"I wanted an easy answer, a magic way of making money that I didn’t have to work for or wait ten years for compound interest to deliver. I wanted a fast buck.” Stuart (not his real name) described the feelings that led him to nearly losing thousands of pounds to scammers. “It all sounded so plausible. I don’t understand cryptocurrency, but these guys sounded as if they did, so best to let them do their thing. Everyone knows someone who’s made a fortune out of BITCOIN, so why be left out? You just need the right platform and a bit of know-how and you’re away. Of course, it’s risky but that’s okay, I wasn’t planning on betting the house or anything daft like that, just a few... read more
The investment industry has done a brilliant job of convincing us that investment is difficult and requires unique (and expensive) expertise. The evidence does not support this view. “We know that 88% of global equity funds over the last fifteen years did not beat their benchmark” Sean Hagerty, MD of Vanguard Europe, speaking on Radio 4’s The Bottom Line. This is a fact, not an opinion. Investors had only a slim chance of putting money into a fund that would produce a better return than linking it to an index and leaving it alone. Doing nothing. No ‘investment management’. No mystery… just plain old fashioned patience. read more
How retire two years earlier… A fifty year old has built up a pension pot of £200,000. The fund is doing well and generating an average return of 6%pa compound. Having done his arithmetic he reckons he needs £400,000 to have a peaceful retirement, so he needs the fund to double. At 6%pa it will take 12 years. How 1%pa can change your life But he is not getting 6%pa. The fund may be generating 6%pa , but after adviser charges this is reduced to 5%pa. An annual charge of 1%pa over fifteen years will eat up 63,526 of his growth! This is compound interest working against you. It will take him another 2.4 years to double his pension pot, nearly 15 years instead of 12. He... read more
What if, with a little consistent effort, you could: Know how much you can spend each day without guilt Eliminate short term debt Know you are saving money for your future Know you can handle a financial emergency without resorting to credit cards Have money ready to pay for holidays, Christmas, birthdays, treats Plan for special events and know you won’t run out of money And finally have peace of mind around your finances All of this is possible. But there are no quick fixes. It takes time and some effort, but principally time. And, in my experience, it’s very difficult to do without guidance. Someone to hold your hand, provide some know-how and accountability. That’s what a financial coac... read more