Marshmallows and financial planning

by Peter Brown, Senior Financial Advisor.

The Stanford marshmallow experiment is one of the most famous pieces of social science research out there. It has arguably influenced the way that many people live their lives, in addition to providing plenty of fun and interest for those with young children who are in the ‘I’ll try this at home’ camp.

So what is the marshmallow test?

A marshmallow is placed in front of a child, they are told that they can have a second one if they can go 15 minutes without eating the first one – then they are left alone with the marshmallow.

As you can imagine, many children ate the marshmallow as soon as the door closed, others fidgeted and wiggled as they tried to restrain themselves, eventually giving in. A handful of children managed to wait the entire time.

Following the experiment, the children were monitored as they grew up and it was found that those who waited for the second marshmallow performed better in exams, had a lower likelihood of obesity, lower levels of substance abuse and their parents reported that they had more impressive social skills.

In other words, it could be said that the ability to delay gratification is a trait that leads to valuable rewards in the future.

So how does this relate to financial planning?

The results from the experiment can easily be applied to the way you save and invest money. Simply put, if you save rather than spend now, you’ll gain greater rewards in the future.

How do you delay gratification?

Cutting out frivolous and impulsive purchases are a good start. Think to yourself: ‘do I really need this?’ Do you have to buy a coffee from the coffee shop near work? Do you have to eat out twice a week? Small acts of restraint can lead to a big pay off in the future.

When it comes to building a financial plan, it’s important to identify the levels of savings required for achieving goals in the future. Are you aiming for an early retirement or buying a holiday home? Setting out these goals early and developing a plan will help you to streamline your saving strategies so that you remain on track. Just remember, one marshmallow now or many marshmallows later.

Whatever you want to purchase: a boat, a house or a car, delayed gratification is an extremely valuable skill to learn when it comes to achieving your financial milestones. The more you see your savings grow, the more motivated you will be to keep going. It’s good to see your hard work pay off and over the span of a few years, you could see dramatic increases in your wealth and financial security.

New income protection cover for people suffering with mild depression, anxiety and other common illnesses.

Holloway Friendly has announced the launch of new income protection cover for people suffering with mild depression, anxiety and other common illnesses.

The provider says it wants income protection to be more inclusive and accessible, and for providers to address how the industry can insure people with old, or existing, mental health conditions.

One in four people experience mental health issues each year and one in six experience them in any given week. Mental health is currently responsible for 72 million missed working days, costing workers £34.9 billion collectively.

To find out more please contact Ryan Yule on 01224 900879.

Aberdeen Roughnecks Youth/Junior Sponsorship

As huge NFL fans we are delighted to announce our sponsorship of Aberdeen Roughneck’s Youth and Junior team.

The Aberdeen Roughnecks are a new American Football team that intend on continuing and expanding what the original Granite City Oilers team started and they have launched a youth development system, giving an opportunity for youths aged 14 and older to give American Football a go, eventually making their way into the British League System.

For more info please visit their facebook page

New North East Office

We are delighted to announce that we have signed a lease for Phil Anderson Financial Services to open a new office at the Crichiebank Business Centre in Inverurie allowing us to service even more clients throughout the NE of Scotland.

With many other positive things in the pipeline at the moment, it’s exciting times!

North East property trends

Every quarter, the Centre for Real Estate Research at the University of Aberdeen Business monitors trends in Aberdeen’s property market (report can be read here)

Whilst there are small signs of improvement it does show a fall in the value of property meaning that if you’re a buyer, whether first time, upgrading or adding to your portfolio, now is a good time to be looking.

Note that as a mortgage is secured on your home, it could be repossessed if you do not keep up the mortgage repayments. To find out more please get in touch.

Kevin Philip achieves his Diploma in Financial Advice

At Phil Anderson Financial Services we are focused on staff development and are actively involved in helping and encouraging them to learn and grow in their chosen career paths.

We are proud to say that our adviser Kevin Philip, has recently passed his Diploma in Financial Advice. This means that he can now look after mortgage and investment/pension cases, helping us to offer a complete finance service to help our customers.

Winner of NatWest Local Hero Mortgage Award

North east firm Phil Anderson Financial Services has taken the honours as winner of the Best Firm Scotland category at the NatWest Intermediary Solutions Local Hero Mortgage Awards.

The awards recognise those mortgage advisers who have “truly gone the extra mile” to put customer needs and their local community at the heart of their firm.

NatWest head of intermediary mortgages Graham Felstead, said: “We are delighted to have hosted our NatWest Local Hero Mortgage Awards initiative, specifically aimed at recognising the hard work and commitment of mortgage adviser firms that have gone above and beyond expectations.

“These firms have exemplified putting the customer and their local community at the heart of everything they do, in addition to providing sound financial advice for those consumers within their locality.”

Phil Anderson, managing director of Phil Anderson Financial Services, said: “This is a fantastic accolade for our firm. Our mortgage division work so hard and I am delighted that Neil Gallagher and Kevin Philip got the opportunity to go down to Birmingham to collect this award. Our team strive to help make the mortgage process as easy as possible for our clients and I am very proud that we have been named best firm in Scotland.”

Gathimba Edwards Foundation Dinner Headline Sponsor

Phil Anderson Financial Services were the Headline Sponsor of the latest Gathimba Edwards Foundation charity dinner to help raise funds for disadvantaged kids in Kenya and Aberdeen.

It was an evening full of inspiration and hope with the event raising £50,135, helping the charity to:

– Start 32 businesses for families in Kenya

– Provide continued support to the 300 children in Kenya and reduce the number of those on their waiting list for support (currently 99)

– Make a £2,500 contribution to the Neil Jaffrey Award that this year aims to build a specialist sensory outdoor play area and also provide equipment for little Evie and her family in Aberdeenshire. (you can find out more here www.totalgiving.co.uk/mypage/Evie-outdoor-play)

Phil Anderson Financial Services have subsequently agreed to Headline Sponsor the next fundraising dinner on Saturday 20th February 2021.

Photo by Abermedia

Pension Adviser of the Year again

Phil Anderson Financial Services is celebrating after one of its financial planners was named UK Pension Adviser of the Year for 2018.

Ryan Yule who specialises in investment and pension advice picked up the award for the second year running. Commenting on this Mr Yule said “I am very humbled to have won this award for the second year in a row. I have a great team around me and would like to thank my paraplanner, Laura Stephen, for all the help she has given me this year. Without the support of those around me this success would not be possible.”

Phil Anderson Financial Services new mortgage adviser

Laura Mackay is the latest person to join Phil Anderson Financial Services’ growing team as a mortgage adviser and brings with her a wealth of experience in the residential mortgage and remortgage sector, covering their Aberdeen and Ellon offices.

“It is great having Laura as part of the team. She’s already fitting in well with the rest of the staff and her appointment will allow us to further enhance the service that we offer to our mortgage clients.” said Phil.

Click here to read Laura’s reviews on VouchedFor, the UK’s leading review site for Financial Advisers and Mortgage Advisers.