Jump to content

The Investment Thread


Dindeleux

Recommended Posts

On 18/01/2021 at 17:40, Margaret Thatcher said:

I am looking to start preparing for retirement. I am 30 and due to sheer good luck currently have somewhere between £1500-2k disposable income per month and that looks fairly steady.  If I play my cards right (and choose to be career minded) this could increase towards 10k per month during the next few decades - although no guarantees. If possible I would love to retire early (wouldn't we all). What's the best place for me to put my money?

From some very brief reading online it seems that pension funds offer the best value for money although I probably won't get employer contributions as I move around jobs a lot and tbh don't want the hassle of transferring my pension every time. The downside of pensions is that you can't claim them until you're 60 or 65 or something which would rule out retiring before that - although I appreciate I could put money in another fund to cover the period before the pension comes due.

I also don't own property yet so maybe it is better to buy a house before locking money away so that I can start accruing equity.

Lots to consider and perhaps I need to speak with a financial adviser but, yeah, if anyone here's every considered these questions before I am all ears...

If you dedicate some time and effort to understand investing, you can do the early days yourself. If you can't or don't want to, then maybe financial advisor. I personally don't use IFA's just be sensible with the amount invested e.g. think about your attitude to risk & reward and what you are willing to lose, diversify (you'll be sick of that term soon), research.

For the money you are talking in the future and depending how your investments go you'll probably want to speak to a wealth manager further down the line. 

Link to comment
Share on other sites

14 hours ago, Thistle_do_nicely said:

might be worth a look at a Lifetime ISA if you can find a free £4k a year out of that disposable income and aren't interest in getting a property in London (can only be used up to £450,000 so doubt that would get you much apart from a fucking parking space these days!), pretty hard to beat an effective 25% interest rate on what you put into it, all just kinda depends on whether the limitations of it put you off or not

https://www.moneysavingexpert.com/savings/lifetime-isas/

Does anyone know if you sign up now and plan to withdraw the fund in full on my 60th Birthday can I plan my life around that can could they change it? I'm 23 but there is not a chance I will be working until state retirement age and my workplace pension is tied to the state pension rather than a specific age which means I can't really plan.

Link to comment
Share on other sites

43 minutes ago, 101 said:

Does anyone know if you sign up now and plan to withdraw the fund in full on my 60th Birthday can I plan my life around that can could they change it? I'm 23 but there is not a chance I will be working until state retirement age and my workplace pension is tied to the state pension rather than a specific age which means I can't really plan.

im leaning towards mixu's "talk to an IFA" since im going to be pulling stuff out of thin air here but;

I think that if a govt were to retroactively try to change the rules regarding the lifetime ISA they would be at risk of getting hammered by regulators/legal action, pretty sure there was massive outcry when they tried to do something similar regarding student finance terms and conditions (think they wanted to change the threshold for repayments after people had already signed up to the T's & C's)

the providers would be governed by the FCA i think?

Link to comment
Share on other sites

I don't have that now. And I don't know how much a financial adviser costs or what sort of adviser I'd want to talk to. But you're right I should look into it. I just don't have a habit of paying for "unnecessary" things, I didn't grow up with money so it's a bit alien to me, plus I've been spending my disposable on other things so haven't had the need. Posting on P&B was kind of the first thing I did after thinking about it.
Juice Plus is the way forward for you my lad.
Link to comment
Share on other sites

17 minutes ago, Billy Jean King said:
On 19/01/2021 at 10:19, Margaret Thatcher said:
I don't have that now. And I don't know how much a financial adviser costs or what sort of adviser I'd want to talk to. But you're right I should look into it. I just don't have a habit of paying for "unnecessary" things, I didn't grow up with money so it's a bit alien to me, plus I've been spending my disposable on other things so haven't had the need. Posting on P&B was kind of the first thing I did after thinking about it.

Juice Plus is the way forward for you my lad.

That's a cryptic one. 🤔

If I had to guess... Juice Plus is a diarrhetic and you think I'm full of shit? 😂

Link to comment
Share on other sites

On 19/01/2021 at 10:19, Margaret Thatcher said:

I work in law in London. My CV and timing is such that if I want I can potentially move into a permanent corporate role. The entry level salary is about £150k (i.e. straight out of uni and aged about 23/24) and then rises year on year. It's sickening and almost exclusively limited to posh white middle Englanders, which isn't me, but it might be an option if I want it. The down side is the hours, working culture, etc and as a person I'm not very good at hiding my distaste or keeping my spirits up, so I'm undecided  (and ofc I might be unsuccessful) but it's a possibility.

I don't have that now. And I don't know how much a financial adviser costs or what sort of adviser I'd want to talk to. But you're right I should look into it. I just don't have a habit of paying for "unnecessary" things, I didn't grow up with money so it's a bit alien to me, plus I've been spending my disposable on other things so haven't had the need. Posting on P&B was kind of the first thing I did after thinking about it.

 

On 19/01/2021 at 10:22, Margaret Thatcher said:

Probably a valid point actually, I do tend to avoid hassle as much as possible. The difference I guess is the workplace pension for each employer would be total less than £100 each time, but yeah if a SIPP requires ongoing maintenance I can't guarantee I'd stay interested for a long time.

Two points/questions, and I may have misunderstood you here but:

1. Even if you are earning 150k (even up to 250k tbh) and renting in London, you surely wouldn’t have near 10k excess income above costs? 

2. When you say employer pension contribution would be less than £100 each time what do you mean? You said you would spend say a year with an employer at a time. If you’re earning 250k for that year, the employer would be putting up a hell of a lot more than £100 so I’m unsure what you mean.

Link to comment
Share on other sites

52 minutes ago, Honest_Man#1 said:

 

Two points/questions, and I may have misunderstood you here but:

1. Even if you are earning 150k (even up to 250k tbh) and renting in London, you surely wouldn’t have near 10k excess income above costs? 

2. When you say employer pension contribution would be less than £100 each time what do you mean? You said you would spend say a year with an employer at a time. If you’re earning 250k for that year, the employer would be putting up a hell of a lot more than £100 so I’m unsure what you mean.

No worries, answers as follows:

1. I don't know the exact calculation but hear on the grapevine that once in the upper tax bands you can expect to receive just over half of your salary into your pocket. For the calculations below I'll assume you get about 60% of your salary after tax etc.

I currently rent and split all costs 50/50 with my girlfriend so monthly costs with bills and food are something like £1100 p/m.

So at 150k salary I would be getting £90k p/a or  £7.5k p/m, with about 6k p/m disposable. By the same maths, to be at £10k disposable p/m I'd need to be receiving £144k p/a or £12k p/m after tax, which would require a salary of around £240k p/a.

If I progressed in the corporate world, reaching that figure is definitely realistic over the next few decades. For example, these firms actually start looking for partners after the six year point. I'm not sure how much a junior partner rakes in but an equity partner (the more senior type of partner not holding a management role) at my current employer takes home £2.7m per year (can PM you a link to the financials but don't want to link it here and reveal where I work for privacy). Even if I move to a less prestigious firm, £240k p/a by the end of my career would be unsurprising.

2. You're right, it would be more than £100 per firm. If the employer contributes 3% then even on my current salary it would be low four figures. I'm not sure when I developed the idea it would be less than a hundred pound but I clearly did my maths wrong.

 

By the way, I realise it's poor form to discuss income in public, especially when the sums being discussed are totally unjustified. Apologies if I've put anyone out here.

Edited by Margaret Thatcher
typos
Link to comment
Share on other sites

30 minutes ago, Margaret Thatcher said:

No worries, answers as follows:

1. I don't know the exact calculation but hear on the grapevine that once in the upper tax bands you can expect to receive just over half of your salary into your pocket. For the calculations below I'll assume you get about 60% of your salary after tax etc.

I currently rent and split all costs 50/50 with my girlfriend so monthly costs with bills and food are something like £1100 p/m.

So at 150k salary I would be getting £90k p/a or  £7.5k p/m, with about 6k p/m disposable. By the same maths, to be at £10k disposable p/m I'd need to be receiving £144k p/a or £12k p/m after tax, which would require a salary of around £240k p/a.

If I progressed in the corporate world, reaching that figure is definitely realistic over the next few decades. For example, these firms actually start looking for partners after the six year point. I'm not sure how much a junior partner rakes in but an equity partner (the more senior type of partner not holding a management role) at my current employer takes home £2.7m per year (can PM you a link to the financials but don't want to link it here and reveal where I work for privacy). Even if I move to a less prestigious firm, £240k p/a by the end of my career would be unsurprising.

2. You're right, it would be more than £100 per firm. If the employer contributes 3% then even on my current salary it would be low four figures. I'm not sure when I developed the idea it would be less than a hundred pound but I clearly did my maths wrong.

 

By the way, I realise it's poor form to discuss income in public, especially when the sums being discussed are totally unjustified. Apologies if I've put anyone out here.

Do you need a PA/ Valet? £40k would cover my services think of me as a regular Jeeves but with excellent taste in ties.

Link to comment
Share on other sites

On 18/01/2021 at 21:40, Margaret Thatcher said:

I am looking to start preparing for retirement. I am 30 and due to sheer good luck currently have somewhere between £1500-2k disposable income per month and that looks fairly steady.  If I play my cards right (and choose to be career minded) this could increase towards 10k per month during the next few decades - although no guarantees.

There's no such thing.  From what you've said, it would appear that you got a law degree, a training contract, various top tier post-qualification jobs in London etc. - not easy in anyone's book.  So congratulations, don't do yourself down by putting it down to luck!

On 19/01/2021 at 14:19, Margaret Thatcher said:

The entry level salary is about £150k (i.e. straight out of uni and aged about 23/24) and then rises year on year.

If we're talking those figures, my guess is that we are talking corporate/M&A at US/Magic Circle level firms - my only tip would be to always keep a spare £10k so you can go on really nice holidays.  You'll need them after a deal.  

On 19/01/2021 at 21:01, Shtuggie said:

TL;DR - Buy a house and enrol in your pension scheme. Then start filtering money into investments of varying degrees of risk/return. 

As someone who has real-life experience of not following sage advice when it comes to these things, @Margaret Thatcher should do these things.

5 hours ago, Margaret Thatcher said:

By the way, I realise it's poor form to discuss income in public, especially when the sums being discussed are totally unjustified.

If clients pay those fees then you're worth it.

Anyone use a robo-advisor?  After being put off by IFAs and their fees, in July (about 5 years after I should have done so) I invested some money with Sarwa (it is based out here but I am sure there are UK alternatives).  Their fees seem to be relatively low at 0.7% and the return in 6 months is over 15%, so quite pleased with it so far.  

Link to comment
Share on other sites

9 hours ago, Yflab said:

I’m currently using VoyantGo to plan my future. Thoroughly recommend this. I got it through https://meaningfulacademy.com/rp-4/ for £375 for first year. £120 thereafter. The signup including advice and learning modules from an excellent IFA called Pete Mathews.

His podcasts are first class. https://meaningfulmoney.tv/

I heartily endorse this endorsement of the Meaningful Money podcasts.  The guy really does a good job of explaining the fundamentals behind managing your personal finance and planning for the future.  

Link to comment
Share on other sites

6 minutes ago, resk said:

I heartily endorse this endorsement of the Meaningful Money podcasts.  The guy really does a good job of explaining the fundamentals behind managing your personal finance and planning for the future.  

I’m at the pre-retirement phase of my life. I’ve used spreadsheets to monitor income, expenses, savings, investments and net worth up to now each month. 

However the VoyantGo software is a game changer for me as it allows me to produce forecasts based on different scenarios. It has simulations that allows you to incorporate historical data from the stock market.

I recommend this software which is a superb cashflow simulator. Well worth the investment. I will still maintain my spreadsheets to capture our monthly changes as raw data to feed into this software.

Plenty of videos on YouTube explaining what VoyantGo does.

Link to comment
Share on other sites

5 hours ago, arab_joe said:

 

If clients pay those fees then you're worth it.

Anyone use a robo-advisor?  After being put off by IFAs and their fees, 

Lawyers are worth it, but IFAs arent? Isn't that professional snobbery?

Not something I thought I'd ever express.

Link to comment
Share on other sites

That's a cryptic one. [emoji848]
If I had to guess... Juice Plus is a diarrhetic and you think I'm full of shit? [emoji23]
No not at all and sorry for you taking that interpretation. Google Juice Plus. It's a pyramid / ponzi type scheme where, like all these things, the kingpins allegedly get very rich through investing very little. I was being facetious.
Link to comment
Share on other sites

7 hours ago, MixuFruit said:

I think this guy is correct to sound a bit of caution

https://www.ft.com/content/9c3ecb09-c4bd-4066-a462-af496725105d

image.png.40bff2dc5435514b77714b7c2bcc9374.png

image.png.23473748ac1f8b75216eb3bf42710142.png

I think people buying Tesla stock, in particular, are doing so more out of being fans, for want of a better word, of Elon Musk rather than believe in his long term ambition of his company.

Link to comment
Share on other sites

7 hours ago, Sergeant Wilson said:

Lawyers are worth it, but IFAs arent? Isn't that professional snobbery?

Not something I thought I'd ever express.

Do IFAs need to have a recognised qualification?  I think they need to be registered with the FCA but not sure if that registration is dependent upon a particular qualification.

I’ve only had initial meetings with a couple of them and was very unimpressed.

 

 

Link to comment
Share on other sites

I'd like to know how to invest in a collapse of share value and government bonds due to the idea that money is free when interests are low or even negative, and will stay that way for ever, forgetting about capital repayments, and that Elon Musk's cars will stay revolutionary when everyone else gets in on it, and creating a multi planetary civilization will keep galvanizing investors when they realise that only a few nutters want to spend the rest of their lives hiding in a caravan in a quarry, with no wifi?

Edited by welshbairn
Link to comment
Share on other sites

6 minutes ago, Granny Danger said:

Do IFAs need to have a recognised qualification?  I think they need to be registered with the FCA but not sure if that registration is dependent upon a particular qualification.

I’ve only had initial meetings with a couple of them and was very unimpressed.

 

 

So have I been, but I thought it was a bit ironic claiming lawyers were worth what they could wring out of people and the criticise another "profession" for doing the same.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...