Savings and Investments thread

The Prince-e-Paul said:

Rob7Lee said:

FWIW:

Mrs R7L max holding and has for a number of years, since Jan 22 has won £3,950
Me, started dropping down holding over the last 18 months, now about £25k, since Jan 22 £2,050
Daughter, about £26k, since Jan 22 has won £7,350 (that includes one big win of £5k).

Some people are more lucky than others!

To be fair, you guys are pretty lucky to have that king of money to invest in anything other than a house! The wins are a lovely bonus. Enjoy. 

redman said:

Is this right? I have just received a letter from Virgin returning money to me as I had opened a 2nd cash ISA in the tax year. I had opened a fixed rate ISA in January for £5k. I then opened a 2nd with them in March. They have returned this latter money.
I had always been under the impression that you can only use one provider but CAN do it in stages. Seems I'm wrong. 

Athletico Charlton said:

Rob7Lee said:

jamescafc said:

Early retirement soon @Rob7Lee? 

I’m currently obsessed with the whole FIRE planning and spend a fair amount of time reading up on the various strategies people are using, but you are right, regular contributions plus compound interest is a game changer

I always said mid 50's, but having changed jobs in 2020 and took a bit of a step back in responsibilities hours etc (although that seems to be creeping back upwards!) I'm enjoying work more than I have in probably 15-20 years. So no plans just yet, but I'll review at 55 and will likely do a more reduced hours at least. 

FIRE is fine, just don't take it too far.

My very simple financial advice has always been, if you can (as at the lower earnings end or at certain times in your life it's not always possible) live your life as if your salary is 80% of what it really is.

So that means living to that, to include savings and pensions, everything. The extra 20% is your extra investments/savings. I've been doing that broadly since my early to mid 30's and is a large reason I am where I am.

Conversely I have worked with people earning 3/4/5/10x what I do so some well into the millions who are literally cash and investment poor. All they do is spend to their limit and a bit more. £250k cars, £100k on holidays a year, mostly stuff that devalues.

Imagine you earned £2m a year and couldn't live as if you earned £1.6m! With that extra £200k net invested after 10 years and growth at about 8% you'd have approaching £3m.

Some people will always live to or beyond their means. I've literally know people earning £80k who have more investments and wealth than people earning £1m.

Basically just be sensible, save what you can, watch what you spend, and let compound do it's job.

Usually agree with much of what you say and whilst I appreciate that this is a thread on investments, to me a holiday never "devalues". Life is about memories, you can't take the cash with you.  I would spend £100K on holidays every year if I could afford it.  They are the best of times and best of memories.

I took the family for 9 weeks to Asia last year with 2 young children. Memories that will last my life time and theirs.

In monetary terms it cost a lot and meant I had to take unpaid leave but I was lucky enough that as a one off I could afford it (partially through one small "investment" with Paddy power)!  The holiday was undoubtedly the best investment decision I have ever made.

One of my best friends from school has spent most of his adult life travelling the world and doing cash jobs to get along on a tiny budget.  He has lived in more countries than I care to remember and visited much of the planet, met tonnes of people and lived an incredible life.  He will never have a family (doesn't want one), and will likely die at a relatively young age given the life choices he makes (I'm surprised he has made it to 46!) but I know he wouldn't change a single piece of it and has accepted that if he lives to a good age he will be potless at the end of it but have spent his "good" years living his best life (sorry, awful phrase!).

golfaddick said:

redman said:

Is this right? I have just received a letter from Virgin returning money to me as I had opened a 2nd cash ISA in the tax year. I had opened a fixed rate ISA in January for £5k. I then opened a 2nd with them in March. They have returned this latter money.
I had always been under the impression that you can only use one provider but CAN do it in stages. Seems I'm wrong. 

I would have to go into the one you originally opened. You can not have 2 ISA's of the same ilk in the same tax year. Even if it's with the same provider.