ISA’s
- Thread starter ronk
- Start date
Chippie said:
As others may or may not, I have a spreadsheet that shows every monthly wage I have earned, since I was 14 years old. From age 19, I was fully employed in decent Jobs. The grand total when I retired last year, gross, before any tax, NI, pen con, let alone living expenses. Is just over £1m. No real point to mentioning that, other than you can't simply put it under a rock for old age or it's worthless when you get there. :wink:
100% true. Grand Farther, Farther, Farther in law, Mother in law none made it to retirement and sadly I doubt our son will either. Best thing I ever did planning for early retirement from a young age and happily still here to enjoy it.Nanu said:
You need a little disposable income to get rolling though, so folk on minimum wage realy are on a loser unless they find another income stream and certainly, you can't just save up for retirement or every one would retire early and the economy would fall apart. It just don't work like that.ronk said:
I fully agree also which is why I don't have a LISA.
Seems like a lot of people are oblivious to the 50-30-20 rule.
50% - essentials (needed to survive)
30% - luxuries (enjoying life)
20% - savings/investments (break glass when needed)
You will find people in Asia and Africa that earn $200 per month yet smile more than those in the West earning 10+ times more. The happiest moment in my life cost me nothing. If you think you need to spend money to enjoy life then you will never be happy. Money brings a sense of security and affords you flexibility and opens up more opportunity. The number one opportunity you can give to anyone is the best education that you can afford. A lot are lacking in financial education as been proven by the posts in here.
Hard times create hard men. Hard men create wealth. Wealth (good times) creates weak men. Weak men create hard times. The cycle then repeats. Breaking the cycle and instilling a hard work ethic for all future generations (making more good decisions than bad) is the key to long term happiness and success.
If you think I just simply save all my money then I refer you to the above 50-30-20 rule. It's also the reason why I don't have a LISA. A LISA can only be redeemed without a 25% penalty after the age of 60. I have however created one for my wife as a safety net because without me our savings wouldn't grow by even a fraction of what they do now so the 25% bonus will help her in the long run. I can enjoy these rewards whenever I want without any tax being paid or any early withdrawal penalties.
Oh and another update on my 22/23 ISA - since this is an ISA thread
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SonnyA85 said:
You pretty much give them back the 25% they give you if you take it out early (I think it worked out when I did the calculations a little bit more).
Which I guess makes it just about even if you had put the money in your regular ISA and not got the 25% on it?
Hopefully if you work a bit harder you can put yourself in the situation where you will be able to fire 4k into an LISA a year and not have to take it out. You can then forget about it and get the 25% each year on top of what ever stocks/etf's you buy.
For many people especially those on minimum wage 50% doesn't cover essentials and they don't have 30% to spend on luxuries and another 20% on savings.
For most of my working life I have been lucky and not had to take a job on minimum wages. That said at least 40% of my wages and sometimes 50% have been taken in off takes in one form or another. Add to that 12% pension contributions which were compulsory and whilst not leaving me in poverty, didn't leave much for luxuries. It was often a struggle to save and if the pension contributions had not been compulsory, I may have dropped them. It's only now due to my private index linked pensions that I can enjoy life.
Not everyone is as fortunate.
For most of my working life I have been lucky and not had to take a job on minimum wages. That said at least 40% of my wages and sometimes 50% have been taken in off takes in one form or another. Add to that 12% pension contributions which were compulsory and whilst not leaving me in poverty, didn't leave much for luxuries. It was often a struggle to save and if the pension contributions had not been compulsory, I may have dropped them. It's only now due to my private index linked pensions that I can enjoy life.
Not everyone is as fortunate.
Exactly Ron.ronk said:
Our 'financial wizard' is making the classic error of preaching to others, purely based on his own individual circumstances and presuming everyone is in the same position.
There are 40 odd million adults in this Country, and 40 million different personal circumstances.
I, for one, have been self-employed for 35 years and rarely know how much I will make from one month to the next. This 50/30/20 bollox could never work for me or millions of others.
mgrlane said:
You can't open more than 1 S&S ISA in a year (in your own name) and although the LISA broker does support the stocks I buy their charges are more than the platform I use therefore I would be making less on the rest. Therefore I would actually end up losing money by investing into a LISA vs what I am doing now. iWeb has zero annual fess. Nothing. You pay £100 to open the account and then it's free to use and you just pay for every buy and sell transaction (which is the same as everywhere else apart from they also charge you an annual fee). If I was to do what you are suggesting I would actually lose circa £400 this year in annual fees initially but soon as that grows I would be losing £1K per year in fees due to the total ISA balance. Therefore it makes absolutely zero sense for me to put money into a LISA as I lose the top up in fees gaining nothing and tying up my money for no reason.
