25 year old.. How can I retire ASAP?

Fatbritabroad

dunstonh wrote: »

Advice by way of a business would require qualifications and FCA authorisation. You would also need liability insurance and have audit trails. Suddenly, you have tens of thousands of pounds costs a year and a lifetime of liability. Plus, your service would be subject to VAT.

Since 2013, the advice requirement moved from sale of a product to advice being the actual product.

You can call it guidance or coaching to avoid regulatory issues but that means you couldnt say how to invest, what type of pension to use, what tax wrappers to use or which providers to use. Totally generic with no hint of steering.

So, you could explain what a stakeholder pension is but you couldn't answer the question as to whether a stakeholder or personal pension is best for someone. Or you could explain what life funds, pension funds, UTs/OEICs, SICAVs, ITs, ETFs etc are but you couldn't tell someone which they should invest in.

This is why you see so few guidance services. The largest is pensionwise and many consumers end up being disappointed with it as they think they are going to get advice. And when they ask advice questions, they get told to see an IFA.

Thanks Dunston yes that's the other option retraining as an Ifa! . Its not anything I'd looked into in detail

Yes I Was quite pro rdr but it has meant a void for often the people who need the most help. You're absolutely right financial advice would need to be given by an Ifa but I find alot of people (my friends being a case in point) who have literally no idea about financial goal setting or what a pension and an isa actually is. And that includes colleagues of mine In the financial services company I work for who are up in arms about the
Increase in 2% contribution to their dc pension because a) they can't afford it and b) they are worried if the company goes bust they'll lose all their money.

Its basic things like this. We have a product that does this but its aimed at over 50s and by then it's too late imo

dunstonh

Yes I Was quite pro rdr but it has meant a void for often the people who need the most help.

We actually found RDR wasnt the big killer. MiFIDII is the big one.

RDR allowed for less frequent reviews than annually. So, low value investors could have reviews every 2 or 3 years which is typically all that was needed for them and make the occasional ad-hoc phone call or email. So, you could continue to service them and it worked. MiFIDII insists on a more formal review process and must be at least annually. Annual reviews for small value stuff is not profitable. We are two thirds of the way of culling just over 70 servicing clients. Clients that dont want the service to end but the EU is making it unprofitable to give them what they want.

Fatbritabroad

dunstonh wrote: »

We actually found RDR wasnt the big killer. MiFIDII is the big one.

RDR allowed for less frequent reviews than annually. So, low value investors could have reviews every 2 or 3 years which is typically all that was needed for them and make the occasional ad-hoc phone call or email. So, you could continue to service them and it worked. MiFIDII insists on a more formal review process and must be at least annually. Annual reviews for small value stuff is not profitable. We are two thirds of the way of culling just over 70 servicing clients. Clients that dont want the service to end but the EU is making it unprofitable to give them what they want.

That's interesting I hadn't appreciated that. How ridiculous as you say for alot of people ad hoc advice is all that's needed.

Arthurian

OP, I find that the trouble with working is almost never the job, but the people you have to work with. Could you apply for the same job but with a different firm somewhere? Hopefully somewhere where the staff are happy, enthusiastic and helpful?

justme111

mollycat wrote: »

Sums my thoughts up on the matter perfectly.

Early retirement (at say 55) with enough resources to have a safe and enjoyable life thereafter takes a combination of hard work and sensible levels of spend; front loading ones contribution to the labour market and sacrificing/deferring some pleasures for a decade or 2.

To think there is a way of by-passing this at age 25 because it's feels a bit too much hassle, is fanciful. Calling this "retirement" is ridiculous, the fact is most people have had to stay in employment in excess of 40 years to get to pensionable age.!!!65532;


We all wished we didnt have to go to work some/most/every day (delete as appropriate), but as a young adult you have to grasp the need to do this sooner rather than later; for no one elses benefit than your own.

Hope the penny drops soon, good luck.

why so categorical?
OP is very close to being able to live without working. Why do you think everyone should follow the script of being able to relax only after 3O odd years of a sl9g st work ? what is the merit in that ? I came across someone who had a house ( either inheritance or cheaply bought because of need of work ( who he sublet to lodgers and lived on the proceeds spending his time surfing for 5 hours daily.
Arguably his life is more meaningful than the one of a lemming who postpones living till they are 55.

capital0ne

ValiantSon wrote: »

Oh dear. Read all of my posts and see some of the problems explained.

Here's another one for you, though. There aren't enough Maths teachers. There is already a serious shortage of Maths teachers. If you increase the curriculum time required from them then you will make the staffing and recruitment crisis even worse.

I have no objection to the principle of financial education, but the idea that it can just be a bolt-on to the existing system is seriously misguided.

So negative, just do it, can't be that hard if you really care about the kids futures, obviously teachers don't with this defeatist attitude.

ValiantSon

capital0ne wrote: »

So negative, just do it, can't be that hard if you really care about the kids futures, obviously teachers don't with this defeatist attitude.

What a load of tosh.

You haven't actually responded to any points made.

You're not a stupid person, so don't post such ignorant drivel.

chockydavid1983

When there's a will, there's a way.
In this case, it's clear there's not enough of a will from the decision makers that could make it happen.

ValiantSon

chockydavid1983 wrote: »

When there's a will, there's a way.
In this case, it's clear there's not enough of a will from the decision makers that could make it happen.

Ah, that's the point. The "decision makers", however, are not teachers, but government, as it is they who mandate the curriculum and are the primary creators of market conditions that have resulted in a recruitment crisis. If the government wants to get serious about this and actually make some serious changes (and there are many that are necessary to achieve it) to the current situation, then I will be on-board. Despite what some people on here have tried to imply, I'm all for proper financial education, but it cannot be just a bolt-on.

MarcoM

economic wrote: »

Im 34 and thought i would just "retire" but i got bored and found myself recently back in work. I had 10 years of good income. I have my own home worth 600k (45% ltv) and wealth outside of my own home worth over 500k. I do not consider it a lot to retire on tbh (even though i know i will receive decent inheritances when i am older). So i have got back into work.

may i ask what job do you have?

i would feel frustrated if i had a lot of money but was employed in a mediocre job which was not a business or working for others who are a pain. how do you keep yourself motivated?

and to OP, inheritances are a goid thing but do not necessarily factor them in your calculations. government or policy changes could see inheritance tax going up by a lot. someone in treasury will have to find money from somewhere.