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

jimjames

opinions4u wrote: »

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

Or not spend it!

jimjames

And saying you have 0 assets of any value is a little misleading, you may not have anything like material goods but savings as you have are not to be taken lightly when they can compound for your future.

octavian

Acquire_Assets wrote: »

Please private message me if you wish to know about some alternative investments which have excellent growth potential. Thank you

I would be very wary of any offers from anyone with no previous history especially if they want to keep it private.

Octavian

somethingcorporate

How can your career have gone to the dogs at 23?

Graduates don't even enter the market until this age!

patman99

Surely some of your shares pay dividends?. These add to your worth each year.

atush

I would agree with almost everyone here that you need to ignore Aquire Assets,

Streamline your portfolio, and increase your education to increase your employability. Consider a business locally. But set aside only a small portion of your money to risk.

I had only just started my first fullt ime job out of university at your age. If you are not university educated consider becoming so, even in your local country.

If you want the easy life and are happy to marry locally then do so, but if you feel this won't be the live for you then reconsider your long term options. And don't discount your future OH might want to go to the UK.

You are 23 with money in the bank and you can do anything you put your mind to.

cinderfella

It's not a bad idea to have a 'bolt hole' somewhere in the world, the location of which is down to you.
Why not streamline your investments at the same time and buy a bolthole for about that amount.
Berlin perhaps, and let a reputable letting agent let it out for you. Germany has an extremely robust economy but the fate of the euro might change that.
Then forget about finance at 23 and get on with your life.
There is alot happening in the financial world right now, crisis after crisis, this may well go on for a bit yet.
I think the bolthole approach is 'fair' & perhaps learn German - its a good country to work in.;)

IronWolf

I can only comment on parts of your portfolio that I know. The two I know well are Aviva and Tesco.

First on Aviva, quite popular among typical value investors at the moment but I think they're mistaken. Firstly it does not turn an underwriting profit and is therefore reliant on its investment returns to be profitable in its insurance arm. Thats not the sign of a strong insurance company, if you take a look at the insurers Berkshire Hathaway owns and invests in, they do make underwriting profits over time and thats one of the things Warren Buffet looks for.

Secondly, and more concerning, is their debt and interest charges. £1.5bn a year in interest to be precise. Last year they had net cash flow of only £1.8bn from operating activities. So they are highly likely to be forced to liquidate investments and assets in order to continue to meet debt obligations. Im not saying they are at risk of default, far from it, but being forced to sell investments is never a good thing, not the sign of a strong company. I haven't bothered to analyse whether their investors are talented or not, because the first two pretty much rule out Aviva for me.

My philosophy is summed up nicely by one of Buffets quotes "Its better to own a fantastic business at a fair price than a fair business at a fantastic price". Which leads me onto Tesco.

I've just gone into Tesco at under £4 a share, quite heavily. Earnings have tripled in 10 years and they are expanding agressively. They have a proven track record for outsmarting their competitors in the supermarket industry which I think will continue. Tesco's finest is now the biggest selling brand in the UK, second is Tesco Value (third is Coca Cola).

From reading their annual report, Tesco want the world, and they wont stop until they have it. They now go far beyond supermarkets and that diversity will only improve the resilience of their earnings over time.

Another important note is their debt, expansion shouldn't be funded by huge debts and this is how Tesco see's it too. They make use of debt to expand but its manageable and in the following years they actively pay it back down from earnings.

I think you paid a little more than I would have at £4.50, not saying you paid more than its worth, in fact I think £4.50 is a decent price for the share, but I like a margin of safety which is why I bought at £4.

Long term I think tesco will do you well.

C_Mababejive

The trouble with buying into individual shares is that you have keep checking them and have an exit strategy.

OTOH if you buy into funds,someone else does that for you. Someone who is hopefully more skilled.

Its very easy to take your eye off the ball with individual shares. You watch them go high and feel good,you watch them go low and wonder if they will stop going lower...

blinko

IronWolf wrote: »

I can only comment on parts of your portfolio that I know. The two I know well are Aviva and Tesco.

First on Aviva, quite popular among typical value investors at the moment but I think they're mistaken. Firstly it does not turn an underwriting profit and is therefore reliant on its investment returns to be profitable in its insurance arm. Thats not the sign of a strong insurance company, if you take a look at the insurers Berkshire Hathaway owns and invests in, they do make underwriting profits over time and thats one of the things Warren Buffet looks for.

Secondly, and more concerning, is their debt and interest charges. £1.5bn a year in interest to be precise. Last year they had net cash flow of only £1.8bn from operating activities. So they are highly likely to be forced to liquidate investments and assets in order to continue to meet debt obligations. Im not saying they are at risk of default, far from it, but being forced to sell investments is never a good thing, not the sign of a strong company. I haven't bothered to analyse whether their investors are talented or not, because the first two pretty much rule out Aviva for me.

My philosophy is summed up nicely by one of Buffets quotes "Its better to own a fantastic business at a fair price than a fair business at a fantastic price". Which leads me onto Tesco.

I've just gone into Tesco at under £4 a share, quite heavily. Earnings have tripled in 10 years and they are expanding agressively. They have a proven track record for outsmarting their competitors in the supermarket industry which I think will continue. Tesco's finest is now the biggest selling brand in the UK, second is Tesco Value (third is Coca Cola).

From reading their annual report, Tesco want the world, and they wont stop until they have it. They now go far beyond supermarkets and that diversity will only improve the resilience of their earnings over time.

Another important note is their debt, expansion shouldn't be funded by huge debts and this is how Tesco see's it too. They make use of debt to expand but its manageable and in the following years they actively pay it back down from earnings.

I think you paid a little more than I would have at £4.50, not saying you paid more than its worth, in fact I think £4.50 is a decent price for the share, but I like a margin of safety which is why I bought at £4.

Long term I think tesco will do you well.

Nice work but I have to disagree on Tesco.

If not debt how should expansion be funded ? especially with money so cheap ?

I would disagree on them as an investment, them seem to be stuck in a trading range, plus there yield isn’t anything to be excited about.

Why not shell or BP

I think given the timeframe you are going to have to work harder than to just put the money into shares and leave it. Unit trusts may be better if you want to leave the share picking to someone else