How do you stop worrying about your financial future? Ask Us Anything

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0:50Hello, everyone. So welcome back to our mini episodes where we answer some of your questions. This question is from NoSolutionOnlyTradeoff5. Was that NoSolutionOnlyTradeoffs? It's kind of brilliant, that username in a way, because they've had to make a trade-off with the name, haven't they? They couldn't put trade-offs, so they've used a five at the end. That's either genius or just like... That is quality. I like that. What do you do to stop yourself overly worrying about your financial future? I am in a good position and my forecast project, I will be able to retire comfortably at a good age based on a prudent 4 % growth rate.

1:24But I still find myself constantly rerunning the numbers, etc. I don't have a prudent 4 % growth rate. I just believe in crypto. So you're in a much better position than me, man. My financial future is based on how Bitcoin moved. Blind faith and like market knowledge and hopium. Yeah, yeah, yeah. And when Lambo. Yeah. I don't know if I've got an answer to this because I do the same. I constantly rerun my numbers like every day that I'm just like there tinkering. Yeah, yeah, I'm obsessed. I sit in, one of the things I do to get myself to sleep is log onto my spreadsheet on my phone and just crunch some numbers.

1:59That just kind of brings me down. Isn't that weird, right? I literally sit in bed, my mistress is like, why is it glowing in here? And I'm just down on my spreadsheet, mate. Just, well, if the markets return 6%. Yeah, it's kind of weird. What I'll say is, I know some people that I've got a lot of money and they still worry about money. They worry about losing it. I don't know if there is a point. I think some people are just more inclined that way.

2:28you're better at this mate you're you're the guy who's got no worries so no worries but my partner worries all day long so like i'm the polar opposite she's always lying i'm like don't worry mate it'll be fine like we're going to the moon she's like when i'm like don't worry we're going to the moon and now i'm like i told you we're going to the moon um but like i'm a bit like you except i don't check my numbers i just look at different crypto prices all day and look at their graphs and say when is it going to get to here when's it going to get to here and i'll have this much money. But I think as long as you forecasting and a prudent 4 % growth rate is pretty conservative now.

3:03It depends on what you're invested in. Yeah, I mean, it's inflation adjusted, I would assume. But yeah, I mean, that's why the pension industry kind of benchmark. So if you're basing it on 4%, I think, you know, and it's working, I think that's great. I say like the best way to not worry is diversification, isn't it? Yeah, maybe no solutions, only trade off five needs to hear like, sounds like you're doing great. You know, you're doing good there. and try and remind yourself of that. Keep up the good work. Hey, you could always do that comparison, compare yourself to someone who's in a lot worse position.

3:30Like most people, I think most people probably haven't actually worked it down to a number, projections, how much they're going to make when they retire. I don't know. Also look at cashflow modeling. Again, I'm only saying that because I've recently done some work on it, but that might give you some reassurance. You can sit down with a financial advisor that can run cashflow models and be like, if this happens and this happens and this happens, these are your chances of - So like different scenarios. What happens if you lose your job for two years and what percentage chance have you of still making it through retirement and that?

3:59That might flesh out a little bit. And then if you don't lose your job for two years, you're like, oh, well, at least I avoided that situation. So yeah. It will give you that confidence of like, even if the worst case scenario happens, I'll still be okay. And maybe that will help, you know, and if you've got to spend a few hundred quid for that session, but it gives you peace of mind, maybe look at that.

4:21next question is from tess cardell i'd really like to start investing but i don't know whether i should use my barclays banks isa or maybe open a vanguard or trading 212 account or both i like to i like to invest long term but maybe invest only like 20 pounds each month is that even possible i'm totally new to investing and i don't know anyone in person who is interested in this kind of thing. Most people I know just use a traditional savings account and think that the stock market is like a crazy gambling game for the city people or something. Not very encouraging. Anyway, thanks for all the videos and podcasts.

4:54They're amazing. Thanks for listening. You're amazing. So the stock market is definitely not a crazy gambling thing. It can be if you want to day trade and things like this, but investing long-term consistently in low-cost index funds has proven to be pretty sensible. And, you know, I think it's a good habit for anyone. and it's a crying shame that people of certain communities and backgrounds and upbringings think that investing is not for them. That holds those people back. So yeah, good on you for trying. In terms of, so you say about Barclays, Vanguard, Trading 212, they're all good options.

5:29My opinion, not investing advice, but I think Barclays and bank specific ISAs tend to be expensive and limited. They don't give you much choice and they kind of rip you off a bit. you know I had a Barclays Bank I said I closed it because the fees were ridiculous the stocks and shares I said ridiculous fees and it's like only they're like they're a bit of a one-stop shop and the investing side they just I think they just think if someone wants to come to us to invest we're just going to poke their eyes out for it you know whereas these trading 212 and Vanguard they're specific to that and you know they're really focused on low price don't be intimidated by the platforms it's just like using a bank account it's really simple the question of can I use all of them yeah I mean from April 6th you can now when you know from April 6th whenever this comes out but you'll be able to use multiple of the same type of ISA in the same financial year which is a new change for this year so you could have a Vanguard a trading 212 and a Barclays stocks and shares ISA and pay into all of them at£20 a month until you know but you have the same allowance you can just spread it into different you could put£10k in Vanguard and£10k in trading 212 yeah exactly that's awesome I didn't know that yeah so that's the new rule which I think is good and should hopefully improve competition because at the minute people just pay into one and they're stuck with it.

6:46And if you think rightfully so, I don't want any risk with this. I've got to pick my bet. I'll go with Vanguard because of reputation. You might now think, I'll just try 20 quid in a trade in 212 and invest engine, see if I like it. It opens the market up a bit. So maybe you want to look at it in that sense, but don't be scared by Vanguard or Trading 212. They're really simple platforms to use. And I just find that the banks are expensive and limited choice personally, but there's nothing stopping you from this new financial year, April 6th and opening multiple stocks and shares, ISAs, and trying them all.

7:23I use Trading 212 because it's really easy to use. So that's my ISA. But for my son, I use Hargreeze Lansdowne because it's, I don't know, I feel like because it's for his long-term investment. I think it's very stable, very safe. They're also free for the child ones, I think. I think what their model is, is get the free child, the junior ICAs, and then we're hoping that 18, these people don't switch. And then we've got them for life. It's like McDonald's with their Happy Meals. They're like, get them in the Happy Meals and then they're McDonald's lovers for life. Yeah, quite smart really in the sense of, you know, get them while they're young, I think is the model.

8:00So what that means is that their junior ICAs are really competitive in terms of their fee-free, I think, apart from the fees that you pay associated to the investments. A lot of people do that. Bupa did that for my kid. They're like, yeah, he's got a year of free insurance. I'm like, sweet. Then we got to the end of the year. They're like, give us money, lots of money. It's the road man in playbook, mate. Take some free samples. Yeah, have a lot of things that they're actually like, you need more, don't you? Yeah, yeah. I'm back. It costs double now. Yeah. Yeah.

8:31This is not financial advice. Like we say a lot on the podcast, investments can fall and rise. In fact, it's almost a guarantee. Remember, past performance is no guarantee of future results, so your money is at risk with investing. Also, remember other fees may apply.