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  • FIRST POST
    • Vet
    • By Vet 7th Feb 19, 3:00 PM
    • 86Posts
    • 58Thanks
    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 2
    • David_Evans
    • By David_Evans 7th Feb 19, 7:13 PM
    • 248 Posts
    • 126 Thanks
    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 ....
    Originally posted by googler
    The govt probably asked the MSM to keep this kind of thing out of the news.
    Banks and politicians are closest to the fiat currency creation, so devaluation works in their favour.
    • Vet
    • By Vet 7th Feb 19, 7:26 PM
    • 86 Posts
    • 58 Thanks
    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.
    Originally posted by David_Evans
    Do you think the rate at which I am investing, the platform, and the funds are adequate? I put other money away in savings each month - taking advantage of the 5% current accounts etc.
    • Apodemus
    • By Apodemus 7th Feb 19, 7:42 PM
    • 1,175 Posts
    • 990 Thanks
    Apodemus
    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?
    Originally posted by Vet
    Spend less, Save more!

    ...and reinvest the dividends!
    • pearl123
    • By pearl123 7th Feb 19, 9:21 PM
    • 1,469 Posts
    • 2,171 Thanks
    pearl123
    Stick with the job you are in. Buy shares in the company you were working for. Party less and start a private pension.
    • bertiewhite
    • By bertiewhite 7th Feb 19, 9:36 PM
    • 1,426 Posts
    • 1,633 Thanks
    bertiewhite
    I'd tell myself to avoid the girl with the northern accent at Mick Rudd's sister's wedding in 1996 - I'd be way richer now.
    • amblonia
    • By amblonia 7th Feb 19, 10:24 PM
    • 12 Posts
    • 3 Thanks
    amblonia
    At least you have the right idea regarding saving.
    Savings, and I don't necessarily mean the bulk of disposable income, because one has a life to live, but always keep in mind something for a rainy day. The reality is there are lots of rainy days and unfortunately some of them are 'torrential'.
    • LHW99
    • By LHW99 7th Feb 19, 10:30 PM
    • 1,716 Posts
    • 1,594 Thanks
    LHW99
    Avoid anything that says "with profits" (not much about now though). Keep insurance & investment separate, and understand where you money is and what your pension schemes actually are (read the "instructions"!!)
    • londoninvestor
    • By londoninvestor 7th Feb 19, 10:52 PM
    • 698 Posts
    • 593 Thanks
    londoninvestor
    Don't bother with individual stocks - you won't have time to properly research them in the first place, and subsequently stay up to date on them, so you'll make bad decisions.

    I figured this out from experience, but fortunately that was when I had less money so there was less to lose.
    • Tiger Moth
    • By Tiger Moth 7th Feb 19, 10:53 PM
    • 7 Posts
    • 5 Thanks
    Tiger Moth
    If I could go back in time and give myself at 20 some advice, it would be to not sell that Mk1 Ford Escort Mexico for 650 and to buy 3 more
    • Clive Woody
    • By Clive Woody 7th Feb 19, 11:29 PM
    • 4,564 Posts
    • 5,161 Thanks
    Clive Woody
    I would advise myself to invest in a Euromillions lottery ticket with the winning numbers for the 100million+ jackpot the following weekend.

    Or start a website and call it MoneySavingExpert then cash in and sell it for millions
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about Albert Einstein
    • Alistair31
    • By Alistair31 8th Feb 19, 7:38 AM
    • 68 Posts
    • 73 Thanks
    Alistair31
    I’m still clinging to my twenties but I now wish I hadn’t wasted so much money on cars when I was younger. I also wish I had invested my student loan as I received it (when equities were lower) rather than post uni/recent times when equities are higher.
    • David_Evans
    • By David_Evans 8th Feb 19, 3:15 PM
    • 248 Posts
    • 126 Thanks
    David_Evans
    Buy shares in the company you were working for..
    Originally posted by pearl123
    Not too much though.
    If the company goes bust, you lose your job and your investment.
    • Mr.Saver
    • By Mr.Saver 9th Feb 19, 4:01 PM
    • 157 Posts
    • 53 Thanks
    Mr.Saver
    Being in my late 20s, I've summarized the takeaways from the all the above thoughtful people. They are certainly helpful for myself, but I also hope they will help others.

    Stick with the job you are in.

    Listen to your elders, learn their experiences and mistakes, but don't always do exactly what they say.

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

    Be prepared for the unexpected. Be flexible and able to adapt. Keep insurance & investment separate.

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

    Don't waste money.
    - Don't smoke. You'll just be puffing money away into thin air
    - Don't drink, switch to soft drink, or drink as little as possible
    - 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 go on holidays frequently, don't go on very long holidays, and don't spend too much on holidays
    - Don't get expensive monthly phone contracts. Do you really NEED that data-hungry unlimited text, unlimited data package?

    Invest the savings, and diversify the investments. Don't buy individual stocks. Be careful with Employee Share Schemes, sell the employer's shares before it's too late.

    Never miss an ISA year.

    Start a private pension. Understand where you money is and what your pension schemes actually are.

    Meet people wisely, choose the significant other wisely.
    • David_Evans
    • By David_Evans 9th Feb 19, 4:22 PM
    • 248 Posts
    • 126 Thanks
    David_Evans
    Have some self-awareness about who you are and what you are suited to.

    For example, I think that property in general is a good long term investment.
    But most people are not suited to becoming a BTL landlord - because they don't have the right background, family, personality, contacts, skills etc.

    Understand the difference between investment risk (price-dropping) and counter-party risk (getting screwed over).

    Remember that any registered asset can be taken from you by the govt. But the govt will probably not help you recover an asset from anyone else. (Just look at the LCF thread for a good example).
    Last edited by David_Evans; 09-02-2019 at 4:24 PM.
    • CapricornLass
    • By CapricornLass 9th Feb 19, 4:45 PM
    • 229 Posts
    • 870 Thanks
    CapricornLass
    Would echo the bit about pension. Dont despise your employer's offering either - if they are paying into the scheme for you as well, that is 'free' money.... But paying in extra, either with your employer as AVCs or into a private scheme of your own will build up a pot of money that will extend the options that are available for you when the time comes for you to consider retiring.



    I saw my father paying into his company pension scheme - this would be in the sixties/seventies, so things were very different then. However, some thing stuck in my brain, and all through my working life, I tried to put away enough to get 1/60th final salary (told you things were different!) I had to fight to get into company pension schemes, paid higher contributions than many of my colleagues, I saw them go off on foreign holidays and buy new expensive cars while I drove an old banger and went camping. But on boy, that really paid off - I am able to retire several years before state pension, and while not rich, have enough to manage comfortably on the pension I receive.
    Sealed Pot Challenge no 035
    • Saver84
    • By Saver84 9th Feb 19, 8:56 PM
    • 4 Posts
    • 1 Thanks
    Saver84
    I would advise my 20-year-old self to:
    Continue shopping at Primark
    Take lunch from home
    Cancel gym membership
    Non-branded household essentials (laundry powder) works just as well
    Learn how to use eBay
    • maxie014
    • By maxie014 9th Feb 19, 9:05 PM
    • 163 Posts
    • 77 Thanks
    maxie014
    Why stick with the job you are in?
    As an unskilled chap who has mainly done factory work,i went from place to place until i was in the best paid around.Skilled people should be able to do this easier than me.You might as well get paid the best money for what you do,if id stayed in my first job id have still been on peanuts.
    Start investing young and keep investing monthly.
    • bostonerimus
    • By bostonerimus 9th Feb 19, 9:25 PM
    • 2,606 Posts
    • 1,947 Thanks
    bostonerimus
    Id tell my 20 year younger self to put everything in Apple....or whatever stock or fund has done best in the last 20 years.

    Id tell some one investing today to spend less than they earn, avoid all debt except the mortgage, keep 6 months spending in the bank and put as much into a multi-asset fund in an ISA and a workplace pension as they can.
    Misanthrope in search of similar for mutual loathing
    • Retireby40
    • By Retireby40 9th Feb 19, 9:27 PM
    • 31 Posts
    • 17 Thanks
    Retireby40
    While there's lots of good advice above one thing to remember is tomorrow isn't guaranteed.

    While it would be foolish to live like there's no tomorrow it's all about striking the balance between living in the present and preparing for the future.

    There's no point having a pension of 2000 a month if you haven't the health to travel and spend it.

    There's no point turning down every social occasion because soon enough youl find that no one invites you to anything and ultimately when you do fancy a night out, you've no one to call on.

    People say about not travelling or going on holidays but I'm a firm believer that you need to see some reward for your hard work. Nothing wrong with a week or two away each year done in a cost effective manner.

    Your on the ball preparing for the future but don't let that get away from the present. And after all you could make all the sacrifices to live well in 20 years only to die the year before.

    Strike the balance right and you will be ok. You sound like you have your head screwed on.
    • David_Evans
    • By David_Evans 10th Feb 19, 12:21 AM
    • 248 Posts
    • 126 Thanks
    David_Evans
    While there's lots of good advice above one thing to remember is tomorrow isn't guaranteed.

    While it would be foolish to live like there's no tomorrow it's all about striking the balance between living in the present and preparing for the future.

    There's no point having a pension of 2000 a month if you haven't the health to travel and spend it.

    There's no point turning down every social occasion because soon enough youl find that no one invites you to anything and ultimately when you do fancy a night out, you've no one to call on.

    People say about not travelling or going on holidays but I'm a firm believer that you need to see some reward for your hard work. Nothing wrong with a week or two away each year done in a cost effective manner.

    Your on the ball preparing for the future but don't let that get away from the present. And after all you could make all the sacrifices to live well in 20 years only to die the year before.

    Strike the balance right and you will be ok. You sound like you have your head screwed on.
    Originally posted by Retireby40
    You do raise a good point.
    But bear in mind that the UK has changed a lot in the last 20-30 years.

    We used to have a stronger pound, good pensions, more secure employment, no student fees, cheaper housing etc.
    So 20 years ago it was less of an issue for people to go off travelling in their youth - as they still had decent prospects on their return to the UK.

    Ask people about Eastern Europe in the 1990s - after the collapse of communism and before EU membership. It sounds very much like the UK at the moment - only the UK is experiencing a slow motion version of their sudden disruption.
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