Would YOU take the $1Millon Bet? (most people get this wrong)

[@Simonpocarroll]

I think you need to distinguish between financial advisors/planners and Avtive fund managers, it’s too easy for the uninitiated to lump all forms of investment industry participants together as a lost cause. I don’t disagree with the point of active versus passive funds/ETF’s for the majority of retail investors though.

[@MartinSheldon-r7e]

Why?

[@garethwalters2909]

Spot on Neil, I helped my Sister-in-Law consolidate 3 old workplace pensions and we worked out that she was paying over £2k per year (over 1%) for her funds that we're way too conservative for what she wanted. She transferred them to a low cost provider and invested in a low cost global index fund for around £300 per year, she's very happy!!

[@ianwhittaker3041]

Hi Neil, great video thank you. In a future video will you talk about selling your house and investing the proceeds? That was a bold move and born out of a strategy the Quit Like a Millionaire authors advocated, ie your house is not an asset etc.. Thanks :)

[@IAmConorr]

As fantastic as your channel is, it’s SUCH a shame that we live in a country where we have some of the best ways to invest for all our futures and yet the majority don’t know how to do it, or even know it exists. Criminal when you think about it, people think they’re securing their future because the have a pension at work, yet they have no idea how much they’ll need vs how much they’ll have, I really do fear for people my age (30), because soon it’ll be too late without quite a large interventions at a time when they’ll be having kids, mortgages etc. Between work pensions and ISA’s I invest circa £700 a month with quite a robust plan on increasing throughout my life, and I’m terrified I’ll not have enough, admittedly I’m not ‘expecting’ a state pension or factoring in any inheritances in my calculations, but median wage + limited employer contributions will hardly touch the sides when financial independence rolls around. Keep up the great work and I really hope more people find your channel!

[@brianadams-wj7ko]

Thank you.

[@BoninBrighton]

The most recent budget will impact SIPPs - due to the change in inheritance tax. A combination of IHT and tax when the funds leave the SIPP for probate means your nominated beneficiaries as of 2027 will lose 68% of the fund!! It was at age 75, but now only in 2 years time. Fortunately it looks as if a spouse inheriting the SIPP will be exempt though, phew, but our descendants won’t be happy.

[@helenscott9618]

We got tax breaks to build a pension for US in our old age. Our children get their own pension tax breaks. Pension is not a general investment so quite right the Govt has done what it's done. I say this as someone who will be affected but I also believe in progressive taxation - those with more, pay more. I also don't believe in large amounts of inherited money for a number of reasons but that's a different issue😊

[@sid35gb]

Very few people pay IHT in the U.K. and if you are fortunate enough to be that wealthy there’s nothing stopping taking steps to avoid a hefty bill. The average Joe in the U.K. won’t notice the difference. But the super rich are crying to the media that they will have to start paying the same amount of tax as the rest of the public. This was highlighted by the tax arrangements of the former PM who was paying less then the basic rate of income tax due to his financial arrangements.

[@BoninBrighton]

@@sid35gb increasingly more of middle England who are certainly not super rich are now paying IHT.

[@1dancier]

Index card investing sums it all up which are ten rules written on one index card. I'm tell my kids to get as much into their pension fund (Superannuation in Australia) while they're young to benefit from the compounding effect. I'm even gifting them money to reinforce the principal.

[@tomkent3195]

Great information 👍 I wonder if you could do a talk on work place pensions? As companies don't tell you anything except the bare minimum. For example, which ones are reputable, have good investment options, can you ask to opt out of their pension provider and instead you and the company pay into say a Vanguard sipp etc? I'm with the people's pension through work the fees are .5% pa and i changed my investment option the day I got set up on it but every person I speak to are all on the default investment and have no clue. We really should be taught more personal finances in school and even in the workplace. Cheers

[@Larzh220469]

Sound thinking! Index funds are a very reasonable investment option for private individuals who don't want to become active investors. But just to play the devil's advocate for a moment, I wonder what would happen, very hypothetically, if all investors, big and small, would put their money exclusively into index funds? In my view, what makes index funds attractive for the passive investor is that there are active investors around who actually take the risk of attempting to beat the market.

[@ivanbeacon5883]

Neil, how much is enough? How did you know you had enough to retire early.

[@BoninBrighton]

There’s another channel I follow of a retired couple of teachers who retired early. They downsized, bought a small cottage in Yorkshire I think, reduced outgoings, used the capital released plus savings to fill the 8 year gap until age 60 before they receive their 2 teacher’s pensions (30/80ths of final salary). Then also x2 state pensions at 67. So gradually funding streams will become available to them.

[@MartinSheldon-r7e]

That's not really an answer to the question is it? I also watch that channel but they're a bit thin on detail. Taking out a weekly cash amount to pay for food and fuel but not mentioning the fixed outgoings of running two vehicles and all the running costs of a house. 30/80 teachers pension means nothing without context. How many years service, final salary etc. Some manage on less than others. I worked until I was 30 and have lived on savings and investments for almost 25 years. What people really want to know is how much Neil and Sarah have got invested which they're not likely to reveal although you can work it out from previous videos.

[@ivanbeacon5883]

@@BoninBrighton thanks for the comment. I was expecting an answer from Neil himself.

[@BoninBrighton]

@@MartinSheldon-r7e Correct it’s not an answer, but an interesting aside maybe for some, the ‘30’ is the years service… that’s why it will be 30/80ths and index linked at age 60. The guy was a DHT so that’s a specific salary in a bigger secondary school and she was a subject teacher, again pretty standard salary.

[@MartinSheldon-r7e]

@@BoninBrighton None of it really means anything though does it? Do we know they worked 30 years and if they worked full time? You could have that 30 years reduced to less than 15 years if you worked the last 10 years p/t 2 days/week. Factoring in a state pension at 67 is quite bold also.

[@dominic8218]

It’s right up there with advisers taking 1% for ongoing advice - what a rip off that is!!

[@2GoRoam]

You're going to live the next video!

[@Simonpocarroll]

You’ve got the wrong advisor 😉

[@dominic8218]

@@Simonpocarroll not anymore 😂

[@denise-stevens]

Great video, Neil. I have 50% of my life savings in Warren Buffet’s Berkshire Hathaway B fund. While that sounds like scary concentration in one stock, it’s not really. BRK B stock acts as its own mutual fund consisting of 41 stocks of high quality companies. Just look at your description of the challenge he set up and how he beat the pants off everyone else. I have a financial advisor who I hired a year ago and I’m super happy with this firm. They do not invest in mutual funds that have their own financial advisors with their own fees in addition to your financial advisor’s fee. And their fee schedule is unusual in its fairness. They take 10% of the fund growth for the year. This means they earn nothing in down years, and only start taking a fee when it’s above the original investment price. This makes them highly motivated to grow your money because they only make money on the growth (when there is growth) and not your total assets under investment.

[@leestorm5640]

Great video, I am 53 and willing to control my money without managers ❤