The FTSE

west didsblue said:
Thanks.

I'm not going to say on here how much I invested back then, but yes I would agree with your calculation.
Click to expand...
Haha! I don’t blame you! People will be tapping you up no end! ;-)

I just made it £10,000 so people can easily see the effects of time and high level compounding!

I show my kids how, if they just put away what the Govt allows them to put away tax-free (while they can) and tax-deferred later, they’ll conservatively have $10-15M stashed away by retirement!

We have pledged to fund their Individual Retirement Accounts until they’re 25 and getting on their feet, but their 401(K) (Employer-sponsored, employee-funded) has to come out of their paycheck. My son is currently socking away about 80% of his cheque while living at home (as his job has 5 mins from the house) and his employer matches his contribution upto 3% of his pay.

It’s not doing much for his love life, but his investments are in six-figures already and he’s only 22. He graduated Uni last summer!

TIME is your friend in the investment game, so the earlier the start the better!

If he does half as well as you’ve done until retirement, that’ll still be about $10M!

However, if he did AS WELL AS YOU (13.5%), that would be (hold on to your hat!) $117,000,000!!!

Inputs - Round numbers
$100,000 Current principal
$35,000 Annual addition
45 yrs to retirement
6.5% & 13.5%
 
ChicagoBlue said:
Haha! I don’t blame you! People will be tapping you up no end! ;-)

I just made it £10,000 so people can easily see the effects of time and high level compounding!

I show my kids how, if they just put away what the Govt allows them to put away tax-free (while they can) and tax-deferred later, they’ll conservatively have $10-15M stashed away by retirement!

We have pledged to fund their Individual Retirement Accounts until they’re 25 and getting on their feet, but their 401(K) (Employer-sponsored, employee-funded) has to come out of their paycheck. My son is currently socking away about 80% of his cheque while living at home (as his job has 5 mins from the house) and his employer matches his contribution upto 3% of his pay.

It’s not doing much for his love life, but his investments are in six-figures already and he’s only 22. He graduated Uni last summer!

TIME is your friend in the investment game, so the earlier the start the better!

If he does half as well as you’ve done until retirement, that’ll still be about $10M!

However, if he did AS WELL AS YOU (13.5%), that would be (hold on to your hat!) $117,000,000!!!

Inputs - Round numbers
$100,000 Current principal
$35,000 Annual addition
45 yrs to retirement
6.5% & 13.5%
Click to expand...
If I had focused just on US funds I would have a lot more than I currently do, but I tried to diversify as much as possible to mitigate the risk of one area doing particularly badly. As it's worked out the US has consistently outperformed everywhere else but I didn't know that was going to happen in the mid 90s. I can't complain because overall I've made about 9% pa when all investments are taken into account. As you can imagine, the US proportion has gone up over the years thanks to the spectacular performance of those funds. Interestingly though, over the last 5 years they've been fairly mid table in the fund rankings compared to their geographical peers, but still much better than the other geographies.

I have done something similar to you with my kids and recently helped set them up with tax free ISAs on a trading platform, which allows them to invest in several funds from different providers where there would be a large minimum investment if they went direct. Unfortunately the graduate employment situation here is fairly dire so it may be a while before they are earning enough money to have cash to spare for significant saving, but even so they have a good starting point.
 
ChicagoBlue said:
Haha! I don’t blame you! People will be tapping you up no end! ;-)

I just made it £10,000 so people can easily see the effects of time and high level compounding!

I show my kids how, if they just put away what the Govt allows them to put away tax-free (while they can) and tax-deferred later, they’ll conservatively have $10-15M stashed away by retirement!

We have pledged to fund their Individual Retirement Accounts until they’re 25 and getting on their feet, but their 401(K) (Employer-sponsored, employee-funded) has to come out of their paycheck. My son is currently socking away about 80% of his cheque while living at home (as his job has 5 mins from the house) and his employer matches his contribution upto 3% of his pay.

It’s not doing much for his love life, but his investments are in six-figures already and he’s only 22. He graduated Uni last summer!

TIME is your friend in the investment game, so the earlier the start the better!

If he does half as well as you’ve done until retirement, that’ll still be about $10M!

However, if he did AS WELL AS YOU (13.5%), that would be (hold on to your hat!) $117,000,000!!!

Inputs - Round numbers
$100,000 Current principal
$35,000 Annual addition
45 yrs to retirement
6.5% & 13.5%
Click to expand...

Each to their own and everyone has their own circumstances but there is no way I’d be putting 80% of my take home pay into my pension in my early 20’s. Fuck that.

I’d rather spend money on life experiences when I’m young even if it means a smaller pension pot when/if I retire.

Got to get the balance right. What you going to do with £117m in your 60’s?

I’d rather have cash to travel and do stuff in my younger years with enough of a pot to live a comfortable life and maybe retire a little early.
 
Wafty Cranker said:
Each to their own and everyone has their own circumstances but there is no way I’d be putting 80% of my take home pay into my pension in my early 20’s. Fuck that.

I’d rather spend money on life experiences when I’m young even if it means a smaller pension pot when/if I retire.

Got to get the balance right. What you going to do with £117m in your 60’s?

I’d rather have cash to travel and do stuff in my younger years with enough of a pot to live a comfortable life and maybe retire a little early.
Click to expand...
What if there was a pandemic and you couldn’t go anywhere and were living rent free at your parents?
 
ChicagoBlue said:
Haha! I don’t blame you! People will be tapping you up no end! ;-)

I just made it £10,000 so people can easily see the effects of time and high level compounding!

I show my kids how, if they just put away what the Govt allows them to put away tax-free (while they can) and tax-deferred later, they’ll conservatively have $10-15M stashed away by retirement!

We have pledged to fund their Individual Retirement Accounts until they’re 25 and getting on their feet, but their 401(K) (Employer-sponsored, employee-funded) has to come out of their paycheck. My son is currently socking away about 80% of his cheque while living at home (as his job has 5 mins from the house) and his employer matches his contribution upto 3% of his pay.

It’s not doing much for his love life, but his investments are in six-figures already and he’s only 22. He graduated Uni last summer!

TIME is your friend in the investment game, so the earlier the start the better!

If he does half as well as you’ve done until retirement, that’ll still be about $10M!

However, if he did AS WELL AS YOU (13.5%), that would be (hold on to your hat!) $117,000,000!!!

Inputs - Round numbers
$100,000 Current principal
$35,000 Annual addition
45 yrs to retirement
6.5% & 13.5%
Click to expand...
What’s high level compounding?

wish my folks would have taught me about funds etc
 
west didsblue said:
What if there was a pandemic and you couldn’t go anywhere and were living rent free at your parents?
Click to expand...
I’d be saving for a house to live in , I’m going to try and teach my child about saving into funds and how it grows

I try and show the lads I work with how it grows but like our work place pension is poor but I changed the funds and done well
 
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