan whom you are going to buy for and set yourself a budget. Make use of things like Black Friday, which has come over from the states and is always the Friday that follows Thanksgiving, when many great offers can be found.

Over the years as a Financial Adviser I have noticed that the clients who budget and know how much they are spending seem to have a lot more to show for their money. If you do want some help with this you may find that Cashflow Planning can really help.

If you haven’t heard about Cashflow Planning please utilise our free without obligation consultation. We can run through this with you and show you the virtues. Contact us now to book your session.

*1Independent, 29th July 2019
*2 Ecommerce News, 7th September 2018
*3 Telegraph, 12th September 2019

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

Where have the last 3 years gone?

28 March 202216 August 2019 by Vivian Slattery

Although this is a subject I have written about before, as Brexit still enters many of our conversations I thought an update would be good. Like many I can remember thinking at the beginning of this year that finally by the end of March we will all know what’s happening. I don’t think that there were many people who believed that in August we would still be in the dark.

But what impact is this having?
It has been reported that a leading estate agent which sells and manages commercial and residential property around the world, stated that “fewer houses were sold in the UK in the first half of 2019 than at any point since the first half of 2009”. *1

But I don’t think it’s right to blame Brexit totally for this as there were major changes regarding ‘Buy to let’ properties just prior to the famous ‘Leave’ vote. I think this is a major contributing factor.

Rental amounts are also reported to have taken a hit. The biggest falls in rent have been in south-east England, where average rent has dropped from £879 to £854 over the past year. It has been reported that comments have been made, “With rents generally falling, and average wage growth above inflation, this is positive news for renters concerned about affordability,” *2

So what about the stock market?

Well, when I last recapped back in December 2018 the FTSE 100 was at 6,721.54 *3, and opened today at 7250.90 (14/08/2019), this is still down from 21 May 2018, when it reached over 7800.

The news of the pound isn’t so good as this month it did go down to a ten year low, which isn’t good for holiday makers in the middle of the prime season.

As the political situation is still largely unresolved, I have to say that I do hope that by the end of October we will have some certainty.

If you would like to discuss the above we do offer a free, without obligation consultation to discuss our advice process with you. This is so important if you are worried about the impact that the current climate may have on your savings, it’s always a good idea to air your concerns.

*1 Guardian newspaper 8th August 2019
*2 Guardian newspaper 11th April 2019
*3 Opened 11th December 2018 at 6,721.54

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

How much will I need in retirement?

28 March 202215 July 2019 by Vivian Slattery

One of our first questions when discussing individuals’ retirement plans is “How much income do you want when you retire?” Often this is met with a blank face. So where would we start?

The first question to ask yourself is when do you expect to retire? Retirement is one period of your life that needs to be planned for. You may need to prepare for 30 years or more without a working income, and this is a period of life that should be enjoyed.

After this you need to work out how much income you will need. A starting point is to look at your current expenses and subtract any payments that should cease in retirement. This should include your debts and work expenses. Everyone’s goal should be to make sure any debts are repaid before retirement. To ensure this you need to plan for it. On numerous occasions people have come to us just before their retirement with mortgages still outstanding, asking us to help them plan how to repay these. I always wish they had come in earlier. It’s too easy to put it off, but the earlier you seek help the easier the solution. Another reason is that the longer the repayment period the less the monthly payment.

It is likely that in the early years of retirement you will probably do more as generally you are fitter and healthier and this should also be factored in.

Once you have an idea of what your expenses will be, the next stage is to look at how much income you will have coming in. It’s quite simple to obtain a state pension forecast of when and how much your projected state pension will be. Then you need to look at all the other income you will have including Pension income. Individuals often seek our advice armed with a number of different Personal Pensions asking if we can consolidate these. Care needs to be taken and each pension plan needs to be assessed, as there could be valuable benefits within the individual policies.

For your peace of mind we do offer a free, without obligation consultation to discuss our advice process with you. Contact us now to book your free consultation.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

The criteria we used when selecting funds

28 March 202217 June 2019 by Vivian Slattery

In the last week or so there has been a lot of talk about Neil Woodford, but who is he and what criteria should we use when selecting funds?

Neil Woodford ran the Invesco Perpetual Income and High Income Fund. He gained a reputation for being one of Britain’s best fund managers
during his 25 years at Invesco. This was achieved following his management of the funds during the 1990’s dot-com bubble and the 2008 financial crisis. In 2014 he left Invesco Perpetual (now known as Invesco) to set up Woodford Investment Management LLP. In recent weeks some large investors have withdrawn their money from his flagship fund, resulting in its temporary closure, and preventing any further withdrawals from the remaining investors.

So what criteria do we use when selecting funds?
My own personal preference (I may be wrong), is always try to select funds with a proven track record (ideally a 3/5 year track record). We also look at their Crown ratings.

What are Crown ratings?
Reviewed twice a year in January and July, the rating considers three key measurements to derive a fund’s performance: alpha, volatility and consistently strong performance.

The top 10% of funds will be awarded five FE Crowns, the next 15% receiving four Crowns and each of the remaining three
quartiles will be given three, two and one Crown(s) respectively.

When we are choosing and reviewing funds we would look closely at the funds with Crown ratings that had substantially changed and question whether to keep them in our portfolios.

The question you should be asking yourself is do you know the Crown rating of your current holdings?
So, I believe in the importance of reviewing holdings and ensuring that any investment is invested over a range of sectors and funds. This means you will minimise your exposure to any one fund.

Allowances, limits and thresholds correct at the time of writing, but are subject to change in the future. Please confirm the current position before taking any action

020 8760 9940

Reviewing our goals

Keep calm and carry on

What is an ISA?

A financial education

New Year’s Resolution

Can you afford your care?

Cashflow planning

Where have the last 3 years gone?

How much will I need in retirement?

The criteria we used when selecting funds

Subscribe to our newsletter

Useful Links

News

Investing wisely

Inheritance Tax

Market volatility

Contact Us

Talk to us

Contact details