The "Grow your wealth by 12% in 2015" thread!

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  • Kendall80
    Kendall80 Posts: 965
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    the most recent data i could find suggests the average brit has a NW of 147k. Seems low?


    Guess we're about that as a couple. Average, I've been called far worse.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    All this optimism has got me worried because it often precedes a crash. 10 year Bund Yields at 0.7% could yet turn out to a bargain.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • How do you track the growth for this thread?

    Is it the annualised return, the return on investment, just a flat percentage? Do you have to do special maths to work out the growth if you sell assets, or buy shares at a lower price than they were before? etc
    Goals
    Save £12k in 2017 #016 (£4212.06 / £10k) (42.12%)
    Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
    Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)
  • black_taxi_2
    black_taxi_2 Posts: 1,816
    Debt-free and Proud! Mortgage-free Glee!
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    I'm investing £600 a month,so £7200 + 15% = £8280

    actualy hoping market dives as I'm in longterm
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
  • jimjames
    jimjames Posts: 17,482
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    edited 2 December 2014 at 9:10PM
    Glen_Clark wrote: »
    All this optimism has got me worried because it often precedes a crash. 10 year Bund Yields at 0.7% could yet turn out to a bargain.

    Have a read of some of the other threads.

    Apparently the market is at a peak and is too high to invest right now.

    It's not universal optimism!
    black_taxi wrote: »
    I'm investing £600 a month,so £7200 + 15% = £8280

    actualy hoping market dives as I'm in longterm


    That actually works out a lot more than 15%. Bear in mind that only one of your payments is invested for the whole year.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • TrustyOven wrote: »
    How do you track the growth for this thread?

    Is it the annualised return, the return on investment, just a flat percentage? Do you have to do special maths to work out the growth if you sell assets, or buy shares at a lower price than they were before? etc


    net worth is your assets minus your liabilities. If your nw is 100k at jan 1st and you increase this to year end to 112k, thatl be your 12% covered.


    easy if you are not worth very much!!
  • easy...

    Agree easy at first but gets harder. I have no idea what I will earn next year, but even if I somehow teleported to a fantasay world where I could live for free and saved every single penny of income, net wealth would unlikely increase by 12%. (I would be married to Jennifer Aniston though)

    And yet by some magic my figures for the last few years have done just this. Excluding the value of pensions, net wealth increased by 39% (2009), 20%(2010), 11% (2011), 22% (2012), 28%(2013) and 22% (2014 so far). Drilling down the action was in asset appreciation, compounding, one off windfalls, unexpected gains. And leverage was the special juice: at peak I had 266% gearing (£2.66 mortgage for every £1 of net wealth). Didn't sleep too well at the time.

    The last 5 years were ladders but 2008 was a snake: -45%!!! That was the year I decided to get a grip on this issue.

    "grow 12%" is a random figure by the way based lightheartedly on the "save £12k" thread. I suspect the truth is that it is impossible to predict the way the winds blow about these things. If the economic events of 2008 repeated and shares fell 50%, bonds 20% and property 25% most people's net wealth would take another drubbing I expect. As far as I can tell, the people who survived unscathed were into precious metals and they have most likely taken a drubbing since, unless they timed the exit right. Or possibly had something like http://www.bogleheads.org/blog/harry-brownes-permanent-portfolio/
  • those percentages look good over the last 5 years. Heres hoping the next 5 are as kind to us all.


    i have not really been that interested in recording data... Ive always saved.. But only really got into the stats of it all and where its coming and going in the last year or so. Ties in with me buying a new home and just generally being more financially aware.

    now this year ive increased my net worth by about 80% of my salary. This seems huge. Ive also only calculated nw as 50% from increased value in property and equity gained by mortgage payments as i have a joint mortgage. If i applied a whats hers is mine approach, well i would have increased nw by more than my salary.




    is this common? To increase nw by in excess of salary each year? Im early 30s so if this is achievable then early retirement must be on the cards?
  • black_taxi_2
    black_taxi_2 Posts: 1,816
    Debt-free and Proud! Mortgage-free Glee!
    Forumite
    im out


    im self employed/off sick recently


    now realise I have to build up some money reserves before I invest


    building up bank balance(emergency fund/cash isa 2015


    seeya 2016
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
  • boglehead
    boglehead Posts: 168 Forumite
    Hi Racing - good to read you as usual.
    I agree with you when you say the 12% growth is totally random, given that a lot of it will depend on what the stock and property market are doing in 2015. The only-ish thing in our control is our own saving rate.

    I am planning my NW to increase by £125k excluding market/property appreciation, and that will be combination of savings (pension, ISA, etc...), paying debt and mortgage down.

    That should be around a 12% growth too :)

    The big unknown that could be no so positive for me:

    1- 25% of my NW is currently invested in stocks (vaguard VWRL) - and I really think that the market is bound to correct in the next 12months - although I said the exact same thing in Jan last year...

    2- the new stamp duty rules should also slow down the property price in London - as the potential buyers in my house price range would now have to dish out 7.5-8.0% for the stamp duty. I really think it will put pressure on my house valuation... and my house is currently 75% of my NW
    Total Debt
    12/2012 - £893k (mortgage and toys loans)
    11/2019 - £556k (mortgage only)
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