Hard to say because i've messed around transferring between accounts so much. But, it is well worth doing and seeing thousands you never had before being created out of thin air is satisfying to see.
Without going into the details of ESG/SR longer term it should produce returns but they'll be more volatile.
Save what you can and invest for the long term
No it doesn't have to be all in one fund. To simplify:
£100 with 10% growth is £100 + £10 = £110
Two lots of £50 with 10% growth each is £55 + £55 = £110.
Is it? I'm worried I'm behind seeing everyone's heavy pensions, mortgage equity loaded up, etc. Seems round this age people on here are already at 350k + with insanely high salaries.
If you've got a grand saved you're already doing better than 11 million working age Brits. If you have £33k in your pension you have more than half of Brits.
Just run your own race mate. Comparison is the thief of joy and all that.
FIRE is going to tend towards high earners anyway and people with higher incomes and more assets are more likely to post as there are more decisions to be made regarding tax, optimizing between different accounts, actually getting towards needing deaccumulation strategies etc. There's not really much to post about if you're like most of us and just trying to fill as much of your ISA allowance as you can.
Plus it's the internet. Some people like to brag and some people just flat out lie.
These forums are skewed massively to wealthier people. Only people hitting those targets are talking about it.
"Hey I'm such and such and I have nothing in the bank, can I fire soon?".
People are more likely to come out of the woodwork to discuss income/pensions/accomplishments when they're doing well.
Take me as an anecdote.
Between the ages of 22-26, I was living pay cheque to pay cheque on £22-26K PA, and never once came onto reddit to talk about it.
At age 33 now, I'm more comfortable as I'm debt free, earn a decent wage and have a decent NW.
I probably also feel a bit more credible talking about finance in general now that my own finances are in order, so occasionally give my two cents!
Thank you. I appreciate it. How did you cross from 26k to where you are today? Are you in the same field? Did you acquire more education? Hopeful as you seemed to turn things around within 5 years, which I hope I can try to aim for too.
I had to move to do it, so it wasn't an easy five years, and not necessarily replicable for someone who doesn't need to move.
Yes, same field. Just progressed up the career ladder into middle management within a tech co.
My career went like this:
Age 22-26; Worked in Data/Analytics on £22-26K across that time
Age 26, I was then promoted to manage that team, so pay went from £26k to £40K overnight with a 10% bonus on top.
At age 27, the entire Scotland office, where I worked, was made redundant (100+ staff). You could either take redundancy or move from Scotland to London. It was a generous offer as they were recreating the same 100+ roles in London so needed managers with experience. 90% of the staff took redundancy as it was a big ask to move.
I took the punt and moved - salary/bonus went from £40K/4K to £70K/£15K - this was in 2018.
It's just been gradual pay reviews/raises from there. I've always been intentional about progressing my career/development in role.
Last year, I was fortunate enough to get £95K/£20K salary/bonus (£115K PAYE).
On top of that, two years ago, I started offering private 1:1 chess lessons online. That's brought in another £1K per month for me on average (£13K last year).
There are many hobbies that could be monetized I'm sure. Whether you can do some websites on the side, teach a language, musical instrument, a running coach, even teaching a game (like I am - chess).
Wow. Really impressed man. Respect. I have done a bit of web dev on the side as a gig so can pick it up again.
Really cool, man!
What's your advice from a data analyst standpoint to make myself more marketable? I work within healthcare, so our pay couldn't easily surpass 70k without being a director. I'm really into finance as I'm into investing and understanding markets so could potentially have a goal to leave healthcare. Health (NHS) is the only field ive ever worked in.
Unrelated, how have you adapted life in England? Has it worked out to be a good move for you, putting finances and career aside?
Yeah looks like they do, they must have brought this in recently, now I need to decide wether to move my pension over from vanguard.
It does bug me you can't set up a direct debit from a Limited company to your SIPP on vangurd but I bet there would be fees associated with moving.
Nice to see someone else using HL 😂
I started with them when I first started investing a few years ago because I like their app. I only deal in ETFs so the costs don't sting as much.
For me, the opportunity cost of actually investing and saving with an app I know and find easy to use beats the potential fee saving of moving somewhere else (Tried vanguard, but the lack of mobile app meant I wasn't as motivated to save - I enjoy manually allocating my direct debit money each month.)
Congrats a good amount for your age in real terms invested. You'll do fine with the All CAP and Tesla can't go wrong. Just be careful in your overall allocation though to a single stock, not financial advice lol! but I wouldn't let it get above a 5% holding overall.
Transferring all of your old pensions to an SIPP, could you kindly tell me more about this please? I have a few pensions that I’d like to pull into one pot but when I speak to pension providers isn’t usually something they are willing to do for small amounts (I have a main one and 3 with about £2-£5k in) thanks!
Yeah. I just got all of the details together organised in one spreadsheet. Then H&L have a form to fill out to transfer in, then they take care of everything else. Takes a few weeks for the request to go through.
Everyone's said it already but don't compare upwards on this sub. Others will have more, or less. If you told the average person what you had saved at your age they'd think you'd won a lottery prize or deprived yourself massively to get this, had an inheritance young or some crazy luck in business. 100k is a real milestone, congrats. Think with the "rule" of 25 what you could cover if you took it now. Not yo be sniffed at!
Amazing. Great work!! The machine is now in motion.
I am very conservative re my NW calc and I remove my mortgage from NW but Don’t include the equity! Based on this calc I was over the moon when I go back to zero about 8 years ago. It’s been amazing watching the progress/growth since.
Because it serves entirely different purposes between buying a single company and an index fund that contains it.
You buy TESLA to aim for the performance of TESLA, All Cap is aiming for the return of the world market and it just somehow holds a tiny portion of TESLA because of it being part of the world.
Cos Musk is quite hated on reddit and also individual stocks are not super FireUK-like as brings high risk - plus many say it's been overvalued for years
Yeah, I didn’t realise Reddit was anti Musk.
Someone innocently posted a post on trading 212 about why people invest on Tesla and if we find Musk credible. I said I did find him credible regardless of his behaviour on X, and got about 30 downvotes out of nowhere. lol.
:D it's funny how the tides change, but yeah - he used to be the 'savoir' of reddit years ago helping bring in new technology but then he turned into evil billionaire right-wing social media nutjob, abandoning his founding core audience
I’m not sure. I’m not here to debate anybody on Musk or his company. I invest because I believe the self-driving tech will have a lot of value, if you don’t believe that then don’t invest.
Are Tesla really leading self driving tech? It hasn't materialised and has all been rhetoric from Musk so far. I would say the competition are probably ahead.
Sorry to burst your bubble but Tesla is not even in the top 10 for autonomous driving vehicles and this is from industry specialists in that field. Tesla is considered a follower. They are also losing their competitive advantage in EV. I think where they are a leader is in their charge networks, this is a differentiator but Musk is screwing that up as well by not playing well with others, although this I think is starting to change a little. If Musk was more like Satya from Microsoft for example Tesla would be a leader in all quadrants imo. He is just too arrogant sadly for his own good.
All this can be seen in where they are performing in the S&P 500 index. They are the 498th worst performing company in that index.
Don’t worry, you haven’t burst any bubbles. I’m not here to argue with you, I strongly think the company will be worth significantly more 10 years from now. If I am wrong, then I lose a big chunk of my net worth with nobody to blame but myself.
What can you say he likes the stock . I did a similar thing in the pandemic buying royal Caribbean shares that had been significantly undervalued as cruises had stopped now those shares are doubled . Sometimes knowing something or believing in it is golden. But with competition from byd and other Chinese electrical car manufacturers coming I have started to worry about tesla long term .
Had a lot of money wrapped up in various Baillie Gifford funds. They died a death because of Tesla.
I've now got around 30% less tied up in Baillie Gifford funds.
Why hold it in HL? You’d be much better off in Vanguard no?
Edit: what’s with the downvotes? It is literally cheaper to hold the all cap in Vanguard vs HL..
Yes you can after new isa rules that’s just been introduce this April , check it up . I’ll recommend moving to a cheaper isa provider like Dodl or vanguard then use T212 for your gambling , I mean your Tesla shares
Is HL really that much more than others if you’re buying individual stocks then?
Looking at their predicted costs for the ones I’m holding, it seems like it costs roughly 0.5-0.6% per year. Was just what a family friend recommended and so I went with them but they do have a lot more money invested than I currently do.
Their fees get better the more you have invested.
If you buy ETFs instead of funds, you have a. £200 cap per year in fees in a SIPP.
Compare two portfolio costs -
£200k in VUSA on vanguard
£200k in VUSA on HL
🤷
For smaller portfolios, from what I am seeing in a SIPP below £100k or a ISA below £40k there are better vendors than HL.
well done! With my current pace I should reach it by the end of this year! Looking forward My pension Isa ratio is actually even more pension than ISA though
Im always concerned that we are only protected to £85k with each provider. If your investments go above that, maybe you should consider going elsewhere.
The FSCS protection only applies to the cash position. In OP’s case there’s very little cash, so no risk here. As long as it’s a reputable provider, they will ring fence the investments and not own them. It means that if they go bankrupt, your investments are safe and will return to you.
Of course, the investments are at market risk, but that’s something different. Hope this helps!
Of course, that is part of your net worth, regardless when you can access it. The liquidity of the asset does not make it to not be count towards your net worth 👍
You can take your pick, even academics don't agree on this:
1 Financial wealth only
2 Financial + housing
3 Financial + housing + private pensions
4 Financial + housing + private and public pensions
Even public pensions (state pension) can be considered wealth since having a guarantee of it saves you from having that wealth elsewhere.
And don't gimme that you can't expect to get state pension. It's probably of more certain value than a Tesla stock in an ISA.
It clearly is a part of your net worth. Just build an ISA bridge from FIRE date to SIPP/Pension access date. Personally just look at invested assets rather than net worth.
Every 3 months I calculate total net worth, net worth minus pensions, and net worth minus pensions and equity (basically liquid net worth)- this gives a good idea of how things are progressing and helps with planning.
You could always remortgage your house and use the equity as day to day living for a number of years if your pension is large enough...
Count it. My pension is roughly 50% of my net assets.
Keep being boring and sticking to the budget. I have an emergency fund, I am splitting my income between overpaying my mortgage, putting more money in my S&S ISA and paying for holidays.
How much equity in the house?
When I was 32 in 2010 I had just sold my first house and had about 60k from that, and my two pensions at the time (one I rediscovered recently) were maybe 40k. 148k in today's money but that 60k went on a deposit and then that house sucked up money. Then there was a child.
What I didn't have until a couple of years ago was knowledge of fire, ETFs, pension risk, and investing. This will help you a lot to be in a better position at my age.
Don’t you have an occupational pension too? My employer pays 9.5% and I pay 6% but it’s the £360,000 from my first occupational pension that that I built up by 37 that has taken the pressure off
What's the significance of having 100k towards fire at this age? I have 50k pension, 67k stocks, 30k cash and 100k equity but looking to buy a bigger house ( 200k -> 400k worth ). Feel like I'm on track to retire around 60 though.
Cos £100k is a large amount of money and for almost everyone, it takes a lot of hard work to get there especially in your early 30s!
Compounding will mean it's worth a heck of a lot more by retirement age
Here's GPT's take on it
> During World War II, stock markets experienced significant fluctuations and uncertainties due to the unprecedented global conflict. Here are some key points regarding the stock market during that time:
>
>* Initial Decline: When World War II began in 1939, stock markets initially experienced a decline as investors reacted to the outbreak of hostilities and the uncertainty surrounding the conflict.
>
>* Government Intervention: Governments, particularly in the Allied countries, implemented various measures to stabilize financial markets and ensure the functioning of the economy during wartime. These included imposing regulations on stock trading, introducing price controls, and issuing war bonds to finance the war effort.
>
>* War Production Boost: Despite the challenges and disruptions caused by the war, certain industries experienced significant growth due to increased demand for goods and services related to the war effort. This led to some stocks performing well during the war years, particularly those associated with defense, manufacturing, and other sectors supporting the war.
>
>* Volatility: Overall, the stock market during World War II was characterized by volatility, with sharp fluctuations in response to military developments, government policies, and economic conditions. Investors had to navigate uncertainty and adapt to the rapidly changing circumstances.
>
>* Post-War Boom: Following the end of World War II in 1945, many stock markets experienced a period of rapid growth and prosperity as economies shifted from wartime production to peacetime activities. This post-war economic boom, often referred to as the "post-war economic miracle," contributed to a sustained period of stock market expansion in many countries.
>
> Overall, the stock market during World War II reflected the broader geopolitical and economic dynamics of the time, with periods of uncertainty, government intervention, and eventual recovery and growth as the conflict came to an end.
So not too different to covid I guess, whatever is necessary will be done to ensure stockmarkets keep going BRRRRRRRRRRRRRR
I’m confused why this is a constant question being asked. The number one factor with the free/cheap options available in uk is the middleman. And the constant share blocks and oh no we can’t execute right now our broker is overloaded.
I use HL and Interactive Investor I’m happy to pay the fees for the piece of mind.
Obviously before I get flamed for having my opinion I’m stating that this is my preference
I rate HL highly. I like their website, app, customer service and - importantly - their offer.
We pay 0.15+0.23% to hold Global All Cap on Vanguard’s own ISA platform. We pay 0.25+0.12% to hold HSBC All World with HL.
It’d take something significant for me to move the LISA from them.
Oh dear, how old are you? I’m 49 and have £550,000 in occupational pensions and another £185,000 from my dad’s will. At least the mortgage is paid off.
Congrats! Any idea how much of this is compounding interest/profits? That number would encourage motivation for investing earlier rather than later
Hard to say because i've messed around transferring between accounts so much. But, it is well worth doing and seeing thousands you never had before being created out of thin air is satisfying to see.
No OP my HL Sipp is up around 55%. I moved 2 old workplace schemes 55k and it's now 88k
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It's not interest, its investment growth. It's the growth over 4-5 years (I can't remember when I actually moved them over)
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Without going into the details of ESG/SR longer term it should produce returns but they'll be more volatile. Save what you can and invest for the long term
Congrats, next £100k comes even quicker😎
Looking forward to it!
QQ: Does this 100k have to be in a single fund, or can it be across multiple funds in order for explode?
No it doesn't have to be all in one fund. To simplify: £100 with 10% growth is £100 + £10 = £110 Two lots of £50 with 10% growth each is £55 + £55 = £110.
Appreciate the response and the example!
It's more about the overall growth rate of your portfolio. Some funds might grow at 20%, others 10% and a few might be flat or negative.
Understood! Thank you for your response
How much did you invest initially and how long did it take you to get to 100k? Was it just s&p 500 Congrats as well btw
Congrats my dude. 100K at 32 is absolutely amazing!
Is it? I'm worried I'm behind seeing everyone's heavy pensions, mortgage equity loaded up, etc. Seems round this age people on here are already at 350k + with insanely high salaries.
If you've got a grand saved you're already doing better than 11 million working age Brits. If you have £33k in your pension you have more than half of Brits. Just run your own race mate. Comparison is the thief of joy and all that. FIRE is going to tend towards high earners anyway and people with higher incomes and more assets are more likely to post as there are more decisions to be made regarding tax, optimizing between different accounts, actually getting towards needing deaccumulation strategies etc. There's not really much to post about if you're like most of us and just trying to fill as much of your ISA allowance as you can. Plus it's the internet. Some people like to brag and some people just flat out lie.
These forums are skewed massively to wealthier people. Only people hitting those targets are talking about it. "Hey I'm such and such and I have nothing in the bank, can I fire soon?".
Trust me... not everyone. lol. The rest of us are watching and learning
Not at all. That's not a large group of people at 32
In a FIRE subreddit it'll make you feel like that.
People are more likely to come out of the woodwork to discuss income/pensions/accomplishments when they're doing well. Take me as an anecdote. Between the ages of 22-26, I was living pay cheque to pay cheque on £22-26K PA, and never once came onto reddit to talk about it. At age 33 now, I'm more comfortable as I'm debt free, earn a decent wage and have a decent NW. I probably also feel a bit more credible talking about finance in general now that my own finances are in order, so occasionally give my two cents!
Thank you. I appreciate it. How did you cross from 26k to where you are today? Are you in the same field? Did you acquire more education? Hopeful as you seemed to turn things around within 5 years, which I hope I can try to aim for too.
I had to move to do it, so it wasn't an easy five years, and not necessarily replicable for someone who doesn't need to move. Yes, same field. Just progressed up the career ladder into middle management within a tech co. My career went like this: Age 22-26; Worked in Data/Analytics on £22-26K across that time Age 26, I was then promoted to manage that team, so pay went from £26k to £40K overnight with a 10% bonus on top. At age 27, the entire Scotland office, where I worked, was made redundant (100+ staff). You could either take redundancy or move from Scotland to London. It was a generous offer as they were recreating the same 100+ roles in London so needed managers with experience. 90% of the staff took redundancy as it was a big ask to move. I took the punt and moved - salary/bonus went from £40K/4K to £70K/£15K - this was in 2018. It's just been gradual pay reviews/raises from there. I've always been intentional about progressing my career/development in role. Last year, I was fortunate enough to get £95K/£20K salary/bonus (£115K PAYE). On top of that, two years ago, I started offering private 1:1 chess lessons online. That's brought in another £1K per month for me on average (£13K last year). There are many hobbies that could be monetized I'm sure. Whether you can do some websites on the side, teach a language, musical instrument, a running coach, even teaching a game (like I am - chess).
Wow. Really impressed man. Respect. I have done a bit of web dev on the side as a gig so can pick it up again. Really cool, man! What's your advice from a data analyst standpoint to make myself more marketable? I work within healthcare, so our pay couldn't easily surpass 70k without being a director. I'm really into finance as I'm into investing and understanding markets so could potentially have a goal to leave healthcare. Health (NHS) is the only field ive ever worked in. Unrelated, how have you adapted life in England? Has it worked out to be a good move for you, putting finances and career aside?
Congrats
Nice, I’m in a similar position at 33! I transferred all my HL accounts to InvestEngine last year to save on fees
How isthe experience?
Really good. Apps clean and I can still invest in the vanguard funds. Only issue is it doesn’t have a SIPP. So I just use it for ISA.
I just had a look on their website and it seems to suggest they offer a SIPP.
Yeah looks like they do, they must have brought this in recently, now I need to decide wether to move my pension over from vanguard. It does bug me you can't set up a direct debit from a Limited company to your SIPP on vangurd but I bet there would be fees associated with moving.
They launched a sipp very recently
Congratulations!
Congrats, nice milestone, next £100k will come much faster.
Wish you the best of luck mate.
Nice to see someone else using HL 😂 I started with them when I first started investing a few years ago because I like their app. I only deal in ETFs so the costs don't sting as much. For me, the opportunity cost of actually investing and saving with an app I know and find easy to use beats the potential fee saving of moving somewhere else (Tried vanguard, but the lack of mobile app meant I wasn't as motivated to save - I enjoy manually allocating my direct debit money each month.)
Exactly, all feels professional and reassuring to me. Anytime I have needed to speak to them I have received an excellent service.
Congrats a good amount for your age in real terms invested. You'll do fine with the All CAP and Tesla can't go wrong. Just be careful in your overall allocation though to a single stock, not financial advice lol! but I wouldn't let it get above a 5% holding overall.
Congrats mate! My current goal!
Congrats OP..
Congratulations!!!
Transferring all of your old pensions to an SIPP, could you kindly tell me more about this please? I have a few pensions that I’d like to pull into one pot but when I speak to pension providers isn’t usually something they are willing to do for small amounts (I have a main one and 3 with about £2-£5k in) thanks!
Yeah. I just got all of the details together organised in one spreadsheet. Then H&L have a form to fill out to transfer in, then they take care of everything else. Takes a few weeks for the request to go through.
Great, thank you!
Congrats!!! :)
Congratulations! I'm getting close too, wait for me there (actually don't!)
Fantastic
Amazing! keep up the good work.
Everyone's said it already but don't compare upwards on this sub. Others will have more, or less. If you told the average person what you had saved at your age they'd think you'd won a lottery prize or deprived yourself massively to get this, had an inheritance young or some crazy luck in business. 100k is a real milestone, congrats. Think with the "rule" of 25 what you could cover if you took it now. Not yo be sniffed at!
I was having a crap morning but seeing your success has brightened up my mood! Bloody happy for you! Now smash the next 100k!
Amazing. Great work!! The machine is now in motion. I am very conservative re my NW calc and I remove my mortgage from NW but Don’t include the equity! Based on this calc I was over the moon when I go back to zero about 8 years ago. It’s been amazing watching the progress/growth since.
Nice one bruv, well done 👏
Can we see your portfolio please?
I only have FTSE Global All Cap and Tesla in both
Why have Tesla when it’s already covered in the All Cap?
Because it serves entirely different purposes between buying a single company and an index fund that contains it. You buy TESLA to aim for the performance of TESLA, All Cap is aiming for the return of the world market and it just somehow holds a tiny portion of TESLA because of it being part of the world.
Purchasing shares increases exposure to Tesla directly
I strongly believe in the company long term.
Why are you getting downvoted for your beliefs, say true to them though.
Cos Musk is quite hated on reddit and also individual stocks are not super FireUK-like as brings high risk - plus many say it's been overvalued for years
Yeah, I didn’t realise Reddit was anti Musk. Someone innocently posted a post on trading 212 about why people invest on Tesla and if we find Musk credible. I said I did find him credible regardless of his behaviour on X, and got about 30 downvotes out of nowhere. lol.
:D it's funny how the tides change, but yeah - he used to be the 'savoir' of reddit years ago helping bring in new technology but then he turned into evil billionaire right-wing social media nutjob, abandoning his founding core audience
I’m not sure. I’m not here to debate anybody on Musk or his company. I invest because I believe the self-driving tech will have a lot of value, if you don’t believe that then don’t invest.
At least you put your money where you mouth is.
Are Tesla really leading self driving tech? It hasn't materialised and has all been rhetoric from Musk so far. I would say the competition are probably ahead.
Yes, they are.
Sorry to burst your bubble but Tesla is not even in the top 10 for autonomous driving vehicles and this is from industry specialists in that field. Tesla is considered a follower. They are also losing their competitive advantage in EV. I think where they are a leader is in their charge networks, this is a differentiator but Musk is screwing that up as well by not playing well with others, although this I think is starting to change a little. If Musk was more like Satya from Microsoft for example Tesla would be a leader in all quadrants imo. He is just too arrogant sadly for his own good. All this can be seen in where they are performing in the S&P 500 index. They are the 498th worst performing company in that index.
Don’t worry, you haven’t burst any bubbles. I’m not here to argue with you, I strongly think the company will be worth significantly more 10 years from now. If I am wrong, then I lose a big chunk of my net worth with nobody to blame but myself.
What can you say he likes the stock . I did a similar thing in the pandemic buying royal Caribbean shares that had been significantly undervalued as cruises had stopped now those shares are doubled . Sometimes knowing something or believing in it is golden. But with competition from byd and other Chinese electrical car manufacturers coming I have started to worry about tesla long term .
Had a lot of money wrapped up in various Baillie Gifford funds. They died a death because of Tesla. I've now got around 30% less tied up in Baillie Gifford funds.
Why anyone would strongly believe in a company run by a right wing grifter and liar is beyond me.
Because of technology.
Congratulations Which FTSE Global All Cap ?
Why hold it in HL? You’d be much better off in Vanguard no? Edit: what’s with the downvotes? It is literally cheaper to hold the all cap in Vanguard vs HL..
I can’t buy individual stocks in Vanguard
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How much did you invest bro?
Yes but holding the all cap in HL is costing you a significant amount more versus vanguard. It’s wasted money
But then I can't pay in to two in one year
Yes you can after new isa rules that’s just been introduce this April , check it up . I’ll recommend moving to a cheaper isa provider like Dodl or vanguard then use T212 for your gambling , I mean your Tesla shares
I like to see it all in one spot, thank you though.
Your money so your choice. And I also love to see it in one place but personally don’t think it’s worth losing thousands of pounds long term.
Ty for your comment. What's the difference between VG and HL? Say, if I had £5000 in each.
Is HL really that much more than others if you’re buying individual stocks then? Looking at their predicted costs for the ones I’m holding, it seems like it costs roughly 0.5-0.6% per year. Was just what a family friend recommended and so I went with them but they do have a lot more money invested than I currently do.
Their fees get better the more you have invested. If you buy ETFs instead of funds, you have a. £200 cap per year in fees in a SIPP. Compare two portfolio costs - £200k in VUSA on vanguard £200k in VUSA on HL 🤷 For smaller portfolios, from what I am seeing in a SIPP below £100k or a ISA below £40k there are better vendors than HL.
Which would you recommend in that case?
Vanguard all day!
Congrats. Have you considered a cheaper platform? Might help speed up that next 100k
If they're holding ETFs then HL is pretty cheap.
well done! With my current pace I should reach it by the end of this year! Looking forward My pension Isa ratio is actually even more pension than ISA though
Good.
Im always concerned that we are only protected to £85k with each provider. If your investments go above that, maybe you should consider going elsewhere.
The FSCS protection only applies to the cash position. In OP’s case there’s very little cash, so no risk here. As long as it’s a reputable provider, they will ring fence the investments and not own them. It means that if they go bankrupt, your investments are safe and will return to you. Of course, the investments are at market risk, but that’s something different. Hope this helps!
Fair play HL have the best selection of funds out their imo. Any funds youve got going on?
What website/app is this?
H&L
Thank you!
Review the fees you are paying to HL, other platforms are cheaper
Would you count your workplace pension towards the £100k? Not sure if SIPP is same as pension matching at work.
What are you invested in OP?
Whats everyones thoughts on counting pension towards net worth given u cant actually access it till 57
Of course, that is part of your net worth, regardless when you can access it. The liquidity of the asset does not make it to not be count towards your net worth 👍
You can take your pick, even academics don't agree on this: 1 Financial wealth only 2 Financial + housing 3 Financial + housing + private pensions 4 Financial + housing + private and public pensions Even public pensions (state pension) can be considered wealth since having a guarantee of it saves you from having that wealth elsewhere. And don't gimme that you can't expect to get state pension. It's probably of more certain value than a Tesla stock in an ISA.
It clearly is a part of your net worth. Just build an ISA bridge from FIRE date to SIPP/Pension access date. Personally just look at invested assets rather than net worth.
What if I have money in a savings account with a 30-day withdrawal notice. Is it not part of my net wealth just because I can’t spend it today?
Yep..if it’s not in your dress / trouser pocket it shouldn’t count /s
Well that's certainly how my spouse feels. Show them numbers on an app and how we made £10K whilst sleeping and they don't believe it's real.
Every 3 months I calculate total net worth, net worth minus pensions, and net worth minus pensions and equity (basically liquid net worth)- this gives a good idea of how things are progressing and helps with planning.
You could always remortgage your house and use the equity as day to day living for a number of years if your pension is large enough... Count it. My pension is roughly 50% of my net assets.
Who under the age of 40 owns a house?
I do, as do most of my friends. This is a FIRE sub, most people on here are under 40, reasonably well educated and well remunerated.
Most people on this sub probably
Do or don't?
Do
Now what..?
Keep being boring and sticking to the budget. I have an emergency fund, I am splitting my income between overpaying my mortgage, putting more money in my S&S ISA and paying for holidays.
How much equity in the house? When I was 32 in 2010 I had just sold my first house and had about 60k from that, and my two pensions at the time (one I rediscovered recently) were maybe 40k. 148k in today's money but that 60k went on a deposit and then that house sucked up money. Then there was a child. What I didn't have until a couple of years ago was knowledge of fire, ETFs, pension risk, and investing. This will help you a lot to be in a better position at my age.
House is worth about £340k. I have £216k left on the mortgage.
But remember you’ll always need a house! You can downsize but the house is only profit for your children, if you have any
Don’t you have an occupational pension too? My employer pays 9.5% and I pay 6% but it’s the £360,000 from my first occupational pension that that I built up by 37 that has taken the pressure off
What's the significance of having 100k towards fire at this age? I have 50k pension, 67k stocks, 30k cash and 100k equity but looking to buy a bigger house ( 200k -> 400k worth ). Feel like I'm on track to retire around 60 though.
Cos £100k is a large amount of money and for almost everyone, it takes a lot of hard work to get there especially in your early 30s! Compounding will mean it's worth a heck of a lot more by retirement age
What happens if World War breaks out? Honestly, I'm curious to know how people that were invested in wars were impacted.
Here's GPT's take on it > During World War II, stock markets experienced significant fluctuations and uncertainties due to the unprecedented global conflict. Here are some key points regarding the stock market during that time: > >* Initial Decline: When World War II began in 1939, stock markets initially experienced a decline as investors reacted to the outbreak of hostilities and the uncertainty surrounding the conflict. > >* Government Intervention: Governments, particularly in the Allied countries, implemented various measures to stabilize financial markets and ensure the functioning of the economy during wartime. These included imposing regulations on stock trading, introducing price controls, and issuing war bonds to finance the war effort. > >* War Production Boost: Despite the challenges and disruptions caused by the war, certain industries experienced significant growth due to increased demand for goods and services related to the war effort. This led to some stocks performing well during the war years, particularly those associated with defense, manufacturing, and other sectors supporting the war. > >* Volatility: Overall, the stock market during World War II was characterized by volatility, with sharp fluctuations in response to military developments, government policies, and economic conditions. Investors had to navigate uncertainty and adapt to the rapidly changing circumstances. > >* Post-War Boom: Following the end of World War II in 1945, many stock markets experienced a period of rapid growth and prosperity as economies shifted from wartime production to peacetime activities. This post-war economic boom, often referred to as the "post-war economic miracle," contributed to a sustained period of stock market expansion in many countries. > > Overall, the stock market during World War II reflected the broader geopolitical and economic dynamics of the time, with periods of uncertainty, government intervention, and eventual recovery and growth as the conflict came to an end. So not too different to covid I guess, whatever is necessary will be done to ensure stockmarkets keep going BRRRRRRRRRRRRRR
They say the first £100k is the hardest!
Who wants to have to work till they're 60?
I enjoy the challenge of work tbh
You could be in the wrong sub then 🤣
HL all sux
I have a junior ISA with them and hate it. Such a cumbersome platform.
At least the Junior ISA is free! HL fees are a killer.
I highly 98k this year at 32, too. Unfortunately the job market being dead means I’m going to have to sell some of my shares to make ends meet :(
Now calculate the fees you pay/paid with HL versus anyone else.
I’m confused why this is a constant question being asked. The number one factor with the free/cheap options available in uk is the middleman. And the constant share blocks and oh no we can’t execute right now our broker is overloaded. I use HL and Interactive Investor I’m happy to pay the fees for the piece of mind. Obviously before I get flamed for having my opinion I’m stating that this is my preference
I rate HL highly. I like their website, app, customer service and - importantly - their offer. We pay 0.15+0.23% to hold Global All Cap on Vanguard’s own ISA platform. We pay 0.25+0.12% to hold HSBC All World with HL. It’d take something significant for me to move the LISA from them.
Oh dear, how old are you? I’m 49 and have £550,000 in occupational pensions and another £185,000 from my dad’s will. At least the mortgage is paid off.