Thank you for the thorough reply! You’re a gem.
Thanks for this. This is something I really need to focus on better. Downloaded and will definitely read.
This may seem a fairly obvious question but I was wondering how you’d go about investing. Does all the recommended 15 investments* (other than the bonds?*) in your portfolio happen on one online broker? You recommend Freetrade as one example. When you sign up for an account with them you’re eligible for a £20,000 tax free ISA but what if your investment succeeds this amount?
This is so great, it’s a really impressive and comprehensive doc.
I’m making this our post of the week
Thanks for sharing
I’m fairly sure that the £20,000 mentioned is your input i.e. you can only put in £20,000 into ISAs every Tax Year
There are 4 types of ISA:
- cash ISAs
- stocks and shares ISAs
- innovative finance ISAs
- Lifetime ISAs
Which can all come with separate rules (depending on the provider and ISA type). But overall you can save £20,000 into ISAs every tax year.
Depending on the platform you use, you may be able to invest in stocks, ETFs and bonds in a single place (Interactive Brokers offers all of these, as well as commodities, ForEx and more, and I believe Freetrade has some bond ETFs available).
Please note that in the CYFF document, the example portfolio is there to help the reader figure out their own splits, not specific recommendations.
Very good document! It’s staggering that people aren’t taught this at school.
Only thing I’d add from working in banking (and seeing the opposite ALL the time) - is to clear expensive debts BEFORE saving.
The amount of people that have hundreds in a savings account at say £200 a month (10% of salary) - brilliant. But they then have £10k on a credit card. Even at a relatively modest 15 to 20% APR, that’s well over £100 in interest a month - you won’t be making that on bog standard savings (or many low/med risk investments for that matter).
Of course people playing the 0% game (saving then wiping the debt when it becomes interest bearing) are excluded from the above.
Quicker you pay down debts, the quicker you can then build a true savings pot!
Yes agree so much with what you’ve just said.
I’m playing the 0% game so currently other than a loan (which is getting paid off this year) I pay no interest on my cc’s. However it doesn’t leave me with a lot of savings. I can’t wait to have the debt paid off so that I can really see the benefits of saving!!
Thanks so much, and yes I can’t believe this stuff isn’t part of national curriculums (anywhere it seems like).
And thank you for your important points on managing debt (already added to my notes for the next version).
@nikimukhi thanks to Martin Lewis, perhaps the most impactful individual in England in the Personal Finance arena, it is now part of the curriculum. Following a MoneySavingExpert campaign and a subsequent donation from Martin Lewis there’s great progress being made in this area – things are not as they were when we grew up
Love it , just in time to help me with my financial planning. Its very well documented and it answered all questions I had in my mind. Very good list of investment platform suggestions too. Kudos to your effort in coming up with such a document.
Thank you so much for writing and sharing your knowledge.
So well deserved! I still go back to this document.
This is so good mate, you’ve compiled all the key info I’ve read over the years into one place and added tons more valuable nuggets. Cheers!