My financial plan for the short/medium term - Any advice?
Discussion
sidicks said:
Eh?
Equity markets could quite easily be down 10% or more over the next few years, nothing to do with poor performance from the underlying fund managers, so your comment is pretty misleading.
Of course they could and the OP needs to decide for himself if that’s a risk he’s prepared to take or not. Equity markets could quite easily be down 10% or more over the next few years, nothing to do with poor performance from the underlying fund managers, so your comment is pretty misleading.
BoRED S2upid said:
Of course they could and the OP needs to decide for himself if that’s a risk he’s prepared to take or not.
Equity markets / managers undererforming cash over a short time horizon will not lead to “The city being decimated with job seeking fund managers...”Edited by sidicks on Wednesday 31st January 16:29
xeny said:
S9JTO said:
Interesting... Maybe a 50/50 split of 2 funds and cash may be sensible?
If/when the market drops, you'll do well to have found 2 funds that don't both drop.Someone a couple of weeks ago posted a copy of the ukpersonal finance subreddit's flowchart - that may be well worth a look.
xeny said:
S9JTO said:
II'd like to upgrade cars every 1-2 years.
This is a fantastic way of making sure you don't build up spare money, thus solving all your financial problems. /SDoing that for any length of time will see you squander a fortune.
Edited by CastroSays on Wednesday 31st January 19:10
That flow chart is bloody excellent
OP - my general advice is save more and buy a house in the best area you can. In the North that's more important than down south in terms of the likelihood of the house maintaining/gaining value I'd say. Your saving spending plan sounds sensible enough, consider replacing your car less often maybe though, you're saving well, but the car you want earlier and keep hold of it, especially if you can pick one that will depreciate less
OP - my general advice is save more and buy a house in the best area you can. In the North that's more important than down south in terms of the likelihood of the house maintaining/gaining value I'd say. Your saving spending plan sounds sensible enough, consider replacing your car less often maybe though, you're saving well, but the car you want earlier and keep hold of it, especially if you can pick one that will depreciate less
Benrad said:
OP - my general advice is save more and buy a house in the best area you can
I think this is important, insofar as you really always want to buy the most expensive house you can afford so that you don't outgrow it too soon.With all the frictional costs of moving, you want to minimise how often you trade up the ladder, as moving too often is the best way to destroy equity.
Gogoplata said:
Is this it?
Thanks for posting this, I do recall seeing it on another thread a few weeks back.Looking at this I would say I'm at the LISA stage (already opened, waiting until mid/late March to max it for this financial year), so that leaves me with opening a S&S ISA which is what I questioned doing. I'll definitely be looking in to doing this. As others have said, it's probably not a good idea for me to put all of my spare savings in to the market as I'll want to dip in to it fairly regularly. So, I think I need to decide on a sensible amount to invest out of my spare savings.
CastroSays said:
What he said!
Doing that for any length of time will see you squander a fortune.
I'm all to aware, however comparing my expenditure to my peers cars are the only thing I spend money on. Minus the modern day essentials such as phone contract, decent clothes/tech and a couple of holidays/city breaks each year. Doing that for any length of time will see you squander a fortune.
Edited by CastroSays on Wednesday 31st January 19:10
I rarely drink, I no longer smoke and I don't do drugs so that's where I make my savings it appears...
NickCQ said:
Benrad said:
OP - my general advice is save more and buy a house in the best area you can
I think this is important, insofar as you really always want to buy the most expensive house you can afford so that you don't outgrow it too soon.With all the frictional costs of moving, you want to minimise how often you trade up the ladder, as moving too often is the best way to destroy equity.
xeny said:
What do you mean by "risk of 10%"? Chance of 10% fall? 10% chance of losing 100% ?
Sorry I should've been more clear; I'm willing to risk a 10% drop in value. As the amount in my example would be minimal - Wouldn't even exceed the free money from the government at that rate.S9JTO said:
I'm all to aware, however comparing my expenditure to my peers cars are the only thing I spend money on. Minus the modern day essentials such as phone contract, decent clothes/tech and a couple of holidays/city breaks each year.
I rarely drink, I no longer smoke and I don't do drugs so that's where I make my savings it appears...
To some a car is a means of getting from A to B. To other's it's a hobby. Of course it can be an expensive hobby, but if you can afford it then 'wasting' money on cars is entirely reasonable!I rarely drink, I no longer smoke and I don't do drugs so that's where I make my savings it appears...
sidicks said:
To some a car is a means of getting from A to B. To other's it's a hobby. Of course it can be an expensive hobby, but if you can afford it then 'wasting' money on cars is entirely reasonable!
Very true and I can imagine most on here can relate. I believe as long as you're smart and you do so within your limits it's perfectly fine.I've tried to minimise the deprecation element when buying (i.e. Buying an ex-demo with ~700 miles on the clock rather than speccing a new one, saved me ~£4k!) Luckily I've only lost ~£1k in my year of ownership and I plan to do the same again if not better by buying a car which will break even or even appreciate, once my insurance allows that is!
S9JTO said:
sidicks said:
To some a car is a means of getting from A to B. To other's it's a hobby. Of course it can be an expensive hobby, but if you can afford it then 'wasting' money on cars is entirely reasonable!
Very true and I can imagine most on here can relate. I believe as long as you're smart and you do so within your limits it's perfectly fine.I've tried to minimise the deprecation element when buying (i.e. Buying an ex-demo with ~700 miles on the clock rather than speccing a new one, saved me ~£4k!) Luckily I've only lost ~£1k in my year of ownership and I plan to do the same again if not better by buying a car which will break even or even appreciate, once my insurance allows that is!
S9JTO said:
sidicks said:
Agreed. Certainly it's good advice to get on the property ladder asap, before you really indulge in a car hobby!
Hmhhh, not necessarily 'ASAP' in my case - I don't want the responsibility and stress of my own house yet. Neither does my girlfriend.
S9JTO said:
Hmhhh, not necessarily 'ASAP' in my case - I don't want the responsibility and stress of my own house yet. Neither does my girlfriend.
I've a colleague who rents. Dealing with agents appears to be far more stressful than ownership. Purchasing can be stressful I'll grant you.b
hstewie said:
hstewie said: There are some funds out there that specialise in capital preservation at the expense of returns.
However conservative, nobody will ever promise a level of risk (that I've seen).
You can buy volatility controlled equity funds, which adapt the equity exposure according to market conditions, but not sure if that is exactly what he meant?!However conservative, nobody will ever promise a level of risk (that I've seen).
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