Author: Charles Mills

Wealth Management and Financial Planning Adviser

Categories
Financial Planning

Family Finances: It’s Good to Talk

Multi Generation Family On Countryside Walk

Family Finances: It’s Good to Talk

“The strength of a family, like the strength of an army, lies in its loyalty to each other” – Mario Puzo

1 min read

Family Finances: It’s Good to Talk

“The strength of a family, like the strength of an army, lies in its loyalty to each other” – Mario Puzo

1 min read

New research1 suggests young adults and their parents are becoming increasingly comfortable talking about money matters, which should ensure future generations are much better equipped to tackle their financial affairs. 

Breaking the Taboo

Historically, intergenerational discussions about finances have too often been viewed as a no-go area, but the research suggests families are beginning to open up, with young adults significantly more likely to have talked to their parents about the issue than previous generations. In total, three out of four 18 to 24-year-olds said they spoke with their parents about money matters when they were growing up; this compares to just four in ten over-65s and half of 55 to 64-year-olds. 

Reaping the Rewards

Experts have long advocated the benefits of families talking openly about financial affairs. Parents who do so are more likely to ensure their children are better prepared to deal with money matters when they reach adulthood, whether in relation to day-to-day spending issues or the need to develop longer-term savings habits.

Young Wealth Owners

The need for young adults to be financially savvy has perhaps never been greater, with a growing proportion of this generation now owning a considerable amount of wealth. Indeed, estimates2 suggest the number of Millennial and Generation Z millionaires has doubled over the past year and now stands at a record high.

Keep Talking

An increasing desire for families to discuss financial affairs is definitely a positive trend which should help the next generation realise the value of money and establish good financial habits at a young age.

So, we encourage you to keep the conversations going to help secure your children’s financial futures.

Need some help? We welcome you to get in touch today and book your initial, no-cost, no-obligation meeting to have a trusted helping hand as you navigate these conversations. You can also send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

1 Royal London, 2022  

2 Bowmore, 2022 

Categories
Financial Planning

Revisiting Your Financial Plan in 2023

A route-map to follow

Revisiting Your Financial Plan in 2023

2 min read

“Before anything else, preparation is the key to success.” – Alexander Graham Bell

Revisiting Your Financial Plan in 2023

2 min read

“Before anything else, preparation is the key to success.” – Alexander Graham Bell

It’s the start of a new year, so you might want to set yourself some financial goals. This can be anything from getting on the property ladder to retiring early, but each goal requires a plan.

Creating a professional financial plan is essential for ensuring long-term financial stability and success. It helps you identify where your money is going, set goals to save more and invest wisely, and track progress towards reaching those goals. By taking the time to create a financial plan, you can make sure that your finances are well managed and organised in order to reach your desired future goals.

Additionally, having professional guidance will help maximise your potential for achieving greater wealth and security over time. This means you will be better equipped with the knowledge and tools necessary to make informed decisions about how to best manage and protect your money for the future.

Your Financial Resolutions for 2023

We all have different financial goals and aspirations in life, yet these goals can often seem out of reach. In today’s complex financial environment, achieving your financial goals may not be that straightforward. This is where financial planning is essential. Designed to help secure your financial future, a financial plan seeks to identify your financial goals, prioritise them and then outline the exact steps that you need to take to achieve your goals.

If your New Year’s resolutions include giving your financial plans an overhaul, here are our financial planning tips to help you create a robust financial plan for 2023 and beyond:

  • Be specific about your objectives
  • Keep them realistic
  • Divide your goals into short, medium and long-term
  • Utilise any tax allowances
  • Create and implement a comprehensive financial plan
  • Monitor and review your financial plan
  • Talk to the experts

Comprehensive Financial Plan

Creating and implementing a comprehensive financial plan will help you develop a clear picture of your current financial situation by reviewing your income, assets and liabilities.

Other elements to consider will typically include putting in place a Will to protect your family, thinking about how your family will manage without your income should you fall ill or die prematurely, or creating a more efficient tax strategy.

Beginning your retirement planning early gives you the best chance of making sure you have adequate funds to support your lifestyle. You may have several pension pots with different employers, as well as your own savings to withdraw from.

Monitoring and Reviewing

There is little point in setting goals and never returning to them.

You should expect to make alterations as life changes. Set a formal yearly review at the very least to check you are on track to meeting your goals. Setting goals marks the beginning of financial planning to help you achieve the objectives at various life stages.

Goalsetting gives meaning and direction to the various financial decisions you will take during your lifetime. The start of a new year is the perfect time to review your financial strength, pore over your budget and make big plans for the coming year and beyond.

Do You Need a Financial Plan that is Tailored to You?

We want to help you make the most of your money. Professional financial advice could help build a secure future for you and your family. To review your situation, please contact us – we look forward to hearing from you.

Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and arrange your no-cost and no-obligation meeting, today.

Categories
Financial Planning

Keeping Investment Emotions in Check

Pensive mature businessman having job with laptop while looking at window. Contemplative employer concept

Keeping Investment Emotions in Check

“In the world of money and investing, you must learn to control your emotions” — Robert Kiyosaki

2 min read

Keeping Investment Emotions in Check

“In the world of money and investing, you must learn to control your emotions” — Robert Kiyosaki

2 min read

While Rudyard Kipling may not have been thinking about investments when he penned his famous poem ‘If’, his words will certainly resonate with investors at the moment. The current investment landscape undoubtedly presents a challenge, even for experienced investors, but those who can keep their head when all about are losing theirs definitely have the best chance of success.

Emotional Rollercoaster

It can be extremely difficult for investors to keep their emotions in check when there is so much economic and geopolitical noise being reported on a daily basis. But market volatility is normal and investors who hold a well-diversified, risk-appropriate portfolio and stay focused on their long-term objectives, goals and aspirations are historically best equipped to get through such periods.

Clear Goals are Essential

Setting clear goals and developing a corresponding plan to achieve them is invariably the key to investment success. Although plans may need to be adapted from time to time to take account of changes in individual circumstances or investment goals, having a well-thought-out strategy helps investors deal with unexpected events and remain calm when markets become turbulent.

Reacting to Market Downturns

When you see significant market downturn, it is important to not panic. Instead of cutting your investments in half or immediately selling everything, an incremental approach could benefit you. Small, incremental contributions on a regular basis will enable you to take advantage of lower prices by use of franc-cost averaging (or dollar/pound-cost averaging).

Markets are constantly moving up and down, and no matter where you sit on the risk scale there will almost always be a time at some point where things are not going in your favour. If this does happen, it is important to remember that this is part of the long-term investment process.

Should you be approaching the time when you need to access your funds, it is usually worth having already moved out of riskier assets and into lower risk assets in order to protect your portfolio from the vagaries of the market. This should be, or have been, discussed with your Adviser from the inception of your portfolio.

Guiding You to Success

It is only natural that decisions made during market downturns may be due to panic. However, at Patterson Mills, we would always recommend getting in touch before making any decisions that may have a permanent impact.

We aim to guide you through any market downturns towards success, so make sure you get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

Categories
Mortgages

Approach Mortgages for Over-65s Positively

Hiking retired, elderly and senior friends or tourists in forest or mountains for fitness, health and wellness at old age. Diverse group of active mature pensioners outdoors on weekend hike in nature.

Approach Mortgages for Over-65s Positively

“Old age is always fifteen years older than I am” – Oliver Wendell Holmes

2 min read

Approach Mortgages for Over-65s Positively

“Old age is always fifteen years older than I am” – Oliver Wendell Holmes

2 min read

Are you over sixty-five and finding it challenging to get a mortgage? You’re certainly not alone, according to recent findings1.

Retirement Regrets

Thanks to reasons such as high property prices and rising student debt, many people are buying their first home much later in life. Increasing numbers also want mortgage terms that last longer than the traditional 25 years. When taken together, these trends mean that more people will be in their 60s, 70s or even 80s before repaying their mortgage. 

With the number of people aged over 65 soon expected to surpass those aged 18 and under in some countries, just 37% of potential borrowers aged 65 and over are offered the size of loan requested, compared with 75% of younger borrowers; despite the average loan request being much lower for older borrowers. 

Lenders are looking for evidence that you will be able to make the repayments for the entire term of your mortgage. It’s also important to be able to demonstrate that you’re a responsible borrower with a stable income.

How much can you borrow?

In order to find out how much you can borrow, it is important to understand how banks are computing how much they will lend you.

In Switzerland, banks currently use a theoretical interest rate as a reference (which changes but, for example, could be 5%). They are usually also accounting for a certain percentage of amortization per year. What’s more is that, depending on the bank, they will also take account of maintenance costs typically between 0.5% and 1%.

Having calculated the total costs of the house, it should be lower than 33% of your income. For example, if we use 6% as the figure mentioned above, this means 6% of the mortgage cannot exceed 33% of your income.

You need to take 6.2% of the value of the loan into account, not of the value of the house. In general, the mortgage will be 80% of the house value.

Depending on the bank, how they compute your income is a bit different. But in most cases, they will consider your previous year’s taxable income. There are, of course, some exceptions, though these will be based on individual circumstances and could impact what price range you can afford.

In the UK, mortgage lenders usually take into account the loan-to-income ratio (this is the amount you want to borrow divided by how much you earn) and your deposit. It is typical that the most you can borrow is capped at 5x your annual income (subject to status).

In addition, they need to know the monthly payment you can afford, after looking at your outgoings, debts and liabilities as well as your income. This is known as an affordability assessment.

Nowadays, mortage lenders also ‘stress test’ your ability to keep up with payments. This is to ensure you will still be able to afford the repayments if there are interest rate rises or lifestyle changes such as redundancy or having a child.

Depending on the result of this ‘stress test’, a mortage lender may limit how much you can borrow.

Whatever your age, we can help

Getting a mortgage as an older borrower is not mission impossible by any means. We are here to help. 

Get in touch today and book your initial, free, no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

1MBT Affordability Index, 2022 

Categories
Financial Planning

Demand for Energy-Efficient Properties Strengthens

Energy efficiency mobile app on screen. Ecology, eco house concept

Demand for Energy-Efficient Properties Strengthens

“Sustainable development requires human ingenuity. People are the most important resource” – Dan Shechtman

2 min read

Demand for Energy-Efficient Properties Strengthens

“Sustainable development requires human ingenuity. People are the most important resource” – Dan Shechtman

2 min read

A growing proportion of house hunters are focusing on energy-efficient considerations when looking to buy a new home.

How are Energy-efficient different from self-sufficient homes?

Energy-efficiency simply means the property will use less energy, whilst remaining on-the-grid.

On the other hand, a self-succient property requires no external heat or power supply, which makes energy prices completely irrelevant. Many of these types of houses will generate energy from solar, wind, heat pumps or water sources. However, a 100% self-sufficient home is rare, with homes realistically being able to achieve up to 80% self-sufficiency.

What parts of the property are involved in energy-efficient construction?

Insulation is key when constructing or renovating a property to be energy-efficient. This means that windows, doors, the attic and basement will need to be carefully considered. In addition, modern heating and ventilation systems are often able to out-perform older systems thereby cutting heating costs and heat loss. 

Is energy-efficient construction or property worth it?

In a climate of rising energy prices, making your home energy-efficient can reduce your costs of powering and heating your home. This can have a significant impact in your outgoings over time. Usually, the investment pays for itself in a few years. That being said, it is imporant to remember that energy-efficient properties can require maintenance that others might not.

A growing proportion of house hunters are focusing on energy-efficient considerations when looking to buy a new home

Research1 suggests that rising energy prices and the cost-of-living crisis are having a significant impact on how buyers prioritise various desirable features, with an increasing number focusing on aspects related to energy efficiency.

Key features

Cavity wall insulation was this year’s biggest mover of the top 20 features, rising five spots from 20th in 2021 to 15th in the current rankings. In addition, a good energy efficiency rating rose three spots to sixth place, while a new boiler or central heating system was four positions higher than last year in ninth.

Top spot

Interestingly, the top five must-have house attributes remained the same this year as last, with a private garden and central heating tied at the top of the table. Double glazing, secure doors and windows and a reliable broadband connection also remained high up on the list of desirable features.

Bring your stresses to a halt, get in touch

Searching for an energy-efficient home, or any home for that matter, can be challenging, and if you are building or renovating your own property, there are many subsidies or tax deductions that you might be eligible for. We are here to make every step of the property purchasing process as efficient as possible. So, get in touch today and we’ll work to make your property purchase, renovation or construction as seamless as it can be with the support from our specialists.

Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

1GoCompare, 2022

Categories
Financial Planning

Sandwich Generation: How Are You?

Multi generation family sitting together on the sofa at modern home and watching TV

Sandwich Generation: How Are You?

“The family – that dear octopus from whose tentacles we never quite escape, nor, in our inmost hearts, ever quite wish to” – Dodie Smith

2 min read

Sandwich Generation: How Are You?

“The family – that dear octopus from whose tentacles we never quite escape, nor, in our inmost hearts, ever quite wish to” – Dodie Smith

2 min read

The sandwich generation (middle-aged individuals supporting both aging parents and growing children) are certainly used to challenges and putting other people’s needs before their own. However, cost-of-living challenges look set to heap further pressure on this group which makes it vitally important they seek advice before taking any rash decisions which could sacrifice their financial futures.

Stiff upper lip

Research1 suggests that, although many over-45-year-olds have found themselves facing potential financial vulnerability, they tend to keep this firmly to themselves. In total, seven out of ten respondents had personally experienced such a situation, but few said they had been willing to ask for help.

Double whammy

Other analysis2 shows the potential for such problems is mounting. This is because people who provide support to adult loved ones will typically be hit twice by the cost-of-living crisis; not only will they find their own household bills rising but also those of the people they are supporting financially. This is particularly true for people in their early 40s who are most likely to be helping family members with the cost of monthly essentials.

Investors ponder contributions

There is also evidence that rising cost pressures are now resulting in people cutting back on their long-term savings commitments, with recent research3 showing one in four investors halting contributions to pensions and other savings and investment vehicles. Depending on your circumstances, for many investors, it may be more important than ever to continue to put long-term savings in the stock market. Over the longer term, investing in equities can be regarded as an effective way to keep pace with inflation.

We can help

Although it can seem unnatural for members of the sandwich generation to consider their own needs, we are here to listen, support and provide advice when you need it. So if you do need to talk, get in touch today and we’ll do our best to help keep your finances firmly on track. can weigh up your options.

Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84.

1Just Group, 2022

2Legal & General, 2022

3interactive investor, 2022

Categories
Protection

Don’t Give Up Your Protection Policy

Don’t Give Up Your Protection Policy

“At the end of the day, the goals are simple: safety and security” – Jodi Rell

1 min read

With households facing the biggest squeeze on their incomes in many years, it’s understandable that families are looking for ways to cut costs.

When looking to cut back, reviewing subscriptions and direct debits (for example, for streaming services, food subscription boxes or gym memberships) is often a good place to start, but there is one cost that you shouldn’t be so quick to give up.

Protection is Vital

As tempting as it is to cancel protection insurance policies, times of financial difficulty are exactly when we need protection the most. Many policyholders aren’t aware that life insurance cover can be flexible, and there are ways to reduce your cover rather than cancelling it outright.

Get Help

Get in touch today and book your initial, free, no-obligation meeting. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32.

Categories
Pensions

Come Retirement, You Reap What You Sow

Hand planting beans seed in the vegetable garden. Growing vegetables

Come Retirement, You Reap What You Sow

“Some of the wealthiest people in the world became wealthy by saving money” – Doug McMillon

2 min read

Hindsight, they say, is a wonderful thing and that is certainly true for many retirees struggling financially. Diligent planning at the earliest opportunity, however, can make all the difference between enjoying a comfortable retirement and enduring a regretful one.

Retirement Regrets

Research constantly shows that people typically leave retirement planning too late and regret not saving more across their working lives. For instance, a survey1 recently revealed one in five people expect to leave planning for their retirement until they are aged at least 60. Another study2 found almost half of over-50s regret not saving into a pension sooner, while nearly two thirds wished they had made larger contributions at an earlier stage. These findings vividly highlight the need for more people to take control and prioritise retirement planning earlier in their working lives.

Pension Blind Spots

Other research3 has revealed the cost of being kept in the dark on key pension details, with over three-quarters of people not knowing how much they pay in pension fees. Additionally, a third of pension holders are unaware of their pension’s risk profile, with a similar proportion invested in low-risk funds. This lack of awareness in relation to fees and investment choices is estimated to cost an average pension holder around CHF 140’000 over their working life.

Engagement Gap

The lack of engagement has led to an industry campaign to boost people’s understanding of pensions. The campaign, which is due to run this autumn and winter, will aim to raise awareness of various pension-related issues so that more people can ultimately enjoy a better standard of living in retirement. Patterson-Mills completely supports this initiative and believes that one of the keys to a successful retirement is not just saving but financial education, too.

Help at Hand

While current everyday financial pressures can make saving a difficult task, it is clearly imperative not to neglect your pension if you do want to avoid retirement regrets. We can help you take control to ensure you are able to enjoy the happy and fulfilling retirement you deserve.

Get in touch today and book your initial, free, no-obligation meeting. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32.

1Hargreaves Lansdown, 2022

2Aviva, 2022

3interactive investor, 2022

Categories
Financial Planning Investments

Positive Steps to Achieve Financial Freedom

Plan for your future

Positive Steps to Achieve Financial Freedom

3 min read

When are you thinking of retiring? With many pre-retirees reassessing their lives and priorities in the wake of the pandemic, there really is a seismic shift for many people towards achieving life balance. People need a plan to flex with their changing aspirations – it has become more about living life rather than going through the motions of the daily grind.

With earlier retirement a serious consideration for many seeking balance, a quarter of those sampled who aspire to retire early feel that age 60 is the optimum time to do so1.

Embracing a New Lifestyle

What really makes you happy? If you are planning to celebrate your 60th birthday by saying ‘goodbye’ to working life, it’s good to know that 68% of people report an increase in overall happiness as a result of retiring early, with 44% of early retirees reporting their family relationships improved and 34% citing improvements in their friendships. From a health perspective, 57% of early retiree respondents report a boost to their mental wellbeing, with 50% believing their physical wellbeing has improved.

Driving Force

Nearly a third (32%) of people who retired early or plan to do so are driven by the desire ‘to enjoy more freedom while still being physically fit and well enough to enjoy it.’ Other factors driving people to pursue early retirement include financial security (26%), reassessing priorities and what’s important to them in life (23%), wishing to spend more time with family (20%) and finding they are either ‘tired or bored’ of working (19%). Stress is also a contributing factor that 19% of respondents are keen to eradicate.

Pause for Thought

With a sizable 24% of people returning to work after retiring because they experience financial issues, careful planning is essential. Interestingly, 47% of retirees found that their finances worsened and only 22% felt they benefited financially from their decision to retire early.

Positive Steps to Financial Freedom

People cited steps toward making early retirement achievable like paying off a mortgage (30%), saving little and often (29%), saving extra when they receive a pay rise or bonus (19%) and receiving an inheritance (14%).

We are here to reassure you that happiness does not need to come at a cost when retiring early. Although it is very important to be realistic, with meticulous planning and careful consideration, we can assess and develop a robust plan to align and flex with your changing requirements and priorities.

Financial freedom is what many strive to achieve, though not all of us know how to get there. This is where we come in.

Get in touch today and book your initial, free, no-obligation meeting so we can show you the way. You have nothing to lose and potentially lots to gain! Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form

1Aviva, Dec 2021

Categories
Investments

Springing Into Action

Springing Into Action

Most people don't plan to fail, they fail to plan

John L. Beckley Tweet

2 min read

Spring is very much a season of hope; a time to look forward and plan. While that’s not always easy amid a flurry of headlines concerning the cost-of-living and immense global political tensions, it’s important to look beyond short-term bouts of market volatility and ensure your financial objectives remain firmly aligned to your life goals – which may well have shifted or flexed over the last couple of years.

Investing is for everyone

At times like these, the fear of losing money can be a powerful deterrent to investing. However, in reality, most of us have been investors throughout our lives – if you own your home, for instance, you’ve invested in the property market; if you own jewellery you’re effectively investing in precious metals. With inflation factors at play, some may consider holding too much cash as a risky move at present.

Diversification is key

While it’s easy to understand potential unease in the current climate, it’s also important to appreciate markets have always experienced short-term bouts of volatility. The key to managing this risk is by diversifying your assets. By holding a balanced portfolio with a mix of equities, bonds, property and cash, this aims to effectively mitigate risk by ensuring ‘all your eggs are not in one basket.’ By building safety nets as well as opportunities for returns into your plans you will end up with an optimum mix of investment, protection and saving instruments, allocated according to your circumstances, objectives and risk tolerance.

Plan, plan, plan

Recent research1 also vividly highlights the importance of investing in relation to retirement planning. The study found that less than 40% respondents are currently on track to receive a moderate level of income in retirement. In other words, if most people don’t take action now, they face living on only the most basic standard in later years.

Regular reviews paramount

One way to ensure your financial plans stay on track is by arranging regular reviews. This will help to identify any areas of concern and ensure you avoid any untoward financial surprises at a later stage in life. With meticulous planning and careful consideration, we can assess and develop a robust plan to align and flex with your changing requirements and priorities. We’ll help you spring into action and ensure you can look forward to a sound financial future.

Get in touch today and book your initial, free, no-obligation meeting.

You have nothing to lose and potentially lots to gain!

Send us an e-mail to charles@pattersonmills.ch, call us direct at +41 78 214 84 32, or fill in our contact form below.

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1HL, 2022

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