Passive investing

[Stu-nph26]

Been looking at passive investing as a way to invest a regular monthly amount circa £300 for at least 10-20 years. I'd to retire before I'm 50 in 19 years with the compound interest I'm hoping this can help me achieve my goal. Anyone do this and can recommend any providers or reading material as this is all very new to me.

This site seems a great resource http://monevator.com/category/investing/passive-in...

Edited by Stu-nph26 on Sunday 22 January 21:53

[davepoth]

Stu-nph26 said:

Been looking at passive investing as a way to invest a regular monthly amount circa £300 for at least 10-20 years. I'd to retire before I'm 50 in 19 years with the compound interest I'm hoping this can help me achieve my goal. Anyone do this and can recommend any providers or reading material as this is all very new to me.

This site seems a great resource http://monevator.com/category/investing/passive-in...

Edited by Stu-nph26 on Sunday 22 January 21:53

That's just "investing". All very sound advice really, but if you work on 7% compound interest (which is good going on a "safe" portfolio) and £300 a month increasing at 2% p.a. you'll have about £163K. Nice, but not enough to retire on at 50. If you drew down £10k a year (increasing at 2% p.a.) you'd have nothing left by 80, and there's a reasonable chance you'll go 20 years longer than that.

[Stu-nph26]

davepoth said:

That's just "investing". All very sound advice really, but if you work on 7% compound interest (which is good going on a "safe" portfolio) and £300 a month increasing at 2% p.a. you'll have about £163K. Nice, but not enough to retire on at 50. If you drew down £10k a year (increasing at 2% p.a.) you'd have nothing left by 80, and there's a reasonable chance you'll go 20 years longer than that.

This won't be and isn't currently my only investment plus I intend to increase my monthly contributions over time more than 2% pa. Ive looked at the 4% rule and my outgoing are very small I could live comfortably on 12k per annum currently about 60% of my take home pay is invested and I minimise my outgoings. Based on the 12k I would need investments of 300k however the aim is double that which should be achievable in 20 years.

[Craikeybaby]

I read that site after paying off my student loan. What I was repaying has now been diverted into a Vanguard Lifestratgy fund inside an ISA via Cavendish/Fidelity.

[Stu-nph26]

Craikeybaby said:

I read that site after paying off my student loan. What I was repaying has now been diverted into a Vanguard Lifestratgy fund inside an ISA via Cavendish/Fidelity.

How are you getting on? Was it easy enough to set up?

[Craikeybaby]

Very easy! The initial set up is dine through Cavendish, as they charge less than going through fidelity directly - there was a comparison table on Monevator.

[Stu-nph26]

Craikeybaby said:

Very easy! The initial set up is dine through Cavendish, as they charge less than going through fidelity directly - there was a comparison table on Monevator.

Cheers mate this is all brand new to me, I'm trying to plan a bit more for my future.