tag:blogger.com,1999:blog-2875915890415125655.post4804892282691522283..comments2023-05-18T10:37:34.608+01:00Comments on <a href="http://www.retirementinvestingtoday.com">Retirement Investing Today</a>: The Retirement Investing Today Low Charge Strategy and PortfolioRetirementInvestingTodayhttp://www.blogger.com/profile/03088383743670046657noreply@blogger.comBlogger30125tag:blogger.com,1999:blog-2875915890415125655.post-86932490982416502602019-10-11T17:32:43.885+01:002019-10-11T17:32:43.885+01:00Hello RIT - thanks for your fantastic blog, which ...Hello RIT - thanks for your fantastic blog, which I'm using to plan my investment reallocation. Currently I have a SIPP and ISA, each of which contains various Vanguard Lifestrategy funds. I've worked out my desired allocation to each investment class, but now I have a (possibly dumb) question: should I try and replicate the allocation within each wrapper (and therefore end up with Kirstennoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-59469280527262722422013-08-20T08:43:35.340+01:002013-08-20T08:43:35.340+01:00Hi RIT
Further to your recommendation, I have read...Hi RIT<br />Further to your recommendation, I have read and thoroughly enjoyed Tim Hale`s book and have started to implement a long term investment strategy. The guidance is clear (further elaborated by yourself & Monevator) but implementation has proved to be more challenging than first thought. The biggest obstacle has been having absolute belief in the strategy and thus having the Paddynoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-23419951998806551042013-01-22T20:11:34.025+00:002013-01-22T20:11:34.025+00:00Thanks for the follow up story. It sounds like yo...Thanks for the follow up story. It sounds like you are proof that Save Hard, Invest Wisely and then Retire Early works. You've gone about the Save Hard, Invest Wisely in a very different way (except the 12 hour days that is) to me for most of your wealth building period but still arrived at the Retire Early.<br /><br />I don't see any luck in there. I do see some risk and definitely RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-1647490161589362572013-01-22T16:06:11.336+00:002013-01-22T16:06:11.336+00:00Hi RIT.. being brought up in a low income environ...Hi RIT.. being brought up in a low income environment taught me to be thrifty/make do and mend and its true its more important not to waste money as it is to earn it.I spent most of my twenties working in a factory 12 hour shifts the money was very good I banked most of it(despite nightclubbing 4 nights a week!) Ive also had my share of luck.. I bought a 5 bed house at a knockdown price from an Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-77279593034972342272013-01-22T12:56:06.494+00:002013-01-22T12:56:06.494+00:00Hi Anonymous
Sounds like a great success story. ...Hi Anonymous<br /><br />Sounds like a great success story. It would be great to hear more about how you managed to obtain financial independence/retirement in your 20's.<br /><br />I'm wondering if people striving for more and more wealth to achieve retirement is the primary effect or a secondary effect. Could it be that they have a continually increasing (or even aspirational) standardRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-56712670858594100792013-01-22T11:21:29.322+00:002013-01-22T11:21:29.322+00:00Hi RIT retiring at 40.its a pipedream..a bit like ...Hi RIT retiring at 40.its a pipedream..a bit like those other life goals..''when I lose that 4 stone''..''when I pay off the mortgage''..most people already have more than enough to do the things you say..I havent got a lot but have lived (since my late twenties) in your post retirement ideal.Trouble is when many get there they strive for greater wealth get Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-74018372211432367832013-01-21T20:21:47.851+00:002013-01-21T20:21:47.851+00:00Hi Anonymous
A great question that I've explo...Hi Anonymous<br /><br />A great question that I've explored a few times on this site. For me the definition of retirement is that work simply becomes optional. I have no intention to sit on the sofa and watch daytime television. I also currently enjoy my work (although the stress levels could eventually restrict me there) and were I to be reaching financial independence tomorrow I wouldn&#RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-19129115066525043842013-01-21T17:22:25.572+00:002013-01-21T17:22:25.572+00:00This whole discussion seems to revolve around you ...This whole discussion seems to revolve around you ''retiring in your early 40's''...have you thought what you are to do with your time...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-39856231196158401862012-10-05T10:04:21.020+01:002012-10-05T10:04:21.020+01:00I always enjoy reading about your investment strat...I always enjoy reading about your investment strategy as it is so close to my own. I seem to have learnt from some of the same mistakes as you too (commodities and the dangers of contango for example).<br /><br />I am moving more and more to Vanguard funds and really like the Life Strategy funds which I think are worth the slight premium in TER over the simpler funds. <br />(Reduces need for Passive Investorhttps://www.blogger.com/profile/08535258693941313287noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-75284148144142978452012-10-03T10:35:19.127+01:002012-10-03T10:35:19.127+01:00By the way Vanguard are switching from MSCI to FTS...By the way Vanguard are switching from MSCI to FTSE indexes in the US and will be cutting their fees to investors<br /><br />Presumably this will be coming over here in the next six months, so Vanguard funds should get a bit cheaper<br /><br />I love Jack BogleAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-22940920967602592862012-10-03T09:01:56.646+01:002012-10-03T09:01:56.646+01:00I'm aware of the purchase costs of the LifeStr...I'm aware of the purchase costs of the LifeStrategy fund and the additional costs in Sippdeal, although I already pay this as I own other Vanguard funds.<br /><br />I also have a very simple 'no selling' rule to avoid tinkering. <br /><br />What I am planning is that a proportion of my monthly contribution goes into the 80/20 and a proportion goes into the 'regular' balanced Mikehttp://www.escapetothewestcountry.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-11063929074186195652012-10-02T11:53:47.375+01:002012-10-02T11:53:47.375+01:00Hi Mike
I set my strategy up prior to the Vanguar...Hi Mike<br /><br />I set my strategy up prior to the Vanguard LifeStrategy funds being available. I haven't looked to use them for a few reasons:<br />- Avoidance of tinkering to minimise expenses. I've already incurred expenses in buying the funds I presently own. An example being the Stamp Duty Reserve Tax (SDRT) on Vanguard's FTSE UK Equity Index Fund. If I sold and then boughtRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-57205454287517123822012-10-02T09:11:54.659+01:002012-10-02T09:11:54.659+01:00This matches very closely what I have in my own po...This matches very closely what I have in my own portfolio, although I'm very tempted by Vanguard's LifeStrategy funds that do a lot of the work for you by automatically rebalancing. Have you not thought about putting part of the portfolio in something like the 80/20 or 60/40 LifeStrategy fund?<br /><br />Mikehttp://www.escapetothewestcountry.comnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-90272398283384471732012-10-01T22:15:24.564+01:002012-10-01T22:15:24.564+01:00Hi Mark
If you're a newbie then it was rude o...Hi Mark<br /><br />If you're a newbie then it was rude of me not to extend a welcome.<br /><br />I don't think you can ever start to late. I also consider I started late. I didn't wake up to what the game was about until 2007 which is when I was in my mid-thirties. It's all relative.<br /><br />The key is that if you never start you never get there. So the key is to just startRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-69517660031849776122012-10-01T22:06:30.235+01:002012-10-01T22:06:30.235+01:00OK Thanks I will go and read - I have a lot to cat...OK Thanks I will go and read - I have a lot to catch up on as a newbie here. It all makes sense, except I started too late to truly be early retired although it will be a good one. As the mortgage goes and kids leave I will be looking for a few years turbocharging all my income sources with that money - to gain every month I can, as every month is precious. Your material will be highly relevant Marknoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-14829055385610478202012-10-01T21:26:11.089+01:002012-10-01T21:26:11.089+01:00Hi Mark
It's not cheeky at all. For me I'...Hi Mark<br /><br />It's not cheeky at all. For me I'd say it's 2 to get to retirement. As my accumulation phase is quite short compound interest doesn't get a chance to work its full magic. Therefore, conversely the less you save the more important 1 becomes. Have a look at this post http://www.retirementinvestingtoday.com/2012/08/early-retirement-extreme-vs-early.html as I&#RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-65915275313695662652012-10-01T21:14:54.168+01:002012-10-01T21:14:54.168+01:00Hi there RIT
I hope this doesn't come across ...Hi there RIT<br /><br />I hope this doesn't come across as cheeky, but which do you place as more important to reaching your goal of early retirement. Is it 1) your RIT low cost investment strategy OR, 2) the fact that your frugal lifestyle allows you to save 60% of your income (ie buying 1.5 years of early equally frugal retirement for each year worked<br /><br />Regards and Respect<br /><Marknoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-27379626069512336222012-10-01T21:07:31.459+01:002012-10-01T21:07:31.459+01:00A further thought. Interesting that you describe ...A further thought. Interesting that you describe it as an aggressive strategy. I'm forecasting that the strategy as described above will today only generate a real return of a bit over 4%. I'd hate to see what a conservative strategy would return.RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-42471481377179821472012-10-01T21:05:18.113+01:002012-10-01T21:05:18.113+01:00Hi Anonymous
No I don't manage downside risk ...Hi Anonymous<br /><br />No I don't manage downside risk at all. I'm always long (just by varying degrees depending on the PE10's). I've assessed my risk tolerance and am ok with it. It was tested nicely during the falls of 2009 and I was ok with the losses that I took.<br /><br />I guess I don't get to worried because I know I have time on my side. If I lose a big chunk of RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-82602728942200838022012-10-01T20:57:35.064+01:002012-10-01T20:57:35.064+01:00Hi Anonymous
Thanks for sharing you strategy. The...Hi Anonymous<br />Thanks for sharing you strategy. The more ideas that we get on the table the better.<br />Cheers<br />RITRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-46129987573214381062012-10-01T20:27:40.411+01:002012-10-01T20:27:40.411+01:00Thanks for your post. A question, do you manage do...Thanks for your post. A question, do you manage downside risk eg using stop losses on your etf trades or any form of hedging? Given the current climate you seem to have an aggressive risk profile.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-87667220223820021812012-10-01T12:15:59.235+01:002012-10-01T12:15:59.235+01:00You would kind of expect to be getting a high retu...You would kind of expect to be getting a high return from buying "ITs in unloved areas such as Europe on massive discounts" these being quite risky<br /><br />Personally I am very dubious of investing a lot in the UK since I'm very exposed to the UK economy already, since I have a job and pay tax here<br /><br />The way I look at it I hold my bonds in £, which are all inflation Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-78447329057591264982012-10-01T09:35:02.492+01:002012-10-01T09:35:02.492+01:00I also have a strategy based around Vanguard track...I also have a strategy based around Vanguard trackers, but I've mostly gone for Global ex UK and have then added some UK, UK income, Pacific, EM, and also a boost of global small cap and FTSE 250. I'm working on the principle that Asia/EM, smaller caps, and also higher yielders have shown some long term out performance. Alongside I have added property via heavily-discounted but low-gearedAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-29423650402702992522012-09-30T23:25:33.387+01:002012-09-30T23:25:33.387+01:00On a serious note you get this according to ishare...On a serious note you get this according to ishares developed world tracker:<br /><br />APPLE INC 2.60 <br />EXXON MOBIL CORP 1.64 <br />MICROSOFT CORP 1.07 <br />GENERAL ELECTRIC 1.04 <br />INTL BUSINESS MACHINES 1.00 <br />CHEVRON CORP 0.97 <br />AT&T INC 0.96 <br />NESTLE SA-REG 0.95 <br />JOHNSON & JOHNSON 0.78 <br />GOOGLE INC-CLAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-7851385962476448372012-09-30T23:14:37.927+01:002012-09-30T23:14:37.927+01:00I think effectively abolishing RPI by making it id...I think effectively abolishing RPI by making it identical to CPI is the next step in the master plan to fix the government deficit (sp?) through financial repression<br /><br />Its another form of soft default alongside QE<br /><br />Makes me much less inclined to invest any more of my money in the UK and much more inclined to buy assets not denominated in £<br /><br />Let's just hope that Anonymousnoreply@blogger.com