The John Lewis television advert is airing which means it’s Christmas. Not too sure I find the pigeons very endearing. In a normal year it would not be Christmas at all, what with it only being November. We would be enjoying the festive TV adverts as they trickled out but we would still be muttering “too early”.
But this isn’t a normal year. It’s the year of early Christmas for many people and I have already witnessed houses lit up with fairy lights. Early Christmas isn’t just to do with wishing 2020 would hurry up and end but also with trying to wring out some joy from it. The recent announcement regarding the relaxation of Coronavirus rules from 23rd to 27th December is really welcome. I’m motivated to fully embrace early Christmas and bring forward the decorating of the tree to the first week in December. I normally wait until at least the second or third week of December!
Spare a thought for the town of Tenbury Wells, Worcestershire, the “mistletoe capital” of the UK. For the past 160 years it has held a mistletoe auction but this year it has been cancelled because of the coronavirus restrictions.
So, Boris Johnson has confirmed an end to the national lockdown on December 2. With vaccines on the way, he has also outlined a roadmap to bring back “normal life” by Easter next year. Assuming the vaccines are approved by regulators, ministers expect the first injections to be provided in December before being rolled out widely in the new year. Let’s hope this happens as planned as I could do with a holiday! I’m sure many of you feel the same way.
More than 300 words and no mention of Brexit! Well, here are my thoughts.
The UK and EU have until the end of the transition period on 31st December to complete a trade deal. A deal would give a major boost to global confidence in the aftermath of the coronavirus pandemic. As I write, the talks seem to be making more progress towards a deal with some positive words today from the European Commission President, Mrs Ursula von der Leyen. Who knows, by the time I next write, a deal could have been completed.
Until next time, I hope you and your family stay safe.
It feels like Mondays are the new Groundhog Day – another very positive Coronavirus vaccine result on Monday from Moderna and President Trump continues to assert his statement that he won the US election. Let’s hope that next Monday brings additional good news on the vaccine front at least. The vaccine news from Moderna had a positive effect on markets around the world and they bumped up very slightly. Care is the watch word though and the scientists are keen to instil an air of caution until the regulators formally review the safety and efficacy of the vaccine. We are all waiting for the time to come when we are free to go about our usual lifestyle and this feeling of time and waiting reminded me of a client:
A number of years ago I met a new client (Gaby) who had been referred to me by an existing client. Gaby was 63 and wanted to know if she had enough money to retire at age 65 which was the normal retirement age for her employer. Gaby was a widow and therefore was already in receipt of a Widow’s pension, on top of her earnings, and a modest range of savings and investments. I asked Gaby why she wanted to see me now and more specifically, what she wanted to do during retirement. Gaby said that for many years, a visit to Cuba was on her wish list – she didn’t have a specific reason, but from what she had seen, the sights, colours and sounds made Cuba a very appealing place and she wanted to visit after she retired.
After a detailed look at Gaby’s income requirements and projected income from various sources, as well as existing savings, I asked Gaby back to the office and we went through her cash flow report (including the costs for a fabulous trip to Cuba). At the end of this meeting, I told Gaby that, instead of waiting until age 65 she could retire now and have two extra years of retirement if she wanted to. Gaby sat back and went, ‘Oh’, thought a bit more and after some further chat, she went home.
A few weeks later, Gaby called and told me that she had given three months’ notice to her employer and had decided to retire now. I quickly re-checked my figures! Everything was in order, so I wished her well and an enjoyable retirement.
Approximately six months later Gaby called and asked to see me again – she had been to Cuba and wanted to tell me about it. Gaby came in (now with pink-flecked hair!) and told me about her trip – she had a wonderful time, and it was everything she had hoped it would be. She then told me she had a brain tumour, which was inoperable and she had six months to live. I was stunned and couldn’t quite find the words. Gaby, with her background, and faith was very calm and said that if she hadn’t seen us, she wouldn’t have considered retiring early. In her words, Gaby said, ‘I’ll always have Cuba’.
So, my question to you is have you made the steps to do the thing you really want to do? If not, why? We all know roughly how much money we have, but we don’t know how much time we have. As Robert Anthony, a Professor at Harvard Business School, once said, ‘There will always be reasons to wait. The truth is, there are only two things in life, reasons and results, and reasons simply don’t count.’
What’s your Cuba?
Have a wonderful weekend, Neil.
Chartered Financial Planner
Just over a month ago, I wrote my last article and over the past month, the FTSE 100 has swung from going down 7.3% and rising by 14.4% from this low. Initially the negative response was due to the second lockdown and then we had news of Joe Biden winning the US election and of course Pfizer having a successful result on a Covid vaccine. Furthermore, we have had a swing of opinion from Growth stocks back to Value stocks and a story headlined: investors rage as market surge crashes trading platforms.
The finance and stock picking journalists have been having a field day! Rest assured we continue to ignore the short term noise; remain patient; keep a close eye on the long term rather than what markets are doing today; stay disciplined, deliver through careful asset allocation, diversification and regular rebalancing of asset allocations to keep your portfolios in line with your financial plans.
I am continually reassured that our approach is the right one especially when you continue to support our business through referring friends, colleagues, and acquaintances for financial planning advice. One of my recent referrals benchmarked our recommended portfolio against a much larger Investment Management Company who manage more than £50 billion and advised we had delivered higher returns since our launch in 2012.
As you know, we have been keeping you informed of our progress on developing the new Ironbright Platform and to follow up Dan’s article on 16th October, I can confirm the Platform has now been launched. As explained, we are undertaking a deliberate and staged transfer of your assets to ensure a smooth transition. Please look out for a message on our Personal Finance Portal over the next few months which will include a letter of recommendation to transfer to the new platform together with a request for you to agree to the advice.
… and finally, I picked out this article regarding a true great – Sean Connery who died recently. It is never the big things but the grand gestures, that people remember.
In 1984 I was hitch-hiking through Spain on my way to North Africa. A proud Scot, I was wearing my Maclean-tartan kilt while still in Europe. In Marbella, a white Mercedes pulled up, and from the driver’s window a balding head poked out, ‘Where are you headed, Mr Maclean?’ This was Sean Connery. He had recognised my tartan as his mother was a Maclean from the Isle of Skye (whenever you see pictures of Mr Connery in a kilt, it is the Maclean tartan he is wearing).
The great man gave me a lift 15 miles down the road, but not only that, he stopped at his house on the way, introduced me to his wife, and had his manservant make sandwiches for my journey.
I’d finished another heroic week at the office, reflecting on the core qualities needed to succeed in a tough job like ours – that day alone I’d dealt with a complicated ISA application form and a testy youngster in the compliance department of an investment house that really should have known better – and sat down with a well-earned gin and tonic thinking “smashed another week then Steve”.
Flicking through the iPlayer I saw ‘Saving Lives at Sea’ and initially discounted this as it does nothing for my ego, seeing what really good men and women sign up to in their free time, but something made me hit the play button. There was the usual start with the gravelly voice over, panoramas of rough seas and close ups of salty sea dogs recounting stories of genuine heroics.
All well and good and then I heard a familiar voice saying “the Bristol Channel itself is quite a busy place..”, spoken by an “Andy Weston, Managing Director” . The ice cube I was in the process of swallowing flew out and hit the far wall because the Andy Weston on the TV was indeed our very own Andy Weston, our Managing Director.
Pip came in and asked what was going on and I explained it was Andy and he’s on the TV and no I didn’t need the Heimlich manoeuvre, so we settled down and watched the story of the Portishead RNLI crew unfold. Towards the end of the story:
Pip: “These people are amazing. And that Andy, what a lovely face and those piercing blue eyes”.
Me: “It was only a small boat”.
Pip: “But they saved two whole lives”.
Our job is focused on keeping your lifetime savings in good shape and your Financial Plans on track, which is no mean feat in the current climate and a job we love to do; however, it’s good to be reminded that there are countless volunteers out there who do amazing things that you cannot value in pounds, shillings and pence and who selflessly keep answering the call of “a shout” whenever the pager goes off.
Andy has been at our helm for a while now and I thought it’s a good idea to bring him to your attention. He has navigated the company through some turbulent times this year with calmness and clear thinking at some critical moments. I do, however, need to have a word with him about carrying his business card at all times, because people who own boats have money, and if you’ve just rescued them why wouldn’t they want to become a client? There is a marketing strategy there somewhere!
I would encourage you to look at the iPlayer, Saving Lives at Sea, Series 5: Episode 3 while it is still there to see Andy and his crew in action. It is quite something. I speak for us all Andy when I say that we are very proud of you and we are very lucky to have you.
I hope that you all remain safe and well and once again a big thank you for your support, patience, and good humour this year. It is really appreciated.
Amidst all of the doom and gloom of a second wave and threat of a second national lockdown, I hope that you are able to remain positive and that you and your families are safe and well.
I was recently reminded of Linda Ellis’ poem The Dash, and remembered that we shared it with our clients a few years back. I thought that it was very relevant now given the times we find ourselves in and the work we do with our clients. You can read the poem in full here.
The Dash talks about the life of a man who has passed away, being talked about by his friend at the funeral. The friend refers to everything that he had done and achieved during his life as being represented by ‘the dash’; the space between the two dates of birth and death on his headstone.
The poem has lots of resonance outside of financial planning, of course, but it also speaks to us about what financial planning is really about and why it can be so important.
During the course of the poem, the speaker notes that what was important about the man was not what he owned, ‘the cars…the house…the cash’, but what he had done and the lives he had touched. He goes on to consider ideas of living a good life, putting things right that we know are wrong, changing how we live for the better.
There’s truth in the poem that, ultimately, your pile of cash is meaningless next to the things that you can do with it. Money is merely an enabler for things to happen and, if those things are good and lasting, they tend to have more impact on us and others than transient things we could spend the money on; a new car or house, for example.
True happiness, the poem suggests, is not about building up ‘things’, but in making sure that you have no regrets, putting wrongs right and living life the right way. Money can, of course, help to do all of those things, but it is not those things in and of itself, it is merely a way to get to the place that you want to reach.
So the next time you sit down to think about your financial planning goals, make sure that you are truly thinking about what you really want to achieve. Not increased revenue, or the next purchase, or to what accounts your money needs to be assigned; but what would genuinely make you happier; your life more fulfilled; your ‘dash’ better lived.
In other news, we know that physical and mental wellbeing are closely linked so as a company we set ourselves physical challenges to encourage and support each other in keeping well. Our latest challenge “Step it up” focused on achieving more that 8,000 steps a day with the winner being the person to achieve most steps. Not a huge goal but when you are sitting at your desk all day it’s easy to forget to build in time to exercise. This challenge had the double benefit of supporting Wells Dementia Action Alliance (WDAA) as like many charities they have been unable to hold their usual fundraising activities. This can be a very isolating and confusing time for those with Dementia so maintaining awareness is key. Any funds that we can raise along the way help to provide support for example for funding PPE for a day centre or providing MP3 players for those who are admitted to hospital make a real difference.
This initiative is being taken up by the wider community over the half term weeks when we are encouraging people to walk in their bubbles either along a designated route or in their local outdoors for more information visit https://www.facebook.com/WellsDAA