It's not meaningful to consider equities over this timeframe.
You can easily just look it up (note the "Compare" button on that page), instead of asking here, but it doesn't matter because you should expect performance over short periods (as long as 5 or 10 years) to vary from the mean.
You should assess an asset class over periods of decades, and that is only a guideline for your expectations.
Read Tim Hale's <em>Smarter Investing</em>.
Don't do anything until you know exactly what you want, and have chosen a portfolio that you're happy to keep 50 years.
Reset by David Sawyer is a brilliant, UK centric book on FIRE. He also has fantastic advice on leading a fulfilled life on the way to your goals:
RESET: How to Restart Your Life and Get F.U. Money: The Unconventional Early Retirement Plan for Midlife Careerists Who Want to Be Happy https://www.amazon.co.uk/dp/1916412416/ref=cm_sw_r_cp_api_i_jkChFbRZKZDGX
I've had BTC since 2010 when they were giving it away, so I've seen the entire history of crypto, and I honestly can't tell you whether it's worth investing any money in. Personally, I wouldn't invest in anything other than BTC or ETH, as I've seen so many other coins come and go without gaining any traction. I believe BTC will become an acceptable asset, if it isn't already, while ETH will be the foundation for a lot of decentralised finance. I think BTC will therefore have a value which will continue to grow, while ETH's value is in its blockchain, so as a coin will only have a negligible value compared to the products it supports. ETH may slip if other coins offer a better/broader blockchain.
It feels as though we're currently in a relatively more stable time for BTC, and the current level of $40K-$60K might be a plateau before the next big climb. But then again I felt the same when I sold 1BTC in December 2017 for £10K, was gutted when it climbed to £16K not long after, but then watched it slowly decline to £2.5K a year later. At that point I thought BTC was dead and buried, with everyone having cashed out at the previous high, and so I only had a small contribution towards my future.
Cut back to today and I'm waiting to sell 0.25BTC before the budget, in case CGT gets nerfed instantly. I'll wait for it to get as close to £12K as I dare then sell. Have a look at the graph at the bottom of this and you can see how BTC has performed for the last 7 years.
I've basically ignored my BTC since I've had it, with just a few sales here and there. But now I can't ignore it as it will take many years to cash out without getting taxed heavily, so I will just take below the CGT limit each year while I'm working, and then below the higher tax threshold when I've stopped working.
I think the question to ask here is about the RRP of the car vs its real value to you. It's like going into a furniture store when a sale is on and buying a 4 seater sofa for £800 because it's reduced from £8000 when you live alone and could get a very nice second hand one for £100.
I am already FI and have moved to doing work I enjoy so my income is less reliable. For that reason I chose a vehicle which was practical but would fit into a budget that allows me to have no income for a minimum of 5 years.
Even if the car bursts into flames after a year, the monthly cost is still less than this lease programme. And this is before considering the tax savings that I have from doing business mileage in it (0.45p per mile and i expect to do around 5-10k miles. So about £200-400 more actual cash in my pocket.
More realistically, you could go for something much newer with air-con, touch screen, bluetooth etc
Peugeot 108 2016 model: £6000 * Tax £0 * Insurance £500 * Fuel 12p per mile * £500 per year repairs (let's use worst-case scenario) * Breakdown cover: £60
Assuming, more realistically, that this car has 10 years of life in it (which it definitely does if you're budgeting to spend £500/year on maintenance!) then that works out to £150/month, allowing you to save an extra £17,600 over that time. And that assumes again that the scrap value is 0.
You could buy a car for £10k tomorrow and set fire to it after 3 years and you'd still be better off than taking this lease.
For a money management app, I use Money by Jumsoft, though I will say that it's not perfect, just one I can work with. Syncs Mac <-> iPhone, which is very handy. http://www.jumsoft.com/money/
Everyone's different, but my strategy with the cash would be to keep an emergency fund in a high(ish) account, say £10k. I have no desire to deal with the hassles of landlording, so the rest I would move into Vanguard Lifestrategy 100 (it's an index tracker fund). £20k of that would be in an ISA (that's the maximum for the 2017/18 tax year) and the rest in a regular share dealing account. Then each year on 6th April, move the maximum allowed into the ISA, until it all becomes tax sheltered. But other people do like property, and make it work for them.
With a paid-off house you could comfortably save a grand a month, not per year as you are now. The standard advice is to understand track and understand your spending (which you want to do). After that I would look to combine two aims: improving your quality of life while reducing your outgoings. I switched from driving to cycling for my commute, and as a result I'm fitter, happier, more productive – and I'm saving £60 a month in petrol. I don't buy clothes very often (any more), and I plan carefully, buy quality, and end up with a more minimalist wardrobe (and minimalist look!) that makes it much easier in the morning.
So yes, track your outgoings. If you are spending £600 a month on going out, or clothes, or knick-knacks, then you can look at the happiness that brings, and contrast it with the happiness you will enjoy when you're not beholden to an employer.
Last year I also wanted something simple so I made a tiny barebones app to help with this (android only, sorry). So many of the apps I tried before hand are overly complex. Give it a go if you fancy, or don't, thats cool too. https://play.google.com/store/apps/details?id=com.appdrews.wealthtracker
If you're one Android, I certainly recommend https://play.google.com/store/apps/details?id=ru.orangesoftware.financisto
I use it to track every transaction and see how much I've spent in different categories
Do yourself a favour and buy a copy of Tim Hales Smarter Investing:
“I have zero career prospects as i didn’t go to university”
This is simply not true. Almost all wealthy people I know never went to uni. Read the book “unsexy business” by Jamie Waller https://www.amazon.co.uk/Unsexy-Business-entrepreneurs-businesses-extraordinary/dp/0857197134
It will blow your mind. Maybe look at entrepreneurialism rather that working for someone else?
It's a cracking book, but it might be overkill at this point of the OP's investing journey. I'd suggest something more prosaic like 'The Richest Man in Babylon' :)
If OP does fancy tackling Smarter Investing (your local library might be able to get you a copy), I'd recommend reading the small section at the start that has 50? or so tips along the lines of 'read this if you read nothing else'. It's Hale's attempt at tl dr!
This book goes in a long length https://www.amazon.co.uk/Salary-Dividends-Efficient-Extraction-Strategies/dp/1911020536/
The optimal strategy is to start a company with your spouse, 50/50. Using just either £12500 or £9500 per person yearly as salary. Then, the rest goes from dividend.
The dividend allowance is £12570.
Of course, there are things you can put to expenses. And then there are various other ways. I am in an R&D heavy environment so I can effectively lower my corporate tax. I guess other fields will have their own tricks (amortization, travel expenses, etc.)
It's more on the investment end of FIRE but I consider Free Capital: How 12 private investors made millions in the stock market by Guy Thomas to be an inspiring masterwork. Monevator makes a good point that pensions are more tax efficient generally than ISAs which are the basis of the book but it's absolutely packed full of investment goodness.
Without a doubt, Michael Brett's book called Property and Money. It's a brilliant beginners book to commercial property investing. And a very easy read. This book was mandatory reading for all the new real estate bankers when they joined my old bank. https://www.amazon.co.uk/Property-Money-Michael-Brett/dp/0728202786
Have a read of this. It all reverts to the mean in the end. All etoro are doing is taking someone who was randomly successful and telling you they’ll be successful in future. They won’t. Randomness can last 2 days or 3 years if you’re the one choosing the random path to present. It’s slightly counter-intuitive but read up and don’t be fooled.
https://www.amazon.co.uk/Fooled-Randomness-Hidden-Chance-Markets/dp/0141031484
You'd probably be better off reading this book: https://www.amazon.co.uk/dp/0273785370/ref=cm_sw_r_cp_apa_fabc_66PC6B2CD0A0YSDMPJCV
It'll give you a better understanding of funds and how to work out an asset allocation that fits your personal requirements.
Delonghi sells a lot of pump machines for 150, they are quite decent.
https://www.amazon.co.uk/DeLonghi-EC685BK-Traditional-Espresso-Machine/dp/B06X3Z9MF3/
If there ever was a magic number, it resides in the same land as the magic money tree... /s
If you've a taste for the topic and statistics read this.
I don't think you really need a book as you can pick up everything from a few hours reading blogs for free
From that perspective blogger Retirement Investing Today has a book which is *F*R*E*E* on Kindle
Books I just like which are vaguely related to FIRE:
The Great Crash:1929 JK Galbraith
Where are the customers' yachts Fred Schwab
These are old books but if nothing else teach you there is nothing new under the sun
Put your emergency savings in premium bonds. Currently the best return you will get on the market for 100% guaranteed money (1.2-1.4%).
I think it’s great you are thinking about this so early. Don’t let it pass - educate yourself.
Get this book:
https://www.amazon.com/Smarter-Investing-Financial-Times-Hale/dp/0273785370
Edit to add:
I agree. Max out your pension contributions, then max out your LISA, then put everything else you can save into your S&S ISA. After reading that book, you will know exactly where to invest. For now, consider the vanguard VWRP ETF index tracker.
This is a short book on the subject written from a UK perspective by someone who actually fired:
Its also free
> (Intuitively I thought that strategy A would always be a better idea, for any returns higher than the mortgage rate, but my colleague thinks that the stock market returns need to be at least 2% higher than the mortgage rate for it to be worth it.)
Then their calculations are wrong ignoring taxes/risks/etc, a debt at X% grows exactly the same as an investment at X%.
> Spreadsheet here, please tell me where I've gone wrong! https://cryptpad.fr/sheet/#/2/sheet/view/K-0oLnhhD8X6vS7Az084NXPTO7X8tgnNlupb0RjlaQw/embed/
You're double counting the saving by adding it back on at the on. Removing that gets them very close with 2% returns, and the remaining difference will mostly be because you're calculating adding in the interest only at the end of the year. Really you'd get 12 months of interest on the first payment, 11 on the second, etc.
This book here explains why art rarely makes money unless you create a marketplace: https://www.amazon.co.uk/Million-Stuffed-Shark-Economics-Contemporary/dp/1845134079/ref=asc_df_1845134079/?tag=googshopuk-21&linkCode=df0&hvadid=309950375723&hvpos=&hvnetw=g&hvrand=2166597557024325549&hvpone=&hvptwo=&am...
Thanks for the video! Fair points and I agree on most of it but what you guys are missing here is the £2k tax benefit we have in the UK with dividends which this Canadian guy cannot take into account (he even mentions as a negative that dividends are taxed).
To all the downvoters, I recommend you to open your mind and do more research. Not all is black or white when it comes to investing for retirement and some people also like dividends during their journey to feel more free (instead of paying your mortgage, something many FIRE people want to do for the mental benefit, one can invest on dividends for passive income and stay in the market, for example).
Also, please look at what is a renewable energies income fund (it's not a value company) and, if you want an example, look at UK wind and its performance (it's designed to provide income and growth to the shareholders through stable, non-volatile, yielding assets).
And if you want to listen to the other side of the table (something we all should do) you can read this book: https://www.amazon.co.uk/dp/B07YP1KLVK/ref=cm_sw_r_cp_apan_SXEA21K1DWXG0AXM4B9G
Now you can downvote me and keep buying your index trackers :D
The elements of investing is great book and it's a short read. It's the very US-focused though but don’t worry about the fact that it's American not British…if you swap VTSAX for VWRL then it applies pretty much 100%. It's written by Charles Ellis (champion of low-cost index investing and non-executive director of Vanguard) and Burton Malkiel).
I can recommend this book! Ultimately I don’t have kids or at age to be in your position but, as you said that sounds like a good plan, take your kids with you mate. Teach them things they’ll actually need and explore the world together. Defo easier than done. But go for it mate, next few years are gonna be shit might as well make the most of it!
>but I refuse to believe that he is "losing money" as has been previously stated.
Only because you are overlooking how BTLs are taxed because you are completely ignorant on the topic, as highlighted by the clear lack of understanding in your replies.
OP is losing money on the property because he is setting rent at only 10% over the mortgage. This is not a matter of opinion or a difference in opinion. This is a fact that has been confirmed by OP and believed by anyone with a modicum of understanding.
Please stop doubling down in replies and take the time to educate yourself instead. I can recommend this book if you are interested.
If you're not interested, then that's fine, you probably have better things to do. But at least refrain from spreading ignorance around.
For investing advice, consider getting The Simple Path to Wealth by JL Collins
TL;DR - invest in VTSAX (or Vanguard's Global All-Cap Index Fund for us UK folks)
I suggest in you’re interested in why https://www.amazon.co.uk/Random-Walk-Down-Wall-Street/dp/0393358380 as the review of a journalist of that book said more or less “buy it, read it, then put your money in an index fund”
Neither of us is a builder by trade, no: I'm in software engineering, he was head of a large multinational organisation. He's a good joiner, and can plumb a bit, but when I wired up the house it was the first real electrical work I'd done, for instance (yes, it passed inspection!)
We got a few builders in for a few days to erect the roof trusses: I didn't fancy learning how to use a crane on that job, but we've done it on single story jobs with is and a couple of workies in to hold and nail things where told (and once by ourselves for a stick build job we did).
Most jobs are easy with a bit of time, especially internal framing, wiring, plumbing the heating etc. I hired a plasterer after doing one room, though: he did a better job in three days than I did in three weeks in that one room.
I also hired a roofer, with me acting as his labourer. We've tiled roofs on other builds in the past, but this roofline was a bit more complex.
In summary, especially for flat pack work, you can totally do it, but do find a good labourer to help you and some jobs are really worth a couple of grand for an expert.
This book is great, I've now got three editions of it:
The Housebuilder's Bible 13 (The Housebuilder's Bible: 13th edition) https://www.amazon.co.uk/dp/1916016804/ref=cm_sw_r_apan_i_S2CF2EG4Z2DVBMDJ02WF
1 - Focus on getting a job in tech as soon as possible.
You get paid well, are constantly in demand, and well treated. The work is interesting too.
I earn a top percentile wage but have much better work life balance and perks than other professions that command a similar wage.
My wage keeps going up 15-25% per year, too - it's hard to achieve that in other verticals.
2 - Move to London.
I spent too much time up north because everyone told me London was too expensive. I've been here for a few years and it is expensive, but not as expensive as you think.
Take renting, for example - a room or a flat will cost more, but it's offset by not having to own a car or pay for fuel.
The opportunities to increase your income are much higher in London, though, which easily cancels out the higher cost of living, in my opinion.
3 - Try to become 'so good they can't ignore you' (https://www.amazon.co.uk/Good-They-Cant-Ignore-You/dp/1455509124).
Don't focus on trying to do the perfect investments or tax planning - focus on building up career capital that will lead to higher earnings. So put the effort in to further your skills, whether that's through university or an apprenticeship or books/course/other sources of learning when you get a job.
Better to 'suboptimally' invest a large sum than 'optimally' invest a small sum, in my opinion (and by suboptimally I mean chucking it in a global tracker - I have lots of friends who focus on actively investing a small sum and their returns are nothing to write home about).
The 4-Hour Work Week: Escape the... https://www.amazon.co.uk/dp/0091929113?ref=ppx_pop_mob_ap_share
They have a good section around automation, some good ideas and some funny ones. One part talks about a guy who lost his job for outsourcing it, so he outsourced looking for a job, paid someone to search for jobs he was interested in, write and send off and apply for all of them and organise his interviews. He was in a new job within 30days.
I went to Amazon to find reviews of the book and found 'The Everything Bubble':
https://www.amazon.co.uk/Everything-Bubble-Endgame-Central-Policy/dp/197463406X
However, this book was written in Oct 2017.
Since then, the S&P500 is up 73%, Vanguard All Cap up 40%, gold up 35%, commodities up 20%, at a guess house prices up at least 20% too.
I imagine every year doomsday book(s) are published. Some will get lucky and a massive crash happens within a year of publication. Others will cost those following their advice a lot of money.
From what I can tell, it's impossible to know.
Having said this, what I'm trying to do is to position myself so if a crash does happen, I hopefully won't panic sell. As whilst we can't predict the markets, historical data I think tells us those that panic sell during crashes will fare worse than those that hold.
So I'm trying to keep a bit of cash, around 15%, as if the markets do crash, I'll hopefully have the cahoonas to buy rather than sell during this period. If the markets do well, then 85% of my portfolio should be fine, whilst I take inflationary losses on the 15% on the chin. This will suck if after 5 years I've then lost around 20-25% of my purchasing power (if inflation averages around 5%) or potentially even more when that purchasing power is compared to assets. But if it helps me sleep a bit better at night, and means if a crash does happen I will view it as an opportunity more than a bummer, then hopefully it'll be worthwhile!
I made an app called Silo for myself which I put on the play store (Android). It's completely free and you don't get artificial restrictions to get you to pay more, ie no limit to categories or accounts etc.
It's also completely offline, any data that goes in gets encrypted automatically in your local storage. There's no way to get the data out without opening the app and copying it by hand. That's good for security, but the real reason is I just ran out of time to make a backup/export feature lol.
Check it out if you want https://play.google.com/store/apps/details?id=com.silofinance.silo
Oh dear... It's literally on their website, I've already posted the quote.
You do not have FSCS protection. Same as Revolt, Wise and many other electronic money providers.
The ability to give someone a Visa card and an account number, does not make them a UK bank.
Of course!
Thanks! Me too
Gent. Never heard of this youtube-dl tool. I have GIT-bash on windows and just installed it and downloaded it from there, very easy.
pip install --upgrade youtube_dl
youtube-dl --video-password FIRE https://vimeo.com/374814086
a small way you might be able to optimise your expenses is finding 5 friends that use Spotify premium and getting a Family account which will cost £2.5 per person per month and getting a Netflix premium account to share that will cost £2.99 per person
It will be difficult to build a skillset until you have some sort of idea of what you are aiming towards. Probably the first question to ask is:
After that you need to be working towards something that you have an interest or desire for - If your "why" isn't big enough then it's unlikely to be a success.
Once you have an idea of what you want then the best thing to do is take action on it:
Two other points:
Definitely focus on your job and performing well, but always have an eye on the job market (LinkedIn helps) and keep your CV updated. If you don't have a good portfolio consider building one (just some links to GitHub or a website that shows your projects, even if it's just Python data science scripts without a GUI).
LeetCode really is important though, there are so many resources online for studying it, but once you're able to solve some easy questions, try and work through all the Blind 75 questions as they are popular and teach you a lot of the common patterns.
Seeing as you already have created an Android app I think that's something really good for your CV - that alongside 2-3 other projects makes you pretty much as strong as any other applicant imo, if you have the LeetCode/interview skills. Any internship is great too. Plus you now have a data science job which I imagine involves programming too. Just do a bit of LeetCode and be ready to move jobs when the opportunity presents itself.
For stability, start here:
For literacy, read books and continue to ask questions, just as you’ve done here. To simplify the process of investing, I’d start with the following. You might be able to find a pdf copy online.
Definitely read Built to Sell Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow (28-Feb-2013) Paperback https://www.amazon.co.uk/dp/B011T6SNA2/ref=cm_sw_r_cp_api_glt_fabc_HQFATB0Q1CC514XE6PMX. It goes through that kind of issue as it’s very common. Not sure why the book is so expensive though - it’s not normally £25, but we’ll worth it.
Nano, Chia, and Celo are all worth taking a look at.
Nano has already been given a good summary in these comments. I'd just add its primary use-case is payments so I wouldn't advise buying it as a growth asset personally, but if its use continues to grow its price will probably increase.
​
Chia is a Proof of Space and Time blockchain which argues it is more secure than Proof of Stake (and Proof of Work) but uses a small fraction of the resources of Bitcoin. It relies on proof of Hard Disk Drive space reserved for the network.
​
I haven't looked at Celo much but it claims to be carbon negative (via offsetting)
This should really not be hard - one 'problem' with FIRE is that it is boring!
Pick a mix of stocks/bonds. At your age you want to be heavy on stocks - 80/20, say.
Work out when you expect to FIRE, and work back from that roughly how much you want in a SIPP or other pension scheme vs in an ISA. If you don't have much in a SIPP it is fairly safe to say take any employer match ('free money'). Pick low cost (low percentage management fee), global funds. See if you can Salary Sacrifice. Put the rest into a low fee S&S ISA.
That's it. You can read all the books you want, but the best thing IMHO is to get started - get the ISA open, get the monthly contribution going in and get it invested. It gets pushback but if you don't have a clue, LifeStrategy 80 https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-80-equity-fund-accumulation-shares?intcmpgn=blendedlifestrategy_lifestrategy80equityfund_fund_link will get you going. It isn't perfect, but as they say, the perfect is the enemy of the good. You can tweak and optimise later if you want to but 10 years of LS80 is better than waiting and waiting then 5 years of something better.
I think this is the UK's generally used investing book, though https://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Financial-dp-0273785370/dp/0273785370/
I personally don't use budgets, I automatically put aside the money for savings/investing at the beginning of the month, and then manage the rest.
I'm more concerned with tracking income/expenses and investment performance, that's why double entry works for me. Periodically I look at the plots it produces to see if there are places I can trim the fat.
Double-entry is also very useful if I have to contact HMRC. I track all the taxes / NI I've paid, and I can quickly query how much I paid and on which tax year. I've had to check this while on the phone, which is really quick to do, since double-entry accounting software is designed to do this.
Gnucash does have budgeting features (maybe beancount as well), if you'd like to use them. But I don't have experience with them: https://www.gnucash.org/docs/v4/C/gnucash-guide/chapter_budgets.html
Some would say a shockingly simplistic take on retirement. E.g. see https://www.amazon.co.uk/Beyond-4-Rule-retirement-portfolios/dp/1985721643
E.g. consider changes in spending, tax shelters etc etc.
You can actually sign up and join the waiting list and I have a little secret for you guys here to be #1 out of 175k waiting list
​
Moneydashboard has support for coinbase. They're quickly adding lots of different providers.
https://www.moneydashboard.com/supported-banks
Doesn't have Vanguard yet.. but, maybe you could request it using their form in the link above.
I've never used Yolt before, but I assume it's pretty much the same as MD.
Your efforts would be better spent contributing to an open source solution like https://eqonomize.github.io/ (or any of the several others linked in this post) rather than starting another one from scratch. That way you won't have an ongoing burden of maintenance, and your contributions can help all the people who already use that program.
It might help is you explain what Personal Capital is for, so we don't all have to research it to know how to answer you.
Edit: It appears to be an investment broker, and net worth analyzer.
Three things: 1) Study, In my case a part time BSc. Employer is paying. You could also look at https://www.mooc-list.com/ 2) Learn to draw / do visuals / use Adobe suite - might be a useful skill. 3) Read - deepen and broaden knowledge around subjects of interest. Other things I have considered, but have no time for... Learn to code and learn to play an instrument.
I found these two books especially helpful in giving some perspective on the world:
What a great post OP. Thank you for your honesty. You have summed up what I felt like at my previous job. Luckily I got out before I hit my ceiling - but only by chance.
I really enjoyed Calm the F**k Down by Sarah Knight - really direct and entertaining.
Also Rising Above a Toxic Workplace by Gary Chapman - great advice, especially if the workplace itself is less than supportive.
Wish you the best of luck OP.
Sorry I thought you were initially asking how do you learn how to do DIY around the home!
In honesty the 'doing' part is really easy, invest in a passive global index and wait for 25 years, that's it! You can learn the theory of why however by reading the following books:
You have 2 allowances. One for salary and the second for dividend income. I guess the wife's income depletes salary allowance, but she won't use any of her dividend allowance.
All this is explained to the detail here: https://www.amazon.co.uk/Salary-Dividends-Efficient-Extraction-Strategies/dp/1911020536/
Of course, OP should have an accountant who will run calculations & provide a final implementation of the strategy.
Definitely read this book: Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow (28-Feb-2013) Paperback https://www.amazon.co.uk/dp/B011T6SNA2/ref=cm_sw_r_cp_api_glt_fabc_J1161K6SVFVN6N0DAF
It helped me a lot!
You can make it as risky or as low risk as you want.
Depends what you invest your S&S ISA cash in! You could invest in a low risk bond fund, or you could invest in 100% equities!
Have a look at monevator and perhaps a few books ( https://www.amazon.co.uk/Investing-Demystified-investment-portfolio-Financial/dp/1292156120 )
not possible is a stretch. Leveraging an equity portfolio is no less inconvienient than buying a house (argueably a lot less so, and also less expensive in terms of transaction cost). In which case essentially its just a question of do you want to leverage £20k via a deposit in a house or £20k via a leverage ETF and continue renting. In fact Lifecyle Investing is a book specifically by two yale professors that recommend exactly that.
I'm Lifestrategy 100, David Sawyer's RESET Book (link below) explains the rationale excellently. It's primarily since I'm young enough that 100% stocks is a good way to go (for now), the diversification (lower risk), and the simplification (with the Lifestrategy no need to rebalance).
In future I might copy a similar asset split as the LS100 but rebalance myself. For now I'm happy with the slight drag on compound interest as that's the only reason to avoid the LS funds and make it up yourself.
https://www.amazon.co.uk/RESET-Restart-Unconventional-Retirement-Careerists/dp/1916412416
Agree. I recommend the OP reads the following book:
https://www.amazon.com/Smarter-Investing-3rd-edn-Decisions-ebook/dp/B00GAYHH8I
It’s a great introduction into the world of investing and will give you a much needed sense of perspective. So many people approach investing as “picking stocks” but that is only one thread of the tapestry.
Also check out https://www.amazon.com/How-Capitalist-Without-Any-Capital/dp/052553444X and https://www.indiehackers.com if you are a developer. Especially if you are into running a SaaS business.
Seriously, stop what you are doing now and buy that book!
This book has helped on the thrift front - The Wisdom of Frugality ; Why Less Is More - More or Less, By: Emrys Westacott. https://www.amazon.co.uk/Wisdom-Frugality-Why-Less-More/dp/0691155089
Do yourself a favour and buy this book:
https://www.amazon.com/Smarter-Investing-3rd-edn-Decisions-ebook/dp/B00GAYHH8I
I would recommend you look at a globally diversified ETF that tracks the FTSE All World Index or the MSCI World Index. At 33 and assuming you will not need the money for 20 years, 100% equities is not unreasonable.
I really recommend reading / listening to Money - A User's Guide by Laura Whateley, (I listened for free using my library, best way to get audiobooks imho and you can register online for UK libraries right now because of Covid and be listening to free audiobooks in under 10 minutes).
It has a whole section on student loans which I think might make you consider paying that debt as a priority (it's like the best type of debt to have) and is just a great grounding in UK personal finance written within the past two years.
https://www.amazon.com/Money-Users-Laura-Whateley-author/dp/0008308314
Given the average age of Reddit users, few will be in retirement and drawing down a pension.
Those currently in retirement often have substantial DB schemes or took annuities, so in the UK at least it's a relatively new problem.
Try this book for a in-depth technical look at the different approaches.
https://www.amazon.co.uk/gp/product/0997403403
I'm closer than most and I intend to maintain a 75/15/10 Equities/Bonds/Cash ratio.
Approach wise GIA, ISA, DC, DB, SP will be the products.
Draw cash, then bonds and equities last is the approach.
Elsewhere I've seen discussion on the four / five stages of retirement.
As you age your spending slows to the point that giving away your wealth becomes the problem rather than accumulating it.
I use the pretirement app which can do this for you. For both one off spends and recurring -
https://play.google.com/store/apps/details?id=com.amokrunner.pretire
Please re-think the FTSE 100, the performance is diabolical.
Read: Investing Demystified https://www.amazon.co.uk/gp/product/B071WQ1L81?ref=dbs_p2d_P_W_kindle_available_T1
Think global, the UK accounts for ~4% of the global stock market, don’t put all bets in one country etc :)
Vanguard FTSE Global All cap Fund, VWRL are both good starting points :).
Congrats on starting your FIRE journey! You've at least taken the first step. It's never too late to start (I'm 33 and only started recently).
I second the following of The Flowchart. Have a read of Smarter Investing (non-affiliated link), I found it very useful to get a view of how to make a plan and figure out my goals, but also why diversification in equities, bonds and geography matters.
VPN wise, I use NordVPN, and they've been very reliable for me. They're frequently available for something like £75-80 for 3 years
I understand the desire to increase income, and you should definitely do that, but every £10 a month of costs you cut is £10 in your pocket. Every £10 of extra income you earn gets taxed
34 Isn't too late. You sound like you're pretty driven and you've done well to get where you are given the shitty time to enter the job market and re-training in a new area.
I'm 28 and in London and I've just started looking into this about a year ago. I do share a flat - but I get why you'd choose to spend the extra to have your own space.
I think the ultimate 'benefit' you have here that still points you towards FI, even if not FIRE, is that you don't have kids. Keeping your current attitude and looking towards the future will set you ahead of most people.
Financially we are quite similar. My rent is £700pcm which is pretty good for zone 1, all in because I share a small flat with one guy, but I'm able to walk to work so it saves money there. I use NordVPN and got a good price. Keep an eye on HotUKDeals when they have VPN threads pop up every now and again. My TV is just a shared Netflix account so that doesn't cost much.
I think you're on the right track and I wouldn't say you're too old. Just tighten up whatever luxuries you can afford to. I've noticed how the small savings really do add up. Good luck.
I have a soft spot for this since it is recent and UK, its also free on Kindle Unlimited:
The guy used to blog at Retirement Investing Today.
Also don’t forget you get taxed at 10% on that exit money (entrepreneur relief). As long as the government doesn’t take it away of course!
This is definitely worth a read https://www.amazon.co.uk/Built-Sell-Creating-business-without/dp/1591843979
RESET: How to Restart Your Life and Get F.U. Money is not a bad place to start and it's focused on UK. It gets into maaaaany other areas but the FI part is pretty good for the beginner and lays down easy to follow blueprint.
I buy and sell video games. Made over $10000 in 6 months during the pandemic when I was off work. Didn't spend that much time working either.
Wrote a guide to help others, you can get it here: https://www.amazon.com/dp/B08GGYQNGM/
I’ve read a fair few books on investing but I feel one of the most valuable books I’ve learned from in the beginning was “Investing for Dummies (UK Edition)”. Does a great job of explaining things that are often overlooked as “common knowledge”.
The book is follows the format of a textbook, which I quite like. There are lots of great books on investing, however, I feel in terms of the basics, particularly for a UK investor this book is invaluable.
I’ve just started reading Ray Dalio’s “Principles: Life and Work”. Would highly recommend too.
Here is a link for both;
This will be a good book for you to read: https://www.amazon.co.uk/dp/B004IYISQW/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
I’d highly recommend reading this book - Stocks for the Long Run by Jeremy Siegel
https://www.amazon.co.uk/Stocks-Long-Run-Definitive-Investment/dp/0071800514
It’s US focussed but the same principles apply anywhere. You can get a free pdf online if you search.
Save another £120k.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
Pete Matthews from Meaningful Money has just brought out a new book. I’ve not read it but perhaps someone else could comment.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
I guess it matters what you are planning to use it for. Will the knowledge help you once you have reached FIRE? Do you plan to work for a long time regardless of finances? I was reading Tim Farris's Tools of Titans the other day and he has a section on creating his own personal MBA after taking some trail MBA classes and being disappointed. In his own personal version he used the money he would have spent on an MBA doing angel investing and networking then moving onto advising roles for equity, which he became quite successful at. Just food for thought.
This reminds me of some stuff in The Intelligent Investor about cyclical models and patterns - they're easier to see in hindsight because you can make the model fit the data.
Once you've bought a house you don't have any control over whether the new data fits your model.
Thanks! Will get myself a copy and start reading :) Found this one as well
Your Money or Your Life: A Practical Guide to Getting - and Staying - on Top of Your Finances!, good reviews and UK focused. Although it looks similar to the popular book by Vicki Robin it is not the same
In regards to the BTL property, I was lucky enough to have family who had been through the process before. They recommended me their IFA who helped out with the paperwork because it was totally new to me. When I go to remortgage I'll probably have a go at it myself.
In regards to investing, I just knew there was a better way to make my savings work for me rather than a bog standard savings account. Just so happened that an American work colleague mentioned a podcast called MadFIientist which was all about FI and got me hooked. I then read The Four Pillars of Investing and The Random Walk Down Wall Street which just reinforced the idea of index investing. Finally, I often read the blog Moneyvator which is based in the UK and found that it was helpful as most sites and books are focused on the US.
Try Lars Kroijer's explanation?
I highly recommend the book that I already mentioned yesterday, Tim Hale's <em>Smarter Investing</em> - its clear and structured explanation is what made everything fall into place for me.
> I don't know much about this thing, but I'm going to throw in £11,0000 and hope it goes ok.
I respectfully present this recontextualisation of your words in the hope that you will review your position.
The only question that matters is why have you chosen these funds?
If you have a good reason for making this selection then that's all that matters - that they're logical and sane and they fit with your investment thesis. In reality, I doubt that very much - I can't really see how they make sense together.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
> I am contemplating opening a S&S ISA, however I need to do a lot more research into this first.
Heed Lars Kroijer and read his book or Tim Hale's <em>Smarter Investing</em>.
Thanks! Will get myself a copy and start reading :) Found this one as well
Your Money or Your Life: A Practical Guide to Getting - and Staying - on Top of Your Finances!, good reviews and UK focused. Although it looks similar to the popular book by Vicki Robin it is not the same