Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?
This is your opportunity to ask questions. No question too simple or too silly.
Culture war topics are accepted, and proposals for a better intro post are appreciated.
Jump in the discussion.
No email address required.
Notes -
A request for financial advice:
For the majority of my career, I've made such a small pittance in Western terms that I had no strong impetus or incentive to save any of it.
While the UK is certainly not as wealthy as the US, and doctor's wages are comparatively meager (and have been devalued considerably by inflation), I have a respectable sum already in my bank account. Part of this is that I simply don't have a life outside of work, and couldn't spend the money if I wanted to.
I'd like to invest the majority of it, around 10k GBP. My risk appetite is decent, but I also think the market is more efficient than I am in most regards (when I had forewarning that Nvidia would skyrocket, I didn't have any money to bet with). I don't want to see it get eaten away by inflation.
I believe the default course of action would be to buy index or mutual funds. I've been eyeing the S&P500.
I do intend to hold on to a few thousand GBP for expenses like buying a second hand car, expensive exams and the like. In the longer term, I'd need ~40k for a mortgage, assuming I choose to continue working and training in the NHS when my contract is up.
More specifically, the default course of action is to implement a glide path, starting with a high proportion of stock funds and a low proportion of bond funds when you're young, and gradually transitioning to a high proportion of bond funds and a low proportion of stock funds when you're old. Vanguard provides Target Retirement 20XX funds that implement glide paths automatically, both in the US and in the UKGBNI. Alternatively, you can just manually allocate your savings between a stock fund and a bond fund.
I agree that's sensible in a vacuum, but I sincerely doubt I'll be growing old and retiring the old-fashioned way. I'm willing to put my money where my mouth is in that regard.
(I really should opt out of the NHS pension, like hell that's going to be relevant in the thirty or so years till I could plausibly retire)
If it's 2030 and AI progress seems stalled at levels not significantly more advanced than it stands today, I could be persuaded otherwise. But for now, I'm more concerned with preparing for a singularity (with a decent risk appetite as I have little to lose) as opposed to saving for retirement.
You really, really shouldn't put your money where your mouth is on this one. You are gambling away your future for something which not only probably won't happen soon, but you don't even get any rewards from the gambling! There's no upside for you here, only downside.
I appreciate your concern, but if it helps, I'm willing to explain my stance.
I strongly expect widespread technological upheaval and even widespread unemployment by the turn of the century. If that does not come to pass, and human skilled labor retains its value, then a more standard portfolio that sacrifices returns for stability would be something I would be willing to pivot to. In hindsight, that would represent half a decade of suboptimal investment.
I don't intend to YOLO onto tech stocks, I seek to invest heavily in American index funds, which I am happy to hear is more or less sensible according to the responses. I intend to spend only a few thousands, per year, on more volatile actions like stock picking.
Even if I suddenly realize, oh shit, I need to save for retirement and college for my (future) kids, that realization would take hold in my early 30s. I would only need to liquidate some of my holdings and reinvest them. I'm not advocating for taking short timelines as an excuse to put * all* financial planning out the window, but I think that a 5 year cutoff is reasonable according to my beliefs about the future of technology and its ramifications on industry. Some might want to withdraw into unchecked hedonism, content in hopes that a post-scarcity civilization will bail everyone out, but I acknowledge that as a possibility while not forgetting that hey, it's good to hold onto your money and grow it for now.
Ok, I misunderstood. I thought you were going for full on YOLO hedonism/risky high payout bet as a strategy, but if you're hedging your bets that's fair.
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link