Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Vet
    • By Vet 7th Feb 19, 3:00 PM
    • 86Posts
    • 59Thanks
    Vet
    If you could go back in time...
    • #1
    • 7th Feb 19, 3:00 PM
    If you could go back in time... 7th Feb 19 at 3:00 PM
    If you could travel back in time and give a 20-something year old version of yourself advice on investing, what would you tell them?

    What advice would you give to a 20-something looking to invest now?

    I currently invest via L&G through a S&S ISA - only 150/month split into 3 trusts - UK 100 Index, US 100 Index and Global 100 Index. Since i'm only 25 I wouldn't change what i've done so far (yet)!
Page 1
    • Tarambor
    • By Tarambor 7th Feb 19, 3:08 PM
    • 4,491 Posts
    • 3,446 Thanks
    Tarambor
    • #2
    • 7th Feb 19, 3:08 PM
    • #2
    • 7th Feb 19, 3:08 PM
    Save 20 a week instead of blowing it all. Stop blowing money on crap. Stick with the job you're in.

    Wouldn't matter what I invested it in, even a savings account would've been better than what I ended up doing however interest rates on savings accounts were 5%+ until my mid 30s.
    • David_Evans
    • By David_Evans 7th Feb 19, 3:12 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    • #3
    • 7th Feb 19, 3:12 PM
    • #3
    • 7th Feb 19, 3:12 PM
    A very good question.
    Difficult to answer because things change. You, your relationships, your job, the labour market, family, tax, govt rules and incentives etc..

    Overall, I would advise;

    Listen to your elders. You don't have to do exactly what they say, but their information and experiences are often lost (even in these internet days).

    Don't trust anyone (or any govt) totally.

    Be prepared for the unexpected ''black swan'' events. ie be flexible and able to adapt.

    See the world for what it is - not what you'd like it to be.

    Don't waste money. I know many people now who are in their 40s etc. They'll tell you they don't smoke, don't drink, don't go on holidays etc. But still don't have much investments etc. What they won't always consider is how much they were spending 20 YEARS AGO!

    I've known some of them a long time. Back in their 20s they were often in the pub. Often going off ''travelling'' on ''gap years'' for months on end. etc. That is why they are poor now.
    • Zoology Dragon
    • By Zoology Dragon 7th Feb 19, 3:49 PM
    • 405 Posts
    • 452 Thanks
    Zoology Dragon
    • #4
    • 7th Feb 19, 3:49 PM
    • #4
    • 7th Feb 19, 3:49 PM
    I'm annoyed I didn't open a S&S ISA years ago, so that would be my advice.
    • Thrugelmir
    • By Thrugelmir 7th Feb 19, 4:02 PM
    • 62,068 Posts
    • 55,246 Thanks
    Thrugelmir
    • #5
    • 7th Feb 19, 4:02 PM
    • #5
    • 7th Feb 19, 4:02 PM
    After many years I'm still learning. You never do. Wouldn't change anything. As experience can only be gained over time. There's no short cuts.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • dealer wins
    • By dealer wins 7th Feb 19, 4:07 PM
    • 6,250 Posts
    • 12,379 Thanks
    dealer wins
    • #6
    • 7th Feb 19, 4:07 PM
    • #6
    • 7th Feb 19, 4:07 PM
    My biggest financial error was joining staff sharesave, shareplan schemes, and at the end just kept the shares every time building up over 75000 LloydsTSB shares. Then the banking crises happened and I lost a fortune lol

    In hindsight I should have sold on completion and diversified or spent the money lol
    Choose life
    • surreysaver
    • By surreysaver 7th Feb 19, 4:16 PM
    • 2,635 Posts
    • 1,518 Thanks
    surreysaver
    • #7
    • 7th Feb 19, 4:16 PM
    • #7
    • 7th Feb 19, 4:16 PM
    If I were to go back in time and meet my 20 year old self, I'd tell him to put all his money into gold, and then sell it 15 years later after the price boomed before dropping back down a bit.
    I consider myself to be a male feminist. Is that allowed?
    • David_Evans
    • By David_Evans 7th Feb 19, 4:28 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    • #8
    • 7th Feb 19, 4:28 PM
    • #8
    • 7th Feb 19, 4:28 PM
    My biggest financial error was joining staff sharesave, shareplan schemes, and at the end just kept the shares every time building up over 75000 LloydsTSB shares. Then the banking crises happened and I lost a fortune lol

    In hindsight I should have sold on completion and diversified or spent the money lol
    Originally posted by dealer wins
    Diversification is the only free (well, cheap) lunch.
    • TBC15
    • By TBC15 7th Feb 19, 4:30 PM
    • 760 Posts
    • 417 Thanks
    TBC15
    • #9
    • 7th Feb 19, 4:30 PM
    • #9
    • 7th Feb 19, 4:30 PM
    Never miss an ISA year
    • David_Evans
    • By David_Evans 7th Feb 19, 4:32 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    After many years I'm still learning. You never do. Wouldn't change anything. As experience can only be gained over time. There's no short cuts.
    Originally posted by Thrugelmir
    But if you listen to older and more experienced people, you can hopefully learn from the mistakes of others.
    In my experience, people from Asia, China etc are better at this than 'Western' British / USA people. I think it's something to do with a culture that over-values youth.

    BTW - I come from a white British 'chav' background. But I see it for what it is.
    • David_Evans
    • By David_Evans 7th Feb 19, 4:36 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    If I were to go back in time and meet my 20 year old self, I'd tell him to put all his money into gold, and then sell it 15 years later after the price boomed before dropping back down a bit.
    Originally posted by surreysaver
    I would gradually build up a pot of small gold coins. But think of it as insurance, not investment.
    Don't sell them unless your life is in danger.
    You never know what will happen in the future.

    What do you think someone in 1970s Yugoslavia would have said to you, had you suggested that?
    If you're not sure, speak to people who went on holiday to Yugoslavia or watch videos of it on Youtube. It was one of the best, most stable counties in Europe.
    • googler
    • By googler 7th Feb 19, 4:48 PM
    • 15,102 Posts
    • 9,931 Thanks
    googler
    I wish I had bought Gold or Property.

    At one point, I was putting around 12-14k pa into a savings account, and this was when a two-bed flat in my locale was around 25 - 30k. I had half the purchase price in cash, and looking back, I think I could easily have built a portfolio, but I didn't really know what a portfolio was at the time.

    I don't know what the gold price was then, but I'm sure there would have been significant appreciation at some point in the interim.


    Advice
    Buy Gold
    Buy Property
    Put X per month of the pay packet into a high-interest account, savings account, or similar, and don't touch it.
    Don't get dragged into drinking, nights out and other socialising with office colleagues that, at the end of the day, you have little in common with.
    Don't smoke. You'll just be puffing money away into thin air
    Ask yourself if you really NEED to drink alcoholics, or are you just P-ing money down the pan? Could you survive on soft drinks?
    Don't blow money on monthly phone contracts. Do you really NEED that data-hungry unlimited text, unlimited data package? Is there something more useful you could do with (say) the 70 per month on your phone contract?
    etc
    • gardner1
    • By gardner1 7th Feb 19, 4:52 PM
    • 2,949 Posts
    • 4,475 Thanks
    gardner1
    If you could travel back in time and give a 20-something year old version of yourself advice on investing, what would you tell them?

    What advice would you give to a 20-something looking to invest now?

    I currently invest via L&G through a S&S ISA - only 150/month split into 3 trusts - UK 100 Index, US 100 Index and Global 100 Index. Since i'm only 25 I wouldn't change what i've done so far (yet)!
    Originally posted by Vet
    Q...would i listen to advice

    A...No id probably still spend a load in the pub
    • David_Evans
    • By David_Evans 7th Feb 19, 4:53 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    I
    I don't know what the gold price was then,

    etc
    Originally posted by googler
    You didn't know, because the govt didn't want you to know.
    Holding gold coins was ILLEGAL in the UK until 1979.

    The govt wants your money in the banking system, because they control the banking system.
    • David_Evans
    • By David_Evans 7th Feb 19, 4:55 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    I wish I had bought Gold or Property.

    At one point, I was putting around 12-14k pa into a savings account, and this was when a two-bed flat in my locale was around 25 - 30k. I had half the purchase price in cash, and looking back, I think I could easily have built a portfolio, but I didn't really know what a portfolio was at the time.

    I don't know what the gold price was then, but I'm sure there would have been significant appreciation at some point in the interim.


    Advice
    Buy Gold
    Buy Property
    Put X per month of the pay packet into a high-interest account, savings account, or similar, and don't touch it.
    Don't get dragged into drinking, nights out and other socialising with office colleagues that, at the end of the day, you have little in common with.
    Don't smoke. You'll just be puffing money away into thin air
    Ask yourself if you really NEED to drink alcoholics, or are you just P-ing money down the pan? Could you survive on soft drinks?
    Don't blow money on monthly phone contracts. Do you really NEED that data-hungry unlimited text, unlimited data package? Is there something more useful you could do with (say) the 70 per month on your phone contract?
    etc
    Originally posted by googler
    Excellent advice in general.
    Only problem is that the govt is moving against BTL.
    Maybe commercial property would be a better LONG TERM option (ie 40 years plus)..?
    • Vet
    • By Vet 7th Feb 19, 5:13 PM
    • 86 Posts
    • 59 Thanks
    Vet
    I wish I had bought Gold or Property.

    At one point, I was putting around 12-14k pa into a savings account, and this was when a two-bed flat in my locale was around 25 - 30k. I had half the purchase price in cash, and looking back, I think I could easily have built a portfolio, but I didn't really know what a portfolio was at the time.

    I don't know what the gold price was then, but I'm sure there would have been significant appreciation at some point in the interim.


    Advice
    Buy Gold
    Buy Property
    Put X per month of the pay packet into a high-interest account, savings account, or similar, and don't touch it.
    Don't get dragged into drinking, nights out and other socialising with office colleagues that, at the end of the day, you have little in common with.
    Don't smoke. You'll just be puffing money away into thin air
    Ask yourself if you really NEED to drink alcoholics, or are you just P-ing money down the pan? Could you survive on soft drinks?
    Don't blow money on monthly phone contracts. Do you really NEED that data-hungry unlimited text, unlimited data package? Is there something more useful you could do with (say) the 70 per month on your phone contract?
    etc
    Originally posted by googler
    I get a property included with my job - however it detracts 4k from my salary and costs approx. 120 in bills (capped fee from work). Obvious this allows me to save a substantial proportion of my salary. Should I just take the plunge and buy into property from an investment point of view?
    • kangoora
    • By kangoora 7th Feb 19, 5:29 PM
    • 653 Posts
    • 495 Thanks
    kangoora
    I get a property included with my job - however it detracts 4k from my salary and costs approx. 120 in bills (capped fee from work). Obvious this allows me to save a substantial proportion of my salary. Should I just take the plunge and buy into property from an investment point of view?
    Originally posted by Vet
    Where are you planning on living when you retire and how will you pay for it? I presume you won't have a property for life when you finish work?

    I would seriously think about buying something you would be happy to live in yourself and, with your circumstances, do a BTL. The disappearance of the tax benefits of BTL will hurt a bit less if it is going to be your main home at some point I'd imagine.
    • Vet
    • By Vet 7th Feb 19, 6:49 PM
    • 86 Posts
    • 59 Thanks
    Vet
    Where are you planning on living when you retire and how will you pay for it? I presume you won't have a property for life when you finish work?

    I would seriously think about buying something you would be happy to live in yourself and, with your circumstances, do a BTL. The disappearance of the tax benefits of BTL will hurt a bit less if it is going to be your main home at some point I'd imagine.
    Originally posted by kangoora
    I suppose really the benefits of staying for a good number of years means I could potentially buy without a mortgage? or have such a small mortgage thats it's almost insignificant?
    • googler
    • By googler 7th Feb 19, 7:05 PM
    • 15,102 Posts
    • 9,931 Thanks
    googler
    You didn't know, because the govt didn't want you to know. Holding gold coins was ILLEGAL in the UK until 1979.
    Originally posted by David_Evans
    Ah well. That fits almost exactly with the period I mentioned. Late 1970s to early 1980s.

    Perhaps if I'd known which part of the investing news to pay attention to ....
    • David_Evans
    • By David_Evans 7th Feb 19, 7:11 PM
    • 248 Posts
    • 131 Thanks
    David_Evans
    I suppose really the benefits of staying for a good number of years means I could potentially buy without a mortgage? or have such a small mortgage thats it's almost insignificant?
    Originally posted by Vet
    I would wait until you leave before buying a house to live in.
    Don't bother with BTL - it's way too much risk and hassle.

    Property prices are probably going to gradually reduce (in GBP terms) over much of the UK in the next few years. The days of needing to buy before prices ''rise out of reach'' are long gone.

    Even if house prices were rising, you could keep up by investing in equities and property funds etc.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,524Posts Today

8,630Users online

Martin's Twitter
  • Too painful to talk about. That result really was offsensive. For rancid cheese & onion to beat powerful salt & v? https://t.co/FJchchPk0o

  • If you think this hypothetical's bad, here's some of my past polls - Which past PM would u resurrect to aid politi? https://t.co/N61QGBOJ6b

  • A warning to every UK worked aged over 21, you're about to get a payrise, but it'll cost you... https://t.co/chSlYRRdpK

  • Follow Martin