ISA’s
- Thread starter ronk
- Start date
buzyg said:Smartbear said:Argyll Andy said:
I think he’s working on the assumption that the average retirement age will soon be 275
Rob
Younger than us then Rob. :wink:
Only if you add both your ages together :wink: :lol:
D
Deleted member 32480
Guest
Argyll Andy said:
I don't want to stand in the way of a good argument/beating but if you invest £8506 a year from the age of 18 into an ISA that tracks the S&P 500 (the index has returned a historic annualised average return of around 11.88% since 1957) and accounted for a 9% return you would be at 6.3 million by the time you are 65. If it was a straight 11% return you would be looking at 12.7 million.
Investing £5104 (9% return) would get you 3.8 million.
Investing £3402 (9% return) would get you 2.5 million.
I have modified my investment plan just to show the numbers as if I was 18 years old investing up to 65- it is surprising but shows you the benefits of compounding.
There is an online calculator for compound interest here also if you want to have a play around with it:
https://www.thecalculatorsite.com/finance/calculators/sip-calculator.php
Sky is the limit though if you have Sonny's stock picking skills!
Attachments
mgrlane said:
Looks like we found someone who actually knows what they are talking about.
Ironic as the majority in here are saying I proclaim to be an expert and spout rubbish in other threads yet here they are talking about a subject they clearly know nothing about as if they are experts and are being taken to school.
"Investing £3402 (9% return) would get you 2.5 million."
And I said you would have £3 million as I did rough maths but you can clearly see I wasn't wrong. Also doesn't the S&P 500 return more like crica 10-12%? That was the basis of my calculation. Like I said before people make bad decisions and are ignorant. We are using minimum wage here too; now can you imagine if someone with even average wage was to do the same thing? They would likely have £10 million at a guess come retirement.
Now would anyone like to hazard a guess why Warren Buffet hasn't beaten the S&P 500 in the last decade?
Oh and another update on how well my 22/23 ISA is doing since we are in an ISA thread pic attached.
Attachments
D
Deleted member 32480
Guest
Scubaregs said:
I don't understand what Sonny is doing and I have questions on if it's sustainable.
I have only just started to look into these things but I do wish I had been putting away more money over the years.
Here is a projection of my life time ISA based off 7% each year- it's in a S&P tracker that has historically produced the ~11% each year but I based the calculations off 7% (I would rather under than over predict).
If you are under 40 and you don't want to put it in an index tracker you will still get 25% free from the government each year on a 4k investment.
It's the same as the Help to buy ISA.
https://www.gov.uk/lifetime-isa
Attachments
Scubaregs said:
In reference to what? Are you saying it's not practical to save 20% of your wage?
I can understand how some could think that but reality is those people will have made many bad decisions to get where they are now if that is the case. Who's to blame for that? Gas went up 8% yesterday so yes I understand people are going to struggle to pay for energy bills come October but reality is they have likley been frittering away money during the good times and now have nothing left for the bad times or they made bad decisions sometimes out of ignorance ( like Argyll Andy when he said you couldn't possibly have £3m come retirement on minimum wage) and now have no options.
Financial planning and financial education is required badly in this country as proven by this thread even people who think they are making safe claims don't have a clue.
"SonnyA85, I hope you don't mind but i've taken the liberty of passing your details onto all the top investment banks who will shortly be in a bidding war to hire you for your amazing stock market acumen."
You posted this. Yet you are unable to answer the question I have asked multiple times now. Why hasn't the best investor of the last century beaten the market over the last decade. When you can answer that question then you will realise how ignorant your post was.
As for how sustainable my stock picks are. I already said I'm invested in Gas and coal.
Gas keeps going up in price and so does coal. They won't be around forever however that's when I then move into an index tracker or find the next big supply shortage that everyone needs and invest into that. I already know what that will be and there are only 3 manufacturers of the product in the world and there will never be a fourth. Well there is only currently 2 the third is being brought online within the next 10-15 years due to national security risk and being funded by the US government.
The simple fact is, money makes money.
If you have spare cash to invest over the piste you will get returns.
The problem is, many don't. Most people on low incomes simply can't afford to save anything each month, they need all of their take home pay simply to live.
For those with a salary that allows spare cash to invest it is a balance between that and a higher standard of living. Yes you can live frugally and invest for your retirement, there is no guarantee though you will reach it though.
As I said, it's a balance and we each make our choices.
However to suggest anyone on minimum wage could have 3 million in the bank come retirement if they really wanted to is beyond stupidity. It is patronising in the extreme, shows an utter lack of empathy and quite frankly makes the person spouting it look like an utter cockwomble.
IMO of course.
If you have spare cash to invest over the piste you will get returns.
The problem is, many don't. Most people on low incomes simply can't afford to save anything each month, they need all of their take home pay simply to live.
For those with a salary that allows spare cash to invest it is a balance between that and a higher standard of living. Yes you can live frugally and invest for your retirement, there is no guarantee though you will reach it though.
As I said, it's a balance and we each make our choices.
However to suggest anyone on minimum wage could have 3 million in the bank come retirement if they really wanted to is beyond stupidity. It is patronising in the extreme, shows an utter lack of empathy and quite frankly makes the person spouting it look like an utter cockwomble.
IMO of course.
ronk said:
It's a E85 2003 and a 3 litre. I have done some work myself on it. Third brake light, rear springs, oil changes, etc. However I pay a mechanic now as he only charges me £30-£40 per hour and it's not worth my time any more. However I will do some jobs like painting strut braces, Fabsil on the roof, cupholders, etc. I actually have been trying to get time to recondition and colour the seats but not had the time because currently I have other much bigger home projects on the go. Driveway being extended, full rear landscape project, log cabin, garage conversion and an extension to the home. Between work and a 18 month baby you don't really get time to spend on the car. It's basically just a toy to me and gets rarely used but I keep it in good condition because it costs me very little in reality. The other car we have is a lexus and that cost many multiples the Z4 did and that's because we need something practical and reliable. Was still under warranty too until a few months back but lexus's especially petrol hybrids are pretty much bulletproof.
Scubaregs said:
I know people who have had to overcome a million times worse conditions and they didn't grumble and managed to save money.
My grandad had to live through partition where as many as 2 million lives were lost thanks to the British and under their rule India had to endure 30 famines caused by the British which has forever changed the genetic make up of Indians making them more susceptible to heart attacks and diabetes as their genes force them to store fat and carry less muscle as a result of those 30 famines which killed tens of millions. His family was forced to leave their home and travel hundreds of miles under threat of being killed, robbed, etc and start from scratch. He then after a decade or so got married and they had my dad. He then left my gran and my dad back home to move to the other side of the planet to better his life because now the British needed help rebuilding their own country after destroying others. He arrived in England with nothing. He was subjected to racism, bullying and terrible conditions working in factories, etc. He saved what he could moved to Scotland where the people were much friendlier and then worked on the buses as a driver. He eventually saved enough to start his own business. At some point he managed to save enough to bring his wife and child over and then have 2 more children and adopt one of his brothers kids to look after.
He managed to do all of that and much more but he had to sacrifice a lot too.
His family stayed up all night making bullets before making the trip during partition, just think about that and then you realise how cushy everyone has it here. They told the driver of the coach not to stop for anything, no road blocks just keep going. His family luckily made it many didn't.
People think they have it hard but the reality is they don't actually get how easy they have it. It's about perspective. People in the UK make bad decisions which leads them down the path they are on. Free education, free health service, such luxuries people would kill for and do in other places.
My grandad is still alive today and he could tell you real stories about hardship. A lot of stories he won't even tell. The best story I heard about him was from an old friend that came to visit him after not seeing each other for decades and told us of the time he confronted a racist who was bullying his fellow Indians in the factory they both worked at.
You can sit and watch or you can be proactive. The majority have choices. There are a few that don't. Those who genuinely did nothing wrong but are then diagnosed with cancer in their twenties, etc. They have my sympathy because it's truly outwih their control. But the reality is you can always make better choices. Someone mentioned TV earlier and I told them I don't watch it. If you took the 3 hours or whatever you spend watching TV and did something to better your situation instead then think how that adds up over time?
If you are struggling financially then I could give you a few tips in regards to mortgages, loans, ISA, etc. Mgrlane has already filled in a few gaps on how easy it is to make good returns even with zero knowledge of the markets.
At the summit of the picturesque fens