Achieving success hinges on the proactive actions and steps you undertake to reach your goals. The process of building wealth necessitates cultivating positive habits, such as consistently allocating funds at regular intervals towards robust investment opportunities. Financial management, despite its critical importance, often becomes a topic avoided by many, eventually causing difficulties down the road. My sincere hope is that anyone who comes across this message is able to find success and fulfillment in life's endeavors!
Starting early is simply the best way of getting ahead to build wealth, investing remains a priority. I learned from my last year's experience, I am able to build a suitable life because I invested early ahead this time.
Experienced long-term investors are aware that the market and economy have a tendency to bounce back over time, and it's wise for investors to be prepared for such a recovery. Speaking from my own experience, I continue to invest heavily in this volatile market and have achieved significant gains - my portfolio is presently up by 60%. For now, I'll keep a watchful eye on the situation and gradually invest in more stocks as opportunities arise.
this is inspiring! could you be kind enough with details of your advisor please? highly suspect i'm much too small game lately to handle investing myself, figured out its best to consult a license professional at this point
Amanda Kathryn Sachs is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
This is just about one of the most defining videos because James hits the exact point about saving for retiring and retiring and what one should be thinking about.
Your best video yet, James, THANK YOU!!! And selfishly for me, something that's been on my mind for a while now. You've just confirmed/validated my thoughts, and desire towards wanting more time as we never know how much we have left, vs. saving and investing for the future that may never be. And yes, we are indeed our own financial planners, who ultimately make our decisions based on knowledge available to us. I'm currently an accountant who is tired of long hours, tedious and meaningless work killing my soul. Would love to semi retire and do other things in life, and financial planning is key to this.
@@jocar-1735 yeah, I agree, I genuinely used to love my job but with promotions and burnout combined with family members getting ill, my time and energy is limited. Would be great if an employer didn't dictate my hours but I dont have any guts nor desire to go self employed.
Congratulations on getting partner. I’m going Vangard life strategy 100% then some S&P etc, using pension and LISA then focus my efforts on my business. Talk to a financial planner 5 years before retirement, but carry on working 2-3 days a week because I love what I do.
I might be weird but (probably like many people who watch your channel) I enjoy spending time working on my finances, pensions, etc. It is the first thing I do in the morning, checking transactions and market data and filling in numerious spreadsheets. Please don't take this pleasure away from me. However, there is always something to learn and thats why I watch your videos. Today gem is the very small percentage of people who actually erode their pension capital during retirement. I will be working towards becoming a member of this exclusive club.
If you enjoy it - truly, because many people say they do when they don't - then you should probably not give that away! It's interesting that that point stuck with you because it's specifically people like you who love the process of saving and investing that can end up like a Dragon sitting on a great horde of gold!
I think that I am in the same club, now that I recently entered the decumulation phase (early retirement), after 35yrs of working and building up assets in the accumulation phase. A considerable change in attitude is necessary to start spending before it is too late !
I agree. I have had a differed gratification philosophy all my life and no doubt that will remain with me, so the likely hood of ever running out of money is remote. However, as I tell my wife, we are now in the period to enjoy all that (financial) hard work and we must spend some money. Especially as we have no children to leave it to. @@JamesShack
I must admit I fall into the over confidence category. I trained briefly as an actuary in the early 1990s and used that background to help me do my own financial planning. I started investing into index funds in 1998 and in 2019 i stopped work aged 51. I've always been 'anti advisor' for one reason only ... I've never understood why i can't just pay you £X per hour to do the work. Why does the amount of work you need to do exactly equal 1% of my portfolio?
Spot on! In the dim, distant past it was just sales people who worked on percentage commissions. When Jeffrey Archer entered the House of Commons for the first time he was met with a barrage of "Mr 10%! Mr 10%!" - because that was the commission he (reportedly) unilaterally chose to take from the initial donations when Oxfam was created (also totally unaudited, allegedly). But now: I met a personal injury lawyer the other day who was (I think genuinely) offended when I suggested that maybe lawyers shouldn't be remunerated on a percentage basis. In most other European countries, including Ireland, such remuneration for lawyers is simply illegal. Transatlantic contamination, obviously. I hadn't registered James saying that when I watched, so thanks for pointing it out. I don't think I'll be availing myself of these services. My portfolio is far too large, haha!
@@mikerodent3164 I'd just like the option. I'd pay £200 per hour for advice on specific things I need help with, or I'd pay £5000 for a comprehensive review of my strategy. It's just not an option to buy such a thing. That's the frustrating thing. So instead I have to educate myself, and hopefully follow my own advice and hopefully don't fall into the bias traps that James highlights.
search for an American guy called Asul. He promotes fee only financial advisors and works as one. He is very good, but his videos get a little repetitive and you need to swap 401k IRA to pension and ISA etc.
When we set up our business 6 years ago, we looked at all the different charging models across the industry to find what would work best. For the type of financial planning we provide - non-transactional, holistic, long term and relationship-based - we found that a subscription-based model delivers better client outcomes than hourly fees. As you've seen from the video, the real value of a financial planner comes in when they have a deep understanding of you as a person, your relationship with money, and the things you want from life. It can take 15+ hours of conversations over the first few years to build that up. How would you feel having those conversations with a timer ticking in the background, counting down every 15 mins? With an hourly fee, it's easy to think an adviser is dragging out conversations or recommending additional work, not because it’s required, but to clock up more hours. When often that work may be the most important part. Have you ever had a mechanic hand you a bill for a bunch of repairs that you think they’ve just made up? That miss-alignment of incentives makes it much harder to build relationships and deliver good outcomes. As discussed in the video, one of the biggest value adds of an adviser is behavioural coaching and calling out your blind spots. This is why a financial planner is likely to provide you with the most value when YOU DON’T THINK you have a problem. The transactional nature of hourly fees requires you to ALREADY know you have a problem and for you to think that problem is worth solving. Insurance is a prime example; most people don’t see the point of insurance, and if given the option, they would probably prefer not to pay for an insurance review. But insurance is perhaps the most critical part of financial planning; it's the first thing we do. If you think you suffer from overconfidence, and you need help seeing your blindspots, do you think you’d be more or less likely to engage with an hourly service, where you get charged every time you pick up the phone or a subscription service? Or, imagine if the markets are falling, you’re feeling stressed and concerned - this would be a vital time to reach out to your adviser for reassurance - but you’re much less likely to do this if you know you’re going to be charged each time you pick up the phone. We find that not only do subscription-based models produce the best outcomes, but when given the option, most clients prefer them.
@@JamesShack yes, I understand all those points and I definitely wouldn't want to go on open ended phone calls at an hourly rate. But I'm absolutely certain you have an internal hourly rate and you allocate the amount of client time by dividing the %fee by that rate. So it's kind of the same issue but in reverse ... Instead of me clock watching, it's you and when my time is up, the detailed advice gets ramped right down. I get that there's no easy answer, apart from capped fees (e.g. 1% up to £10k or whatever). At the moment I would like advice but I'm not prepared to pay 1% of my portfolio every year to get it. I do get that other people are prepared to though, and that your advice is extremely good value.
I appreciate that this video may seem at odds with my other videos because, for the last 3 years, I've been posting videos giving you information in a way that suggests you should all Do It Yourself. A champion of DIY, which I am. But that is also quite dangerous because the reality is that, even armed with the information my videos provide, many of my viewers would still be better off using a good financial planner. Therefore, it is also my responsibility to make sure they are aware of services that could benefit them - and to do a good job of it! Maybe you're not one of these people, and if that is the case, I hope this video at least helps you to understand what good financial planning outcomes look like. That it challenges you to assess whether you are fulfilling that role, and encourages you to rise to the occasion because good financial planning can be so powerful if done correctly!
James, been watching your videos for a couple of weeks now and oh my god, your value to the life of your viewers (or at least to mine) is ... invaluable! Thank you so much for your content. Thanks to you I have a much clearer idea of what I might need to retire, what I should save, when it's probably a good idea to start looking for a financial adviser/planner, etc. Really, thank you!
This video helped on re-enforcing the bigger financial planning picture rather than just AUM. I was once turned-off to seeing 20+ funds in accounts charging +1% expense ratios in addition to another 1% to the company. Oh, but we use modeling that's very complex and sophisticated, and BTW I need to run, having lunch with a fund manager. Lesson: a good financial person is one that will always asked about your total plan before advising or even touching your money. Get a good CFP first.
As a new recent retiree this was exactly the time I sought to find a financial advisor as I had a one off plan from my building society several years ago. Tnat was fine for my experience at that time, Since then I have watched many social media channels extolling the virtues of passive investing with a two or three funds. This is fine at the beginning of your investment journey but if you already have pensions and isa,s and savings then all the advice described here is invaluable if only to take away any doubt you have over your knowledge of finances and decision making confidence.
Financial advisors/planners should quote an hourly fee for giving advice. Charging a percentage of someone’s “pot” is totally unfair and in many cases results in massive overcharging.
@SirJamesShack How would that work for the liability planners/advisers take on indefinitely? Especially with pensions, no? Advisers SHOULD be readily available to offer advice on every aspect of a client's financial life at any point, so a recurring fees would then be justified.
I would want them to be as incentivised to make the best choices with my money, hourly rate long term removes that, i understand initial meetings while you get to know them hourly is probably a good idea
There’s the old adage “When someone goes to the DIY store to buy a 4mm drill bit, they don’t actually want a 4mm drill bit, they want a 4mm hole”. I hear someone take this further. They don’t want a hole, they want to fix a picture to the wall. They don’t want a picture on the wall, they want their house to look nice. They don’t want their house to look nice, they want a nice space to be in. They don’t want a nice space to be in, they want a place to call home that makes them happy (you get the idea). I think about this every time I go to B&Q
@21:33 "working with a ***good*** financial adviser" (and the closing seconds). This is the main blockage: call me cynical (I am): I naturally assume that the "barrage of consumer protections" will in reality be very likely to lead to lots of numpties and box-tickers entering this industry. Most people of my age (early 60s) know the story of Equitable Life, etc. I believe my late Dad lost quite a bit there, with or without planning advice. And conversely, yes, this channel of yours is an ideal shopfront, which makes all the difference: *you* make all the difference.
This video really resonates with me as my husband and I are thinking heavily about what we want from life and the kind of lives we want to lead going forwards as our two boys grow up. Owing to a generous inheritance we are in our early forties with our mortgage fully paid off and a £90k lump sum just sat in a savings account. Beyond that our jobs are quite unfulfilling and we're well aware of the infinite nature of life and that our 'healthy' tomorrows are not guaranteed. We've never bothered with any kind of financial planning before so this is the start of the journey for us, but want to thank you James as your videos have been very helpful and thought provoking so far.
Best video yet James - I have been very guilty of focusing on just the numbers with my investing and not really taking a step back to answer the question of "why". I absolutely want more time to enjoy hobbies and i've always worked on the basis of retiring asap, but i need to rethink the whole plan and consider, working less but for longer - superb content as always.
I think given the current state of the globe that it seems more prudent to ease into retirement and keep some access to a regular income from paid work as a bit of security if nothing else. I also think that the change from employed to person of leisure is more significant than we think.
I cannot recommend retiring early enough, this being one of my better decisions. Although being able to do this takes many years of planning and will be dependent on personal circumstances. However, some people either love their line of work or have worked for so long that they know of nothing else to do. I worked alongside people with multi million pound pension pots who were still working in their late 60's and early 70's and who were happy to do so. That was their choice. Not mine !
The problem with planning (ignoring the historical rip offs) is that the only people who can afford it are those who are doing ok. Planning therefore becomes helping them retire sooner or finding ways to minimise their tax bill. That's due to the cost of rhe regulation requirements (brought about by the historical rip offs) but means the people who really need the help get none. Politicians (of all sides) don't care, as they're in the group who can afford planning, plus they get nice DB pensions paid for by the rest of us, so don't really need it
To be fair, if you can't afford planning there are a ton of high quality free education material on RUclips, like James, Pete Mathews, Toby etc. You can go a long way by being your own financial advisor and absorbing the information available. I've never paid a financial advisor, I started investing in 1998 and I stopped work in 2019 aged 51. I admit that my approach is not perfect and could definitely use some advice (see my comments elsewhere on this video). But being self sufficient and doing your own financial advice is perfectly possible to achieve financial independence (which enables you to allocate time however you choose)
Hi. I just found your channel and have been binge watching. I really like your content and delivery style. I just wanted to say I went to a FA who was terrible. Had no idea about salary sacrifice, hated superannuation and tried to get me to transfer to expensive mutual fund. A quick goggle search showed her preferred fund was currently emboiled in multiple class actions. I was disappointed because the FA was expensive and I won't recommend that company to anyone. I'll try again later but with an FA that doesn't receive bonuses from retail companies.
I will forever admit this channel with the help of your lesson's and ideas explanations, Now it's quite helpful while you'll just sit at your comfort and monitor your account growth
True, Mrs Georgia Robinson service is a talk of the town, I started with a little amount of 5 etherum, and I've made a huge returns. I have been constantly investing with her
In the 1980's I asked my company what do I need to do to retire at 50, I was sent out of the that office and told to think about my career not about retiring, hence still working at 53, so glad there is more advise out there nowadays, although I still think companys dont give great advise to new starters regargarding their finances and retirement.
So you discovered very early on that it's not a company's role to help you plan your finances. What a pity you didn't seek information elsewhere to help you achieve your goal. I'm 55 and stopped working aged 51 so it was definitely perfectly possible over that time period to accumulate enough pot. In the late 90s I used the motley Fool money books to plan my strategy. Today I would use RUclips. But I definitely wouldn't recommend asking the company I happen to work for ... Their expertise is in a completely unrelated field.
What I found very surprising in this video was the chart that shows how people with advisors value the service they receive from their advisors. The top (40%) is the piece of mind. So they are willing to spend 1% of their portfolio year in year out for a piece of mind! Over the long term this will potentially be 100's of thousands of pounds, Wow. This to be makes little sense because it's not tangible. More surprisingly, 'Progress towards goals' is only 18%. What an eye opener this data was for me.
James - Great video, I hope you are right as have just joined Nova Wealth. Looking forward to the benefit’s that you and your team will bring to me in the coming years
As usual James a very informative and structured video from yourself which has convinced me I need a Financial Planner instead of Advisor. I have contacted you to help me get away from SJP as I hope to retire next year. Paying 2% for no advice is not good but more importantly sitting on money worrying about whether I should invest it with them even more so especially as I won a case of 4 figures against them for overcharging me.
We had a very astute insurance “sales man” who said, “what if you die, what if your wife dies, what if you have a critical illness” etc. Obviously he wanted to sell policies, but when I said something was covered by my work he just said that we didn’t need anything. He was a financial planner in essence. Thankfully, we have never needed to call upon those policies but it was comforting to know that we wouldn’t lose our house if one of us had health issues. My friend didn’t take any sort of cover for anything and he has won the game of life roulette, mortgage paid and headed for retirement. But, what if?
Amazing video. Not a UK guy but still love it. Good job!! You almost convince me to have a wealth planner... 1% hmmm i can't.. Even if i see your point
If financial planners offered a fix fee for consultations (a fair fee for the work involved) I think it would be more available and received by the masses. Personally I don’t need ongoing management. I’m relatively young and channels like yours, amongst other research, are invaluable to me when preparing for the future.
I think a key thing is getting the right advisor /good advisor. I just wish we had spoken to a few as the guy we went with just didnt seem ro work for us. So we ended up investing on their platform and those funds did less well than our vanguard and our sessions wirh him didnt seem to give value. I think he just wasnt right for us..
Another thought provoking video with some great content, James. Everything you say makes sense. I've managed my own investments for 20+ years after a couple of very bad experiences with two different Financial Advisors. The costs to me was very significant and put me off financial advisors for life. At the time my attitude was "I can lose money just as easily as these clowns and not have to pay for the privilege". The industry may be regulated but individuals working for firms that are forced out of business by the regulator simply move to another firm or start again. I know this from personal experience, so there appears to be little accountability. I'm sure there are good financial planners out there (like you) but interaction with a bad one can put someone off for life (like me). And, like others here have observed, I was not convinced by the charging structure. Having said all that, I'm sure a good financial planner would be a benefit for all the reasons you cite - especially the around bias and taking an impartial view - and now I'm retired perhaps I'll think again...
Thanks for the comment Ed. The advise industry has a bad reputation, mostly from time when there was way less regulation that there it today. It's going to take some work, and time, to shake that opinion but I hope that my work help advisers, and consumers, to see how powerful good financial planning can be.
I felt like I was being taken for a ride after my initial meeting with a FA. They wanted an initial fee of £4,000 to set up a S6S ISA and a pension (which their company sold) to transfer some of my cash savings and an old pension to, and their platform fees were also quite high at 4.5% . Didn't give me any advice on my workplace pension or if I should transfer my old pot to it instead, she just said there's not much she could do about that. Totally destroyed my faith in advisors for a while. However with a good advisor, you've convinced me of the benefits of having one long term. Just got to find a good advisor...easier said than done.
Great video and I think majority of people would benefit from an advisor to keep them safe from emotional mistakes. I started out with an advisor who was actually my old work pension advisor who introduced us to investing and managed my ISA for few years. He was fantastic and I also got great tax efficient planning advice. I left due to large fee structure(5% entry fee, 3% on monies in, fund switch charges, performance charges) but I needed him at that time in my life and he's set us on my journey. Theres no doubt in future 10 years before I retire the pension side im transfering over to an IFA who can help with the complexities of what to crystallise, part draw down and an annuity. Also estate planning and setting up trust funds for IHT purposes are priceless which you get with a proper advisor the full package. I'll always steer the ISA side as id like to keep some control.
What I'd be interested to know can I pay a financial planner for his/her time to get their advice on what to do with my money......and not "hand over" my pot of money to them handle? So they advise me what to do but I'm the one that actually does it.
I keep on getting marketing emails from my platform concerning a financial review by one of their financial advisors. All for the lovely sum of 4% of my portfolio. How much money for a few hours work ? Not a chance ! Best option is to gain skills and knowledge through investing ones own time in financial matters.
If you want to get your head around why and how to plan your later-life finances, then this is the one-stop video to watch! This really invites you to think about what you want to do and why after full time work. It offers ideas about spending and saving adjustments that can be made and the information available to support informed and comfortable choices to avoid running out of money. It silently but powerfully underlines the fact that these decisions are most often ones to be jointly navigated by life partners and family together. It emphasises intentionality and forethought - and the need to not kick the can down the road for fear of what you might learn. It shows how combining predictions about how long the money might last, and statistics about how long it is likely you will live, gives measured reassurance about the risks of money running out at life-end. Oh, and it makes the point - think about long term care now. Don't wait. Brilliant James! Thanks.
Having just maybe or maybe not of retired ( the jury is out) The biggest worry is running out money. I am terrified of running out of money in my 80 s because of a car or holiday in my late 50's. My FA is good but feel I need more at the moment. Difficult to know if a new FA would be better. All FAs seem to sit on the fence. You could do this or you could do that but not what is best. obsessed with working what your spending. They don't realise that I match my spending with outgoings.
You need to learn about sustainable withdrawal strategy from either SIPP or ISA. This being the Guyton Klinger methodology concerning portfolio construction and withdrawals, plenty of information if you Google search Guyton Klinger. I had the same dilemma when I retired early 2yrs ago at age 55. The above should give you peace of mind, it certainly did in my case. A FA is not required, their fees might make it more likely that you will run out of money since a 1% fee on a long term average market gain of 8 to 9% is a big deduction.
Hi James, love your content - been watching with great interest and learning a lot! Please may I ask how your services work? I have reached a point where I am interested in professional financial planning. Thank you!
This is the first video you've done where I didn't feel you were 'on my side'. Can't explain any more than that. Also slightly disturbed by the 'paid per comment' responses that are here in the chat - maybe not your doing, but the shadow of Fiverr haunts the whole of RUclips. Please don't take this as a negative, as the rest of your content is excellent and you plus Damien and Sasha are my three go-tos for common sense on RUclips. Today just felt like a gear change.
I was just on a run thinking about your comment, and I don't think I did it justice, so here is an update: I appreciate that this video may seem at odds with my other videos because, for the last 3 years, I've been posting videos giving you the information in a way that suggests you should all DIY. A champion of DIY, which I am. But that is also quite dangerous because the reality is that, even armed with the information my videos provide, many of my viewers would still be better off using a good financial planner. Therefore, it is also my responsibility to make sure people are aware of the services that could benefit them - and to do a convincing job of it! Maybe you're not one of these people, and if that is the case, I hope this video at least helps you to understand what good financial planning outcomes look like and challenges you to assess whether you are fulfilling that role. Not so that you start working with a financial planner, but so that you actually rise to the occasion because good financial planning can be so powerful if done correctly! Thanks again for the support of the channel and the feedback - I really appreciate it !
Totally appreciate that and thanks for the reply. You've provided so many excellent resources on the channel and have really helped me plan the whole of the next X number of years, including considering the bit about not ending up being the most 'secure' corpse in the graveyard so I get why it's important to spread this message and provide that support to others too, including those who want that extra support. Looking forwards to your next video (as always). Can we have one around DB pensions and the trade off between extra contributions vs SIPP investment, at different ages? @@JamesShack
@@JamesShackI think some of your previous videos, where you have explained things using anonymised examples of client circumstances describe very well the benefits of using a good Financial Advisor/Planner. I suspect that people like myself, who believe that we have relatively simple needs due to low complexity circumstances will find it harder to understand the benefits. A common criticism of consultants is that they listen to what you tell them and then they tell you what you already know. What's missing is the recognition that the consultant is better placed to filter out the less relevant details and find a path through the complexity that the client was unable to find (perhaps for a multitude of reasons).
This video re-enforces the notion of don't save and i nvest for the sake of it or out of fear. Have an end in mind. you are not gonna take it with you! James, with the volatility of traditional investments with bonds moving in lock step with equity, what about covering some other investment types, like watches ?
The biggest issue is establishing trust of a financial adviser. There is a belief that they are only there for their own interests by using your money….
We need to look into this a bit more: *why* are there a barrage of consumer protections? Because financial advisors have historically ripped off all of their customers in the ways that are now protected against. They have a massive agency problem and all of their incentives are nearly exactly the opposite of what anyone would want. Why on earth would anyone assume that the current level of consumer protection will protect them from the next few rounds of bad IFA behaviour, that will eventually lead to more laws banning it? The societally correct answer is a massive simplification of our financial and tax systems so very few people are dragged into these problems.
I am in the 26%, I draw (almost) everything that my portfolio delivers and I anticipate leaving the residue to my beneficiaries. That is (currently) IHT tax-efficient. I run my assets in this fashion because I do not know when there will not be a tomorrow. Also... I enjoy the challenge!
Hi James, please can you make a video discussing DB pensions and their pros and cons. There are millions of people in the uk with these kind of pensions still including all nhs, education, police, armed forces etc. I would find a video on this subject very useful. For example do I need to do any private pension along side my (nhs) dB pension. Keep up the great work
Pensions are simple (in principle). The more you pay in and the longer you pay in, the bigger the pot, therefore the more choice and flexibility you have. DB pensions are fantastic for certainty and are generous, but not very flexible. Having both is likely to be tax efficient and give you more choice when to retire. You’re unlikely to find many people who get to retirement who think they have too much.
If James could offer advice and guidance on DB pensions, I would also love to hear it. However, I never heard of an employer that offers the option of DB or DC schemes, so I'm not sure that a comparison of their pros and cons would be relevant to many people. In general terms, the common guidance is to contribute enough to your employer's scheme to maximise the matched contributions from your employer. If you can also afford to invest some more, then that would normally be in AVCs, or in a SIPP, both of which are most likely to be money-purchase schemes that provide portability and flexibility. In this way, you could realise the benefits of both types of pension, without having to sacrifice one to achieve the other.
Hi James another great video could you do a video exploring vanguards new funds they’ve released like the accumulating version of the FTSE developed world ETF if it would be worth switching from the global all-cap to save on fees etc be good to hear your thoughts
It would be interesting knowing more in details about fees and packages (for FA) e.g. does it cover a person or a family (husband and wide with/without children), what about overseas investments, what about foreigners and possible UK residency change after retirement, etc... I am 41 but planning to retire at 50 in Asia but scared of choosing idiots (like what happened to me when I bought my property with imbeciles all around) and I guess this is the real concern. On the other hand we dont want to hire the Bentley of FA since we wont be able to afford it. With my wife working in the NHS I feel the level of complexity increases exponentially. Hard to find a FA who know all of it or so I think.
It's a good argument James,I have an old stakeholder pension plan with Aviva. Looking back I know I would have far more in my pot had I simply invested in the sandp500. I don't mind paying an advisor if I get value, i.e.better returns. Great video, first time commenter.👍👍
*Excellent !!! I really do have a question. For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. I would greatly appreciate any suggestions*
I suggest you venture into trading with professional trader Mr Morris. He's strategy and skills is very exceptional. Making profit will be easier for you and he will also teach you how to trade and achieve good profit. I have personally achieving good profit of $18,000 every week trading with Mr Morris. Which speaks volumes about him
OMG!!! you trade with him also. Honestly He's great skills and knowledge about the market. I enjoy full profit and easy withdrawal with no complains, trade with him is the best
the reason why i switched to Vanguard is that my previous pension manager used to charge me outrageous fees and i never saw the benefits of it. their fees are not justified.
FA's are in business because everyone has different personal circumstances. The thing that makes me avoid them is that the charging lacks transparency. Their advice comes with no warranty so far as I'm aware, in an industry with questionable integrity. A £500k pension pot will diminish to £350k at 1% per year over a 30 years in today's money
Excellent insights, there's a lot to ponder. Regarding the additional 3%, is that benchmarked against average returns in passive funds, or is it a standalone metric irrespective of passive investing? On a personal note, not everyone may require a financial advisor. With the abundance of knowledge available through your videos and various blogs, some individuals might find they can successfully manage their financial affairs independently. However, recognizing that there are individuals who can truly benefit from your services as a wealth advisor is crucial. Understanding this difference will undoubtedly streamline your role and enhance the value you provide.
Vanguards study is related to the “Average Investors experience”. They do not attribute any value to using passive vs active funds but they do attribute 0.22-0.44% to cost reduction. So if you already have very low costs the value would be assumed to be less than 3% .
Hi James I’m very late to the pensions and investments personally and I’ve recently opened a SIPP, are there any videos to help choose which funds to invest in?? Thanks
Hi James ive seen a few of your RUclips presentations over the last couple of years and always found them interesting and informative. However they all focus on retirement. As a very lucky 58 yr old who has retired after selling his business, im interested in what i should be doing with all the money i have, spreading my risk, reducing my tax and my enjoying life. Any chance of a slight change of tact?
Hi Clive - I'm not sure I understand. It sounds like you've just retired, and that my content should be right up your street. What's missing? What to do AFTER you retire?
Sadly, very few financial planners bother to talk to you unless you have at least 100k to invest. James, how is your course coming along? It’s sorely needed!
How come a 'good financial advisor' never agrees to be paid on results? Agree to a % of the growth you generate and I'll believe you can add value. Take a flat fee regardless of performance and I'll think you're just choosing funds that benefit you.
this response tells me you have totally misunderstood James’s video. Value cannot & must not be seen solely through investment returns. He couldn’t have made this any clearer; yet you’ve said that is how he should be remunerated.
My sentiments exactly! Although I've often applied this sort of thought to (active) investment funds. And for that matter platforms: Mr Hargreaves, Mr Lansdowne: perhaps you could pay me an eye-watering 1.5% of my total holdings EACH YEAR if your advice leads my portfolios to underperform typical indices? Mr Hargreaves? ... Mr Lansdowne? ... can you, hear me? (For the record, I switched to Lloyds Investment flat-rate, and Interactive Investor flat-rate for the SIPP, many years ago).
@@richpowell5449 Not really. James' video here focuses on a wider perspective AS WELL. But he also, for example, gives an eye-candy graph about the compound effect of "added percentage value" over 40 years of sound advice. In naked cash terms. Or look at the introductory still photo: "3% better off... per year". You can call that merely an inducement to watch the video. But I'd say it's a bit more than that in truth.
We do get this question from time to time. Although it seems to make sense at a surface level, performance fees do not work in practice. Firstly, as Rich said, this question tells me that you still think a financial adviser's main job is to pick funds that will outperform. Secondly, if a financial adviser or fund manager was only paid when they make you a profit it would encourage short term risk taking behaviour. If it got towards the end of the year, and your account was down -10%, that manager would be inclined to take excess risk to try and get your account into the +ve, so that he could get paid. If that backfires and you account ends up -50% it makes no difference to that manager. Performance fees do not promote the right kind of behaviours.
I understand your passion for what you do and do love your content. Really useful and has helped me greatly. Please take this as constructive feedback! Tone and manner sometimes come across as rather passive aggressive (frustrating maybe) and shouty. After 25 min or hearing you almost shouting my head hurts in all honestly. Passion and passionate tone is good. But sounding almost like you are telling someone off or argue isn’t good. Maybe I’m am over analysing or I’m going crazy. 😂
You ask him to take it as constructive feedback but then you go on to be plain rude with your comments, some of which don't need to be there to get your point across. Of course please take this as constructive feedback!
IMO I think there is definitely a case to be made for average Joe to seek financial advice on a periodic basis; though what I see practiced is 1% fee (or more) each year every year when in reality it is a set and forget (for a while) scenario.
2 questions 1. How do i find a good financial planner? 2. Is it worth getting one in your early 20's (assets/investments roughly 125k and a salary of 40k a year)
You rightly don't mention that as added returns (who knows what future holds) but actually I think could make the 1% Vs DIY using a global index tracker and DFA only being available via advisor (at present at least)
@@alexporter7003 It would be great if they did, no one knows for certain, all we can do is follow the evidence. We try not to emphasis the potential upside from factor tilting too much to clients, as it get's them focusing on the wrong thing. Especially as it is also likely to underperform for long periods too.
Is £1000 set up fee reasonable? Also what should a good IFA be able to present to me before i agree to work with him? I was introduced to one, aside from a brief chat outlining his fees, all he was able to share was links to Aviva and Royal London Platforms
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Carol Pasol Lewis is the advisor that oversees my portfolio. She's been able to gain some reputation and online recognition with over 3 decades in service, so it shouldn't be a hassle to find basic info.
Hi, hope you are well. I much appreciate your video content. Short and to the point and informative. I would like to know what your opinions are on Bitcoin as a long term 'investment' strategy, especially now that many large financial institutions are dipping a toe into this space.
I think most people should plan to semi retire at a point they can afford to. With the state pension cushion looking like it won't exist for most of us, we have a long road ahead.
Apparently, i have a free financial advisor from Coutts Bank. Im concerned that they will just try and sell me their products. Is it better to get an independent advisor?
I am under 30 years old, earning about £40 to 50k with about £ 10k in a SIPP, along with £35k of shares in my employer’s business. I have a relatively high future earning potential, and I am currently saving aggressively to get set up with a good sized pension pot. Is it possible to get financial advice with such a low amount of assets? Do some financial advisors aim to “lock in” clients for the long run? Or are there options to just pay lump sum to formulate a financial plan? I believe I’d mainly benefit from support reviewing my financial plan to make sure it makes sense and I haven’t missed anything. I’m relatively well informed on personal finances, but I am sure there are things I have missed.
Wow! What was the origin of this video? Where it can fall down a little is that it is never going to be a partnership. It is still a customer / supplier relationship. Our objectives, our money, our risk. Value should be defined by the customer but the planner is saying the customer may not be qualified to do that. Hell! I would have loved to tell some of my customers that I didn’t want to do business with them but I liked being employed and the hit to my personal brand would have been huge. 😂😂
If you are 5-10 years away from retirement and already 100% in a passive global index for your pension, then is there any value in engaging with a financial planner?
I am not sure I understand in terms of the financial value added in the latter part of the video how any advice could lead to any greater performance than that of the market itself? Are we therefore saying that the advice is more about optimising the tracking of the overall curve shown in the graph presented, i.e. the minimising of costly mistakes?
The initial line in the final graph is a representation of the “average” investors journey as most investors experience a return/journey that is far below optimal. The top line is a representation of an optimal journey, not just market returns but also optimal tax planing, cashflow planing, drawn down sequencing etc Advisers achieving above market returns are not a part of it but that there are many other verticals that leads to an optimal investor experience that add value. Again this is just a high level illustration and should not be taken literally as returns and the added value will be lumpy.
Regarding the point you make about high earners and the value of their time, on the surface it makes sense but unless one is fairly well versed in the options and the issues, how do you know that the people you are delegating to know what they are doing. I think any consumer needs to develop a basic level of competence in understanding what they are getting for their money.
The issue of "the value of your time" is often raised in different scenarios but I question its validity. If you would otherwise be able to charge for your time then the valuation may be valid but if it's your "free" time then it should not be correlated with a cost. In fact, if you (as you must) spend time communicating essential information about your circumstances to your FA, then the cost to you is doubled (or, it's equal to the cost of the consultant plus the cost of your time). Trying to simplify these things to make a point just leads to a misrepresentation of reality.
@@davem.4003 Indeed. I am considering using a planner but they are not cheap. Using a planner may be financially beneficial, but then again it may not be - I don't know enough to know whether it will be or not, so it's a risk. If I do more research, to the point where I understand whether a planner will save me money I may not need one!
The Financial Conduct Authority (FCA) says advisers charge an average of 2.4% of the amount invested for initial advice and 0.8% a year for ongoing advice (1.9% p.a with underlying product and portfolio charges factored in). Fidelity charge 0.35% up to 250k, 0.2% over 250K. My Tip...Become a financial adviser!
Interestingly, I have always lived frugally as I am a natural minimalist. I like a simple life. I am now 66 and retired with pensions that cover all my basic costs plus investments that I theoretically intend to spend down over the next 25 years or so - the problem is, on what? I am genuinely quite content with my simple life and have no desire to own anything much at all. All I ever aspired to was to have the freedom not to have to work for money; now I have that. A real first world problem!
A financial planner is certainly worth it for tax advice, after the initial setup diy is best. Once vanguard came on the scene going with a diversified life strategy fund is the way to go and saving those fees. financial planners take their fees wether you make money or not. I don’t need an Arthur Daley type character telling me the markets turned against me with my money, sorry James but your little rant here isn’t for me.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Achieving success hinges on the proactive actions and steps you undertake to reach your goals. The process of building wealth necessitates cultivating positive habits, such as consistently allocating funds at regular intervals towards robust investment opportunities. Financial management, despite its critical importance, often becomes a topic avoided by many, eventually causing difficulties down the road. My sincere hope is that anyone who comes across this message is able to find success and fulfillment in life's endeavors!
Starting early is simply the best way of getting ahead to build wealth, investing remains a priority. I learned from my last year's experience, I am able to build a suitable life because I invested early ahead this time.
Experienced long-term investors are aware that the market and economy have a tendency to bounce back over time, and it's wise for investors to be prepared for such a recovery. Speaking from my own experience, I continue to invest heavily in this volatile market and have achieved significant gains - my portfolio is presently up by 60%. For now, I'll keep a watchful eye on the situation and gradually invest in more stocks as opportunities arise.
this is inspiring! could you be kind enough with details of your advisor please? highly suspect i'm much too small game lately to handle investing myself, figured out its best to consult a license professional at this point
Amanda Kathryn Sachs is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
This is just about one of the most defining videos because James hits the exact point about saving for retiring and retiring and what one should be thinking about.
Tricked me into watch a 25 minute long ad! Yet I stayed for the whole thing.
Your best video yet, James, THANK YOU!!! And selfishly for me, something that's been on my mind for a while now. You've just confirmed/validated my thoughts, and desire towards wanting more time as we never know how much we have left, vs. saving and investing for the future that may never be. And yes, we are indeed our own financial planners, who ultimately make our decisions based on knowledge available to us. I'm currently an accountant who is tired of long hours, tedious and meaningless work killing my soul. Would love to semi retire and do other things in life, and financial planning is key to this.
As the famous saying goes i think.....do what you love and you will never have to work a day in your life !
@@jocar-1735 yeah, I agree, I genuinely used to love my job but with promotions and burnout combined with family members getting ill, my time and energy is limited. Would be great if an employer didn't dictate my hours but I dont have any guts nor desire to go self employed.
Congratulations on getting partner. I’m going Vangard life strategy 100% then some S&P etc, using pension and LISA then focus my efforts on my business. Talk to a financial planner 5 years before retirement, but carry on working 2-3 days a week because I love what I do.
Thanks!
Thank you so much for this!
I might be weird but (probably like many people who watch your channel) I enjoy spending time working on my finances, pensions, etc. It is the first thing I do in the morning, checking transactions and market data and filling in numerious spreadsheets. Please don't take this pleasure away from me. However, there is always something to learn and thats why I watch your videos. Today gem is the very small percentage of people who actually erode their pension capital during retirement. I will be working towards becoming a member of this exclusive club.
If you enjoy it - truly, because many people say they do when they don't - then you should probably not give that away!
It's interesting that that point stuck with you because it's specifically people like you who love the process of saving and investing that can end up like a Dragon sitting on a great horde of gold!
I think that I am in the same club, now that I recently entered the decumulation phase (early retirement), after 35yrs of working and building up assets in the accumulation phase. A considerable change in attitude is necessary to start spending before it is too late !
I agree. I have had a differed gratification philosophy all my life and no doubt that will remain with me, so the likely hood of ever running out of money is remote. However, as I tell my wife, we are now in the period to enjoy all that (financial) hard work and we must spend some money. Especially as we have no children to leave it to. @@JamesShack
I must admit I fall into the over confidence category. I trained briefly as an actuary in the early 1990s and used that background to help me do my own financial planning.
I started investing into index funds in 1998 and in 2019 i stopped work aged 51.
I've always been 'anti advisor' for one reason only ... I've never understood why i can't just pay you £X per hour to do the work.
Why does the amount of work you need to do exactly equal 1% of my portfolio?
Spot on! In the dim, distant past it was just sales people who worked on percentage commissions. When Jeffrey Archer entered the House of Commons for the first time he was met with a barrage of "Mr 10%! Mr 10%!" - because that was the commission he (reportedly) unilaterally chose to take from the initial donations when Oxfam was created (also totally unaudited, allegedly). But now: I met a personal injury lawyer the other day who was (I think genuinely) offended when I suggested that maybe lawyers shouldn't be remunerated on a percentage basis. In most other European countries, including Ireland, such remuneration for lawyers is simply illegal. Transatlantic contamination, obviously.
I hadn't registered James saying that when I watched, so thanks for pointing it out. I don't think I'll be availing myself of these services. My portfolio is far too large, haha!
@@mikerodent3164 I'd just like the option. I'd pay £200 per hour for advice on specific things I need help with, or I'd pay £5000 for a comprehensive review of my strategy.
It's just not an option to buy such a thing. That's the frustrating thing. So instead I have to educate myself, and hopefully follow my own advice and hopefully don't fall into the bias traps that James highlights.
search for an American guy called Asul. He promotes fee only financial advisors and works as one. He is very good, but his videos get a little repetitive and you need to swap 401k IRA to pension and ISA etc.
When we set up our business 6 years ago, we looked at all the different charging models across the industry to find what would work best. For the type of financial planning we provide - non-transactional, holistic, long term and relationship-based - we found that a subscription-based model delivers better client outcomes than hourly fees.
As you've seen from the video, the real value of a financial planner comes in when they have a deep understanding of you as a person, your relationship with money, and the things you want from life. It can take 15+ hours of conversations over the first few years to build that up.
How would you feel having those conversations with a timer ticking in the background, counting down every 15 mins?
With an hourly fee, it's easy to think an adviser is dragging out conversations or recommending additional work, not because it’s required, but to clock up more hours. When often that work may be the most important part.
Have you ever had a mechanic hand you a bill for a bunch of repairs that you think they’ve just made up?
That miss-alignment of incentives makes it much harder to build relationships and deliver good outcomes.
As discussed in the video, one of the biggest value adds of an adviser is behavioural coaching and calling out your blind spots.
This is why a financial planner is likely to provide you with the most value when YOU DON’T THINK you have a problem.
The transactional nature of hourly fees requires you to ALREADY know you have a problem and for you to think that problem is worth solving.
Insurance is a prime example; most people don’t see the point of insurance, and if given the option, they would probably prefer not to pay for an insurance review. But insurance is perhaps the most critical part of financial planning; it's the first thing we do.
If you think you suffer from overconfidence, and you need help seeing your blindspots, do you think you’d be more or less likely to engage with an hourly service, where you get charged every time you pick up the phone or a subscription service?
Or, imagine if the markets are falling, you’re feeling stressed and concerned - this would be a vital time to reach out to your adviser for reassurance - but you’re much less likely to do this if you know you’re going to be charged each time you pick up the phone.
We find that not only do subscription-based models produce the best outcomes, but when given the option, most clients prefer them.
@@JamesShack yes, I understand all those points and I definitely wouldn't want to go on open ended phone calls at an hourly rate.
But I'm absolutely certain you have an internal hourly rate and you allocate the amount of client time by dividing the %fee by that rate.
So it's kind of the same issue but in reverse ... Instead of me clock watching, it's you and when my time is up, the detailed advice gets ramped right down.
I get that there's no easy answer, apart from capped fees (e.g. 1% up to £10k or whatever).
At the moment I would like advice but I'm not prepared to pay 1% of my portfolio every year to get it.
I do get that other people are prepared to though, and that your advice is extremely good value.
What a great presenter you are .. so inspirational ....
I appreciate that this video may seem at odds with my other videos because, for the last 3 years, I've been posting videos giving you information in a way that suggests you should all Do It Yourself. A champion of DIY, which I am.
But that is also quite dangerous because the reality is that, even armed with the information my videos provide, many of my viewers would still be better off using a good financial planner.
Therefore, it is also my responsibility to make sure they are aware of services that could benefit them - and to do a good job of it!
Maybe you're not one of these people, and if that is the case, I hope this video at least helps you to understand what good financial planning outcomes look like. That it challenges you to assess whether you are fulfilling that role, and encourages you to rise to the occasion because good financial planning can be so powerful if done correctly!
James, been watching your videos for a couple of weeks now and oh my god, your value to the life of your viewers (or at least to mine) is ... invaluable! Thank you so much for your content. Thanks to you I have a much clearer idea of what I might need to retire, what I should save, when it's probably a good idea to start looking for a financial adviser/planner, etc. Really, thank you!
This video helped on re-enforcing the bigger financial planning picture rather than just AUM. I was once turned-off to seeing 20+ funds in accounts charging +1% expense ratios in addition to another 1% to the company. Oh, but we use modeling that's very complex and sophisticated, and BTW I need to run, having lunch with a fund manager. Lesson: a good financial person is one that will always asked about your total plan before advising or even touching your money. Get a good CFP first.
this is the best video you’ve put out and for me you are a cut above some very good finance channels out there
As a new recent retiree this was exactly the time I sought to find a financial advisor as I had a one off plan from my building society several years ago. Tnat was fine for my experience at that time,
Since then I have watched many social media channels extolling the virtues of passive investing with a two or three funds. This is fine at the beginning of your investment journey but if you already have pensions and isa,s and savings then all the advice described here is invaluable if only to take away any doubt you have over your knowledge of finances and decision making confidence.
Financial advisors/planners should quote an hourly fee for giving advice. Charging a percentage of someone’s “pot” is totally unfair and in many cases results in massive overcharging.
@SirJamesShack How would that work for the liability planners/advisers take on indefinitely? Especially with pensions, no? Advisers SHOULD be readily available to offer advice on every aspect of a client's financial life at any point, so a recurring fees would then be justified.
Some do. You’re free to agree a charging structure with an adviser.
I would want them to be as incentivised to make the best choices with my money, hourly rate long term removes that, i understand initial meetings while you get to know them hourly is probably a good idea
Thank you so much, James. This video is exceptional! Cheers from Nova Scotia Canada!
James, I love this: there’s going to be a lot of competition for the wealthiest person in the graveyard!
It's true!
@@daviddean6032 "No pockets In shrouds", as it was put to me once.
There’s the old adage “When someone goes to the DIY store to buy a 4mm drill bit, they don’t actually want a 4mm drill bit, they want a 4mm hole”. I hear someone take this further. They don’t want a hole, they want to fix a picture to the wall. They don’t want a picture on the wall, they want their house to look nice. They don’t want their house to look nice, they want a nice space to be in. They don’t want a nice space to be in, they want a place to call home that makes them happy (you get the idea).
I think about this every time I go to B&Q
@21:33 "working with a ***good*** financial adviser" (and the closing seconds). This is the main blockage: call me cynical (I am): I naturally assume that the "barrage of consumer protections" will in reality be very likely to lead to lots of numpties and box-tickers entering this industry. Most people of my age (early 60s) know the story of Equitable Life, etc. I believe my late Dad lost quite a bit there, with or without planning advice. And conversely, yes, this channel of yours is an ideal shopfront, which makes all the difference: *you* make all the difference.
This video really resonates with me as my husband and I are thinking heavily about what we want from life and the kind of lives we want to lead going forwards as our two boys grow up. Owing to a generous inheritance we are in our early forties with our mortgage fully paid off and a £90k lump sum just sat in a savings account. Beyond that our jobs are quite unfulfilling and we're well aware of the infinite nature of life and that our 'healthy' tomorrows are not guaranteed. We've never bothered with any kind of financial planning before so this is the start of the journey for us, but want to thank you James as your videos have been very helpful and thought provoking so far.
Best video yet James - I have been very guilty of focusing on just the numbers with my investing and not really taking a step back to answer the question of "why". I absolutely want more time to enjoy hobbies and i've always worked on the basis of retiring asap, but i need to rethink the whole plan and consider, working less but for longer - superb content as always.
I think given the current state of the globe that it seems more prudent to ease into retirement and keep some access to a regular income from paid work as a bit of security if nothing else. I also think that the change from employed to person of leisure is more significant than we think.
I cannot recommend retiring early enough, this being one of my better decisions. Although being able to do this takes many years of planning and will be dependent on personal circumstances.
However, some people either love their line of work or have worked for so long that they know of nothing else to do. I worked alongside people with multi million pound pension pots who were still working in their late 60's and early 70's and who were happy to do so. That was their choice. Not mine !
The problem with planning (ignoring the historical rip offs) is that the only people who can afford it are those who are doing ok. Planning therefore becomes helping them retire sooner or finding ways to minimise their tax bill.
That's due to the cost of rhe regulation requirements (brought about by the historical rip offs) but means the people who really need the help get none. Politicians (of all sides) don't care, as they're in the group who can afford planning, plus they get nice DB pensions paid for by the rest of us, so don't really need it
To be fair, if you can't afford planning there are a ton of high quality free education material on RUclips, like James, Pete Mathews, Toby etc.
You can go a long way by being your own financial advisor and absorbing the information available.
I've never paid a financial advisor, I started investing in 1998 and I stopped work in 2019 aged 51.
I admit that my approach is not perfect and could definitely use some advice (see my comments elsewhere on this video).
But being self sufficient and doing your own financial advice is perfectly possible to achieve financial independence (which enables you to allocate time however you choose)
An unintended consequence of RDR. Huge advice gap.
Hi. I just found your channel and have been binge watching. I really like your content and delivery style.
I just wanted to say I went to a FA who was terrible. Had no idea about salary sacrifice, hated superannuation and tried to get me to transfer to expensive mutual fund. A quick goggle search showed her preferred fund was currently emboiled in multiple class actions. I was disappointed because the FA was expensive and I won't recommend that company to anyone.
I'll try again later but with an FA that doesn't receive bonuses from retail companies.
I've watched a lot of your videos. This could be the most important one you've produced 👏
Thanks!
I agree it’s one of the best ever. Again thank you James.
You are knocking it out of the park with these superb videos James. Thank you very much.
I will forever admit this channel with the help of your lesson's and ideas explanations, Now it's quite helpful while you'll just sit at your comfort and monitor your account growth
Okay, can share some business ideas like
1. Crypto
2. Stocks
3. Brics
As a beginner, it's essential for you to have a mentor to keep you accountable. I'm guided by Mrs Georgia Robinson a widely known crypto consultant
True, Mrs Georgia Robinson service is a talk of the town, I started with a little amount of 5 etherum, and I've made a huge returns. I have been constantly investing with her
She's mostly on Telegrams app with the name below.
investwithrobinson💯,, that's it
In the 1980's I asked my company what do I need to do to retire at 50, I was sent out of the that office and told to think about my career not about retiring, hence still working at 53, so glad there is more advise out there nowadays, although I still think companys dont give great advise to new starters regargarding their finances and retirement.
So you discovered very early on that it's not a company's role to help you plan your finances.
What a pity you didn't seek information elsewhere to help you achieve your goal.
I'm 55 and stopped working aged 51 so it was definitely perfectly possible over that time period to accumulate enough pot.
In the late 90s I used the motley Fool money books to plan my strategy. Today I would use RUclips. But I definitely wouldn't recommend asking the company I happen to work for ... Their expertise is in a completely unrelated field.
Terrific video James. Holistic approach and balanced arguments which you deliver superbly.
What I found very surprising in this video was the chart that shows how people with advisors value the service they receive from their advisors. The top (40%) is the piece of mind. So they are willing to spend 1% of their portfolio year in year out for a piece of mind! Over the long term this will potentially be 100's of thousands of pounds, Wow. This to be makes little sense because it's not tangible. More surprisingly, 'Progress towards goals' is only 18%. What an eye opener this data was for me.
James - Great video, I hope you are right as have just joined Nova Wealth. Looking forward to the benefit’s that you and your team will bring to me in the coming years
As usual James a very informative and structured video from yourself which has convinced me I need a Financial Planner instead of Advisor. I have contacted you to help me get away from SJP as I hope to retire next year. Paying 2% for no advice is not good but more importantly sitting on money worrying about whether I should invest it with them even more so especially as I won
a case of 4 figures against them for overcharging me.
Absolutely brilliant. My thoughts exactly. Thanks for all the vids James, much appreciated.
We had a very astute insurance “sales man” who said, “what if you die, what if your wife dies, what if you have a critical illness” etc. Obviously he wanted to sell policies, but when I said something was covered by my work he just said that we didn’t need anything. He was a financial planner in essence. Thankfully, we have never needed to call upon those policies but it was comforting to know that we wouldn’t lose our house if one of us had health issues. My friend didn’t take any sort of cover for anything and he has won the game of life roulette, mortgage paid and headed for retirement. But, what if?
`Dunning-Kurger effect` 😃 Thanks for the videos/info James
IFAs are for people that use a travel agent or an insurance broker.
That made me laugh out loud, thanks.
This was simply brilliant. Balanced. Knowledge.
Amazing video. Not a UK guy but still love it. Good job!! You almost convince me to have a wealth planner... 1% hmmm i can't.. Even if i see your point
Another great video James, your knowledge is invaluable.
Love this, so many good reminders, thank you James
Some very valuable life lessons, great video as always
Glad you enjoyed it
If financial planners offered a fix fee for consultations (a fair fee for the work involved) I think it would be more available and received by the masses. Personally I don’t need ongoing management.
I’m relatively young and channels like yours, amongst other research, are invaluable to me when preparing for the future.
I think a key thing is getting the right advisor /good advisor. I just wish we had spoken to a few as the guy we went with just didnt seem ro work for us. So we ended up investing on their platform and those funds did less well than our vanguard and our sessions wirh him didnt seem to give value. I think he just wasnt right for us..
Absolutely brilliant, and very informative
Another thought provoking video with some great content, James. Everything you say makes sense. I've managed my own investments for 20+ years after a couple of very bad experiences with two different Financial Advisors. The costs to me was very significant and put me off financial advisors for life. At the time my attitude was "I can lose money just as easily as these clowns and not have to pay for the privilege". The industry may be regulated but individuals working for firms that are forced out of business by the regulator simply move to another firm or start again. I know this from personal experience, so there appears to be little accountability. I'm sure there are good financial planners out there (like you) but interaction with a bad one can put someone off for life (like me). And, like others here have observed, I was not convinced by the charging structure. Having said all that, I'm sure a good financial planner would be a benefit for all the reasons you cite - especially the around bias and taking an impartial view - and now I'm retired perhaps I'll think again...
Thanks for the comment Ed. The advise industry has a bad reputation, mostly from time when there was way less regulation that there it today.
It's going to take some work, and time, to shake that opinion but I hope that my work help advisers, and consumers, to see how powerful good financial planning can be.
I felt like I was being taken for a ride after my initial meeting with a FA. They wanted an initial fee of £4,000 to set up a S6S ISA and a pension (which their company sold) to transfer some of my cash savings and an old pension to, and their platform fees were also quite high at 4.5% . Didn't give me any advice on my workplace pension or if I should transfer my old pot to it instead, she just said there's not much she could do about that. Totally destroyed my faith in advisors for a while. However with a good advisor, you've convinced me of the benefits of having one long term. Just got to find a good advisor...easier said than done.
Great video and I think majority of people would benefit from an advisor to keep them safe from emotional mistakes. I started out with an advisor who was actually my old work pension advisor who introduced us to investing and managed my ISA for few years. He was fantastic and I also got great tax efficient planning advice. I left due to large fee structure(5% entry fee, 3% on monies in, fund switch charges, performance charges) but I needed him at that time in my life and he's set us on my journey. Theres no doubt in future 10 years before I retire the pension side im transfering over to an IFA who can help with the complexities of what to crystallise, part draw down and an annuity. Also estate planning and setting up trust funds for IHT purposes are priceless which you get with a proper advisor the full package. I'll always steer the ISA side as id like to keep some control.
What I'd be interested to know can I pay a financial planner for his/her time to get their advice on what to do with my money......and not "hand over" my pot of money to them handle? So they advise me what to do but I'm the one that actually does it.
Yep that’s what I want too. I don’t see what the size of my pot has do with the effort needed to advise on it.
Thats all I want too, but good luck finding an advisor who will do this, they want a guaranteed regular income from your money.
I keep on getting marketing emails from my platform concerning a financial review by one of their financial advisors.
All for the lovely sum of 4% of my portfolio. How much money for a few hours work ?
Not a chance !
Best option is to gain skills and knowledge through investing ones own time in financial matters.
New World is a low cost tax planner
Absolutely wonderful and informative video, thank you very much.
A brilliant passionate video, thanks
If you want to get your head around why and how to plan your later-life finances, then this is the one-stop video to watch! This really invites you to think about what you want to do and why after full time work. It offers ideas about spending and saving adjustments that can be made and the information available to support informed and comfortable choices to avoid running out of money. It silently but powerfully underlines the fact that these decisions are most often ones to be jointly navigated by life partners and family together. It emphasises intentionality and forethought - and the need to not kick the can down the road for fear of what you might learn. It shows how combining predictions about how long the money might last, and statistics about how long it is likely you will live, gives measured reassurance about the risks of money running out at life-end. Oh, and it makes the point - think about long term care now. Don't wait. Brilliant James! Thanks.
fantastic insight
Having just maybe or maybe not of retired ( the jury is out) The biggest worry is running out money. I am terrified of running out of money in my 80 s because of a car or holiday in my late 50's. My FA is good but feel I need more at the moment. Difficult to know if a new FA would be better. All FAs seem to sit on the fence. You could do this or you could do that but not what is best. obsessed with working what your spending. They don't realise that I match my spending with outgoings.
You need to learn about sustainable withdrawal strategy from either SIPP or ISA. This being the Guyton Klinger methodology concerning portfolio construction and withdrawals, plenty of information if you Google search Guyton Klinger.
I had the same dilemma when I retired early 2yrs ago at age 55. The above should give you peace of mind, it certainly did in my case.
A FA is not required, their fees might make it more likely that you will run out of money since a 1% fee on a long term average market gain of 8 to 9% is a big deduction.
Hi James, love your content - been watching with great interest and learning a lot!
Please may I ask how your services work? I have reached a point where I am interested in professional financial planning.
Thank you!
This is the first video you've done where I didn't feel you were 'on my side'. Can't explain any more than that.
Also slightly disturbed by the 'paid per comment' responses that are here in the chat - maybe not your doing, but the shadow of Fiverr haunts the whole of RUclips.
Please don't take this as a negative, as the rest of your content is excellent and you plus Damien and Sasha are my three go-tos for common sense on RUclips. Today just felt like a gear change.
I was just on a run thinking about your comment, and I don't think I did it justice, so here is an update:
I appreciate that this video may seem at odds with my other videos because, for the last 3 years, I've been posting videos giving you the information in a way that suggests you should all DIY. A champion of DIY, which I am.
But that is also quite dangerous because the reality is that, even armed with the information my videos provide, many of my viewers would still be better off using a good financial planner.
Therefore, it is also my responsibility to make sure people are aware of the services that could benefit them - and to do a convincing job of it!
Maybe you're not one of these people, and if that is the case, I hope this video at least helps you to understand what good financial planning outcomes look like and challenges you to assess whether you are fulfilling that role. Not so that you start working with a financial planner, but so that you actually rise to the occasion because good financial planning can be so powerful if done correctly!
Thanks again for the support of the channel and the feedback - I really appreciate it !
Bots are a plague on RUclips unfortunately.
Totally appreciate that and thanks for the reply.
You've provided so many excellent resources on the channel and have really helped me plan the whole of the next X number of years, including considering the bit about not ending up being the most 'secure' corpse in the graveyard so I get why it's important to spread this message and provide that support to others too, including those who want that extra support.
Looking forwards to your next video (as always). Can we have one around DB pensions and the trade off between extra contributions vs SIPP investment, at different ages? @@JamesShack
@@JamesShackI think some of your previous videos, where you have explained things using anonymised examples of client circumstances describe very well the benefits of using a good Financial Advisor/Planner. I suspect that people like myself, who believe that we have relatively simple needs due to low complexity circumstances will find it harder to understand the benefits.
A common criticism of consultants is that they listen to what you tell them and then they tell you what you already know. What's missing is the recognition that the consultant is better placed to filter out the less relevant details and find a path through the complexity that the client was unable to find (perhaps for a multitude of reasons).
This video re-enforces the notion of don't save and i nvest for the sake of it or out of fear. Have an end in mind. you are not gonna take it with you! James, with the volatility of traditional investments with bonds moving in lock step with equity, what about covering some other investment types, like watches ?
James, Are you doing financial planning for people in the UK? I`m in the US, that is why I`m asking. Great video btw.
The biggest issue is establishing trust of a financial adviser. There is a belief that they are only there for their own interests by using your money….
We need to look into this a bit more: *why* are there a barrage of consumer protections? Because financial advisors have historically ripped off all of their customers in the ways that are now protected against. They have a massive agency problem and all of their incentives are nearly exactly the opposite of what anyone would want. Why on earth would anyone assume that the current level of consumer protection will protect them from the next few rounds of bad IFA behaviour, that will eventually lead to more laws banning it? The societally correct answer is a massive simplification of our financial and tax systems so very few people are dragged into these problems.
I am in the 26%, I draw (almost) everything that my portfolio delivers and I anticipate leaving the residue to my beneficiaries.
That is (currently) IHT tax-efficient. I run my assets in this fashion because I do not know when there will not be a tomorrow.
Also... I enjoy the challenge!
Hi James, please can you make a video discussing DB pensions and their pros and cons. There are millions of people in the uk with these kind of pensions still including all nhs, education, police, armed forces etc.
I would find a video on this subject very useful. For example do I need to do any private pension along side my (nhs) dB pension.
Keep up the great work
Pensions are simple (in principle). The more you pay in and the longer you pay in, the bigger the pot, therefore the more choice and flexibility you have. DB pensions are fantastic for certainty and are generous, but not very flexible. Having both is likely to be tax efficient and give you more choice when to retire. You’re unlikely to find many people who get to retirement who think they have too much.
If James could offer advice and guidance on DB pensions, I would also love to hear it. However, I never heard of an employer that offers the option of DB or DC schemes, so I'm not sure that a comparison of their pros and cons would be relevant to many people. In general terms, the common guidance is to contribute enough to your employer's scheme to maximise the matched contributions from your employer. If you can also afford to invest some more, then that would normally be in AVCs, or in a SIPP, both of which are most likely to be money-purchase schemes that provide portability and flexibility. In this way, you could realise the benefits of both types of pension, without having to sacrifice one to achieve the other.
Hi James another great video could you do a video exploring vanguards new funds they’ve released like the accumulating version of the FTSE developed world ETF if it would be worth switching from the global all-cap to save on fees etc be good to hear your thoughts
It would be interesting knowing more in details about fees and packages (for FA) e.g. does it cover a person or a family (husband and wide with/without children), what about overseas investments, what about foreigners and possible UK residency change after retirement, etc... I am 41 but planning to retire at 50 in Asia but scared of choosing idiots (like what happened to me when I bought my property with imbeciles all around) and I guess this is the real concern. On the other hand we dont want to hire the Bentley of FA since we wont be able to afford it. With my wife working in the NHS I feel the level of complexity increases exponentially. Hard to find a FA who know all of it or so I think.
It's a good argument James,I have an old stakeholder pension plan with Aviva.
Looking back I know I would have far more in my pot had I simply invested in the sandp500.
I don't mind paying an advisor if I get value, i.e.better returns.
Great video, first time commenter.👍👍
*Excellent !!! I really do have a question. For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. I would greatly appreciate any suggestions*
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I'm a beginner where can someone reach Mr Morris.
*@morris1961 ^^^^^^that's it^^^^^ 人人人 "*
Trading as a newbie is quite stressful and discouraging but I'll linking up to your coach. This is useful info❤
OMG!!! you trade with him also. Honestly He's great skills and knowledge about the market. I enjoy full profit and easy withdrawal with no complains, trade with him is the best
the reason why i switched to Vanguard is that my previous pension manager used to charge me outrageous fees and i never saw the benefits of it. their fees are not justified.
FA's are in business because everyone has different personal circumstances. The thing that makes me avoid them is that the charging lacks transparency. Their advice comes with no warranty so far as I'm aware, in an industry with questionable integrity. A £500k pension pot will diminish to £350k at 1% per year over a 30 years in today's money
Time 100%
Very nice to think about why… which underlies the money
😂 analysis paralysis - 👏👏
Excellent insights, there's a lot to ponder. Regarding the additional 3%, is that benchmarked against average returns in passive funds, or is it a standalone metric irrespective of passive investing?
On a personal note, not everyone may require a financial advisor. With the abundance of knowledge available through your videos and various blogs, some individuals might find they can successfully manage their financial affairs independently. However, recognizing that there are individuals who can truly benefit from your services as a wealth advisor is crucial. Understanding this difference will undoubtedly streamline your role and enhance the value you provide.
Vanguards study is related to the “Average Investors experience”.
They do not attribute any value to using passive vs active funds but they do attribute 0.22-0.44% to cost reduction.
So if you already have very low costs the value would be assumed to be less than 3% .
Hi James
I’m very late to the pensions and investments personally and I’ve recently opened a SIPP, are there any videos to help choose which funds to invest in?? Thanks
Hi James ive seen a few of your RUclips presentations over the last couple of years and always found them interesting and informative.
However they all focus on retirement. As a very lucky 58 yr old who has retired after selling his business, im interested in what i should be doing with all the money i have, spreading my risk, reducing my tax and my enjoying life. Any chance of a slight change of tact?
Hi Clive - I'm not sure I understand.
It sounds like you've just retired, and that my content should be right up your street.
What's missing? What to do AFTER you retire?
Good advert !!
Crikey, James! That was a hard sell!
How do you find a good one though?
Sadly, very few financial planners bother to talk to you unless you have at least 100k to invest.
James, how is your course coming along? It’s sorely needed!
How come a 'good financial advisor' never agrees to be paid on results? Agree to a % of the growth you generate and I'll believe you can add value. Take a flat fee regardless of performance and I'll think you're just choosing funds that benefit you.
this response tells me you have totally misunderstood James’s video. Value cannot & must not be seen solely through investment returns. He couldn’t have made this any clearer; yet you’ve said that is how he should be remunerated.
My sentiments exactly! Although I've often applied this sort of thought to (active) investment funds. And for that matter platforms: Mr Hargreaves, Mr Lansdowne: perhaps you could pay me an eye-watering 1.5% of my total holdings EACH YEAR if your advice leads my portfolios to underperform typical indices? Mr Hargreaves? ... Mr Lansdowne? ... can you, hear me?
(For the record, I switched to Lloyds Investment flat-rate, and Interactive Investor flat-rate for the SIPP, many years ago).
I think you’re missing the point of the video! (Or maybe you haven’t actually watched it 🤷♂️)
@@richpowell5449 Not really. James' video here focuses on a wider perspective AS WELL. But he also, for example, gives an eye-candy graph about the compound effect of "added percentage value" over 40 years of sound advice. In naked cash terms. Or look at the introductory still photo: "3% better off... per year". You can call that merely an inducement to watch the video. But I'd say it's a bit more than that in truth.
We do get this question from time to time. Although it seems to make sense at a surface level, performance fees do not work in practice.
Firstly, as Rich said, this question tells me that you still think a financial adviser's main job is to pick funds that will outperform.
Secondly, if a financial adviser or fund manager was only paid when they make you a profit it would encourage short term risk taking behaviour. If it got towards the end of the year, and your account was down -10%, that manager would be inclined to take excess risk to try and get your account into the +ve, so that he could get paid. If that backfires and you account ends up -50% it makes no difference to that manager.
Performance fees do not promote the right kind of behaviours.
The lighting is better in this episode vs earlier ones
Ah thank you! I tried something different and was unsure if it made it worse or better!
I understand your passion for what you do and do love your content. Really useful and has helped me greatly. Please take this as constructive feedback! Tone and manner sometimes come across as rather passive aggressive (frustrating maybe) and shouty. After 25 min or hearing you almost shouting my head hurts in all honestly. Passion and passionate tone is good. But sounding almost like you are telling someone off or argue isn’t good. Maybe I’m am over analysing or I’m going crazy. 😂
Thank you for the feedback - my videos have perhaps been too hot of late!
@JamesShack Yes, I also thought you were more shouty than usual, then I remembered you have newborn! 😊 Those sleepness nights are a killer.
@@CathyPowellGlass They certainly are - it took about 2 hours to film this; I was dead by the end!
You ask him to take it as constructive feedback but then you go on to be plain rude with your comments, some of which don't need to be there to get your point across. Of course please take this as constructive feedback!
@@alexporter7003 of course I will. I wasn’t rude. Just direct and honest 🤣🤣🤣 you’re too sensitive haha grow up
hi james. do you consider offering advice for bitcoin holders?
How do I know if the Cash flow Spread Sheet I am using is the most up-to-date
I’ll be using a fee for service planner and not a percentage
IMO I think there is definitely a case to be made for average Joe to seek financial advice on a periodic basis; though what I see practiced is 1% fee (or more) each year every year when in reality it is a set and forget (for a while) scenario.
2 questions
1. How do i find a good financial planner?
2. Is it worth getting one in your early 20's (assets/investments roughly 125k and a salary of 40k a year)
When you mention evidenced based investing, which funds do you use at your practice and do you include factor investing? Eg DFA?
Yes, we use DFA.
You rightly don't mention that as added returns (who knows what future holds) but actually I think could make the 1% Vs DIY using a global index tracker and DFA only being available via advisor (at present at least)
@@alexporter7003 It would be great if they did, no one knows for certain, all we can do is follow the evidence.
We try not to emphasis the potential upside from factor tilting too much to clients, as it get's them focusing on the wrong thing. Especially as it is also likely to underperform for long periods too.
I’ve tried to contact Nova twice to seek financial planning assistance but heard nothing back.
How did you get in touch? There's a link in the description of the video that will take you to the right place.
@@JamesShack Hi James. Thanks for picking this up. I followed that link and completed the questions it asked.
Is £1000 set up fee reasonable? Also what should a good IFA be able to present to me before i agree to work with him? I was introduced to one, aside from a brief chat outlining his fees, all he was able to share was links to Aviva and Royal London Platforms
@SirJamesShack please elaborate James?
Snakey deletion!
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Carol Pasol Lewis is the advisor that oversees my portfolio. She's been able to gain some reputation and online recognition with over 3 decades in service, so it shouldn't be a hassle to find basic info.
Hi James can you explain the difference between a finacial advisor and a finacial planner ?
Which one should you have ?
Thanks Graham
Hi, hope you are well.
I much appreciate your video content. Short and to the point and informative.
I would like to know what your opinions are on Bitcoin as a long term 'investment' strategy, especially now that many large financial institutions are dipping a toe into this space.
I think most people should plan to semi retire at a point they can afford to.
With the state pension cushion looking like it won't exist for most of us, we have a long road ahead.
Apparently, i have a free financial advisor from Coutts Bank. Im concerned that they will just try and sell me their products. Is it better to get an independent advisor?
I realise I'm small fry when watching these videos in my 50s and never hit 40% tax in my life
If im to look for a local financial planner near me, what qualifications and experience should l be looking for?
What are your fees ?
I am under 30 years old, earning about £40 to 50k with about £ 10k in a SIPP, along with £35k of shares in my employer’s business.
I have a relatively high future earning potential, and I am currently saving aggressively to get set up with a good sized pension pot.
Is it possible to get financial advice with such a low amount of assets? Do some financial advisors aim to “lock in” clients for the long run? Or are there options to just pay lump sum to formulate a financial plan?
I believe I’d mainly benefit from support reviewing my financial plan to make sure it makes sense and I haven’t missed anything. I’m relatively well informed on personal finances, but I am sure there are things I have missed.
Wow! What was the origin of this video? Where it can fall down a little is that it is never going to be a partnership. It is still a customer / supplier relationship. Our objectives, our money, our risk. Value should be defined by the customer but the planner is saying the customer may not be qualified to do that. Hell! I would have loved to tell some of my customers that I didn’t want to do business with them but I liked being employed and the hit to my personal brand would have been huge. 😂😂
If you are 5-10 years away from retirement and already 100% in a passive global index for your pension, then is there any value in engaging with a financial planner?
It's hard to tell without knowing what's happening in other aspects of your life!
Index funds are a good first step but that's not all of it.
I am not sure I understand in terms of the financial value added in the latter part of the video how any advice could lead to any greater performance than that of the market itself? Are we therefore saying that the advice is more about optimising the tracking of the overall curve shown in the graph presented, i.e. the minimising of costly mistakes?
The initial line in the final graph is a representation of the “average” investors journey as most investors experience a return/journey that is far below optimal.
The top line is a representation of an optimal journey, not just market returns but also optimal tax planing, cashflow planing, drawn down sequencing etc
Advisers achieving above market returns are not a part of it but that there are many other verticals that leads to an optimal investor experience that add value.
Again this is just a high level illustration and should not be taken literally as returns and the added value will be lumpy.
Regarding the point you make about high earners and the value of their time, on the surface it makes sense but unless one is fairly well versed in the options and the issues, how do you know that the people you are delegating to know what they are doing. I think any consumer needs to develop a basic level of competence in understanding what they are getting for their money.
This is true. You need a base level of financial literacy to even realise you need advice.
The issue of "the value of your time" is often raised in different scenarios but I question its validity. If you would otherwise be able to charge for your time then the valuation may be valid but if it's your "free" time then it should not be correlated with a cost. In fact, if you (as you must) spend time communicating essential information about your circumstances to your FA, then the cost to you is doubled (or, it's equal to the cost of the consultant plus the cost of your time). Trying to simplify these things to make a point just leads to a misrepresentation of reality.
@@davem.4003 Indeed. I am considering using a planner but they are not cheap. Using a planner may be financially beneficial, but then again it may not be - I don't know enough to know whether it will be or not, so it's a risk. If I do more research, to the point where I understand whether a planner will save me money I may not need one!
The Financial Conduct Authority (FCA) says advisers charge an average of 2.4% of the amount invested for initial advice and 0.8% a year for ongoing advice (1.9% p.a with underlying product and portfolio charges factored in). Fidelity charge 0.35% up to 250k, 0.2% over 250K. My Tip...Become a financial adviser!
Conversely, interesting to hear that James also has a financial planner to give him a different perspective when it comes to financial decision making
Interestingly, I have always lived frugally as I am a natural minimalist. I like a simple life. I am now 66 and retired with pensions that cover all my basic costs plus investments that I theoretically intend to spend down over the next 25 years or so - the problem is, on what? I am genuinely quite content with my simple life and have no desire to own anything much at all. All I ever aspired to was to have the freedom not to have to work for money; now I have that. A real first world problem!
_"I spend just as much time trying to get my clients to spend money, as I do trying to get them to save it."_
A financial planner is certainly worth it for tax advice, after the initial setup diy is best.
Once vanguard came on the scene going with a diversified life strategy fund is the way to go and saving those fees. financial planners take their fees wether you make money or not. I don’t need an Arthur Daley type character telling me the markets turned against me with my money, sorry James but your little rant here isn’t for me.