Digitize or Die – Adopting Digitization in The Workplace

Unless you have been hiding behind a rock for the past couple weeks, you would have noticed the coverage of the tracker mortgage scandal in the media. This is where banks have been accused of wrong doing to the public in relation to tracker mortgages taking out. I will run through a few questions that should help shed light on the area. The banks calculated that, even though they might lose money on these products, they could then “hook-in” the people who owned trackers and up-sell them more loans for cars, home improvements, and holidays, all of which would carry higher rates. The higher rates for other loans would off-set the losses on trackers and the banks got sneaky and reacted in the way they always do which is to screw the customer for the banker’s own mistakes and miscalculations.

Could you have been caught up in the tracker mortgage scandal?

Possibly. If you were ever on a tracker and were taken off it. No matter what the reason for this change, you could be one of 13,000 accounts to date affected, although that is by no means certain.

How would I know?

It is known that the banks are committed to going through their loan books to find all those who were affected. They were ordered by the Central Bank to make contact with those customers affected. Unfortunately, not everyone who was incorrectly denied a tracker has been contacted, and the banks and the Central Bank are still disagreeing over some accounts that the regulator considers were affected notwithstanding claims to the contrary by some banks.  And guess what there are many thousands more have been affected. Add a healthy figure onto the13, 000 or so that are currently in the system.et

So do I just have to wait until the Central Bank process is over?

Right now the Central Bank is “the only game in town”, keeping updated by reading the various media outlets will help assure you of what is happening.
Facts to date

• €163m paid to customers in refunds and compensation a ‘fraction’ of money owed
• Customers will ultimately foot bill for tracker scandal
• Full extent of tracker scandal remains unclear

What has twitter got to say?

The big question ever has is should I take a legal action against my bank myself?

You could and by all means, you should do this. The legal avenue is open to anyone who considers they have been wronged. Unfortunately, this process is slow and very expensive. And many of those worst affected simply do not have the financial resources to take a High Court action, which is why the best advice is still to wait for the process to end.
 

When will it end?

It is progressing very slowly. This all started in 2015. Some banks have been proactive in dealing with cases; AIB and PTSB have dealt with a significant number of cases already. Ulster Bank have started to move. Bank of Ireland and KBC, on the other hand, have been very slow off the mark.

You will have some entitlements if you have been adversely affected by the bank’s misconduct.

1. You will have to have the tracker restored.
2. All the interest you overpaid will have to be repaid to you – or used pay off the mortgage.
3. You will be entitled to compensation. (This will be decided by the bank initially and the Central Bank will review to see if this figure is suitable, the Central Bank is demanding the banks do more).

How do you fix it?

It seems that the whole issue is wrapped up by an industry who views success in the short-term, quarterly-results with which our global financial system has become obsessed.

The problem is the core culture that exists within these financial institutions. One has to ask themselves is it too much to demand a certain morality in the boardroom? Is it too much to ask for a few good men and women who apply morality to their business life? If not, we are in a troubling Ireland.

If you want to truly know yourself, pay close attention to the way you treat money.

John Armstrong renowned British writer once said: “One’s relationship with money is life long, it colours one’s sense of identity, it shapes one’s attitude towards other people, it connects and splits generations; money is the arena in which greed and generosity are played out, in which wisdom is exercised and fully committed. Freedom, desire, power, status, work, and possession: these huge ideas that rule life are enacted, almost always in and around money.”

You will find that your relationship with money puts you in one of the following categories:

Obsessive:

You believe that attracting and accumulating money is the sole purpose of your life. Health, energy, time, peace, relationships, ethics — there’s nothing you will not sacrifice in your pursuit of money. Your unhealthy relationship with money has made you obsessive to the point of being dangerous to not only yourself but everyone around you. So you decide to try fight a guy in a different sport who has a record of 49/49 at top level of boxing. Introducing in the red corner Cooonnnor Mcgreeeegor.

Reckless:

Addicted to the highs that money can give you. This makes you spend money even if you haven’t earned it yet. As a result, you find that you are perpetually in debt. You may have even become a financial burden to someone else. People often hear you say that you never have enough money. You are usually anxious and discouraged because of your inability to repay your debt. This is like the gambler who tells you only about his wins but never about his losses.

Daydreamer: 

You dream of being wealthier, but you rarely take action to make those dreams come true. Believing that because you are a good person, money will come.  Your idealistic attitude towards money also causes you to lend money to others even when you don’t have enough to sustain yourself. As a result, you experience more lows than highs.  Somewhat similar to Father Dougal McGuire’s perception of dreams vs reality.

Freeloader:

You don’t bother to earn or save money, even though you are capable of doing so. You are habituated to living off people’s generosity. This has caused you to become a burden to everyone around you — especially your family and close friends. Waiting for others to meet your monetary needs has also caused you to become frustrated and angry, and even harbour feelings of rejection.

Dependent:

You rely on others for money because you are currently in a situation that prevents you from earning. This has caused you to lose your self-confidence and even feel guilty and inferior to others. You fail to realise that you can become financially independent by investing the passive income you receive from others.

Wise:

You value money, but don’t worship it. You know that money is a means to an end and that you need it to help yourself and others. So, you have developed ways to generate it without affecting your well-being. It is clear that obsessiveness or recklessness doesn’t hinder your decisions you make with your money. Instead, you have disciplined yourself to not spend impulsively or let greed overtake you. You know that growing your wealth is better than hoarding it. People often look to you for financial advice. (**cough Alpha Wealth)

If your relationship with money currently shows you are anything but wise, don’t fret. It’s never too late to start treating money well. The main step is to change your perspective about money. The best way to do that is by understanding the role that emotions play in all your money matters. We here at Alpha look at more than just your money! You matter.

Why us?

We thought it might be useful to step back a little bit and review the value that we bring to our clients, in order to make sure we’re meeting your needs as much as we possibly can. We identified ways in which we enrich the lives of our clients and ended up with quite a long list! We then came up with the idea of narrowing down this list and sharing with you 8 ways in which we can help you to improve your lifestyle.

1. We help you develop a financial plan to achieve your desired lifestyle

When you set out on a journey, you need a map to get to your destination. The same applies to your desired lifestyle and the finances to achieve it. Think of your desired lifestyle as the destination. The map you need is a financial plan. This will show you what is needed to live the life that you want to live.

2. We help you sleep at night

We’re firm believers in the principle of risk based investing. Your portfolio needs to clearly reflect your own appetite for risk in order to ensure that your money is working as hard as possible for you, while not increasing the risk in your portfolio beyond your comfort levels. We don’t want you lying awake at night worrying about your portfolio.

3. We make sure an unexpected event doesn’t dash every hope and dream

Life is full of uncertainties that impact all of us every single day. Sometimes significant events change the course of your life and the lives of your loved ones. A serious illness or the death of a parent has an enormous emotional impact on a family. It can also be catastrophic financially and dash a lot of dreams. It’s our job to help you protect yourself financially against such events.

4. We help you reduce your tax

We’re very aware of how taxation can take large chunks out of your financial assets. We stay on top of changes to the taxation regime and this knowledge helps us to ensure you are reducing your tax bill as much as possible. This applies of course to retirement planning, but we also look to find tax saving opportunities in your investments, life assurance and income protection planning. We want the money in your pocket rather than the taxman’s!

5. We help you to keep your discipline and focus on long terms goals

Our goal is to help you live the life you want to live, both today and tomorrow. We’re not killjoys, only trying to get you to save as much as possible for the future! Instead we help you strike a balance between spending today and saving for the future. We want you to achieve your long-term financial objectives while living your life to the full.

6. We make sure your plan remains relevant

People get married, babies come along and people change jobs or even careers, future aspirations change. All of these types of events fundamentally change your financial plan. It’s our job to make sure that all of these changes are fully reflected in your plan and that you have the optimal set of financial solutions in line with your changing circumstances.

7. We help you to understand the swings and roundabouts of investment markets

Investment markets are moving up and down all of the time. Some people don’t notice, others sweat over every (downwards) movement. Often this is down to a lack of understanding of markets, volatility and how it works, and the impacts on your own portfolio. While ensuring you have the optimal risk based portfolio in place is an important job for us, it’s equally important that we help you understand how markets work.

8. We help you to make your debt v investment decisions

When incomes increase and there’s some extra cash left over each month, or indeed you get a windfall as a result of a bonus, a gift or maybe an inheritance, you’ve got decisions to make. Do you pay down debt or invest? We can help you make those decisions, taking account of interest rates, projected risk-based investment returns and tax considerations. We want your money working as hard as possible for you.

Result = Happy YOU.