A surprising question and why I write both personally and professionally

As you know if you're a regular reader of this blog (I know there are at least 2 of you!)  I like to mix financial planning tips, talk about business and talk about issues that matter to me (on most occasions, this means talking about my two daughters, Charlotte and Sophie and my wife, Cassie).  Being relatively new to regularly Blogging, I was recently wondering whether this was the best possible approach....maybe I should solely focus on Financial Planning tips and business issues and remove the personal aspects of the Blog.  After all, why would someone want to know what was going on in my life!  However, I've decided to stick with mixing the professional with the personal....and it was a recent telephone call which reaffirmed the fact that I might be broadly heading in the right direction.

A new potential client recently contacted me due to the fact that she had found me through a social media source, conducted some research, read my blog and felt that she would like to talk to me about looking after her financial affairs.  When she called, she explained who she was and what she wanted to discuss....and then asked me a question which surprised me:-

"How are you?  and how are your 2 daughters?"

Now, I'd never met the lady in question, but apparently she felt she had a pretty good indication of not only the kind of financial planner I am, the kind of business I run....but more importantly for her, a little bit about me personally and what my priorities in life are.  Anyone who has met me in person knows that I talk constantly about my girls but it was interesting that she picked this up from what she had read online.  I believe that if you want to work with a professional, whilst it's important to ensure that the professional in question is technically compentent, ethical and diligent, It's also important that you feel that you understand a little bit about them personally to see if your relationship can be a harmonious one...and that's why I'm going to continue sharing my professional expertise together with talking about what's going on in my life.

However, as every I'm open to healthy debate on this.....do you think a financial planners blog should be purely professional?  When you work with a solicitor, accountant or financial planner is it important that you understand a little about their life?  Am I right to mix both personal entries with professional entries?  I look forward to hearing your thoughts.

Adviser Blog - Why I believe financial planners should work together

Whilst I'm happy to try absolutely everything once, I appreciate that fact that sometimes, and probably more often that I'd like to admit, I'm not particularly good at certain sports and hobbies.  For example, I'm an   absolutely shocking at football, not flexible enough for gymnastics, haven't got the patience for bird watching and just not too keen on train spotting!  However, I'm quite a good badminton player (not the most masculine sport I admit!), can play chess to quite a high standard and am starting to enjoy running.

In the world of financial planning, I'm a firm believer in the fact that advisers and practices work best by focusing on what they know they are good at and working with a niche, whether this be type of client, specific area of advice, or specific need.  I also believe that financial planners who try to be "all things to all clients" do this at their detriment.  Whilst as financial planners we are happy to work in partnership with Solicitors and Accountants, are we missing out on an opportunity by not connecting with other financial planning firms?

Within our practice, we actively try to work with other financial professionals to ensure our clients receive the service they need, and the most professional advice we can provide using the expertise we have access to, both  using our advisers and external firms we have good relationships with.  The focus for our business isn't being territorial around the client, it's about us ensuring the client receives the most appropriate service possible.

This works for us for a number of reasons.  Firstly we can be assured that the client receives the most appropriate advice and guidance.  Secondly we build close relationships with other advisory firms which provides a range of benefits, including a number of experts who we can use to increase our knowledge, referrals back and forth, and sometimes just someone who understands our business to talk to.

So, I believe working with other financial planning firms is a "no brainer" - Better for clients and Better for the firms involved....however as ever I'm open to your opinion, what do you think?

Children and Money - do we do enough?

A friend of mine recently told me a story.  He has a young daughter and every now and again he plays "shop".  As well as being fun, the idea of playing this game was so that his daughter could understand more about how money works in the real world.  His daughter plays the shopkeeper, and my friend is the customer.  They use one of her toy bears as the "product" and set a price for what she might have paid for this toy bear.  Then she sells it to my friend.  The first time they played, she tried to sell it for less than she paid.  This gave my friend the opportunity to explain that she should be charging more.  The next time she picked a price of a million pounds (quite expensive for a teddy!)....but as they played more and she understood the nature of the game she started to pick prices which were reasonable but over the amount she had paid.

I played a similar game with my eldest daughter, Charlotte, when she was young and intend to do the same with Sophie when she's old enough.  We all know that Children learn significantly faster than adults and I'm a firm believer in equipping both my daughters with at least very basic money management skills to help them when they start to have to look after their own finances in the real world.  You could argue that children shouldn't worry about this sort of thing until they need to, however I'd disagree and make the point that like any skill if you start learning, understanding and developing earlier in life the easier it is.  I also believe that whilst parents can help to develop childrens understanding of money, the education system needs to be far better equipped to help with this.

PFEG (Personal finance education group) provide a great range of resources to educators to help teach financial capability and that is a huge step forward from  providing any form of financial education in schools.  However, I'd suggest that although we are making huge strides in helping our children prepare for the real world I believe we still have a way to go.  My belief is that teaching financial capability as a core part of the curriculum is the best way forward.  I'm proud of my B in GCSE in geography however it's not really been the most practical qualification in the world and surely any school, college or university leaver would  have find learning how to become more financially capable of far greater benefit to them both day to day and longer term.

Thankfully it does look like there is changes occurring, with an all parliamentary group on financial education recommending that it should be a compulsory part of the curriculum.  This has recently had support from the Prime Minister and will be considered as part of a current review of the schools syllabus.  How these changes will look in practice and whether they will go far enough remain to be seen, but any move towards a more structured approach has to be positive.  But as ever, I'm interested in your opinions....what do you believe is the best approach to teach Children about Money?  Should Schools take full responsibility, or should parents share this?  What else could we do to help our teachers, children and parents?

Will employers and professionals sit up and take notice about Auto Enrolment?

For around a year and a half now, I've been talking to Accountants, Solicitors, HR professionals and Employers about Auto Enrolment.  To be frank, the response has been mixed.  Whilst some professionals and employers understand the nature of the new rules and the fact that they need to start preparing for them sooner rather than later, there have been others who have felt that they didn't need to take action at this stage.

Yesterday, someone kindly sent me a letter which is being sent to accountants, payroll providers and other professionals who have clients who employ.  The letter, which has been reproduced with the kind permission of  the pensions regulator has been reproduced here.  I'm wondering whether now is the time that both Employers and professionals who work with employers will sit up and take notice.

Whilst there has been recent changes to time-scales and amendments and clarification on certain aspects of the new rules, one thing is clear....the plan to move forward with Auto Enrolment hasn't changed.  We're currently working with a number of employers to help them prepare for the changes, however is now the time for more employers to sit up, take notice, and prepare their businesses for the change?

My belief is that now is the time for employers to start to prepare.  Whilst the date they need to comply may be a few years in the future, planning and preparing for the new rules now provide the business with an opportunity to build a long term robust plan to ensure they are ready.  I believe that ignoring these rules until businesses need to comply mean that they are under undue time and cost pressure which could be reduced if they started to prepare now.

Letter from The Pensions Regulator

reproduced with the permission of the pensions regulator


The Law on Pensions is changing and it will it affect your clients


The new pensions law comes into force in stages for employers from October 2012 depending on the size of their largest PAYE scheme and starting with the largest employers first.  The new law requires every employer to automatically enrol certain workers in a pension scheme and to contribute to it.

Your clients will need to comply with the pension law to avoid fines and prosecution


If you manage payroll for your clients they will probably ask you to manage some or all of the tasks to prepare for auto enrolment on their behalf.  The main tasks your clients may ask you to undertake in order to pay for automatic enrolment are:

The 8 tasks to prepare for automatic entrolment


1.  Find your clients 'staging date' by using their PAYE reference

2.  Check which of your client's workers meet their criteria for automatic enrolment

3.  Check your payroll software functionality

4.  Find out if your client's existing pension scheme can be used

5.  Find out if your client's pension scheme with details of workers to enrol

6.  Provide your clients pension scheme with details of workers to enrol

7.  Register your client with The Pensions Regulator and keep records

8.  Arrange for pension contributions to be paid to the pensions provider

You can find out your client's 'staging date' which is the date that the new pensions law come into force for your clients at: www.tpr.gov.uk/8tasks.  You can also access detailed information about preparing for automatic enrolment and sign up for news-by-email about pension law changes too.

Yours sincerely,

The Pensions Regulator.

Guest Blog - The importance of making a will

Alana Graham

Alana is a private client barrister with over 18 years experience in advising clients on Wills, trusts, tax, tax planning and company matters.

Under the public access scheme Alana can advise members of the public directly without them having to first instruct a solicitor and under the professional access scheme members of other professions can instruct her directly without having to first instruct a solicitor.

Before returning to practice at the Bar, Alana worked with Arthur Andersen (accountants) and Clifford Chance (solicitors).

You can contact Alana on 0207-404-5055(office) or 07831-593965(mobile) or agraham@9stonebuildings.com (email).  Alternatively you can contact her Chamber, 9 Stone Buildings.

Why make a Will?

For many people making a Will is something you know you should do, but quite often life takes over, your to-do list has expanded and your Will still hasn’t been written. Also, many people underestimate the importance of having a Will and this blog will explain why it is so important to make clear what you want to happen to your estate in the event of your death.

Firstly, it is important to understand the implications of not making a Will. Not making a Will means that the government will decide who will get your estate; by this I mean that the laws of intestacy will apply. This means that you will have no say in who gets your estate in the event of your death and, therefore, what is decided may not be aligned with your wishes. If you are not married your partner cannot inherit if there is no Will making provision for him/her so they may face serious financial difficulties. There is also the possibility that any tax payable may be reduced if advice is taken in advance and a Will is made.

 

Making a Will puts you in control. You can decide who receives your money, jewellery and other property in the event of your death. You can, under a Will make provision for an elderly or handicapped relative. You can choose who will administer your estate (your ‘executors’) and you can choose who will look after your minor children (their ‘guardians’). But above all else by having made a Will you will have ensured that you and not the government (through the rules on intestacy) will have decided how your estate is to be shared. A Will also (hopefully) means that there will be no arguments over who gets what when you die. 

Contact details:

Alana Graham at 9 Stone Buildings, Lincoln’s Inn, London WC2A  3NN.  Tel. 0207-404-5055; Mobile: 07831-593965 or email: agraham@9stonebuildings.com Websites: www.alanagraham.co.uk and www.9stonebuildings.com

The Apprentice is Back! - Why I'm excited and slightly annoyed!

Well, tomorrow is a big day for me.  As well as it being Budget day (which frankly due to the number of leaks this year, I don't think any of us will be too surprised about the content), it's also the return of one of my favourite shows....yes Ladies and Gentleman, "The apprentice" is Back!

I love the apprentice for a number of reasons....Firstly, it shows that there are plenty of individuals in the UK who have the drive, ambition and motivation to succeed, something I believe we need.  Secondly it challenges the perception that young people are not prepared to work hard and contribute to the economy and society.  Nine out of the Twelve candidates are under 30 with many running their own business and this has got to be a great indication that many young people make the effort to achieve their goals and work hard to do so.

Thirdly, and not surprisingly for an entertainment show, it shows that business can be fun!  I run my own business, and I made a promise to myself when it started.  I spend too much of my time working hard to not enjoy what I do, and therefore I should always try to have a good time whilst running my business.  Whilst some days can be tough, frustrating and exhausting....luckily these days are the exception rather than the rule!  Many people assume that business is boring, and regardless of what your industry you are in it couldn't be further from the truth.....in business, the challenges you face should excite and motivate you and I believe you shouldn't feel it's just another "job to be done".

However, there are a couple of things which annoy me about the apprentice....firstly "Business Speak".  Having watched the audition interviews there are a few gems already coming out!  Can someone tell me what "3 dimensional approach to business" is?  Would you ever go into either a job interview or meeting with a new client and call yourself the "Reflection of perfection"?  Whilst for many people, this is what makes the show...my personal option is that whilst this language is entertaining, it is ultimately not a true reflection of business.  I can't imagine Lord Sugar, even with his love of the laconic put down, using language like that in a meeting, can you?

Secondly, it's the ruthlessness of some of the candidates.  Whilst I understand it's a game show, it should also accurately reflect the nature of modern professional business.  Shouldn't business be about collaboration between professionals, as opposed to the "dog eat dog" world of old style business practices?  Whilst the timescales of the tasks don't lend themselves particularly well to building and developing long term sustainable relationships, I'd like to see the occasional nod to the fact that long term sustainable relationships are key.

However, aside from these couple of gripes, I still think "the apprentice" is unmissable TV....roll on tomorrow!

Why you should think about Financial Planning and not Financial Products.

I recently had a meeting with a new prospective client.  They had recently received some money from the sale of a property and wanted to know where to invest the funds.  We discussed their financial affairs, income and expenditure, assets and liabilities, attitude to risk, and hopes, aspirations and dreams and left to give some thought about the best way forward for them.

They were keen to discuss the opportunity to invest, and in particular invest to produce income (as they had a relatively low disposable monthly income).  However after reviewing their circumstances in detail, one thing became abundantly clear.  The clients in question had a number of credit cards and loans where the interest paid on them were relatively high.  Paying off this debt would provide them with more net disposable income, ensured that they wouldn't be incurring the high levels of interest they were paying and put them in a healthier financial situation than investing the money they had.

Whilst there are potential downsides with taking this approach, and we discussed all our recommendations with our clients in detail to ensure that they are comfortable with the recommended approach (together with ensuring that they understood the importance of reviewing their financial affairs regularly), on this occasion paying off these liabilities made sense.  The best advice for this particular client didn't involve putting in place a "financial product".

There is a common misconception about what we do as financial planners is sell financial products.  For our business, this isn't the case.  What we actually do is provide a professional financial planning service which may involve a financial product....but often may not.  The focus for us is always on what's right for our clients in relation to their needs...if this doesn't involve a financial product, that's fine.....if it does, that's fine too.

So, next time you look at planning for your financial future, ensure that you ask enough questions so that you understand that the professional you choose to work with is focussed on your needs, and takes into account all potential options, not just the ones which involve a recommendation of a financial product.

Jobs, Children and Pride (part 1)

At my daughters school recently they had a "careers day".  She was only seven at the time (now eight) so the conversation about what job's they may want to do when they are older was kept relatively broad....however something surprising came out of her choice of jobs.

The first I knew of this surprising choice was when I attended Charlotte's parents evening.  We sat down with the teacher and as always I was trying to get relatively comfortable on a chair designed for an 8yr old (and not particularly comfortable for someone over 6ft) the first question from Charlotte's teacher was an unusual one...

"Mr Daems, What's a Principal Financial Solutionist?"

"I'm not sure!" was my reply "Principal Financial Solutions is the name of my business, but I don't know what a Principal Financial Solutionist is!  Why do you ask?"

Charlotte's teacher then guided me to their "careers board" where all the children had an individual card to put what jobs they wanted to do when they are older.  There were plenty of actors, footballers, nurses, a couple of teachers and one or two fireman....but on Charlotte's card she had put that she wanted to be a "Principal Financial Solutionist".

Whilst I'm not sure that Charlotte knows what we do as a business (her broad understanding is that "we help people look after their money"), and I'm sure that she will change her mind quite a few times before she decides on her eventual career, the fact that she was proud enough of what I do every day to put this down is actually more than enough for me.

Now, whilst I was immensely proud of the fact that Charlotte had put this down on here board, I didn't think it was fair to give her a job straight away.....so she had to interview for it first (I don't want to be accused of Nepotism!)....the results of which I'll tell you about in a later Blog Entry...

A little run in the park

I know I've mentioned previously in this Blog that I was running the Greenwich 15k in aid of Richard House....well this Saturday (the 9th March 2012) the run was completed.  I'm not a natural runner and therefore didn't have the fastest time in the world, but the aim was to finish....and finish I did!

To be frank, I've had easier Saturday mornings, but the fact that my 8 year old daughter completed the 2 kilometre run for kids at the start and then ran with me in the last 200 metres shouting encouragement all the way seemed to help.  It also helped that I continued to see Richard House T shirts on the way round and we tried to give each other encouragement as we passed each other.

Everyone did fantastically for Richard House, including my Running buddies Ted and Clive as well as Hannah, Sarah and Navdeep.  My daughter Charlotte and Clive's daughter Anna also showed the adults how it was done in the Children's 2k.

After the Run, Clive, Ted and I enjoyed a post run beer (by the time I'd finished it was lunchtime) and discussed what challenge to set ourselves next.  I think I volunteered to try a half marathon, although I hope they were using the old name for Snickers...I think I could manage that!

In case you are feeling generous and would like to support the great work Richard House continues to do, you can sponsor us here....and thanks for all your kind words of support on Twitter, Linkedin and Facebook!

The importance of professional development

Written for the GAAP web blog

We’ve got a set routine in our house.  Every day, when I come back home from a day in the office, I always try to take the time to ask my eight year old daughter the following questions.  Firstly, “How was school?”, and secondly “Tell me something new you have learned today?”

Some days she tells me she can’t remember, other days she tells me that she has learnt nothing new.  However on most days she can tell me at least one fact she knows now that she didn’t know yesterday.  Sometimes as adults we all forget how important learning is.  Life is busy with work, family and much needed time to relax.  However as professionals surely we have to take the time out of our busy schedules to continue developing our knowledge and skills?  I believe we do, and I want to share with you the reasons why.

Firstly, our clients, regardless of the profession we work in, pay us for our advice.  I’m a firm believer in ensuring that within my business, our clients receive good value for what us they pay for our service.  Therefore surely it makes sense that to ensure that we provide the best possible value, our knowledge needs to be constantly and consistently up to date.  This comes from consistent learning and taking your professional development seriously.

 

Let me illustrate my second point with a theoretical example.  Two candidates go to an interview for a job within their sector.  Both are absolutely equal in attitude, skills and qualification.  However there is one key difference in the two candidates, one can evidence that they have continued to learn and develop since initially qualifying and the other is unable to. 

Now, put yourself in the shoes of the interviewer...who would you pick?  Whilst I’m not arguing that being able to evidence ongoing professional development is the main factor in finding the ideal position for you, I’m sure you agree that in today’s competitive market any opportunity to stand out from the crowd should be taken. 

Thirdly face to face professional development with expert speakers provides you with a number of additional opportunities.  It allows you to network with fellow professionals, build connections, share best practice and evidence to your peers you are serious about your careers.

So, take some time out of your busy day to do what most children do as a matter of course, learn.

My Top 3 Google Doodles....

Like many of you, the website I use the most and start virtually every day with is Google.  Whilst the search engine is obviously incredibly very powerful, my favourite aspect of using Google is the changes they make to their logo every now and again to commemorate certain events....The Google Doodle.  Here are my favourites:-

Valentines Day 2012


For all you romantics out there, a short cartoon displayed on the Google frontpage on Valentines day this year...I love both the sentiment and the music on this one.  You can't beat a bit of Tony Bennett on Valentines day.

PacMan

Being a child of the 80's and a man who loves computer games (my first computer was a Commodore 64 - do you remember them?)...this one was both nostalgic and fun.  I can log onto Google and have a quick game of Pacman in the process..brilliant!

Les Pauls 96th Birthday Google Doodle

A guitar you can play on the Google Homepage is a Fantastic idea!  I'm just wondering what instruments they will come up with next?  Personally, I'm waiting for the piano or possible the glockenspiel! 

So, these are my favourites....what are yours?