So if I keep putting £10k pa into my pension and £8k pa into my Vanguard investment account when I'm 55...

So if I keep putting £10k pa into my pension and £8k pa into my Vanguard investment account when I'm 55, at 5% pa growth I'll have £ 1 million.

Can it be that easy? 5% seems like a pretty modest expectation.

Other urls found in this thread:

bogleheads.org/wiki/Getting_started
bogleheads.org/wiki/UK_investing
twitter.com/SFWRedditImages

it's a little more complicated than that but that's basically how retirement works

Anything I should be aware of?

Read both these pages, take them to heart, apply them for 20 years, and you'll outperform like 80% of people without breaking a sweat:
bogleheads.org/wiki/Getting_started
bogleheads.org/wiki/UK_investing

just some minor things that can save you a bit here and there, more so when you get into the higher tax brackets. also some risk management so you aren't caught with your pants down during a crash. but as long as you're saving that's the bulk of the work.
it's more than I'm going to sum up here, also I'm not from the UK. reddit is honestly a better resource if you want to ask about specifics.

Thanks man. Appreciate it. Will take a look tonight.

Okay cheers. Regarding the tax issue, my investment account is in an ISA wrapper. That means I'm not liable for any tax on it (20k pa limit on contributions). Is there a specific Reddit you are aware of?

/r/personalfinance, just go through the side bar. there should be a UK specific one as well.

Pretty much this user.

Everyone can become a millionaire by retirement, it just requires maxing out your IRA/pension/403/etc each year. It's just that the average person is too ignorant and uninformed and cares more about wasting their money on iPhones, Disneyland annual passes, and other stupid shit they can't actually afford.

The key to retiring with millions is start saving early and often.

I max out my Roth IRA at the beginning of the year, put 5-10% of each paycheck into a taxable account with the same portfolio composition as IRA, put 10-15% into a savings account, and another 20% into crypto.

I'm extremely ignorant regarding cripto. I guess a small portion of my portfolio should be cripto speculation. Where should I start?

Just put everything into crypto and you will be enjoying your billions in 2 years

Which Vanguard investment account gives you 5% pa?

any broad market index fund will get you 7-9% over the long term. most diversified vangaurd products just mix one of them with something safer index like a bond fund to smooth out the volatility while bringing the expected returns down.

I'm assuming 5% pa on average over the next 20 odd years. I'm currently in lifestratergy 80 and thinking about putting a bit in their global moment factor

Which is how I understand the lifestratergy fund(s) I mention here

Momentum*

Remember to account 2-3% for inflation.

To make 5% you actually need to be making 7-8% which won't happen as consistently as 5%

I wouldn't bother, crypto is effectively gambling. and people already invested have a financial incentive to get more people to buy in so take any endorsement with a grain of salt

If you're going to manage more than one fund, you might as well take the next step and buy each market sector individually and save yourself 0.1% in fees. main difference being you should check in on it once or twice a year and do a bit of math to re balance.

I was thinking assuming a conservative 5% would take into account inflation. I've seen how adding an extra percent or two to the numbers can massively effect the outcome.

Do you not think cripto should be a small % of a portfolio? I'm thinking 1% or 2.

Vanguard fees are tiny and I'll mainly be in their lifestratergy 80 fund plus less than 5% in anything else.

What a load of horse shit.

go ahead and gamble on crypto with < 10%. just remember this shit could implode at any time and you could lose it.

>bogleheads.org/wiki/Getting_started

what part do you disagree with?

Elabor8 m8

I don't see crypto as a legitimate investment. the technology has it's place, and I'm sure there are people who make a lot of money from it, but all that money is taken from others trying to do the same.

yeah, 0.1% is virtually nothing when your starting out, it's really a matter a preference. once your savings have accumulated it's still just a few hundred dollars for a few minutes of work plus whatever stress you get from worrying about it.

Don't you mean trillions? When the world economy crashes into a hyperinflation usd will be worthwhile only as toilet paper.

Why do you keep so much liquid fiat?

It seems like at a certain point you’ll have $100k in a taxable savings account barely keeping pace with inflation, why so much?

Bump

I am unemployed and probably won't be able to work for the foreseeable future. I'm in my mid 20s and received a lump sum of 650k euro. Should I invest this in an index fund all in one go or should I drip-feed about 50k each year for the next decade? or should I just buy 2 nice rental apartments now?

believe there's some research I'm not going to bother finding right now showing you're statistically better off investing in one lump sum. but it is more stressful.
if you're not confident with handling that amount of money I'd suggest finding a wealth manager and letting him do it for you. at least for a year or two while you become more comfortable with financial matters, then you can take control back. don't know how hard it is to find a trustworthy advisor where you live though.
don't know why you'd want 2 rental apartments, but 650k could last you a lifetime if you life frugally.

Remember to subtract the rate of inflation. That's a bfd, really.