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>> No. 6681 Anonymous
19th October 2016
Wednesday 7:21 pm
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I browse the UK Personal Finance subreddit, they've recently put together a chart on what to do with your money.

A few of you lads seem better off financially than myself, so I wanted to post it up here for some criticism. What do you both think?
Expand all images.
>> No. 6683 Anonymous
19th October 2016
Wednesday 7:29 pm
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What is this, a chart for ants?
>> No. 6684 Anonymous
19th October 2016
Wednesday 7:31 pm
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Well that's clearly the twatting thumbnail. Here's another for those without supervision.
>> No. 6685 Anonymous
19th October 2016
Wednesday 7:58 pm
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I can't really disagree with any of that. It's a bit blase about the need to invest in a pension, but otherwise it's a good overview.
>> No. 6686 Anonymous
19th October 2016
Wednesday 8:12 pm
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What's SIPP and Global Index Trackers? Is it like FTSE100? Is that a tracker too?
>> No. 6687 Anonymous
19th October 2016
Wednesday 8:31 pm
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SIPP is Self Invested Pension Plan - if you know the stock market well enough and fancy a crack at it, you can use your pension to invest in it and certain other types of investments. Not for the faint of heart.
>> No. 6688 Anonymous
19th October 2016
Wednesday 8:43 pm
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A SIPP enables you to invest in a range of options, including direct shares and investment funds rather than just pension funds.

However, it's worth noting that investment funds such as OEICs and Unit Trusts arent as tax efficient as pension funds so generally won't grow as fast as a comparable pension fund - I've attached a graph showing a L&G UK index tracker in an OEIC and a pension fund. Charges get too much attention, especially when we're talking of differences of 0.10% or whatever, and not enough to performance.

Trackers follow all sorts of indices and benchmarks, such as the FTSE 100 and the 250, All Share, etc. A global tracker will generally follow something like the FTSE World (ex. UK) Index or the MCSI World Index.
>> No. 6689 Anonymous
19th October 2016
Wednesday 8:48 pm
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Oh. Thanks.

I went looking for a letter that came from a Pensions company or something. I don't remember what it was called. Next or Nest or something like that. They gave me a a username and password. I logged in a opted out of the whole thing because I needed the money since I only make just over £1k per month. It was about £20/month (fuzzy memory).
>> No. 6690 Anonymous
19th October 2016
Wednesday 9:09 pm
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Nest is the workplace pension scheme offered by the government. If you'd be contributing £20 per month on a salary of £12,000 that'd be 2% net. Tax relief would increase that to £25 and your employer would contribute too - with auto-enrolment it's staggered but it's typically 8% gross in the end with 4% from you, 1% in tax relief and 3% from your employer.
>> No. 6691 Anonymous
19th October 2016
Wednesday 10:08 pm
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From the last thread I thought the official .gs advice was to spend all your spare money on takeaway pizza, never put any away in savings, and always act really surprised when anything goes wrong - at which point you should borrow money on the highest interest rate you can find because All Debt Is Good.
>> No. 6692 Anonymous
19th October 2016
Wednesday 11:13 pm
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No, the conclusion was that All Debt Is Bad. You should never get into debt for anything whatsoever. If your fridge breaks down and you can't afford to replace it you should go without and you shouldn't buy a house unless you've got the requisite quarter-mill cash on hand immediately.
>> No. 6693 Anonymous
19th October 2016
Wednesday 11:30 pm
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Wouldn't house prices crash down to okay-ish levels if everyone suddenly started following what you stated?
>> No. 6694 Anonymous
19th October 2016
Wednesday 11:39 pm
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Define "okay-ish". They certainly wouldn't drop to the point where you could pick one up for a few months' salary. London wouldn't be affected, given how many foreign investors using property to launder their profits from crime and corruption are effectively cash buyers.
>> No. 6695 Anonymous
19th October 2016
Wednesday 11:43 pm
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Well, a few reasonable multiples of the average yearly salary.

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