Planning for younger people

atush

I do think something like a S&S ISA is the way to go once I've enough to make it worthwhile.

You dont have to start large- just try 100 a month or even 50.

And quantum physics? I'd try for a position at Cern- here they have great working conditions and includes 3 course lunches with wine lol.

Rosemary7391

jamesd wrote: »

Anything. Get started as soon as you can. Not because it would achieve a high value but because you need to learn the feelings of being invested during good and bad times to prepare you for what happens when larger amounts of money are involved. The emotional effects are significant and can cause you to make crucial mistakes like selling near market lows or buying near market highs with lump sums. You also need to work out what sort of volatility in value you can stand to help you to pick how to invest.

It's completely normal for there to be a 20% drop in the UK stock market two or three times a decade and 40% once or twice a decade and you'd historically have obtained 5% plus inflation average annual returns. But can you deal emotionally with such drops even though you know the long term outcome? No way to really know until you've been there with real money at stake. So get started with at least something while the cost of finding out is low.

Places with percentage-based fees are quite common, like say Hargreaves Lansdown. Very cheap when you don't have much money invested.

Yes, for now. Longer term you might consider setting things up to give at least the chance of retiring at 50 or 60. A lot of people do end up finding that they dislike their job and it's nice to have the option.

To some extent you get that almost free if you have a somewhat different objective: being able to live long term without benefits. That gets you a good way there, then financial independence is something that a fair number of people find they like to do, which means getting to the point where you can do that at an income you like if you were to stop working. Later still might be the level at which you'd choose to retire unless you just enjoyed your job. What this sort of thing can get you is the freedom to choose. I started on it in 2005 after spending all of my savings doing a very worthwhile full time bit of volunteering and it'll give me the freedom to choose to do that without running out of money again. No need now for me to be upset if I was to lose my job, even though it's one I find fine and am content to carry on with.

Okay, I think I can be quite objective about it but you're right about getting used to it with smaller amounts of money.

Re the latter part - I really cannot see myself retiring early. Partly because I won't be able to afford to, not if I want to buy a house in the SE. I can't think of anything worse than retiring stuck in a flat 4 hours journey from where my friends have settled; unfortunately my friends have money and have settled near London, and I don't cope well with noise or neighbours, so for my sanity I'll need to work longer and not be in a flat indefinitely. I suppose one advantage of having a house is that if I do find myself unemployed, I can take in (quiet!) lodgers, so that would give me some security.

atush wrote: »

You dont have to start large- just try 100 a month or even 50.

And quantum physics? I'd try for a position at Cern- here they have great working conditions and includes 3 course lunches with wine lol.

Yes, I think once I've got my latest batch of expenses repaid I'll get started, then add £100 a month or so. I would run very very far away from Cern no matter how good the lunches are - particle physics is not my thing! There are some good places around the world in my field though, so I shan't be tied to the UK if I don't want to be. Actually, Germany is probably quicker to travel to my friends' houses than where I am currently!

atush

Look at teaching in the USA, there are very good salaries in very good institutions looking for people like you i think.

And given the funding of said institutions there are also good facilities.