This is how much you need to invest to be rich

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[@mattsennett]

It's such a tricky question to answer really. Slowly becoming richer as you get older then leads you to worry more about your future health rather than wealth. The key I think is a balance where you can enjoy today but also have one eye on tomorrow too.

[@ChrisShawUK]

So what worked for me is 22x I stopped working in 2019 age 51 and had a fund of 22x my annual lifestyle expenses. This includes state pension for my and my wife kicking in at age 67. So effectively, I bought my 50s. I spend my week on 5-6 nature recovery projects across the Cotswolds and 3 community projects in my local area. I keep 3 years cash on hand and everything else is invested in index funds.

[@Goady1000]

That would be 240k min for me then lol. I can pay my bills and groceries with 1k a month

[@ChrisShawUK]

@@Goady1000 that's the secret really ... once you understand what your desired lifestyle is for the rest of you life, you can put a price on it and live it, rather than adding endlessly to a pile you're never going to spend.

[@simonwl]

Amazing! You are truly "rich". You have financial freedom and true independence.

[@ChrisShawUK]

@@simonwl we all have different amounts of money but exactly the same amount of time each week. Being able to allocate time how you wish is a better goal (in my opinion) than just wanting to be rich. Didn't happen by accident though! I started investing in 1998 aged 30 and made regular contributions to enable me to make that decision aged 51

[@MATIvmr]

If you don’t mind me asking, as I am 29 right now and just started few months ago. Why 22 not 25 as some sources give ? Also how much each month you had to add to get to that 22x your annual expenses ?

[@chitpaul]

I don’t want to be a millionaire. I want my investment dividend to cover my living cost and a additional sum for extra expenses. If you get paid monthly without working for someone that’s freedom.

[@coreyschneider4041]

So you want way more than a million dollars to accomplish your task lol

[@87vortex87]

Being wealthy is not about the size of your yacht, it's about the financial independence you experience, yes, experience. You don't even have to make it all the way to get ahead of 99%.

[@pickashole]

Exactly. All I want is by the time I get to retire is my stock portfolio has enough to pay my utility bills and perhaps one or two luxuries. That's it

[@simonwl]

@@pickashole Yes that is exactly the way to look at it. If you have enough money to support a life that keeps you fulfilled doing the things you want then you are wealthy/rich. This is how you need to approach retirement. It's all about planning what your annual lifestyle spend will be and calculating if you have sufficient money at the point of giving up work to support that. At that point you are rich and hopefully fulfilled. For some that might be a portfolio of £1M. For others, it could be £200K

[@ChrisShawUK]

Yep, buying your own time should be the first goal of wealth accumulation. Allocating time as you wish is the best feeling.

[@pickashole]

@@simonwl Always reassuring to hear this and what I'm doing seems to be on the right track

[@Razmatazuk]

My favourite finance channel. You always know exactly what sort of video I'm looking for. Have been researching this very topic the last few days

[@TobyNewbatt]

Always grateful for the support :)

[@01302]

I have spent a lot of time in Croatia, and I was surprised to note people proclaiming every now and then "I am rich", at first I found this confusing or rude, but after some questioning I figured out that to them, the concept of rich isn't necessarily about bank accounts at all- rich can be having healthy children or a happy experience. I found it a very healthy and refreshing outlook, one that focuses on happiness and positivity instead of how much you earn or how much your net worth is. Enjoyed the video as always.

[@DerickJordanDJ]

Do you value investing in Bitcoin?

[@TheTechAudiophile]

nope@@DerickJordanDJ

[@UKGeezer]

I just don't want to be in poverty in retirement, that's my biggest worry. I invest a large chunk of my salary into my pension (30% with employer contributions) , and also money I have saved in cash is being invested into a S6S ISA. I only started investing into a pension 12 years ago and the ISA earlier this year. I'm 53 so I expect I'll need to keep working and investing right up to state pension age before I can think about retiring. I'm ok with this as I still have enough to enjoy myself now, just dread the thought of being poor after retirement.

[@simonwl]

I think you'll be fine. If you have full state pension and also contribute regularly into a workplace pension and ISAs for the next 10 years you may surprise yourself as to the lifestyle you can enjoy. Of course it depends on what your lifestyle is! You need to work out what annual income you need to maintain that quality of life.

[@drthots4576]

Great video. I've finally settled down and began my investing journey. I have a LISA in stocks and shares hoping to buy a house in 7-8 years. Hopefully that outgrows a cash Isa. My idea of 'rich' is when I can go out for a meal and not worry about if I am spending too much on food.

[@Goady1000]

Being rich to me is making your annual salary without working. That means you can pay your bills, have some luxeries but do what you like with your time. Personal goal would be to be able to cover all bills for life which means you still need to work to pay for social stuff.

[@TobyNewbatt]

Love this mate, and this is very similar to what I imagine.

[@hustlinhitch]

I'm living in a house with no mortgage and have around £20k to invest...but I do not feel rich. I'm currently unemployed and my money is slowly fading away. When I can stop the fading, is when I'll feel rich.

[@richiecramiun]

Any one that can afford to invest 1k a month is already doing better than 80% of the Uk

[@TobyNewbatt]

Yes thats an extreme example definitely, just wanted to show whats possible. If you can invest £1 you're in a good spot!

[@versaceviper9798]

My goal isn’t to be rich, it’s to retire early and live off dividends.

[@Ajay-pz9ms]

One of the great and often overlooked benefits of long term investing is that it almost necessitates a degree of financial knowledge and a drive to increase your investment. You need to have some long term goals and investment may not work out but thinking that way helps in so many different areas.

[@Loosechunks]

Yes very interesting video! You've carved your own little niche in the financial investment/tipsKZbin world. you're one of the most listenable to and engaging people out there. Thanks for another good video.

[@TobyNewbatt]

Thank you for the kind words :)

[@TomsPersonalFinance]

Great video, Toby. Especially the final point. What is the point of investing if your sacrificing everything today for maybe a happy retirement? Its definitely a balance between investing but allowing yourself to enjoy life now. I know i can be tempted to always put any extra cash left over in my investing accounts, when really I should allow myself to a treat every now and then.

[@TobyNewbatt]

Just got to find that balance Tom, I definitely think we can get addicted to the idea of investing and it might get harder once you see those big numbers in a few decades to actualy tell yourself you should spend some without feeling guilty!

[@adrianellis2433]

Lord Lee became an ISA millionaire in 16 years with a total investment of £126000 by investing in small UK Company stocks

[@minimad8793]

Just checked out the ONS stats for wealth and seems I am part 3rd wealth decile and part 7th wealth decile. Shows that you cant be lumped into one level of wealth. It also doesn't include Final salary scheme wealth so that would put me part 8th wealth decile also. Definition or "RICH" is the ability to cover all your monthly expenses and have spare cash to enjoy life.

[@DerickJordanDJ]

Do you value investing in Bitcoin?

[@minimad8793]

@@DerickJordanDJ unfortunately no. I feel that is too volatile to measure against.

[@DerickJordanDJ]

@@minimad8793 Do you know a good professional investment advisor?

[@JaRozumiem]

Great channel.. real advice and insight. Not like some of these ridiculous "finance" channels on KZbin these days selling snake oil. Subscribed.

[@TobyNewbatt]

Welcome and thank you!

[@djtaylormade1195]

Keep calm and DCA

[@TobyNewbatt]

getting a T shirt made with this on :P

[@stuartdonald2302]

I think I have said on this channel before I feel I am capital rich non income properties ect but income poor. I sold buy to lets as the tax regime was increasingly hostile and invested in income stocks. The great thing is these can go in ISAs. All dividends are reinvested. I do an analysis of the portfolio. Just over half is in REITs that part of the portfolio yields 8.6% the portfolio as a whole yields 7.2% it includes some very speculative punts! as well as a few safe havewns. I will risk up to 0.5% in a risky play. It is very interesting building a spreadsheet to draw conclusions about where and how much you are invested. My problem is not using any of the returns for some fun things, but I add very little and just use the dividends to reinvest.

[@abdulrahman31350]

My favourite saying " I put my money into the stock market to protect it from myself". 😂😂😂😂. I split up rich bit by bit. It started of with 1k, then 2k, then 5k. Then 6k and so on and so on.

[@TobyNewbatt]

hahahaha love it I think you've shared that one before!

[@pip1723]

Great vid toby 👍.

[@TobyNewbatt]

Thank you :)

[@declanmcardle]

5:45 Lucky for those who live in a country which has ISAs & Roth-IRA-type schemes...

[@thegadgetzone]

what website was that with the graphs?

[@jamesgodberry9793]

"If a good man comes to me, and says thank you Toby, for the opportunity and continued support in the investment-related arena, but I've done that, I wanna better myself, I wanna move on, then I can make that dream come true, to, AKA, for you."

[@TobyNewbatt]

😂😂😂😂 but have you got a forklift driving license? - he gives the tests!

[@sierraecho884]

You need to define rich first. Since it´s so broad we can brake it down a bit and try to find a common definition. I would propose something like "If I can keep my way of living and pay for everything by passive income I am rich" Now this is still broad because some people need say 1500$ a month and others 8000$ a month however now you can calculate and approximate the same way for everybody. Say I spend 2000$ month to be happy and I have passive income of 1000$ a month, it means I am 50% there. This is a pretty open definition and yet comparable. It will also fit everybody. For me personally being rich means having more freedom, it´s all about freedom. I don´t care about the money but having money means you buy freedom and independance, that´s why saving now does not feel like a drag for me. I know I have already enoguh fuck you money to not be dependent on every stupid job. I simply don´t have to work a dumb job If I don´t want to so I am already way more free than the common person.

[@StreamerTV]

I'm 50/50 with the S&P 500 at the moment because apple been targeted by EU making them want to open source there phones if apple stops sales in the EU that's going to affect stock & drop big time

[@TobyNewbatt]

So while that's true, if you look back in history almost every big tech company has been dragged through the courts at one point and they will continue to do so. What I would not do is then try and guess when to invest because of it, as this is then trying to time the market, much better in my view to invest consistently over the long term and leave the market to sort itself out. Apple is going to be in your portfolio whether you like or not, if you choose global vs S&P 500 for example :)

[@simonwl]

If you're worried about a single company in a fund of 500 (albeit a very large company in percentage terms), then maybe you should change to a global tracker rather than just a US one. The US is currently the global powerhouse but that wasn't always the case and may not be in years to come. By owning the world (e.g. FTSE Global All Cap) you hedge your bets and sleep a bit better at night.

[@StreamerTV]

@@simonwl I'm not worried at all I'm just understanding the market first & learning before i just go in blind because currently there is a lot going on in world hence why you see a balance in the market over the last 6 months with no growth & i already have VUKG in my port with S&P500 there will be a lil boost over the next few months but depending on the house market rates, price of petrol, inflation, banks or even US gov shutdown for 1day that's going around, will soon dip by jan/feb. i just feel now is not good time to invest but next April 2024. but yh ill throw in a few £100 see how it goes then pump it mid next year when things around the world get better lol

[@neilinvests]

Sergio Georgini 😂

[@TobyNewbatt]

Quite the heel on those shoes....

[@ADHDNurse79]

I’m going to have to binge the Office now

[@TobyNewbatt]

😂😂😂 never disappoints

[@funkdoc2001]

Hey Toby, I’ve been reading Andrew Craigs ‘How to own the World’, and have been thinking of adding bonds, or some other investment types to my currently 100% equity portfolio. I’m in my late 30s, looking to hopefully retire by 55. Any thoughts? Do you own any bonds, inflation protecting commodities?

[@TobyNewbatt]

Good question but right now I have no desire for any bonds or commodities. For two reasons, firstly in the long run those things have never beaten stocks, and if you're a global index fund investor you own virtually every possible industry and are exposed to virtually every possible type of asset. Why buy gold if you own all the gold mining stocks, same with oil, why own oil if I own every single oil company :). For retirement yes 100% - I'd have 1-3 years of cash - and then a mix of short term gilts/ bills to suit my needs but still mostly invested.

[@funkdoc2001]

@@TobyNewbatt That makes sense, I guess a follow up question would be, when would you start putting this in place? 5 years before retirement? The day you retire?

[@sierraecho884]

Warren Buffet did´t get rich by investing, the bought worked on and sold companies, people seem to confuse Mr. Buffet with an investor, he is a business person.

[@carlkeeling]

Great video Toby, thanks, shocking stats though 😢. Do you have a link to the Orifice of N S chart you used please.

[@TobyNewbatt]

www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2018tomarch2020 That’s the wealth study 👍👍

[@porschecarreras992cabriole8]

£1m is not as hard these days in pension especially if you retire at or just beyond 60 because you had the chance to save for 40 years of employment. The challenge is to achieve this earlier. I would be happy to achieve £800k at 57 than work to 62 for £1m

[@TobyNewbatt]

It's a careful balance isn't it - like you said if you really pushed yourself sure you could have £1m very late in life but then I really want to be able to enjoy life and have choices.

[@porschecarreras992cabriole8]

@@TobyNewbatt there is only one problem. If I take 25% of this out tax free so numbers are changing again a little bit!

[@molex114]

Don't know about rich but a million I your portfolio isn't worth Jack until you cash it in and it could crash the day before or you die the day after. I think once you start chasing a figure then it's never enough reach a million you'll want 2 get to 2 you'll want 3. My goal I to get the the if my car packs up or the washing machine goes kaput no worries. Never having to choose heat or eat, a break if I want one and never having to do a thing I don't want to. Cherry on the cake would be to have enough to leave my kids something not forfunes but something

[@TobyNewbatt]

yep you're spot on.

[@Burrie81]

Great video Toby

[@TobyNewbatt]

Glad you enjoyed it

[@goober-ll1wx]

I'm mortgage-free and have no kids, I feel very rich compared to most of my peers!

[@TobyNewbatt]

:)

[@Norfolkpaul]

Just £400 months to pay the bills 😊

[@TobyNewbatt]

Now thats the life!

[@simonwl]

I just need that DeLorean to find those stocks 😏

[@TobyNewbatt]

Have you got room for two?

[@davidthomas-ot4cl]

My motto is live like a monk so later you can live like a punk.

[@geolykos]

I’ll be rich when I don’t have to pay for nursery anymore!

[@TobyNewbatt]

😂👍👍👍

[@goldengoose7492]

Crypto it is then. Talk to me in 10 years 😂

[@TobyNewbatt]

:P

[@meinages]

Great video. I feel like you're rich when you can carry on with your living standard and not worry about money. I have 10% pension with work and invest around £300 a month hopefully up it as the years go by. But still got to enjoy life been to Mauritius and ibiza recently. It's all about a balance that you must find for you and your family.

[@TobyNewbatt]

100% 👌

[@ant270]

On a benefits fly-on-the-wall programme a while ago someone said..."rich is being able to buy what you want, poor is being unable to buy what you need."

[@marg8315]

To be rich, you need to be really good at doing something and find out a way to make money off of it. Investing in a broad market index fund alone is not going to get you rich lol. But 1) investing can get you rich and 2) you can only get rich by investing. 1) Warren buffet, Ken Griffith, James Simon to name a few. And 2) all the billionaires you named have a significant holding in their companies - so majority of their holdings is in one name which is their company.

[@garyhollywell2112]

Interesting Toby, I watch a channel of a guy in the US who runs a retirement Channel (he retired at 54), one interesting challenge he and others face after investing for many years (30 in many cases), is actually feeling comfortable at spending those savings.....its a challenge to shift your mindset from saving to spending!

[@TobyNewbatt]

I can genuinely see that being a problem! You almost have to train yourself at some point to let yourself spend.

[@simonwl]

That sounds like me and the fear I have when going into retirement in a few years! Out of interest, what is that channel? Is it Joe Kuhn?

[@garyhollywell2112]

Yes it is Joe

[@Just4FC]

Hey... grew up poor, started investing in 2008 (august). 1000 euros, every month I also put in 100 euros extra. 3 years later I had 22k. I also studied some finance in my free time and became a trader for a short while. I hit the million mark in 2014, and went over it some. Then due to a little bit of bad luck and a lot of bad decisions, I lost everything. So yes, you can become a millionnaire by investing/trading, however I also know I was pretty lucky at some points (got into Netflix and Alibaba before their IPOs). What you said about getting addicted rung a bell with me. I didn't even know how much I was making at the time, and found out the numbers after I lost it all. Won't be that stupid again. Every day I tried to save and invest, free time; invest, was on the market from the Nikkei open to the US close. Money can come quickly, but remember it can leave quickly as well. Keep it up, I'll make sure to follow you

[@troyfletcher1990]

Another great video. It's a good question to ask ourselves. My idea of rich is always being able to do the little things in life when I want. Taking the family on holiday once or twice a year and never struggle to eat well 😅. Plus be debt free.

[@TobyNewbatt]

Sounds great to me that Troy!

[@Dr.JubairsFinance]

Great video as always Toby :)

[@TobyNewbatt]

Cheers buddy!!

[@jameshunt8783]

It’s an interesting balance to get right. You need to live now but also think about the future. For me I like to see my invested amount go up not necessarily the unrealised gains or loss. Knowing that I am saving something and hopefully give me some sort of top up at retirement or even retire early. Great video. Keep up the good work 👍

[@shimsteriom4191]

Great video, wise advice.

[@ryanbooth9736]

I am 31 now. I would love to get my mortgage paid off (100k) left, by 45. I think i am on track for that currently. I would still be paying into my lifetime ISA 4k per year and then anything else I would see as a bonus. I am happy with these goals and would consider this to be a 'rich' life while still being able to afford treats here and there, cause like you said you can't forget to live in the here and now as tomorrow may not come!

[@hugodesouza1923]

Really well said, definitely widened my view of investing

[@calarthur]

Ive rediscovered your channel and the standard of your videos has gone up massively, im here to stay now! With me I'm quite happy to invest to be 'well off' rather than rich, and I think most people are too. For me thats a few holidays a year now, fairly decent car etc, then retire late 50s, nortgage free, with a decent retirement income. Another point, if the sole aim has to have the most momey in our account we wouldnt do things like have children but i think 'rich' alsp includes non financial things such as our own family.

[@TobyNewbatt]

Great take on this topic. Also thank you for the kind words!

[@James-lq1po]

Best bet is to invest for two-three generations away, they won’t be able to thank you for it but they might keep a photo of you somewhere 😂

[@TobyNewbatt]

Hahahaha. Make sure you take it in black and white and wear a top hat too

[@marcosvbispo3760]

out of contest. I like that " Watch Chart " in the back. you made yourself ?

[@TobyNewbatt]

It's called a Divoom Pixoo 64 you can google it and see if you want it :)

[@MATIvmr]

Million pounds 😂 I’m hoping to hit 1k £ by the end of year in my ISA!

[@TobyNewbatt]

Small and steady wins the race!

[@mrlolmaster1019]

British People trying to figure out what a roth IRA is 💀

[@TobyNewbatt]

ahhhh my eyyyeessss :P

[@valerienewbatt9678]

Very good video as always.

[@TobyNewbatt]

Thanks again!