Reply to: Investing Reserves

[TheGreenBastard]

Purely because I don't need to withdraw the money out *currently*. As mentioned I've had a hefty sum of money sat on 0% over the last few years due to risk appetite.

I get the retirement/ age advice - buts thats just personal situation. I'm 32. Currently single with no heirs. I don't plan to be in that situation in 20 years, but as mentioned I don't think I'll get even to 50s.

My horizon is medium - advice above is all about trying to shift a focus to long term. Why would i take on extra stress worrying about money for 20 years that I may never see.

I'm basically looking to grow money in the medium (ish) term with the next likely scenario to be to withdraw as much as chosen for a house so that any mortgage would be as small as possible (would ideally keep my current flat and rent out).

The above posts are all about flexibility - investing in the SIPP is the LEAST flexible option going?

In any disaster situation you can withdraw money from personal/company investments and pay increased tax/take any charges hit on investments.

I don't tend to work with people with similar personal circs - hence the post - most ex colleagues are 40/50s - lumping into a SIPP or with debt that means there reserves are all minimal.

I somewhat share your sentiment, but what has been said is good advice.

I personally have a stupid attraction to financial risk, so far it's served me well, but my luck could run out, I've leveraged Ltd. company proceeds like so:

1) Ltd. subsidiary for a wannabe BTL empire (trivial for your contracting Ltd. to provide financing for a BTL SPV)
2) Business investment account (stocks and shares, nothing silly e.g. leveraged trading)
3) Business "investment" crypto account - note this could be conceived as "absolutely bonkers" on the risk scale
4) A third of all business income is kept as easily accessible cash, for both tax and emergency reasons

Motivations:

1) I'm a rabid capitalist from the school of Adam Smith (but I'm a fair landlord)
2) & 3) A big part of this is for gratification, losing money being a wannabe trader is something that interests me and brings me personal pleasure

All of this is done whilst still contracting (sometimes running multiple contracts), and I also have a side project that brings in a decent amount each month, which has been somewhat stable.

My accountancy costs are slightly above the norm due to the complexity of my arrangements.

[northernladuk]

sad face


do you guys dabble in crypto? my mates seem to be obsessing over ETH at the moment. Surely its all guess work.

It is but it's off topic but even if they did I think it's even less likely theyve done it through their LTDs. Someone linked you the crypto thread.

[ContractNewbie18]

prolly lost most of your profit in BTC transaction fees

sad face


do you guys dabble in crypto? my mates seem to be obsessing over ETH at the moment. Surely its all guess work.

[ContractNewbie18]

gone up recently to be fair might just be the couple of things i bought with BTC

[Lance]

need to check the deposits - Bitcoin - i put in about 550, have about 350, I did buy something with it but thought I was still under. App is a bit crap.

prolly lost most of your profit in BTC transaction fees

[ContractNewbie18]

need to check the deposits - Bitcoin - i put in about 550, have about 350, I did buy something with it but thought I was still under. App is a bit crap.

[Lance]

Bearing in mind it's at it's highest ever I think you are talking rubbish.

Can we do a sockie check on this one?

maybe he bought this one...
OneCoin - Wikipedia

[northernladuk]

Crypto ? I invested a few hunded a few years ago which is now worth half :S

Bearing in mind it's at it's highest ever I think you are talking rubbish.

Can we do a sockie check on this one?

[ContractNewbie18]

Crypto ? I invested a few hunded a few years ago which is now worth half :S

[Lance]

Couldn't find any poster with 'scootie'

https://www.contractoruk.com/forums/...ocurrency.html

[ContractNewbie18]

Have a look at Scootie's posts?

Posted from my Superyacht, moored somewhere off Covidia

Couldn't find any poster with 'scootie'

[ContractNewbie18]

What I don't get is if you don't expect to be around in 18 years time and currently have a SIPP with lots in it and a maxxed ISA for the years you've been an adult and plenty of cash in personal accounts, 100K in profits and a healthy outlook on employment and your own flat - WHY THE HELL ARE YOU WONDERING WHAT TO DO WITH THE CASH??

Spend it on a great life, if your statements are true, you can fund your lifestyle adequately from earnings and don't need a pension (as if you "wander off" at 50 you can't touch it anyway). If its just you why bother getting a bigger place, enjoy the flat and blow the cash on frivilous stuff



I suspect though the reality is you do expect to live longer, you hope to have a family and you are looking for someone to come up with a Nirvana investment profile for you. Hint: If any of us really knew how best to invest our surpluses we wouldn't be on a contractor forum, we'd be on our superyacht instead

Very fair.

ISA isn't maxxed, 25k in from last year.
SIPP - again pretty small considering dont have much of anything from perm pot.

Flat wise - I guess if I was set for medium term investment would go into my own property - but as an over analyser, over thinker and worrier with anxiety with fears of commitment............. there are too many variables here.. If my building goes down the pan (or I get noisy neighbours) moving becomes a very real possibility. Also if I ever meet someone again I want to settle with, being close to work is less of an issue since Covid so I'd be open to a house.

But you've got me in sum - I don't spend much on fun/ living life - covid restricts that even more - my vices are holidays, drinking, nice meals etc. I'm not materialistic.

[Scruff]

Have a look at Scootie's posts?

Posted from my Superyacht, moored somewhere off Covidia

[oilboil]

Purely because I don't need to withdraw the money out *currently*. As mentioned I've had a hefty sum of money sat on 0% over the last few years due to risk appetite.

I get the retirement/ age advice - buts thats just personal situation. I'm 32. Currently single with no heirs. I don't plan to be in that situation in 20 years, but as mentioned I don't think I'll get even to 50s.

My horizon is medium - advice above is all about trying to shift a focus to long term. Why would i take on extra stress worrying about money for 20 years that I may never see.

I'm basically looking to grow money in the medium (ish) term with the next likely scenario to be to withdraw as much as chosen for a house so that any mortgage would be as small as possible (would ideally keep my current flat and rent out).

The above posts are all about flexibility - investing in the SIPP is the LEAST flexible option going?

In any disaster situation you can withdraw money from personal/company investments and pay increased tax/take any charges hit on investments.

I don't tend to work with people with similar personal circs - hence the post - most ex colleagues are 40/50s - lumping into a SIPP or with debt that means there reserves are all minimal.

What I don't get is if you don't expect to be around in 18 years time and currently have a SIPP with lots in it and a maxxed ISA for the years you've been an adult and plenty of cash in personal accounts, 100K in profits and a healthy outlook on employment and your own flat - WHY THE HELL ARE YOU WONDERING WHAT TO DO WITH THE CASH??

Spend it on a great life, if your statements are true, you can fund your lifestyle adequately from earnings and don't need a pension (as if you "wander off" at 50 you can't touch it anyway). If its just you why bother getting a bigger place, enjoy the flat and blow the cash on frivilous stuff



I suspect though the reality is you do expect to live longer, you hope to have a family and you are looking for someone to come up with a Nirvana investment profile for you. Hint: If any of us really knew how best to invest our surpluses we wouldn't be on a contractor forum, we'd be on our superyacht instead

[northernladuk]

Just go for it then. We've said our bit.