An independent (financial adviser’s) view

I consider myself something of a post-Brexit political geek, but was only able to manage half-an-hour of the Rishi-Keir debate before channel-hopping in irritation. I’m afraid that the weekly Friday night BBC4 Top of the Pops binge took precedence over the 7-hander on BBC1. Anyway,? an apology from me, too. We’re featured in the press today in another outing of the ‘2024 Top-Rated Financial Adviser Guide’. This time, however, it’s in the Mail on Sunday, the daily sister-publication of which, I’m told, is leaning Farage-wards. Let’s hope, for us, all publicity is good publicity. On another, D-Day related note, my mother was delighted to be featured on Cotswolds Radio this week talking of her war memories and about my grandfather, one of the designers of the Mulberry harbour. Available on catchup if you have a mo.?

“Green advisers push back at ‘lazy and dated’ sustainability views”

Nice to know that mine is not a lone voice, and that there is at least some 21st century, forward-thinking in the wider adviser community. You may remember my rather irritated and somewhat incredulous reaction to last week’s article and survey, in which a ‘majority of financial advisers’ said that their clients ‘don’t care’ about responsible or sustainable investments, ‘ethical’ in old money. In my, for better or worse now long experience, it depends on what and whether you ask. Some are genuinely not bothered, but it’s they, I’d say, who are in the minority. Most will tick the ‘I’d like to know more’ box on our investment risk questionnaire, with increasing numbers saying ‘it’s very important to me’. In both cases, as with the level of risk we agree, there are shades of grey, from what we would class as ‘vegan’, the most ethical, to pescatarian which just exclude the main ‘nasties’, fossil fuels, guns, fags and so on. The ‘how you ask’ is, of course, just as important. Older readers may remember Dr Finlay’s Janet’s (a Scottish housekeeper, insert accent) catchphrase for all visitors: ‘You’ll have had your tea’. Now there’s a ‘kids etc.’ if ever I wrote one.

“IFS would welcome return of reformed LTA”

I listened to Paul Johnson, director of the Institute of Fiscal Studies, the most neutral of the money ‘think tanks’, on one of the many podcasts I follow. He, like me, thinks that both parties have painted themselves into a proverbial corner by promising no increases to income tax, NI and VAT, which, together, account for around 75% of the total tax-take. Both, too, have said that borrowing will not increase. What’s left? Well, he sees pensions as rife for reform, with tax-free cash an anomaly, leaving your pension free of any tax on death up to 75 as ‘absurd’ and ‘ludicrous’. He doesn’t think they’ll change either, and I’d agree. They would probably only be able to change the tax-free lump-sum for future pensions so any tax benefits would be way in the future. Restricting tax relief on the way in is the most likely, but it has been for the last 40 years, a rumour at every budget for as long as I can remember. And the lifetime allowance? Sorry, unless it’s brought back in a really tough and reduced way, it won’t pay for more than a couple of potholes and hospital beds.?

“100,000 households to face mortgage increases before general election”

Here’s a stat that could swing the election, if it indeed needs swinging. Many thousands of fixed rate deals are due to come to an end, and the fact that interest rates won’t be changing this month (it would be seen as a political move by the BofE were they to reduce them, even if there were good reason to do so) means that what’s available will be much worse. And if you’re a Conservative ‘on the doorstep’ with someone who’s just found they’re going to be paying an extra ￡250 per month (the average increase, apparently), blaming world events, Covid or anything other than the current government and Liz Truss is unlikely to improve your reception. In June 2022, 2% or a bit less was the average available 2 year fixed rate. Now it’s around 5%, which, however you look at or dress it up, is a big jump and is bound to hurt. That your pain is helping to control inflation is not the best vote-winning message. So maybe just smile and blame Gordon Brown (kids etc.); or the boats.?

“Tories pledge ‘triple lock plus’ tax cut for pensioners”

If the State Pension does keep rising with the Triple-Locked highest measure of inflation, and the income tax allowance remains frozen, it might indeed not be long before the pension is more than the allowance and so becomes taxable. For those with other pensions, it would mean a change of tax code, and more tax taken from one or more of those others. But many, and there are many, whose only income is the State Pension, would suddenly become taxpayers. A potential nightmare for the HMRC, who would have to either bring in a new system to tax it at source, or try to get thousands, probably hundreds of thousands, to fill in tax returns for the first time and pay what’s due. So it would never have happened. But of course sounds like a pretty good we-love-pensioners tax pledge. Just saying.?

Liam Neeson for many, including me, peaked with Love Actually, then the various Takens seemed to take him into rather different rabbit-holes. This, though, is great, both great action and great acting from Liam and a great cast (including Ciaran Hands, Niamh Cusack and others). He is a semi-retired hitman, living in and part of a small rural community in Donegal (who know nothing of his job, working for a local fixer) in the time of The Troubles. An on-the-run IRA gang arrives in the village, an incident occurs and an eventual showdown ensues. On the way we meet a number of village characters, the local Garda (Hands), a trainee hitman and an unassuming neighbour (Cusack) with whom he has an almost later-life romance. It’s very good, he’s very good, and it’s very Irish in both good and bad ways. I’ve seen it twice now and enjoyed it as much the second time, too.