"I'm 28 with £50,000 savings . . "

geeovana

Came upon this article today and thought it contained some good information for general advice:

https://www.telegraph.co.uk/investing/funds/im-28-with-50000-savings-how-long-before-i-can-afford-to-quit-wo/

glider3560

Interesting article. I'm a similar age, with similar amount of savings and even drive the same make car. But I do also have a flat (about 20% equity), but no final salary pension. None of my money is inherited or gifted, I have earnt it all myself and have about £15000 in student loan debt outstanding. Nice to hear there are other people in a similar boat.



With that amount of savings I would never consider locking such a large percentage up in non-cash investments. What would happen if you lost your job, needed a new car, new white goods, etc etc etc? And without a balanced portfolio, he seems to be opening himself up to unecessary risk.

geeovana

glider3560 wrote: »

Interesting article. I'm a similar age, with similar amount of savings and even drive the same make car. But I do also have a flat (about 20% equity), but no final salary pension. None of my money is inherited or gifted, I have earnt it all myself and have about £15000 in student loan debt outstanding. Nice to hear there are other people in a similar boat.



With that amount of savings I would never consider locking such a large percentage up in non-cash investments. What would happen if you lost your job, needed a new car, new white goods, etc etc etc? And without a balanced portfolio, he seems to be opening himself up to unecessary risk.

Same here. I am about to turn 29 with slightly more savings than in the article, but still in the same ballpark.

I thought it was interesting how he had chosen active funds and the IFA where showing the savings possible switching some to Trackers. Good basic advice.

Interestingly I have the opposite take on the non-cash investments. I have relatively little 'emergency cash fund', however have a 0% credit card if times got tough. I also am in a fortunate position that my parents could help out if I needed temporarily.

I don't even know how much student loan I have remaining _pale_ paying it off at a fair rate each month (£2000+ annually) so not much more I can do really.

Zero_Sum

Would he have not been better off buying a house? As you're building up equity, and he's living in Brum iirc West Mids saw the highest house price increases in the last year. This will probably carry on as once HS2 is built & Brum becomes a commuter city to London.


At 29 i was earning half that but had recently cleared my mortgage (house was worth about £60k) then was saving around £9k a year subsequently to move on to a better house in better area

Alistair31

Comes across as pretty needy.

bostonerimus

Ignoring the pension and SP if the guy in the article wants an income worth 20k in today's money in 20 years time and we assume 2.5% inflation that would be 33k and he'd probably need close to 1M if he want's to be able to do that safely with inflation for maybe 40 years.

The biggest issue he has is his portfolio which is far too complicated IMHO and also I hope he doesn't listen to the advice to buy more Woodford or that India might be good.

cashbackproblems

think he is deluded he has to work till he's 50 at least, if he wants to travel full time until the rest of his life

i am a similar age and savings but have about 110k equity in a property and 80% of savings in S+S and happy with the risk and return it has achieved. Also have 15% in Gold so keep little cash.

ruperts

The article is 3.5 years old so the advice on Woodford was pretty poor. Which goes to show something, I guess.

I think if travelling was my main aim in life I'd look to go self-employed and travel between contracts rather than spend 20 years saving for something you might not even want to do when you get there.

Flobberchops

Well, I'm 50,000 with £28 savings. Trump that.