I’m 23 – how can I make GBP83,000 last for the rest of my life?

mark1234567890

Good morning everyone,

My net worth according to my Financial Times Portfolio is GBP83,000. On paper this looks very good for a 23 year old but I am very worried about my future.

My wealth is all invested in savings accounts and financial products. I have literally 0 assets of any value. I am even writing this post on my girlfriends’ laptop because I don’t have one of my own.

Last year I invested in some funds and individual stocks because I was feeling bearish and wanted to do something about the pitiful interest rate I get on my savings at the bank. Of course the majority of these have lost money. My portfolio breakdown is as follows:

[FONT=&quot]Name[/FONT]
[FONT=&quot] Current Value[/FONT]
[FONT=&quot] Total Gain/Loss[/FONT]



[FONT=&quot]Aviva PLC[/FONT]

[FONT=&quot]461.62[/FONT]

[FONT=&quot]-34.35[/FONT]

[FONT=&quot]Savings[/FONT]

[FONT=&quot]5,220.25[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Current account[/FONT]

[FONT=&quot]386.29[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]old isa[/FONT]

[FONT=&quot]5,352.64[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Berkshire Hathaway Inc[/FONT]

[FONT=&quot]668.61[/FONT]

[FONT=&quot]-100.41[/FONT]

[FONT=&quot]BP PLC[/FONT]

[FONT=&quot]547.51[/FONT]

[FONT=&quot]53.08[/FONT]

[FONT=&quot]British American Tobacco PLC[/FONT]

[FONT=&quot]511.2[/FONT]

[FONT=&quot]21.94[/FONT]

[FONT=&quot]Cable and Wireless Communications PLC[/FONT]

[FONT=&quot]67[/FONT]

[FONT=&quot]-5.72[/FONT]

[FONT=&quot]Cadogan Petroleum PLC[/FONT]

[FONT=&quot]260.29[/FONT]

[FONT=&quot]-79.69[/FONT]

[FONT=&quot]Fidelity China Focus GBP NAV[/FONT]

[FONT=&quot]470.19[/FONT]

[FONT=&quot]-29.81[/FONT]

[FONT=&quot]First State Indian Subcontinent A Acc NAV[/FONT]

[FONT=&quot]475.2[/FONT]

[FONT=&quot]-24.8[/FONT]

[FONT=&quot]HSBC American Index Acc[/FONT]

[FONT=&quot]486.36[/FONT]

[FONT=&quot]-13.64[/FONT]

[FONT=&quot]HSBC Asian Growth Acc[/FONT]

[FONT=&quot]474[/FONT]

[FONT=&quot]-26[/FONT]

[FONT=&quot]HSBC European Index Acc[/FONT]

[FONT=&quot]489.78[/FONT]

[FONT=&quot]-10.22[/FONT]

[FONT=&quot]HSBC FTSE 250 Index Acc[/FONT]

[FONT=&quot]540.13[/FONT]

[FONT=&quot]40.13[/FONT]

[FONT=&quot]Invesco Perpetual High Income Acc[/FONT]

[FONT=&quot]538.88[/FONT]

[FONT=&quot]38.88[/FONT]

[FONT=&quot]Legal & General Global 100 Index Trust Acc[/FONT]

[FONT=&quot]516.7[/FONT]

[FONT=&quot]16.77[/FONT]

[FONT=&quot]Legal & General High Income Trust R Acc[/FONT]

[FONT=&quot]566.04[/FONT]

[FONT=&quot]66.05[/FONT]

[FONT=&quot]Legal & General Pacific Index Acc[/FONT]

[FONT=&quot]638.45[/FONT]

[FONT=&quot]138.45[/FONT]

[FONT=&quot]Legal & General UK 100 Index Trust R Acc[/FONT]

[FONT=&quot]561.62[/FONT]

[FONT=&quot]61.61[/FONT]

[FONT=&quot]Lloyds Banking Group plc[/FONT]

[FONT=&quot]333.45[/FONT]

[FONT=&quot]-166.53[/FONT]

[FONT=&quot]National Grid PLC[/FONT]

[FONT=&quot]493.44[/FONT]

[FONT=&quot]26.72[/FONT]

[FONT=&quot]savings[/FONT]

[FONT=&quot]450[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]savings[/FONT]

[FONT=&quot]12,024.50[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]current account[/FONT]

[FONT=&quot]50[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]savings account[/FONT]

[FONT=&quot]86.29[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]bond[/FONT]

[FONT=&quot]15,615.89[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]bond[/FONT]

[FONT=&quot]11,185.92[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Rio Tinto PLC[/FONT]

[FONT=&quot]533.72[/FONT]

[FONT=&quot]65.38[/FONT]

[FONT=&quot]Royal Bank of Scotland Group PLC[/FONT]

[FONT=&quot]438.97[/FONT]

[FONT=&quot]-61[/FONT]

[FONT=&quot]Royal Dutch Shell Plc[/FONT]

[FONT=&quot]467.61[/FONT]

[FONT=&quot]-21.06[/FONT]

[FONT=&quot]TESCO Plc[/FONT]

[FONT=&quot]93.66[/FONT]

[FONT=&quot]-3.47[/FONT]

[FONT=&quot]Threadneedle Latin America Retail Shares NAV[/FONT]

[FONT=&quot]475.84[/FONT]

[FONT=&quot]-24.16[/FONT]

[FONT=&quot]Threadneedle UK Monthly Income Retail Shares[/FONT]

[FONT=&quot]493.8[/FONT]

[FONT=&quot]-6.2[/FONT]

[FONT=&quot]savings[/FONT]

[FONT=&quot]3,210.30[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]savings[/FONT]

[FONT=&quot]4,729.34[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Unilever PLC[/FONT]

[FONT=&quot]484.25[/FONT]

[FONT=&quot]-3.93[/FONT]

[FONT=&quot]usd savings[/FONT]

[FONT=&quot]180.31[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Vodafone Group Plc[/FONT]

[FONT=&quot]525.46[/FONT]

[FONT=&quot]46.67[/FONT]

[FONT=&quot]Xcite Energy Ltd[/FONT]

[FONT=&quot]23.2[/FONT]

[FONT=&quot]-27.63[/FONT]

[FONT=&quot]bond[/FONT]

[FONT=&quot]10,597.26[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]bond[/FONT]

[FONT=&quot]430.93[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Yum! Brands Inc[/FONT]

[FONT=&quot]795.45[/FONT]

[FONT=&quot]15.3[/FONT]

[FONT=&quot]Zopa[/FONT]

[FONT=&quot]500[/FONT]

[FONT=&quot]0[/FONT]

I applied for a pensions forecast and was told that I have 3 years of “youth credits” so I will get 3/30 worth of state pension when I retire at 70. I expect to live well beyond this age as I am a very healthy person who doesn’t indulge in any vices.

The reason I post this is because my career has pretty much gone to the dogs. I have moved to an Asian country where I am happy to live and will marry locally next year and stay here because it is an easy life. My lifestyle and salary is good locally but when converted into pounds it is nothing. My monthly salary for a full time position is just under GBP400. After all outgoings I could save around GBP50 per month. If I save this amount everymonth after 50 years I will have GBP30,000. What will that buy in 50 years time? Not even a Mars Bar I guess.

Does anyone have any advice as to what I can do with these assets to ensure a brighter future for me and my family? As you can see from my investment performance I am not a great stock picker.

Any input would be appreciated.

Thanks

Mark

Totton

You are doing fantastic at your age, over time your investing should see you very well placed for later life. Of course lots of us could recommend 'better' investments etc but I wouldn't worry about that too much when you have so much time ahead of you.

You have a lot of small positions which may cost too much to exit from so I would think about the future and slowly consolidate into perhaps fewer holding, keep the bonds if you like the security and sleeping at night :-)

Your projection of 30k after 50 years looks very wrong, don't forget that you should enjoy the benefits of compounding over that time so you should have a lot more than what you are currently expecting.

If it were me I would be consolidating those holdings and staying invested in the Asia-Pacific regions, I wouldn't worry about earning £400 pm if that were a good living, everything is relative unless you are planning on moving back to the UK soon.

Best of luck,
Mickey

blinko

you are doing well to be investing at your age. but at the same time you do need maturity i notice you are still holding excite why didn't you sell on the bad RAR report, it will probably take several years to hit £3 again assuming it does.

you have alot of holdings, is there a reason for this ? are you able to keep track of them all ?

eg TESCO is a cylical stock it never really does much why do tyou have this in your folio, you would be better buying this on weakness and selling on strength

the bottom lineis you can't make 83k last for the rest of your life. all you can do is build it up eg 10% a year in 10 years will be 166k

I think you need to re think you portfolio and try and narrow down your investments, you seem to be invested in the whole world !!??

your doing well for your age but don't forget how hard it is on the markets. It has taken me a year of playing with them to finally start making profit

Totton

blinko wrote: »

the bottom lineis you can't make 83k last for the rest of your life. all you can do is build it up eg 10% a year in 10 years will be 166k

Not quite accurate methinks, compounding would take that a lot higher than simply double.

ses6jwg

your portfolio looks extremely bitty to me

Ifts

mark1234567890 wrote: »

My wealth is all invested in savings accounts and financial products. I have literally 0 assets of any value. I am even writing this post on my girlfriends’ laptop because I don’t have one of my own.

Sorry slightly of topic here, although you are doing great for your age with your current savings, being responsible and planning your financial future is never a bad thing, better than getting in to debt.

Please don't forget to also invest in yourself, go out there and enjoy being young and have fun!

"You can't keep money around for ever. It's like saving sex for your old age"

hcb42

if salary and lifestyle is good for what you earn in Asia - what does it matter the value in pounds?

DavidHayton

hcb42 wrote: »

if salary and lifestyle is good for what you earn in Asia - what does it matter the value in pounds?

Good point, but the OP may want to have the option of returning to the UK in the future.

OP: I agree with others that your portfolio is rather "bitty". Also, do consider whether it is sensible to invest in individual stocks when you are far away, and maybe get out of touch with the news. My suggestion is that you look to consolidate in investment trusts.

As for growth, if your portfolio increases at 7% pa, and if inflation is 3% pa, your net growth is 4% pa. Over 30 years, this compounds by 1.04^30 = 3.24 (i.e., an increase of +224% in todays terms). This means that your £83k would grow to 83 * 3.24 = £269k in today's terms. If you then tried to live on this, you could maybe withdraw 3% pa and preserve the value of your capital. That would yield £8070 pa in today's terms.

Best wishes
David

opinions4u

I’m 23 – how can I make GBP83,000 last for the rest of my life?

The only answer I can think of here is ... die young!

Maverick1984_2

This may sound a bit obvious but seeing as you're into investing, why don't you begin investing in yourself by getting some formal education?
You may feel like your career is down the pan, but you're still young to learn and pick up new skills - Investing in yourself is probably the smartest move you can make at your age as it increases your personal value.

There are literally loads of ways to invest in things, from being an entrepreneur to being a property developer etc, but it all starts from learning skills. Don't be seduced into the easy life just because you're in a country that provides a decent living for little money. Spend it bettering yourself and learning new skills. That's point 1.

Point 2 - A good way to make some extra cash is to start studying the currency markets. My cousin and uncle have been profiting from transfering their money back and forth from Lira to GBP and vice versa. They do this by studying when the market rate increases and when it lowers.

If you don't want to lose money and see your money work as an asset, learn the markets and try and find out the best independent companies you can use if ever you want to transfer your money without having to worry about paying a hefty transfer fee. The best place to start is a company called www.rationalfx.com.

Mallotum_X

If you are worried about the furture and not having enough money then get a real job and stop bumming about in an asian country.

If you like it there then why not work out how you can set yourself up, based on your monthly income you have 17 years worth of salary in investments - thats a huge amount, so I would look into buying a business and house locally.

Ignore pension from the UK, by the time you retire the age limit will have jumped up further and more than likely new rules will take the pension away from most people.

Start planning a life for where you want to live.