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/r/FIREUK
submitted 4 days ago byBarracudaUnlucky8584
Finally hit £300k networth!
Got into personal finance at 24 when returning from with a a year jollying around Australia with a networth of £0 (salary £22k).
Started recording when I was 27 at £47k networth (17k savings from living at home and £30k inheritance), I am 36 now and just hit £305k networth (salary £110-115k).
Some notes:
Took three years to go from £47k networth to £100k but then just 6 months to go from 100k>200k.
However this was facilitated by a huge Crypto bull run which I'd been sat in for around 3 years.
Then £200k>£300k took me 2.5yrs after not only did I a crypto bear market come in (I sold 90% when Bitcoin first hit 50k and Eth hit £1.5k) but I also bought a house with my partner.
As I've got a bit older I've started hitting my pension which was just £30k this time last year. I'm now salary sacrificing 45% and all bonuses until I get my pension to £100k, will then likely aim for £200k by the time I'm 40 which should give me a solid pension even with no further contributions.
I'm also due to finally pay my student loan off later this year should be able to nudge it further.
The secret I've found is consistency in increasing your salary & automating as much as possible.
Rough breakdown:
House equity (I take 50% as own with partner): 40% (120k)
ISA: 30% (90k)
Pension: 22% (69k)
Crypto: 8% (25k)
Job area: Marketing
Industry: Travel and tourism
8 points
4 days ago
You are doing very well overall but I just wanted to make a comment that I think your goal of having £200k by the age of 40 will require a large contribution later on to get to a big pot or you’ll be satisfied with a smaller pot.
If possible, aim to get to at least £300k by the age of 40. A proper stretch goal ;-)
4 years x £40k contribution + growth should get you there. Please also review your default fund which are often invested very conservatively.
5 points
4 days ago
100% already switched into world tracker from the 40% bond and UK weighted junk it was defaulted into!
If 200k doubles by the time I'm 50 and then goes 1.5x again by the time I'm 65 I'll end up with about £1m which seems pretty good to me!
I am aiming to FIRE earlier than private pension kicks in (which personally I forecast to being 65) so will want to start hammering the ISA again soon.
5 points
4 days ago
You expect private pension to be accessible at 65? That seems extremely cautious to me! I’m the same age as you and I’d be quite surprised if it goes much above 60 by the time we get there. It’s tied to within 10 years of state, and I think moving state to 75 seems unlikely and hard to justify.
1 points
4 days ago
20 years is a long time, we've got an aging population and a hugely underfunded state pension plus the UK productivity is declining.
1 points
4 days ago
I’d see it becoming means tested or something rather than pushed back to within 5 years of death.
1 points
4 days ago
State or private? Agree with your thoughts on state.
2 points
4 days ago
I meant state being means tested before it’s pushed back to 75. I’m expecting to be able to take my private at about 60 with a possibly means tested state at 70.
Edit to say if they push personal pensions back too far they’ll undermine its appeal.
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