What we do
- At October 23, 2017
- By GaryM
- In Uncategorized
- 0
Tax efficiency Make sure that we utilise as many of the tax reliefs and allowances each year Your money grows faster
Increase investor protection Look at how best to maximise your protection under the Financial Services Compensation scheme (FSCS) Your investments are “safer”
Reduce portfolio risk We use sophisticated modelling tools to try to maximise your return for a given level of risk / risk tolerance Better potential performance without the downside
Conduct rigorous due diligence on all your investments We conduct thorough and robust due diligence and research on all the funds and products that we use With over 9000 instruments in the UK we save your time while giving you peace of mind
Hold your hand throughdifficult times Divorce, death, business transition are stressful times – good to have our experience and expertise to assist and guide you through them We are there when you need us most Pre-fund investment dealing We look at the most efficient platforms to hold your investments to make sure your costs and time delays are minimised Could save you many £s over the years (and is often missed by investors)
Manage your income in retirement Pensions freedoms are a great opportunity – but you need to understand all the risks (many of which are hidden) We will help coach you through the options and could add many years of income from your funds
Select a cost effective platform Wrap platforms can add real value and make portfolio management easier – we make sure we select one that meets your needs We make sure the platform is cost effective and reliable – making your life easier
Help you avoid common mistakes Sticking to a plan can be hard when markets are up or down substantially – and humans are proven to be poor at making good decisions. Our process is designed to help manage the best way through these times Research shows that investors may be losing up to 2%pa by falling into common traps – we assist in avoiding these
Spot opportunities Understanding your objectives allows us to be alert to opportunities – new products, new tax freedoms, better strategies We are your eyes and ears in ever the changing tax, legal and product markets
Keep your portfolio up to date A portfolio today is very different to one ten years ago and ten years before that – we keep up to date with developments and lower costs solutions Reducing costs and boosting efficiency can compound up to big differences over the years
Help work out and achieve your financial goals We ask you questions in a relaxed but structured way, we help you understand risks and opportunities and we build a clear plan for your future Without a long-term plan your finances are unlikely to head in the right direction. Our job is to give you confidence in the future
Assess your risk profile Risk is a complex subject with many dimensions – we will help you navigate and understand risk to ensure the solutions we recommend meet your needs We use our expertise, structured questions and a conversation to guide you to a solution that meets your needs and objectives in a way you understand
Reduce your paperwork We will help you understand what you need to file, will manage applications forms and service enquires, provide valuation and updates Make sure you keep the important things and bin the spam!
Cash flow modelling People find it hard (or impossible) to project returns, costs, inflation and their income needs into the future – we use powerful but simple tools that will illustrate this for you Seeing a picture of your future “money in and out” can really put into perspective how you’re your plan is progressing
Cost reduction Life assurance, pension products, wrap platforms, investment products have all seen price pressure in the last few years – we scour the market to find the best value We can often save more in costs that our total fees, and when combined with good tax planning can really boost your returns
The next generation Using trusts, wills, and other strategies we can make sure your money ends up in the hands of the people you want when you want Gives you confidence that your wishes are met, your loved ones protected and / or your business secured
Keep your investmentson track Once we have established your risk profile we manage and review your investments to make sure you stay on track over the months and years We assess your risk profile regularly and the risk of your portfolio to make sure they are in tune
Liaise with accountant /solicitor Working daily within an accountancy practice gives a great working knowledge of tax matters – both personal and corporate Tax can really erode your future plans – tax reliefs and allowances can really boost it
Make the complex simple While we are experienced and well qualified we never forget whose money we are looking after The simpler we can make your plan the more likely you are to stick to it – and that’s a key measure of our success
Outline of Our Investment Philosophy
- At August 19, 2016
- By GaryM
- In Uncategorized
- 0
Outline of our Investment Philosophy
This is our investment philosophy. It describes our approach to the provision of investment advice. It outlines our beliefs about investment which forms the foundations of how we manage your money.
Our Beliefs No: 1
Investors should understand the reasons for investing & how their portfolio is designed to meet their goals.
The world of investing can be complex & often not transparent. We believe in keeping things simple. So while there is a lot of science & evidence behind our investment philosophy & process, we are keen that every client understands our recommendation s & how they fit with their own financial objectives.
The first step of any investment philosophy is to understand the customer’s needs. We explore this via a conversation with you& look into factors such as your need for capital security, your investment time horizon, your attitude to risk, risk tolerance & capacity for loss.
Our Beliefs No: 2
A conversation about risk & its many dimensions is the essential first step when investing.
When it comes to investing, risk & reward are inextricably entwined. Don’t let anyone tell you otherwise. All investments involve some degree of risk – it’s important that you understand this before you invest.
The reward for taking on risk is the potential for a greater investment return. If you have a financial goal with a long time horizon, you are likely to do better by carefully investing in asset categories with greater risk, like equities, rather than restricting your investments to assets with less risk, like cash. On the other hand, investing solely in cash investment may be appropriate for short term financial goals. To help understand risk we break it down into four elements:-
• Investment risk
• The need for risk
• Your attitude to risk
• Your ability to tolerate risk/accommodate losses
Your ability to tolerate risk is very different to your attitude to risk. Understanding this is a key part of our investment process. A conversation with you will help inform decisions about the level of investment risk that needs to be taken & that you can afford to take, rather than simply the maximum amount of risk that you feel happy with.
Our Beliefs No: 3
Investing for the long term is very different than saving for the short term.
While there is an understandable desire to keep things safe when investing, the corrosive impact of inflation & thus the value of investing for the long term in more risky assets is compelling.
Real assets such as equities, property & commodities tend to make a better investment than the apparently safer option of cash deposits in the long run but it isn’t that simple. In the last 50 years, equities have outperformed Gilts.
Real Returns (after inflation) over 50 years – source Barclays research 2013
Asset Class Return
UK Equities 5.5%
Gilts 2.7%
Cash 1.6%
But it isn’t the case over every time period. For example, over the 12 most recent 10 year periods going back to 1902 (1902-1912, 1912 – 1922, etc) equity returns were better than Gilts 8 times, whereas Gilts beat Equities 4 times.
Our view is that basing investment decisions on the longer term historic behaviour of asset classes enables investors to participate in market growth. But that regular review’s is critical.
Our belief No: 4
The bulk of long term returns come from asset allocation.
Academics will continue to argue about the precise amount of value that comes from strategic asset allocation rather than stock selection, investment style or market timing. But it is widely accepted that asset allocation has the biggest influence over the variance in portfolio returns.
It’s like making a cake. The most important part is making sure you have the right amount of flour, eggs, butter, etc. Rather than worrying whether the ingredients come from Harrods or the corner shop.
Our beliefs No: 5
Diversification using main stream asset classes can reduce risk without destroying return.
Diversification is a strategy that can be neatly summed up by the timeless adage “don’t put all your eggs in one basket”. The strategy involves spreading your money among various investment with the intention that if one investment loses money, the other investments may more than make up for those losses.
Our beliefs No: 6
Costs are certain& returns are not – so they deserve your attention.
Costs are certain & fund performance is not. It therefore makes sense to reduce costs wherever it is safe to do so. One of the major issues in fund management is that not all the costs are transparent. Even though TER’s are not the whole cost of running a fund, they are a powerful predictor of fund returns. Morningstar (a large global fund ratings agency) conducted analysis in August 2010 to identify the best historic predictors of performance. The results are remarkably clear:
“If there is anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make a better decision”
Understanding & seeking to reduce costs where safe to do so is a key part of our investment process.
Our Beliefs No: 7
Tax & access are important
Making investment tax efficient is a sensible objective & wherever we can we will try to reduce the tax your investments will pay. Use of pension wrappers & ISA’s will assist in this objective. We may also use new technology platforms, known as wraps or fund supermarkets, to hold your investments. These offer safety, access to your valuations (so you can see how your investments are doing) & tax wrappers (pensions & ISA’s for example). They also allow us to move your money between funds cost effectively if we need to in the future.
Our Belief No: 8
Active management & passive strategies can both play a valuable role.
There is a role for active (where the fund manager tries to beat the market but incurs higher costs), & passive funds (which track the index at low cost) within a well managed investment portfolio. Rather than take an evangelical view of one option over the other, we appreciate that there are arguments for both approaches & accordingly we include both strategies in the portfolios we recommend.
Our Beliefs No: 9
Investment success comes from the consistent application of a robust process.
There are numerous ways to approach the construction & on-going management of an investment portfolio. Without the application of a robust process, the emotional aspects of investing can prevent investors from making the best decisions. As a firm, we consistently apply multi stage investment advice process designed to deliver suitable advice to every client. The outcome is tailored to meet individual objectives but the process itself is always the same. As with any plan we need to regularly review progress to make sure we are on track. We will discuss & agree with you the best way to achieve this.
Our beliefs No: 10
Success is often about the things you don’t do as much as the things you do.
We have some simple rules that we apply to all portfolios unless the clients specifically request a different approach.
No individual bonds/shares. No direct hedge funds. No direct unauthorised funds. Only use funds run by FCA regulated managers. We use expert managers to help assist in selecting risk managed portfolios.
If you don’t understand anything here, please ask us. There is no such thing as a silly question when it comes to looking after your money.
Risk warnings: All investments carry risk. These are a few of the important ones:-
• The risk that the buying power of your capital decreases over time.
• The risk that the growth you experience is variable.
• The risk that you might get back less than you invested.
• The risk that you do not achieve one of your objectives.
Gary’s guide to the Brexit
- At June 27, 2016
- By GaryM
- In Uncategorized
- 0
Now that the result is known, the financial Armageddon which was predicted, promised & threatened…………….hasn’t materialised.
What we now seeing is a short term initial reaction to what has been described as the greatest political earthquake since the end of the Second World War. As the experts argue over what might happen & they are just guessing, as know one has a clue. How can investors know what to do?
The first thing is not to panic! Keep calm & continue to stay invested in the markets. The worst thing you can do right now is to pull your money out. You will simply be crystallising your current paper loss.
If you are investing a regular amount each month, then carry on as normal. You will actually benefit from the current situation. This is because your monthly investment will now be buying more units in your fund(s). Then when the unit price rises, your investment fund will be worth even more.
If you are taking an income from your investment, then try to see if you can reduce this in the short term. Just until the markets recover. Otherwise you will be taking the same money from a smaller fund. This will compound any loss that you currently have.
So where does this take us going forward? As know one has been here before & none of the “experts” have a clue, the only place to look is to history. Financial markets have a habit of repeating themselves. When we had the European Exchange Rate Mechanism (ERM) fiasco, the experts predicted doom. In fact the opposite happened. When the Euro was formed, the experts predicted doom, if we didn’t join it. The opposite happened. Many experts predicted doom if we voted to leave the EU.
So guess what………..the sun still came up, the world continues to spin & based on past performance, I am sure that the economy will be just fine. The basic economic fundamentals of our economy haven’t changed. We are still the World’s 5th biggest economy. The lower pound will benefit exports & tourism into the UK. New opportunities will be created from our new freedom to trade. And I am sure that in the boardrooms of all the major European companies who sell their good to us, that this week they will be talking about how their own governments need to get a good trade deal with the UK, in order to preserve their own sales to us.
If you would like to discuss your current investment concerns, please get in touch.
Buy to Let Time Bomb
- At May 06, 2016
- By GaryM
- In Uncategorized
- 0
If you own a Buy to Let property(s) then this is a very important piece of advice………………..you are sitting on a potential time bomb which will detonate when you come to refinance your investment property(s).
Due to the government assault on the Landlord property market, lenders have started to tighten up on their affordability criteria for Landlord borrowers. As well as the tax changes coming down the line from next year, what hasn’t been publicised yet, is the way lenders are starting to implement these new changes. Where as previously lenders were using the affordability model of the rent exceeding the mortgage payment by 125%. They are now moving the goalposts to using an assumed interest rate of between 5-7% and a margin of rent over mortgage payment of 130-150%.
So what does this mean? Not only will it make getting a mortgage for new Landlords much harder but the real effect will be felt later this year & next year, when Landlords come to try & remortgage their current properties, only to find that many of them will fail the new affordability test. This means that you may end up being stuck with your current lender on its Standard Variable Rate (SVR). This may not be too onerous at the moment but there is a second impact which will hit you even harder………..interest rate rises.
There’s no sign of one at the moment. But two things could happen to change this. The first being that the Bank of England decide at some point to start raising the base rate. When they eventually do, you will see that lenders and especially the Buy to Let lenders, will raise their rates by more than the base rate increase. They have form on this. We will start to see Landlord borrowers being squeezed much harder than residential borrowers. Secondly, there is the current case of the Landlord’s action group against the West Bromwich Building Society. This is over the West Bromwich’s decision to raise the margin on their tracker rate, even though the bank base rate hadn’t changed. They relied on their small print which apparently allowed them to do this in times of economic uncertainly. This is now undergoing a class legal challenge. If the West Bromwich win, then this will give the green light for all other lenders to potentially follow suit.
So, what should you do? If you do not have a large amount of equity in your property(s) & you are not confident of being able to significantly increase your rents to cover the new criteria, then you should be looking to refinance now, before the new criteria becomes adopted by all lenders. And at the same time, select a long term fixed rate.
If you are concerned about these changes, I will be pleased to provide a free initial assessment, as to what you’re best options are.
The Mortgage Minefield part 2
- At September 19, 2014
- By GaryM
- In Uncategorized
- 0
Dear All,
Following on from The Mortgage Minefield, things have certainly become even more complicated.
Since the new affordability rules came into effect from April 2014, getting a mortgage has become more of a lottery than a precise science. You can now apply to several different lenders & you will receive several different lending figures. In effect, every lender will assess your ability to repay the same mortgage differently!
So, how can you ensure that you have the best chance to obtain the amount you need at the best interest rate? This is somewhat of a moving goal but there a few little tricks you can use to give yourself the best chance of getting what you want. I will outline below some of the main things you can do. This is not an exhaustive list but it will put you on the right track:-
1. If you are self employed, then get your accounts in good shape. You should start this a year before you intend to start looking for the mortgage. [Very useful tip: make sure your net profit figure doesn’t fall]
2. You will need to supply your last 3 months bank statements [very useful tip: make sure there are no bounced payments or exceeding your overdraft charges]
3. Supply a landline number [very useful tip: this will boost your credit score]
4. Don’t have very young children. Seriously ………..if you are about to start a family, either put it off until you have your mortgage or get the mortgage before it becomes obvious! [very useful tip: lenders will penalise you for having young children]
If you try to get your mortgage direct with the lender, be prepared to wait for an appointment. If you call me, I can usually see you straight away and at a time that suits you. I am happy to do evening appointments.
The mortgage adviser at the lender is just that …………………a mortgage adviser. They will only be able to tell you about that lender’s mortgage products. I am an Independent Financial Adviser. Big difference! I will not only advise you on the most suitable mortgage, from all the lenders in the market but I will also advise you, as to all the other financial aspects associated with taking on a new mortgage. I provide a comprehensive advice service. I will also tell you what the lenders won’t about their mortgage products.
I do charge a fee ………….great advice based on many years experience & all the latest professional qualifications, does require paying for. You get a comprehensive financial review for little more than the cost of a lenders standard survey.
So if you would like to ensure that you have the best chance of getting the most appropriate mortgage for you, please call me for an initial, no obligation chat.
Best wishes
Gary
The Mortgage Minefield
- At November 15, 2013
- By GaryM
- In Uncategorized
- 0
Dear All
If you are considering remortgaging to another lender in order to obtain a cheaper interest rate. Beware! You are about to enter the Mortgage Minefield.
If you haven”t changed your lender in the past few years, then you are in for a nasty surprise. What used to be a straight forward process, has now become a very difficult task indeed. You will no longer be a customer. You will become a profit centre, to be “milked” for the maximum profit they can extract from you.
If you fall into any one of the following categories, then you seriously need to plan well ahead, before you attempt to remortgage:-
1) Aged 40 plus.
2) Have an Interest Only mortgage.
3) Self employed.
So how do you escape from your lender”s clutches? Plan ahead & take independent financial advice.
Lenders have for a while become very ageist. They will discriminate against you if you are aged 40 plus. This is because most lenders take the view that you will retire at age 65. Hence they will limit your mortgage term to age 65. They will want you to be able to fund your mortgage from your pension, investments or other sources. In fact, anything apart from earned income!
If you have an Interest Only mortgage, then unless you have a lot of equity in your property, the new lender will insist that your new mortgage will be on a capital & interest repayment basis. This will make your monthly payments a lot more expensive. The shorter the term of the mortgage, the more expensive it will be.
If you are self employed & having read the above, not given up yet! Then you face another obstacle – your accounts. Lenders now want to see an increasing net profit figure over the past 3 years. If your income has not increased each year, then the lender will “average” your income over the last 3 years. The effect of this will be to greatly reduce your income, which the lender will use to assess affordability of the mortgage. In effect, this will probably kill off your application there & then.
If you have successfully navigated the above, then you can look forward to being credit checked, credit scored & not forgetting, having your personal expenditure assessed for lifestyle issues, which the lender may deem inappropriate.
And if you do manage to successfully pass all the above, you can look forward to paying grossly inflated arrangement fees as your reward.
I haven”t even touched on when the lender does the dirty on you by hiking your mortgage payments, just to boost their profits. I”ll cover this one in another blog.
If you would like to find out more & to discuss your own requirements, please get in touch.
Regards
Gary
The Investment Minefield
- At July 19, 2013
- By GaryM
- In Uncategorized
- 0
The Investment Minefield
Dear All,
This year has seen monumental changes in the provision of Independent Financial Advice in the areas of Investment and Pension planning.
No longer will the basic company projections be sufficient when talking with clients about how their investments are doing and more importantly, how they could be expected to do.
Therefore, a more detailed and holistic approach is required. In response to this, I am now employing a state of the art software system, which allows me to provide my clients with a detailed analysis of their current investment(s) together with an explanation of what areas of financial planning they should be looking at and how best to address such issues which come up.
The other issue which is becoming more prevalent, is a conflict between an attitude to risk and what their capacity for loss is. A perfect example of this is a recent client where the attitude to risk was moderate to high but their capacity mobile casino for loss was low! In simple terms, online casino”s this meant that they wanted to take a reasonable risk with their money but didn”t want to lose any of it. The dilemma for an adviser, is how to satisfy both requirements.
The solution is to provide a thorough examination of the client”s current financial situation and their future aspirations. The client receives a detailed written analysis of where they are now and where they could be. This takes into account, using the latest holistic financial planning techniques, all the information provided. This then becomes the basis for all ongoing financial reviews.
This software is the most sophisticated available and can provide the most accurate projections, which are fully compliant with the new industry regulations.
So, if you would like to see a personal review of how your current finances look and what if any, actions you need to take, please get in touch.
Regards
Gary Minkin
Consolidated Financial Management Ltd 01727 858136
Gary@consolidatedfinancialmanagement.com
An Alternative to Remortgaging
- At June 11, 2013
- By GaryM
- In Uncategorized
- 0
An Alternative to Remortgaging
Dear All,
An increasing predicament for some of my clients is that they would like to raise money from their home but have a great mortgage rate which they do not want to lose.
The usual solution to raise extra money, would be to transfer the mortgage to a new lender & to increase the borrowing at the same time.
However, if you have a very cheap rate, it would not make sense to lose this. So the solution is to look at Second Charge Lending. Like first charge lending (mortgages) rates have come down this year. It is now possible to obtain loans at rates between 6-10%.
At first glance, this looks expensive when compared to a mortgage rate of 2%. However, if you have a sizable mortgage & you are paying around this rate, then the extra borrowing at this higher rate makes financial sense.
A further benefit of this option, is that Second Charge Lenders can be more flexible in their approval of loans than normal mortgage lenders.
So, if you would like to borrow money & have a great mortgage rate, then this could be a cost effective option.
To find out more & to get a bespoke illustration of how much it could cost, please get in touch.
Regards
Gary