👀 Please watch until the end before diving into all the tools... I’m not sure the RUclips Algorithm will reward me for sending all this traffic off the platform!
You should get a medal for putting together the cashflow model spreadsheet! It's 'literally' changed my life - and I mean literally. You have stopped me being so paranoid about not having enough money in retirement and it means I can enjoy more while I'm younger without feeling guilty about spending some now. Thank you so much👏🥇
Hello James! I've been a portfolio manager in Canada for 5 years and a former journalist covering the stock market for 16 years. Congratulations on your well-crafted capsules.
Thank you James! These videos are truly brilliant! I've been meaning to look into my finances for a few months now. In the last 2 days i have fixed my mortgage, consolidated my pensions, and started paying into a Vanguard Life Strategy fund.
I am shortly to retire...your advice about getting your money to work hard is Soooooo true..I was great (ish) at saving but really, Cash ISAs...what was I doing. I am also shocked at impact of divorce and lack of knowledge has on people so busy sharing your, and Meaningful Money, videos, whilst trying to not to bore my friends!! Great stuff, thanks
You need to really think what you want to do in retirement. If you enjoy work then defer retirement. If you want to travel the world then don't leave it too late as once you get to over 60 everything becomes more of an effort! Time can never be made up. Live for the moment but plan for long term. This channel is brilliant. Great video. 👍
This is so true. I'm close to 50 and starting to pick up health niggles, feel less confident and energetic, etc. I'd be gutted to have saved hard all my life just to sit at home feeling cheated when I finally retire. So we're doing it now :)
Just spotted a bug in the cash flow sheet, the headings are out by one; so at 50 it displays the 51 value, 51 the 52 value etc. This is because the X-axis starts at column A and the Series start at column B.
You would make the worst tiktoker ever James. You don't use any of the required buzzwords and phrases like "make money fast" "Crypto" "to the moon" "AMC/GME" "buy my course" "self made millionaire" "secret tip to make millions within 1 year". All you do is set realistic expectations with fact based logic and develop tools (for free!) that any other normal person would make sure to monetize and sell to their audience. Who the heck does all this in this day and age....you do, and I couldn't appreciate your content more. Thank you for saving my life and sanity, and of many others that have clicked on this video! God Bless.
I’ve fixed some funds on some stocks and I’m keeping a positive mind, It’s eye opening how most stocks can make you rich over the next 12 months alone with Life-changing returns.
@Sean Roger truly, I’m sticking to long term investment this period, it’s advisable to walk away from day trading if you can’t properly manage risks. However, some stocks in the niche are showing positive signs.
Thank you for another brilliant video James. I have only just discovered your channel recently and your videos have prompted me to evaluate my own financial arrangements, something that I have been putting off for a long time. I work in health care and your comment on personal health really resonates with me. I work in a very wealthy part of London and on a daily basis I meet those who lead successful careers with financial independence yet fail to invest in their own health from an early stage, both physical and mental and it doesn't matter how many millions they make if they don't get to enjoy it. For future videos, one suggestion that I might add is perhaps financial advice on getting married and combining finances e.g. what to combine, what to keep separate, pre-nup, mortgages etc. I appreciate it's very context specific but would appreciate some general advice on the 'key things' to discuss prior to a marriage, thanks again James!
Thanks James. Your advice is a major contributor to me having set up a Vanguard SIPP and setting up a direct debit to pay in a fixed monthly amount. I'm committed to a 'set and forget' policy. Keep up the great work. Your videos provide lots of valuable information. Thanks again. Happy investing everyone.
Thanks James - both your videos and this tool are very helpful. Even better if .... when subscribing for tool updates I was allowed to select both yes AND no, rather than yes OR no. Letting you know in case you're getting confusing subscription answers :)
Thank you for sharing so much useful information, the government really could do a lot more to help people in this area. If you have not covered it (I need to check) could you advise how to get personal information like this? I have no idea how to find a trustworthy financial advisor.
Well done James, and thank you. I did my own noddy excel tools this time last year, but yours add many layers & I’ll get stuck into them instead. Cheers!
Good stuff. I’m limited by the fact I have to design it so everyone can use it. But feel free to modify your own copy (if you can work out what’s going on! The engine is in the One of Contributions tab)
As others observe (read the comments ) this channel is utterly brilliant. Some of the videos need to be watched twice (to let the content sink in ) . Strongly recommended.
Financial advice is regulated in each individual country so 99% of advisers only advise people from one country. The advice we give is tax centric so you need a lot of local domaine expertise.
Inflation is going to be a killer if its allowed to carry on like it has been, poorly performing pension investments are going to be useless next to worthless in some cases. I've just closed a few investments that were underperforming and will be moving them over to vanguard and HSBC.
@@rustypipe yes, I invested a small amount back in September iirc, it' was up 6%, vanguard was up 4% in same time, my own investment attempt was down 6% lol, Hargreaves lansdowne was sitting at 1%. All down again now though lol.
@@rustypipe same here, 15% down on etoro. Scarey to say the least, I will just hold I guess and hope for the best, hope it doesn't take 10 years to recover..
Hello James, found your channel a few weeks ago. I think it is great what you are doing. I downloaded your Cashflow Plan and have spent some time modelling with it. In general, I think it does a great job and love the amount of time it has saved me. I did notice an issue with the calculations. I am 9 years older than my wife - so I put my age as the primary person and my wife's as my partner. The issue I found is that joint retirement expenditure stops when I am 96 as opposed to when my wife is 96. So, that means there is 9 years of missing expenditure in the model. This was easy to fix by making my wife the primary person and then me as the partner - as she has the longer life span. However, I thought I would mention it as I think you need to explicitly highlight that the person with the youngest age should be set to the primary person. The difference between flipping the ages was that the first model had a robust amount of investments left over whereas 'flipping' the ages meant we modeled to run out of money when my wife was 86. Hope the feedback helps. Thanks Peter
Hi James. To the point. I have a 20K + interest cash ISA producing 2.2% interest! I haven't used my Isa allowance this tax year. You have persuaded to look at "stocks & shares ISA's". I wish to place 20K in this, plus my existing cash ISA? Thanks, John
Hi James, would you be able to expand your cashflow plan by adding new investment tabs i.e. crypto, nfts, gold, diamonds? Thanks. Keep up the great work!
Great video, and thanks for sharing these tools. So many people just hope that it'll all work out but don't put the small amount of effort in to check they're on the right track. Retirement isn't an age, it's a financial situation!
Hi James. Thank you for these hugely informative, sensible and well scripted videos. I wonder whether you might consider a video on a subject which is rarely, if ever, covered? A small but significant number of people are still fortunate enough to retire with a DB pension (crash proof and inflation linked) together with a lump sum (from either their DB pension lump sum or linked AVCs, or both). What to do with the lump sum / AVC at retirement? Assuming the family's monthly expenditure is adequately covered by the DB pension income then the conventional 60:40 portfolio for retirees seems unnecessarily cautious and growth inhibiting. I understand such an investment portfolio for folk totally dependent upon their investment fund for a lifetime of income in retirement (although your other video about the risks of being too cautious - £600k pot needing to generate approx. £40k p.a. for a couple notwithstanding), but when the core income requirement is covered by the DB pensions then this approach doesn't seem appropriate? Many such retirees will have geared their DB pension choices to leverage their lump sums because they're usually tax free (25% of total DB fund value) and are then seeking to invest for the long-term in a manner which is more tax efficient than paying that income tax on what would have otherwise been the higher DB monthly pension income. Yet there's almost nothing out there on the internet or RUclips that helps retirees with what I term a 'hybrid approach to finances in retirement'. Assuming that the DB pension income is accompanied by a sensible sum held in cash, would it not be reasonable to invest the remaining lump sum in a 100% stocks & shares fund (e.g. Vanguard Life Strategy 100% S&S), perhaps using tax wrappers like ISAs, small £4k p.a. post-retirement SIPPs (until age 75) and maximise both partners' tax allowances? Excess money could initially be placed in a General Investment Account and transferred to the ISAs as each tax year passes as a shelter from CGT and income tax in the longer term? I get that investing in equities is for the long-term and that, for most folk in retirement, the need for income drawdown necessitates the flexibility of avoiding equities being sold during market downturns but, if core financial expenditure is covered by the DB pension income, such an investor would rarely need to instruct a 'distressed sale' at an inappropriate time. So the conventional advice at / approaching retirement of moving equities into bonds seems inappropriate for this type of retiree. Would you agree? Maybe a little video for such folk (almost everyone in UK local government pension schemes and the Principal Civil Services Pension Scheme), plus others who remain members of private sector DB schemes which are closed to new members / deferred members etc. Thank you again - in all honesty, you should receive a fee from Pension Wise and the UK Government for your public service here!
No problem. Yes I think you’re right, a video on this would be good. To keep it more general, how do you manage investment risk when you have a significant part of your income guaranteed. I’ll just need to think of a catchy title!
@@JamesShack Yep, and a lot more concise than my short novel! I look forward to it. I wonder how many folk adopt the standard ‘bond heavy’ mix even with a guaranteed underpin for their core needs? It’s like ‘you’re 55+ so you automatically shift into bonds big style’, whatever else you might have happening financially. Over to you, you’re good at this stuff! Best wishes.
I am in precisely the same boat and have family and friends in the same position. Have also scoured t’nternet for info but for some strange reason there is very little out there.
I would also love a video specifically on this. I'm a teacher with 15ish years to go until retirement that has made every financial mistake going and is only now realising the importance of having my financial future sorted (in short, "I wish I'd started earlier!") Some of James' wisdom to point in the right direction would be brilliant!
James .. what's your thoughts on 2022 .. do you think we should do something to protect our pensions with inflation / possible crash etc. Thats a lot to think off ,so perhaps a video ? Love your advise
Thank you James. Another outstanding video. I have only recently discovered your videos, they are a huge help. I am finally taking action - got my plan, now I just have to execute it ! Thanks again for producing such excellent content.
Hi James, brilliant tool but when I increase my pension value, say from £200k to £700k the model runs out of money much sooner without changing anything else? I have other pensions incl my partners added in, could their be a glitch in the tool? Thanks Simon
Could we reverse the question?: Instead of asking "am I saving enough?", and you asking back "for what?", the question should be: "if I am saving X, then how much will that give me at retirement?". IE: to use your own parlance, "how big of a house can I build if I have X amount of bricks?" See the difference? Then we would haver an idea of how much *more* I might need to save per month etc?
Hi James, Many thanks for the cashflow model, excellent , I just can't see where inflation is taking into consideration in the model? Obviously the values change but just wondered where its factored in ? Cheers Andy
Hello James. I am using your cashflow plan spreadsheet, but I am having trouble finding a sensible range of values to enter in the assumption box for 25year returns for global stocks. I followed the link but cannot find which asset you used to select 7.5% as the central value. At 7.5% I have a legacy that lasts forever, but at certain lower values I die alone in a ditch at the age of 71. If you could let us know what the upper and lower interquartile returns are, then that would be very helpful. Thanks.
A combination of Ex-UK equities and UK equites. The Uk makes up about 4% of global equities, so the figure you arrive at should not be too different from the Ex-UK equities figures.
Hi James, I imagine you get a lot of people sending you requests for editor access to your sheets. You can edit the Google Doc URL so at the end it says /copy rather than /edit. Now, when someone opens it, they will be automatically prompted to make a copy of the doc and you'll have far fewer share requests :)
How is the sheet dealing with BTL investment property. Many people have significant cash in that and it forms a key part of retirement planning. I note the entry for rents but that’s only half the picture.
If you plan on selling them in the future add a one off contribution to cash, other investments or ISAs - wherever you think the cash will go once sold.
Very insightful - Your channel deserves 100x the amount of views - you'll have 1 mil subscribers before the end of 2022 ; willing to bet on it mate, good luck.
Hi James - my employer keeps upping the ECR for the DB scheme I've been in for 20 years because they are underfunded. Im now being asked to pay 35% of my salary for the same benefits I've always been promised, and they have also capped salary rises at 2%. I guess there comes a point when it may be worth considering moving to the company's dc scheme and putting my whopping 35% in there. In this scenario I guess I could keep my db part as deferred... or maybe transfer it into the dc scheme. Job to know. Great channel!
I caught Covid over Christmas and was bored in isolation so decided to use the time to do some research on investing. Found your post on Reddit and have been bingeing them all week! Just wanted to say thank you for the kick up the arse, I’m still working on my financial knowledge but your videos have made it all much easier to face and digest. Have just set up a Vanguard 80% Life Strategy Fund for now and will be seeing how that goes 😁 keep the videos coming
Hi James- love your channel and watch allyour videos. I have tried to download your various XL models, but the page won't allow me to enter my email address. Have you taken it down please?
James - Great to talk to you prior to Christmas looking forward to working with you and your team in the new year - Great video now is always the right time as none of us have a tardis
Hey James, I have a Wombat stocks and shares ISA that i enjoy and its working well for me. Am i able to continue using that and open a Vanguard LifeStrategy fund also?
Hi Joeby, you can only open / pay into one Stocks and Shares ISA per tax year. As far as I understand you can leave an old one sitting there and open a new ISA in April once the new tax year starts. Hope that helps.
Totally agree, many of us spend too much of our life working and building for a comfortable retirement but don’t allow enough time to enjoy ourselves. I am 53 and planning to retire when I’m 55 and can access my personal pension. I currently have £510k with a well known pension provider. Should I consider telling them to start moving money into more secure holdings like bonds and out of stock?
Thank you James. I have been procrastinating with my pensions for the past 30 years. The crunch has come (I am 55!!). I have been on the CII web site & action now being taken.
Thanks James, your spreadsheet is tidier than mine! Could you add functionality to include "one off" income/expenditure into the sheet. For example, tax free lump sums from DB pensions, endowment maturity, profit from sale of investment property, lump sum mortgage settlement. This would help improve accuracy. Thanks
Really useful spreadsheet - thanks James! Hope you don't mind but I took the liberty of extending the idea a little by adding a Monte Carlo simulation similar to Timeline's. I don't think RUclips will allow me to post a link but let me know if you're interested.
Looking forward to getting stuck into this sheet tomorrow and having a play around. Thanks james for both the insightful videos and in taking your time to create such a relevant tool, as I was exploring buying access to one of the pretty expensive professional tools.
Hi James. This is useful. I've started to use it and am trying to understand how it calculates CGT for 'Other Investments'. In the Assumptions tab, cell B23, it uses the figure of -5%. I can't however find where it uses this value when completing its calculations. If you could quickly point me in the right direction that would be great. Many thanks.
@@JamesShack yeah. got it :-). I don't think this models CGT as money is taken out of 'Other Investments' more accurately than this, which is what I'm looking at doing. I'll have a go at tweaking it myself. Thanks!
Yep, if you want anything more accurate than that then it's a bit more work because you need to know the book costs of your holdings. You'd also need to add any gains to your taxable income to work out of you should be paying 10% or 20% tax.
Hi James thanks for the access to your spreadsheets. Can you please advise how to input on the Cashflow Plan where you may have a situation where you have a Defined Benefit pension in place and a Defined Contribution pension? In my case, the former has run until this year and then going forward until retirement it's just the latter. Many thanks
(Should I just put the Defined Contribution pension in "Your Liquid Assets" and the Defined Benefit pension in "Additional Retirement Income" section? - Thanks!)
May I ask a question. Almost every video I watch is about future retirement, but I have only come into a lump some of profit from downsizing my house. So no debt, no mortgage but a relatively small pension. At 69 is a Vanguard LS fund a good thing to make some growth ……I don’t have 30 years to go but would really like to make my money work for me over the ne g 10/15/20 years ? I feel as if I am in a ‘left out’ category ! Many thanks for the most interesting videos, and by the way I have no other investments only the lump sum in a savings account.
Hi James, yes I will need a proportion of it say £20,000 over the next 10 years but I would like to invest the other £40,000. Thank you for replying ! Ann
I do realise this is a very small amount by comparison with most people, but for a retired classical musician it is a fortune ! Hope it is worth bothering with !
@@JamesShack it is a consolidation loan, after been stupid when younger I fell into bad credit etc this loan helped me square things off although 29% Apr it has boosted my credit rating up am now in a position where I can make my money work for me but not sure I should commit to anything untill iam 100% debt free cheers in advance for your advice
@@chrisgibbon5736 Hi Chris, if it’s 29% APR you will want to May that off as soon as possible. Are you sure that’s correct ? That seems higher than some credit cards.
@@JamesShack I will double check but am sure at the time of the loan I had piss poor credit and this was place that would accept my credit score with an inflated Apr
Hi @james shack wonder if u could help, I have a defined benefit final salary pension with 800k in the pot, what are my options? Am I able to take a 25% tax free and then a drawdown of about 2k a month . Any advice be greatly appreciated
Recently discovered your channel. you good advice explained simply and clearly. Keep it up. A video I'd be interested in seeing is how to draw your income most tax efficiently after retirement - e.g. say retiring at 65 (SP age 67) and requiring a net income of £17K per year, with 50K in ISA's and 120K in a SIPP, is it better to draw the pension first or the ISA, or a combination of both in order to be tax efficient?
Hi James. Every year I do my projections for the next year and action those OK, yet somehow underspend so have some cash in hand. Best home for that? Am doing everything else and running 4 accounts (bulk pot, crystallised, stocks ISA, cash). Presently just roll extra forward and draw less...
Hi James! Thanks for the great video and tools! I’ve left the pension blank as my husband and I are based outside of the UK but still investing in an ISA. But I’m seeing it pulling money from pension for our retirement income. Can this be resolved?
James, great video as ever. I’ve enjoyed your videos on vanguard lifestrategy funds and wondered if you could do a short video on the tax status of lifestrategy funds? I am assuming that any investments in a lifestrategy fund (which has an interest in the US stock market) held within a UK ISA would not require a US tax declaration such as a W8 BEN? I’m assuming the fund managers would deal with this but it’s VERY difficult to find out on the web so viewers may find that useful???
Great video, checked out the tool and I think there may be some time period issues, but not sure if i'm just ignorant of the fact an additional year of growth has such a big impact. I.e. setting ages as 26-52 to retirement with no expenditure change from input data, removal of £20k cash, no DB pension and altering starting ISA & Pension balance to £15k each with contributions unchanged leaves £376,234 at 95 changing the retirement age to 51, so 1 year less, makes this figure £83,065 Is this a potential issue or does a year extra of growth have this level of impact? So far as i can see, the formulas make sense so may just be ignorance of the impact delaying retirement by a year has
@@JamesShack I've repopulated the data and sent across. Let me know if you don't get it and I can send it again. Don't use Google drive sheets much so think I sent it through that but not sure if it went through
@@bencarter8905 Hi Ben, thanks for spending that across. It is correct. It's fascinating...this is the power of compound interest. By retiring 1 year later, you're getting an extra year of contributions, which at age 51 would be £18,000 and you're avoiding 1 year of expenses worth £40,000. So by waiting an extra year, you'll end up with £58,000 extra in your portfolio at retirement. £58,000 compounded at 4.24% for 38 years (up until age 90) is just under £300k. It's mental, isn't it!
Thanks for sharing the modeller it’s really useful. I was trying to work out whether it increases the income in retirement by inflation. I couldn’t see that it did, can you clarify. If it doesn’t, is this something you could add?
Hi James! Many thanks for the cashflow model. Most useful. The only issue i have on the spreadsheet concerns tax. How do i add annual isa withdraws (as part of annual retirement income) without that element counting within the personal tax section. Currently it showing a tax bill (which I dont believe is applicable from an isa) and also deficit on retirement expenditure Am I missing a trick here???!!! Many Thanks Julia
Hi James, really love your videos, they've certainly helped me think more strategically about preparing for my retirement. I have downloaded your cashflow model to try and assess various scenario's, however I have a question which I hope you can help me with. I have a Superannuation government final-salary based pension, which has a current annual value quoted on my most recent statement, which I can linearly extrapolate to what I might expect to have at my retirement age. Which figure therefore do I include in your model (cell D19)? If I put the current figure in, the liquid asset profile drops to zero at 67 (why?), yet stays above £40k if I use the extrapolated figure. Any help you can provide would be greatly appreciated. 👍
Another brilliant informative post James. I’m a recently retired 62 year old. Will I be able to get some benefits from your spreadsheets in the same way as someone earlier in the process saving for their retirement. Keep up the great work. :) All the best for 2022!
👀 Please watch until the end before diving into all the tools... I’m not sure the RUclips Algorithm will reward me for sending all this traffic off the platform!
At least it's all within the Google ecosystem! I'm sure they'll forgive you :)
@@alastairford7145 yes let’s hope they give points for that !
Am I just being blind or is there no links in the description?
@@Pegaroo_ There are links in the description now, however the page you go to has a screenshot but no download link :(
You should get a medal for putting together the cashflow model spreadsheet! It's 'literally' changed my life - and I mean literally. You have stopped me being so paranoid about not having enough money in retirement and it means I can enjoy more while I'm younger without feeling guilty about spending some now. Thank you so much👏🥇
Literally same! I have been a chronic saver but now I think I can get away with having some fun lol
Hello James! I've been a portfolio manager in Canada for 5 years and a former journalist covering the stock market for 16 years. Congratulations on your well-crafted capsules.
Thank you James! These videos are truly brilliant! I've been meaning to look into my finances for a few months now. In the last 2 days i have fixed my mortgage, consolidated my pensions, and started paying into a Vanguard Life Strategy fund.
Great stuff well done you!
I am shortly to retire...your advice about getting your money to work hard is Soooooo true..I was great (ish) at saving but really, Cash ISAs...what was I doing. I am also shocked at impact of divorce and lack of knowledge has on people so busy sharing your, and Meaningful Money, videos, whilst trying to not to bore my friends!! Great stuff, thanks
You need to really think what you want to do in retirement. If you enjoy work then defer retirement. If you want to travel the world then don't leave it too late as once you get to over 60 everything becomes more of an effort! Time can never be made up. Live for the moment but plan for long term. This channel is brilliant. Great video. 👍
This is so true. I'm close to 50 and starting to pick up health niggles, feel less confident and energetic, etc. I'd be gutted to have saved hard all my life just to sit at home feeling cheated when I finally retire. So we're doing it now :)
Just spotted a bug in the cash flow sheet, the headings are out by one; so at 50 it displays the 51 value, 51 the 52 value etc. This is because the X-axis starts at column A and the Series start at column B.
You would make the worst tiktoker ever James. You don't use any of the required buzzwords and phrases like "make money fast" "Crypto" "to the moon" "AMC/GME" "buy my course" "self made millionaire" "secret tip to make millions within 1 year".
All you do is set realistic expectations with fact based logic and develop tools (for free!) that any other normal person would make sure to monetize and sell to their audience.
Who the heck does all this in this day and age....you do, and I couldn't appreciate your content more. Thank you for saving my life and sanity, and of many others that have clicked on this video! God Bless.
You’re welcome! I’m glad to be of service!
Thanks for the spreadsheets they are very useful and compliment what I have currently
You’ve very welcome! And thank you very much for the donation!
I’ve fixed some funds on some stocks and I’m keeping a positive mind, It’s eye opening how most stocks can make you rich over the next 12 months alone with Life-changing returns.
@Sean Roger truly, I’m sticking to long term investment this period, it’s advisable to walk away from day trading if you can’t properly manage risks. However, some stocks in the niche are showing positive signs.
@Joe Robert this is promising, I need more info on Frost Hilda’s services, you got any possible means of getting through to him?
@Joe Robert Alright bud! Will reach out to him for clearer understanding of how he operates, will probably join him after weighing my options.
@Joe Robert These financial scams usual appear on the Ukraine war videos. Reported as SPAM.
This is all SPAM. Report the replies before the opening SPAM nonsense.
I will neither confirm nor deny that I enjoyed this video.
Ok Prince Andrew.
You're amazing James, thanks so much!
Thank you for another brilliant video James. I have only just discovered your channel recently and your videos have prompted me to evaluate my own financial arrangements, something that I have been putting off for a long time. I work in health care and your comment on personal health really resonates with me. I work in a very wealthy part of London and on a daily basis I meet those who lead successful careers with financial independence yet fail to invest in their own health from an early stage, both physical and mental and it doesn't matter how many millions they make if they don't get to enjoy it. For future videos, one suggestion that I might add is perhaps financial advice on getting married and combining finances e.g. what to combine, what to keep separate, pre-nup, mortgages etc. I appreciate it's very context specific but would appreciate some general advice on the 'key things' to discuss prior to a marriage, thanks again James!
Thank you! And I’m glad you’ve found it very helpful.
Yes, in London people often get caught up in the rare race.
I’ll see what I can put together
Great tools thanks James
I love your channel James. Thank you so much for doing this
You’re welcome!
Cheers James and fair play for working on this over Christmas!
I live a spreadsheet !
Excellent Advice as usual James. Thank you for your insights and guidance.
Thanks James. Your advice is a major contributor to me having set up a Vanguard SIPP and setting up a direct debit to pay in a fixed monthly amount. I'm committed to a 'set and forget' policy. Keep up the great work. Your videos provide lots of valuable information. Thanks again. Happy investing everyone.
I’m glad to hear that. Best of luck! We’re all on the same journey!
Thanks James - both your videos and this tool are very helpful. Even better if .... when subscribing for tool updates I was allowed to select both yes AND no, rather than yes OR no. Letting you know in case you're getting confusing subscription answers :)
Thank you for sharing so much useful information, the government really could do a lot more to help people in this area. If you have not covered it (I need to check) could you advise how to get personal information like this? I have no idea how to find a trustworthy financial advisor.
Well done James, and thank you. I did my own noddy excel tools this time last year, but yours add many layers & I’ll get stuck into them instead. Cheers!
Good stuff. I’m limited by the fact I have to design it so everyone can use it. But feel free to modify your own copy (if you can work out what’s going on! The engine is in the One of Contributions tab)
@@JamesShack will do - thanks
As others observe (read the comments ) this channel is utterly brilliant. Some of the videos need to be watched twice (to let the content sink in ) .
Strongly recommended.
Thanks for all your videos. They have helped develop my understanding! I had a question, why is it some FAs only advise residents of UK?
Financial advice is regulated in each individual country so 99% of advisers only advise people from one country. The advice we give is tax centric so you need a lot of local domaine expertise.
Happy new year James. Thank you for your work.
You're welcome, happy new year to you too!
Inflation is going to be a killer if its allowed to carry on like it has been, poorly performing pension investments are going to be useless next to worthless in some cases.
I've just closed a few investments that were underperforming and will be moving them over to vanguard and HSBC.
Do you invest in any HSBC product?
@@rustypipe yes, I invested a small amount back in September iirc, it' was up 6%, vanguard was up 4% in same time, my own investment attempt was down 6% lol, Hargreaves lansdowne was sitting at 1%.
All down again now though lol.
@@FlyingFun. how about now? :-) I'm drowning in blood looking at my portfolio and watchlist on etoro.
@@rustypipe same here, 15% down on etoro.
Scarey to say the least, I will just hold I guess and hope for the best, hope it doesn't take 10 years to recover..
Hello James, found your channel a few weeks ago. I think it is great what you are doing.
I downloaded your Cashflow Plan and have spent some time modelling with it. In general, I think it does a great job and love the amount of time it has saved me.
I did notice an issue with the calculations. I am 9 years older than my wife - so I put my age as the primary person and my wife's as my partner. The issue I found is that joint retirement expenditure stops when I am 96 as opposed to when my wife is 96. So, that means there is 9 years of missing expenditure in the model. This was easy to fix by making my wife the primary person and then me as the partner - as she has the longer life span.
However, I thought I would mention it as I think you need to explicitly highlight that the person with the youngest age should be set to the primary person. The difference between flipping the ages was that the first model had a robust amount of investments left over whereas 'flipping' the ages meant we modeled to run out of money when my wife was 86.
Hope the feedback helps.
Thanks
Peter
Hi James. To the point. I have a 20K + interest cash ISA producing 2.2% interest! I haven't used my Isa allowance this tax year. You have persuaded to look at "stocks & shares ISA's".
I wish to place 20K in this, plus my existing cash ISA? Thanks, John
James, thank you so much for creating these valuable tools.
No problem I hope you find them helpful!
Hi James, would you be able to expand your cashflow plan by adding new investment tabs i.e. crypto, nfts, gold, diamonds? Thanks. Keep up the great work!
Hi James I can’t seem to see the spread sheet ?
Thanks Graham
Great video, and thanks for sharing these tools. So many people just hope that it'll all work out but don't put the small amount of effort in to check they're on the right track. Retirement isn't an age, it's a financial situation!
Damn right!
Hi James. Thank you for these hugely informative, sensible and well scripted videos. I wonder whether you might consider a video on a subject which is rarely, if ever, covered? A small but significant number of people are still fortunate enough to retire with a DB pension (crash proof and inflation linked) together with a lump sum (from either their DB pension lump sum or linked AVCs, or both). What to do with the lump sum / AVC at retirement? Assuming the family's monthly expenditure is adequately covered by the DB pension income then the conventional 60:40 portfolio for retirees seems unnecessarily cautious and growth inhibiting. I understand such an investment portfolio for folk totally dependent upon their investment fund for a lifetime of income in retirement (although your other video about the risks of being too cautious - £600k pot needing to generate approx. £40k p.a. for a couple notwithstanding), but when the core income requirement is covered by the DB pensions then this approach doesn't seem appropriate? Many such retirees will have geared their DB pension choices to leverage their lump sums because they're usually tax free (25% of total DB fund value) and are then seeking to invest for the long-term in a manner which is more tax efficient than paying that income tax on what would have otherwise been the higher DB monthly pension income. Yet there's almost nothing out there on the internet or RUclips that helps retirees with what I term a 'hybrid approach to finances in retirement'. Assuming that the DB pension income is accompanied by a sensible sum held in cash, would it not be reasonable to invest the remaining lump sum in a 100% stocks & shares fund (e.g. Vanguard Life Strategy 100% S&S), perhaps using tax wrappers like ISAs, small £4k p.a. post-retirement SIPPs (until age 75) and maximise both partners' tax allowances? Excess money could initially be placed in a General Investment Account and transferred to the ISAs as each tax year passes as a shelter from CGT and income tax in the longer term? I get that investing in equities is for the long-term and that, for most folk in retirement, the need for income drawdown necessitates the flexibility of avoiding equities being sold during market downturns but, if core financial expenditure is covered by the DB pension income, such an investor would rarely need to instruct a 'distressed sale' at an inappropriate time. So the conventional advice at / approaching retirement of moving equities into bonds seems inappropriate for this type of retiree. Would you agree? Maybe a little video for such folk (almost everyone in UK local government pension schemes and the Principal Civil Services Pension Scheme), plus others who remain members of private sector DB schemes which are closed to new members / deferred members etc. Thank you again - in all honesty, you should receive a fee from Pension Wise and the UK Government for your public service here!
No problem. Yes I think you’re right, a video on this would be good. To keep it more general, how do you manage investment risk when you have a significant part of your income guaranteed. I’ll just need to think of a catchy title!
@@JamesShack Yep, and a lot more concise than my short novel! I look forward to it. I wonder how many folk adopt the standard ‘bond heavy’ mix even with a guaranteed underpin for their core needs? It’s like ‘you’re 55+ so you automatically shift into bonds big style’, whatever else you might have happening financially. Over to you, you’re good at this stuff! Best wishes.
I am in precisely the same boat and have family and friends in the same position. Have also scoured t’nternet for info but for some strange reason there is very little out there.
I would also love a video specifically on this. I'm a teacher with 15ish years to go until retirement that has made every financial mistake going and is only now realising the importance of having my financial future sorted (in short, "I wish I'd started earlier!") Some of James' wisdom to point in the right direction would be brilliant!
Been eagerly awaiting this video!... First! 😊
Haha well deserved!
I live in the USA you should broaden your investment knowledge...some of your videos are relevant in my feed and are of interest to me
James .. what's your thoughts on 2022 .. do you think we should do something to protect our pensions with inflation / possible crash etc. Thats a lot to think off ,so perhaps a video ? Love your advise
I think that depends on what stage of life you’re in?
I think my next video may be on Bonds. And their role in a portfolio at time like this. Perhaps a video called “Stop selling your bonds!”
Thanks so much for sharing this James. Refreshing to have someone like sharing useful things that aren't buried behind a 'paywall'
No problem!
The key point is what to invest in, now at all times highs with every man and his dog claiming a crash is imminent, that could have a big impact
That is the million dollar questions!
Legend! Thanks James. I’ve built my own but it is verrry basic, this look awesome. Cheers!
Thank you James - inspiring, informative, integrity.
No problem Michael!
Fantastic video and thanks for the tools
Very welcome
Hi, hope you will enjoy your new year eve. What impact you think Libor transition will have on investment and savings?
Very little, unless I’m missing something. What makes you think it will have an impact ?
Thank you James. Another outstanding video. I have only recently discovered your videos, they are a huge help. I am finally taking action - got my plan, now I just have to execute it ! Thanks again for producing such excellent content.
Glad to be of service Paul!
Outstanding stuff James. Your tools are brilliant and an excellent free public service. Thank you so much. 👍👍
You’re welcome, glad to be of service!
Thanks!
Absolutely brilliant James. Thank you so much x
No problem!
Hi James, brilliant tool but when I increase my pension value, say from £200k to £700k the model runs out of money much sooner without changing anything else? I have other pensions incl my partners added in, could their be a glitch in the tool? Thanks Simon
Could we reverse the question?: Instead of asking "am I saving enough?", and you asking back "for what?", the question should be: "if I am saving X, then how much will that give me at retirement?". IE: to use your own parlance, "how big of a house can I build if I have X amount of bricks?" See the difference? Then we would haver an idea of how much *more* I might need to save per month etc?
To answer both of these questions you still need to know what lifestyle you want to live in retirement.
Hi James, Many thanks for the cashflow model, excellent , I just can't see where inflation is taking into consideration in the model? Obviously the values change but just wondered where its factored in ? Cheers Andy
The growth rates have simply been reduced by inflation.
Hello James. I am using your cashflow plan spreadsheet, but I am having trouble finding a sensible range of values to enter in the assumption box for 25year returns for global stocks. I followed the link but cannot find which asset you used to select 7.5% as the central value. At 7.5% I have a legacy that lasts forever, but at certain lower values I die alone in a ditch at the age of 71. If you could let us know what the upper and lower interquartile returns are, then that would be very helpful. Thanks.
A combination of Ex-UK equities and UK equites. The Uk makes up about 4% of global equities, so the figure you arrive at should not be too different from the Ex-UK equities figures.
Thanks
Great advice James 👍 but how do I get hold of your retirement planning excel spreadsheet ?
It's in the description of the video.
Hi James, I imagine you get a lot of people sending you requests for editor access to your sheets. You can edit the Google Doc URL so at the end it says /copy rather than /edit. Now, when someone opens it, they will be automatically prompted to make a copy of the doc and you'll have far fewer share requests :)
Epic! 🙏🏻
Do you know happens if they don’t have a google account ?
They will need to sign in to a google account in that case.
How is the sheet dealing with BTL investment property. Many people have significant cash in that and it forms a key part of retirement planning. I note the entry for rents but that’s only half the picture.
If you plan on selling them in the future add a one off contribution to cash, other investments or ISAs - wherever you think the cash will go once sold.
Hi James, great informative video’s… thank you.
Am I being daft, I can’t find your spreadsheet tool.
All the best.
Steve
😮💨🇬🇧
Hi Steve, there's a link in the description of the video.
Did you find this Steve as Im struggling to find it as well?
@@paulyoung204 click on the 'Show more' text, the links will appear.
Very insightful - Your channel deserves 100x the amount of views - you'll have 1 mil subscribers before the end of 2022 ; willing to bet on it mate, good luck.
Thank you. Let’s hope 🙏🏻
Happy New Year 2022 James! Thank you for your very informative video. You are the best!
Any chance there is a U.S. version of that spreadsheet?
Firecalc
Thank God for public sector civil service DB pensions!
Hi James - my employer keeps upping the ECR for the DB scheme I've been in for 20 years because they are underfunded. Im now being asked to pay 35% of my salary for the same benefits I've always been promised, and they have also capped salary rises at 2%. I guess there comes a point when it may be worth considering moving to the company's dc scheme and putting my whopping 35% in there. In this scenario I guess I could keep my db part as deferred... or maybe transfer it into the dc scheme. Job to know. Great channel!
Depends how high your salary is and how many years you’ve got in. Maybe it would be worth paying £100 into a DC pension?
Thanks James, great content being able to consider partners position on the spreadsheet is very helpful.
I’m glad it helped!
I caught Covid over Christmas and was bored in isolation so decided to use the time to do some research on investing. Found your post on Reddit and have been bingeing them all week! Just wanted to say thank you for the kick up the arse, I’m still working on my financial knowledge but your videos have made it all much easier to face and digest. Have just set up a Vanguard 80% Life Strategy Fund for now and will be seeing how that goes 😁 keep the videos coming
You're very welcome! Wow that post must have been a long time ago!
Hi James- love your channel and watch allyour videos. I have tried to download your various XL models, but the page won't allow me to enter my email address. Have you taken it down please?
Here you go : docs.google.com/spreadsheets/d/1y7PxLSu_VQTP7l5xGmaQCcGmR1fnPhFcUn7ktNQPN4w/edit#gid=0
So many people where I work have no idea of their pension. The size, the funds or lifestyle they are in. It is a joke!
Ignorance is bliss!
What about "you will own nothing and you will be happy"?
What's that from?
@@JamesShack Klaus Schwab head of world economic forum
@@summerisonthursday5239 sounds strange ! mobile.reuters.com/article/amp/idUSKBN2AP2T0
James one feature I would like to see in a future version/will try and add on my copy of the cashflow sheet is partial retirement.
You can do that with this new version, just add any expected income into the additional retirement income tab.
I don't normally comment but I found your channel today and love what you are doing :)
Glad to be of service!
Very insightful content James, thanks for sharing.
No problem!
Hello - how do I get the files to download? Happy to sign up for your newsletter ... but the website doesn't work ...
Strange - what browser are you using? or is it mobile?
docs.google.com/spreadsheets/d/19vvRdrtDL7wJZbOp1SgRV00zi11oeR4VochYtnav_Yg/edit#gid=1215540826
Last minute change of title 🤦🏻♂️
James - Great to talk to you prior to Christmas looking forward to working with you and your team in the new year - Great video now is always the right time as none of us have a tardis
Hi Robert, you too. I hope you had a good Christmas!
This is amazing! Brilliant content and so useful. I’m rubbish in excel and this cash flow you built saved my life. Thank you so much 🙏🏻🙏🏻🙏🏻
I’m glad you found it useful!
Hey James, I have a Wombat stocks and shares ISA that i enjoy and its working well for me. Am i able to continue using that and open a Vanguard LifeStrategy fund also?
Hi Joeby, you can only open / pay into one Stocks and Shares ISA per tax year. As far as I understand you can leave an old one sitting there and open a new ISA in April once the new tax year starts. Hope that helps.
As Sam said.
Totally agree, many of us spend too much of our life working and building for a comfortable retirement but don’t allow enough time to enjoy ourselves. I am 53 and planning to retire when I’m 55 and can access my personal pension. I currently have £510k with a well known pension provider. Should I consider telling them to start moving money into more secure holdings like bonds and out of stock?
Have a watch of this: ruclips.net/video/W6F3CE3Q5Y0/видео.html
And a few of my other videos, I go into this in more detail.
@@JamesShack Thanks James. Very informative. It’s clear there are many factors to consider in coming years. If only I had that Crystal ball! 😉
The scale of the graph goes wonky for me if I put in more than x,000 a year in C13. Any ideas?
Hi James, loving your channel.
Would love to hear your thoughts on Bitcoin
Happy new year,
A fellow James
Really informative, great video mate!
Thank you, and good luck with the channel!
Thank you James. I have been procrastinating with my pensions for the past 30 years. The crunch has come (I am 55!!). I have been on the CII web site & action now being taken.
Good on you!
Thanks James, your spreadsheet is tidier than mine!
Could you add functionality to include "one off" income/expenditure into the sheet. For example, tax free lump sums from DB pensions, endowment maturity, profit from sale of investment property, lump sum mortgage settlement. This would help improve accuracy.
Thanks
You can add those on the One Off tab - the second tab I think .
Really useful spreadsheet - thanks James! Hope you don't mind but I took the liberty of extending the idea a little by adding a Monte Carlo simulation similar to Timeline's. I don't think RUclips will allow me to post a link but let me know if you're interested.
Looking forward to getting stuck into this sheet tomorrow and having a play around. Thanks james for both the insightful videos and in taking your time to create such a relevant tool, as I was exploring buying access to one of the pretty expensive professional tools.
You’re welcome Lea, I hope you find it useful!
How do I find the spreadsheet James..
In the description of the video
Hi James. This is useful. I've started to use it and am trying to understand how it calculates CGT for 'Other Investments'. In the Assumptions tab, cell B23, it uses the figure of -5%. I can't however find where it uses this value when completing its calculations. If you could quickly point me in the right direction that would be great. Many thanks.
It just reduces the growth rate of other investments by -5%
@@JamesShack ok. thanks. is that each year?
@@nicktarling6099 Yes. You can see other investments have a lower rate of return on the inputs page.
@@JamesShack yeah. got it :-). I don't think this models CGT as money is taken out of 'Other Investments' more accurately than this, which is what I'm looking at doing. I'll have a go at tweaking it myself. Thanks!
Yep, if you want anything more accurate than that then it's a bit more work because you need to know the book costs of your holdings. You'd also need to add any gains to your taxable income to work out of you should be paying 10% or 20% tax.
Hi James thanks for the access to your spreadsheets. Can you please advise how to input on the Cashflow Plan where you may have a situation where you have a Defined Benefit pension in place and a Defined Contribution pension? In my case, the former has run until this year and then going forward until retirement it's just the latter. Many thanks
(Should I just put the Defined Contribution pension in "Your Liquid Assets" and the Defined Benefit pension in "Additional Retirement Income" section? - Thanks!)
May I ask a question. Almost every video I watch is about future retirement, but I have only come into a lump some of profit from downsizing my house. So no debt, no mortgage but a relatively small pension. At 69 is a Vanguard LS fund a good thing to make some growth ……I don’t have 30 years to go but would really like to make my money work for me over the ne g 10/15/20 years ? I feel as if I am in a ‘left out’ category ! Many thanks for the most interesting videos, and by the way I have no other investments only the lump sum in a savings account.
Hi Ann, will you need to the money, or income from it, at any point over the next 10 years?
Hi James, yes I will need a proportion of it say £20,000 over the next 10 years but I would like to invest the other £40,000. Thank you for replying ! Ann
I do realise this is a very small amount by comparison with most people, but for a retired classical musician it is a fortune ! Hope it is worth bothering with !
Hi James would you recommend clearing my debt, before I start investing? As I am going to invest in a index fund for retirement
Hi Chris, what type of debt and at what rates?
@@JamesShack it is a consolidation loan, after been stupid when younger I fell into bad credit etc this loan helped me square things off although 29% Apr it has boosted my credit rating up am now in a position where I can make my money work for me but not sure I should commit to anything untill iam 100% debt free cheers in advance for your advice
@@chrisgibbon5736 Hi Chris, if it’s 29% APR you will want to May that off as soon as possible. Are you sure that’s correct ? That seems higher than some credit cards.
@@chrisgibbon5736 Could you refinance again now your credit score has improved ?
@@JamesShack I will double check but am sure at the time of the loan I had piss poor credit and this was place that would accept my credit score with an inflated Apr
Hi. Have signed up for newsletter but how do i then download the cashflow model. On a mac but have excel
Hi Neil, it should have redirected you to it. Did it not do that?
@@JamesShack no it didn’t. Got an email which asked me to confirm which I did but still couldn’t access.
Ah I recently set this up. When did you request it ?
docs.google.com/spreadsheets/d/1y7PxLSu_VQTP7l5xGmaQCcGmR1fnPhFcUn7ktNQPN4w/edit?pli=1#gid=0
@@NeilHayes-km2zi Please can you do me a four and try it again. I've made some changes so hopefully it works now. james-shack.co.uk/cashflow-planner
James - where can i download the cashplan excel spreadsheet please?
It’s in the description of the video
Hi @james shack wonder if u could help, I have a defined benefit final salary pension with 800k in the pot, what are my options? Am I able to take a 25% tax free and then a drawdown of about 2k a month . Any advice be greatly appreciated
You'll need to contact your pension provider, they'll tell you exactly what you can do.
Do you have to buy an annuity at 75yrs old or does it depend on what type of pension you are in?
You don’t have to buy an annuity with any pension.
Hi James, I must be missing something as I can’t find the links to spreadsheets that you mentioned.
In the description of the video?
Recently discovered your channel. you good advice explained simply and clearly. Keep it up. A video I'd be interested in seeing is how to draw your income most tax efficiently after retirement - e.g. say retiring at 65 (SP age 67) and requiring a net income of £17K per year, with 50K in ISA's and 120K in a SIPP, is it better to draw the pension first or the ISA, or a combination of both in order to be tax efficient?
Hi James. Every year I do my projections for the next year and action those OK, yet somehow underspend so have some cash in hand. Best home for that? Am doing everything else and running 4 accounts (bulk pot, crystallised, stocks ISA, cash). Presently just roll extra forward and draw less...
I keep telling my two kids 25 and 19 the sooner they start the better. They won’t listen.
Show them this: ruclips.net/video/EiAMNGnTCWo/видео.html
Although i do swear in it!
hello James I tried to book the 20 min conso with you but you r very busy, no availabilities there any other way?thanks
Unfortunately not, a few slots come available each week but I do them for free which is why they’re limited.
Hi James! Thanks for the great video and tools! I’ve left the pension blank as my husband and I are based outside of the UK but still investing in an ISA. But I’m seeing it pulling money from pension for our retirement income. Can this be resolved?
James, great video as ever. I’ve enjoyed your videos on vanguard lifestrategy funds and wondered if you could do a short video on the tax status of lifestrategy funds? I am assuming that any investments in a lifestrategy fund (which has an interest in the US stock market) held within a UK ISA would not require a US tax declaration such as a W8 BEN? I’m assuming the fund managers would deal with this but it’s VERY difficult to find out on the web so viewers may find that useful???
Your broker would notify you if you needed to sign one. It’s their responsibility to make sure you do.
Great video, checked out the tool and I think there may be some time period issues, but not sure if i'm just ignorant of the fact an additional year of growth has such a big impact.
I.e. setting ages as 26-52 to retirement with no expenditure change from input data, removal of £20k cash, no DB pension and altering starting ISA & Pension balance to £15k each with contributions unchanged leaves £376,234 at 95
changing the retirement age to 51, so 1 year less, makes this figure £83,065
Is this a potential issue or does a year extra of growth have this level of impact?
So far as i can see, the formulas make sense so may just be ignorance of the impact delaying retirement by a year has
Cheers Ben, please can you share you sheet with me . Shackmedia@outlook.com . Thanks!
@@JamesShack I've repopulated the data and sent across. Let me know if you don't get it and I can send it again. Don't use Google drive sheets much so think I sent it through that but not sure if it went through
@@bencarter8905 Hi Ben, thanks for spending that across. It is correct. It's fascinating...this is the power of compound interest.
By retiring 1 year later, you're getting an extra year of contributions, which at age 51 would be £18,000 and you're avoiding 1 year of expenses worth £40,000. So by waiting an extra year, you'll end up with £58,000 extra in your portfolio at retirement.
£58,000 compounded at 4.24% for 38 years (up until age 90) is just under £300k.
It's mental, isn't it!
Yeah, like I said the formulas didn't seem to have any issues I could see, just didn't expect the impact to be so significant in the long term
@@bencarter8905 yep! As I said, you’ll learn a lot just by playing around with this thing!
Thanks for sharing the modeller it’s really useful. I was trying to work out whether it increases the income in retirement by inflation. I couldn’t see that it did, can you clarify. If it doesn’t, is this something you could add?
No, it just reduced the growth by inflation. So you don’t need to change and of the other inputs.
Hi James! Many thanks for the cashflow model. Most useful.
The only issue i have on the spreadsheet concerns tax. How do i add annual isa withdraws (as part of annual retirement income) without that element counting within the personal tax section. Currently it showing a tax bill (which I dont believe is applicable from an isa) and also deficit on retirement expenditure
Am I missing a trick here???!!!
Many Thanks
Julia
Hi James, really love your videos, they've certainly helped me think more strategically about preparing for my retirement. I have downloaded your cashflow model to try and assess various scenario's, however I have a question which I hope you can help me with. I have a Superannuation government final-salary based pension, which has a current annual value quoted on my most recent statement, which I can linearly extrapolate to what I might expect to have at my retirement age. Which figure therefore do I include in your model (cell D19)? If I put the current figure in, the liquid asset profile drops to zero at 67 (why?), yet stays above £40k if I use the extrapolated figure. Any help you can provide would be greatly appreciated. 👍
You thought of making a patreon so us guys can copy your shares?
I’m a regulated financial adviser so I can’t do that. But I also don’t recommend people invest in individual shares.
Another brilliant informative post James. I’m a recently retired 62 year old. Will I be able to get some benefits from your spreadsheets in the same way as someone earlier in the process saving for their retirement. Keep up the great work. :) All the best for 2022!
Hi Jim, yes you will. Give it a go!