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  • FIRST POST
    • Not Me Officer
    • By Not Me Officer 17th Jun 17, 8:46 AM
    • 208Posts
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    Not Me Officer
    Experienced people: if you had to do 30+ 40+ year investing again?
    • #1
    • 17th Jun 17, 8:46 AM
    Experienced people: if you had to do 30+ 40+ year investing again? 17th Jun 17 at 8:46 AM
    I was on another website/forum late on last night and a poster was detailing what they would do if they could go back in time and invest for the long term - 30+ 40+ years (retirement basically). What stood out for me is they were actually detailing for a mid 30s person when most of the posts like that i read i get the impression they're for early 20 somethings. Of course one post from one person is just that persons opinion but since i'm a member here & not there it made me wonder.

    I've already pretty much decided what i'm investing in, although i may add a second fund. I'm just looking at where and in what (ISA/pension) so don't worry i'm not asking for you to select for me.

    All my research has also been done for my wife, my sister & my brother as we're all looking to do the same thing (save for retirement) but just with differing amounts and views on risk.


    So that i can relate to your answer i'd just say...

    * from a mid 20s perspective and a mid 30s perspective (obviously my siblings are mid 20s with £10k and £4k invested, my wife and I are mid 30s with £7.5k each ready for investing)

    * already meeting the requirements to get the most out of the auto-enrolment workplace pension (which is unfortunately the minimum, no salary sacrifice available for any of them) would you ISA/pension/both? Would you put more in one than the other?

    * what would you invest in? (maybe not specific funds (such as maybe you don't say specifically VLS100 but would maybe say index trackers that include xyz))
Page 1
    • AnotherJoe
    • By AnotherJoe 17th Jun 17, 9:35 AM
    • 6,512 Posts
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    AnotherJoe
    • #2
    • 17th Jun 17, 9:35 AM
    • #2
    • 17th Jun 17, 9:35 AM
    I would have a small allocation, say 10% for "gambling" on individual shares, and then the rest in funds, most of which would be index trackers. I did the opposite until recently, which worked out well, through a mixture of luck and good stock picking ( in that order), but i suspect would have been better and certainly with fewer wild swings, had i taken a simpler strategy.
    Age doesn't matter.
    If high rate tax payer, pension is a no-brainer, if standard rate i can see the upside of ISAs over locking the money away (but if this investing is for a pension locking it away out of temptation is probably a good idea.)
    I would also buy a bigger house than i needed so i could downsize much later and take out a lot of tax free gains.
    • Not Me Officer
    • By Not Me Officer 17th Jun 17, 9:45 AM
    • 208 Posts
    • 22 Thanks
    Not Me Officer
    • #3
    • 17th Jun 17, 9:45 AM
    • #3
    • 17th Jun 17, 9:45 AM
    I knew i'd forget something - all those involved for the purpose of me asking are basic rate tax payers and all of us will probably remain that way throughout our working lives.

    However regards salary sacrifice i said that it was a no go for all of us. I just realised after posting this that it's only a no-go for everyone except my wife who actually hasn't put it to her employer, so that may or may not be an option. Until it's agreed it obviously isn't an option but it might be one.


    I think my wife and I are quite lucky with the house buying. I was able to save up quite a deposit for my age and we bought what would probably be most peoples second home. Around this area at least. We're getting towards being too old to have children so if that ship sails then we'll be 2 people in a 3 bed semi - so plenty room to downsize.


    At the moment i'm currently looking at the idea of running 1 fund alongside the VLS80. After more reading i found it was lacking in areas. I don't want to spread too thinly and have 3-4-5-6 funds especially on the amounts i'm working with (7.5k deposit with £200pm) so i'd max out at 2 (VLS80 being one of them). I think i'm going to take a day or so off from it all though as i've done nothing but read for about 2 weeks solid it seems

    Thanks for the response.
    • Apodemus
    • By Apodemus 17th Jun 17, 10:10 AM
    • 634 Posts
    • 464 Thanks
    Apodemus
    • #4
    • 17th Jun 17, 10:10 AM
    • #4
    • 17th Jun 17, 10:10 AM
    What would I do?

    Start earlier.
    Hold less of a cash emergency buffer.
    Put 10% of after-tax income away at the start of every month into savings/investments.
    Always reinvest dividends.
    Understand the awesome value of compounding at an earlier age.
    Switch to pension focus at age 45.

    Apart from that...spend more on "wine, women and song"!
    • AnotherJoe
    • By AnotherJoe 18th Jun 17, 10:34 AM
    • 6,512 Posts
    • 6,927 Thanks
    AnotherJoe
    • #5
    • 18th Jun 17, 10:34 AM
    • #5
    • 18th Jun 17, 10:34 AM
    I think my wife and I are quite lucky with the house buying. I was able to save up quite a deposit for my age and we bought what would probably be most peoples second home. Around this area at least. We're getting towards being too old to have children so if that ship sails then we'll be 2 people in a 3 bed semi - so plenty room to downsize.
    Originally posted by Not Me Officer
    I suspect you wouldn't. In my case i would certainly have been quids in had a I bought a 4 or 5 bed instead of staying in a 3, and you can certainly downsize from a 4 or 5 bed to a 2 with money left over.

    I doubt that downsizing into a 2 from a 3 would save you much if anything especially if for example it was into a purpose built flat which at decent spec is likely to cost similar. Plus I suspect the SDLT and similar taxes will wipe out the difference between a 3 and a 2 anyway.
    • TheTracker
    • By TheTracker 18th Jun 17, 11:03 AM
    • 1,052 Posts
    • 1,044 Thanks
    TheTracker
    • #6
    • 18th Jun 17, 11:03 AM
    • #6
    • 18th Jun 17, 11:03 AM
    I knew i'd forget something - all those involved for the purpose of me asking are basic rate tax payers and all of us will probably remain that way throughout our working lives.
    Originally posted by Not Me Officer
    If only you had as much ambition and drive to increase your income as you do to manage your savings for retirement.

    Earn more, save more, spend less. Try to tackle all three.
    • bostonerimus
    • By bostonerimus 18th Jun 17, 2:09 PM
    • 328 Posts
    • 178 Thanks
    bostonerimus
    • #7
    • 18th Jun 17, 2:09 PM
    • #7
    • 18th Jun 17, 2:09 PM
    If only you had as much ambition and drive to increase your income as you do to manage your savings for retirement.

    Earn more, save more, spend less. Try to tackle all three.
    Originally posted by TheTracker
    If I knew what I know now, then back in 1987 I'd have put all my money into something like AAPL.

    But that's just fantasy, so I wouldn't change anything. I'd be frugal, educate myself so I could DIY and avoid unnecessary IFA and fund fees and save regularly into low cost index tracker funds. I probably have another 30 years of retirement and will have to manage my money and I'll do that same as I've been doing for the last 30 years as that's worked quite well......APPL would have netted me 20% annual return, but my index trackers have give me 8% a year and that's been easily enough to retire on at age 52.
    Misanthrope in search of similar for mutual loathing
    • Not Me Officer
    • By Not Me Officer 18th Jun 17, 2:24 PM
    • 208 Posts
    • 22 Thanks
    Not Me Officer
    • #8
    • 18th Jun 17, 2:24 PM
    • #8
    • 18th Jun 17, 2:24 PM
    If only you had as much ambition and drive to increase your income as you do to manage your savings for retirement.

    Earn more, save more, spend less. Try to tackle all three.
    Originally posted by TheTracker
    Things are easy when we talk about them.
    Even easier when we talk about other peoples situations.

    Knowing what you want to do is probably 75% of the battle.
    • cynicaldoc
    • By cynicaldoc 19th Jun 17, 12:21 PM
    • 15 Posts
    • 8 Thanks
    cynicaldoc
    • #9
    • 19th Jun 17, 12:21 PM
    • #9
    • 19th Jun 17, 12:21 PM
    I would have bought as much Bitcoin as I could have afforded 10 years ago and held my nerve!
    • AimHigh
    • By AimHigh 19th Jun 17, 1:11 PM
    • 47 Posts
    • 6 Thanks
    AimHigh
    What would I do?
    Switch to pension focus at age 45.
    Originally posted by Apodemus
    When you say 'switch to pension focus' - what would you be focused on between 'starting earlier' and 45?
    • Eco Miser
    • By Eco Miser 19th Jun 17, 1:49 PM
    • 2,835 Posts
    • 2,626 Thanks
    Eco Miser
    If only you had as much ambition and drive to increase your income as you do to manage your savings for retirement.
    Originally posted by TheTracker
    I spent the last 18 years of my working life on 15-25 hours a week. I'm sure i enjoyed the extra free time more than I'd have enjoyed the extra money.

    I still ended up with more income than I know what to do with.
    Eco Miser
    Saving money for well over half a century
    • stoozie1
    • By stoozie1 19th Jun 17, 2:09 PM
    • 196 Posts
    • 85 Thanks
    stoozie1
    Just because someone will be on basic rate for tax for their whole working life does not in any way mean that they have not had considerable ambition to increase their income. By 2020 Basic rate goes up to £50k.
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