Am I well balanced?

System

There were reasons for the way I did things and my way of thinking and those had to be discussed before I could potentially change it

I'm personally not overly worried about volatility as I'm long term, as long as I don't sell during a crash and the general trend is up, so I think go for growth

SavvySparkle

Thanks Matthew...Yes I agree re the Lifetime ISA, although anything ageist annoys me somewhat...anyone below retirement age, certainly at least up to the age of 50 should be able to benefit from a LISA if they would like to, the £1000 free top up with a 'guaranteed' no risk pot of money could help a lot of people over the age of 40 for their pension pot provisions. It sounds like you yourself are doing okay - you have a good amount of equity and I would agree you need to increase your accessible pot of cash for 'if needed' no ones job is 100% safe, even if you are self employed/have your own business unexpected things can happen (& I know Brexit has caused a few surprises for some people I know who have been 'stable' for years). With regard to investments in riskier areas/stocks and shares etc, you can make a lot of money or lose a lot of money, so I think it's a case of careful balancing of risks as you go... you are just starting out with those, so you can 'balance as you go'. I do think the amount someone earns and job choices made are irrelevant re some comments made by some people... living to ones means and taking risks that are affordable to the individual's circumstances are what matters, everyone's different.

System

I would agree, I don't know if the help to buy isa covers much of the sane ground or not regarding first purchase. I also don't know if lifetime isa balances would factor into benefits calculations, pensions don't.

I think when people lose money on investments its because they're not "buy and hold" ing, and because a lot of novices put too much in one company. They think its all about short term capital gains (the realm of professionals who are more up to date than them and can outmanouver them)

At the end of the day if you have any sort of accumulation fund (reinvesting dividends) over 30 years you're highly unlikely to come out with less than you started. Being long term means volatility doesn't matter too much until you sell and if anything may help it grow

System

I'm the correct age for the lifetime isa but I bought my first in 2011 so I also miss out on the government help for that, but on the flip side I've not suffered as much from rising prices as my sister has who's buying now. While I could still have one as a retirement pot, having a second pension is better in every way I'm aware of

masonic

SavvySparkle wrote: »

Yes I agree re the Lifetime ISA, although anything ageist annoys me somewhat...anyone below retirement age, certainly at least up to the age of 50 should be able to benefit from a LISA if they would like to, the £1000 free top up with a 'guaranteed' no risk pot of money could help a lot of people over the age of 40 for their pension pot provisions.

A one-off 25% return spread over an average of 15 years would equate to just under 1.5% per year. Add on some nominal interest rate for holding in cash and I don't think it will make a great deal of difference. Meanwhile, inflation will be eroding the value of their savings to a greater extent overall. Contrast that with the >25% boost they'll get in a pension, but in which they'd almost certainly invest for a better return, and I think the LISA could lead to risk averse people having less in retirement, not more.

System

What masonic describes is ordinary people going cash rather than s&s, that's what I thought at first and I concluded it was naff, but then people said about s&s and that's what got me into it

Apodemus

MatthewAinsworth wrote: »

I think when people lose money on investments its because they're not "buy and hold" ing, and because a lot of novices put too much in one company.

Totally agree, eggs and baskets...but when you only have one egg, you are best to start by putting it in your safest basket rather than breaking it just so that you can spread it around.

System

That's what funds are good for though, you could spread £100 over hundreds of companies. They achieve the diversity an individual investors never could

Credit-Crunched

bowlhead99

MatthewAinsworth wrote: »

I'm the correct age for the lifetime isa but I bought my first in 2011 so I also miss out on the government help for that, but on the flip side I've not suffered as much from rising prices as my sister has who's buying now. While I could still have one as a retirement pot, having a second pension is better in every way I'm aware of

Maybe you are not aware of many of the "ways" then.

For example, the Lifetime ISA allows you to get the money back if you realise you could not live without the money until your pension access date after all, albeit with a penalty.

Another example, the bonus is an equivalent amount to the basic rate tax relief, yet the withdrawals from an ISA are not taxable in retirement, while pensions are.

These options could have significant value for many people. Even if the "buy a first home with your LISA bonus" is not available, it's certainly true to say that at some levels of income, traditional personal pension contribution is more compelling than lifetime isa but at others it is quite likely not, YMMV etc.