Starting to invest can feel overwhelming, but the gap between a comfortable retirement and a disappointing one usually comes down to a handful of early decisions, not fund-picking skill or luck. In th
I've been investing for 10 years now and only just coming to understand all this. Essentially you've distilled a lifetime of financial advice into a 15 minute YouTube. Bravo!
The key thing to remember about the order (SIPP/LISA/ISA) is your current marginal tax rate + any text trap/benefit cliff edges you might be near + your expected tax rate at retirement: for me it makes sense to salary sacrifice down (a large chunk of) my income directly into my pension to not be hit by the High Income Child Benefit Charge (HICBC)
Started late at 49, £10k lump sum into VWRP and a few other defensive strategies, £420 DCA , hopefully with a lot of luck I can reach 57, withdraw my pensions 25% tax free lump sums, invest those into the S and S ISA, switch to receiving dividends instead of reinvesting them and drop down to working part time.
I would take that as an absolute win given I don't have as much time for the full compounding benefits......yet.
Great video as always Ramin. I made 3 out of the 5 above mistakes in the past (luckily never trusted CFDs and crypto), now I am slightly guilty of mistakes 1 and 2 combining them together, (25% in UK individual stocks) but at least I do it with full awareness. And it sometimes rewards me with huge fun, like recently with BP shares. But plan is to fully follow your advice and keep 90% in global index and MMF.
I opened a SIPP and JISA for my youngster at one week old and the compounding is awesome. I’ll be long gone by the time the SIPP kicks in, but it’s good to know I made that start. Hopefully the JISA won’t get blown too quickly!
I'm 22 and started full time employment for the first time last year. Been binge watching you & others videos and it makes me excited for my (hopefully) stable and comfortable future. Just got to remember to use some of my money for fun as you never know when it could end. Thanks very much for your videos. They are excellent and straight to the point which is a breath of fresh air.
I suspect many of your viewers are older than 40, correct me if I’m wrong, and many will have started investing well after 30 as your ideal scenario recommends. So how about some videos for people who started investing in their 40s or even 50s, looking to retire with a reasonable sum?
I know you have addressed this in other videos, but it would be good to see Finance creators concentrate on options for late-starters (35+), mainly because I think the mainstream adoption of investing has been a relatively recent development. So many people have gone through life, never learning to make their money go further.
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I would take that as an absolute win given I don't have as much time for the full compounding benefits......yet.