Sounds similar to my favourite lager.
And more importantly is the monthly figure I need to put into my stocks and shares ISA to max it out – 12 x £1666 = £20,000. At this moment in time, £20,000 is our tax-free allowance what we can invest into a cash ISA or Stocks and shares ISA (in the UK).
At the moment, I am putting £800 pcm into my stocks and shares ISA and £200 pcm into my SIPP. Do some research on both and start to invest as early as possible to take advantage of compound interest.
After reading book after book, blog after blog and loads of other content, I am convinced this type of investing is a must. It is a must so you can reach your FI earlier than expected or at the very least, look after you and your family as you approach your retirement years.
This week I am hoping I have had my final dealings with single shares. I sold my Sirius minerals @5.5p a share. I have received just under £500 back and have made a loss of just over £250. Not much to lose but another loss nonetheless.
That £500 will be going straight into my lifestrategy 80/20 stocks and shares fund. Taking my total monthly investment in my ISA up to £1300. Fuck it, I am going to stay in 2 weekends and put another £366 in and make the total £1666.
It might sound boring staying in and watching the pennies for a couple of weekends but fuck it I am a happy fun sponge. I am thinking bigger picture and am pushing hard towards FI.
If I can find a way to double my current ISA investment up to £1666 pcm and £20,000 per year, I will get my FI in my mid to late 40s. A large amount to invest but where there is a will there is a way.
At least I have got a target that I can work towards.
So the number 1666 may seem pretty random from the outside looking in but it is a significant milestone for me. If at all possible my set and forget strategy will soon gather momentum with this sort of monthly investment.
The timing of making this size of investment is significant also. In money books I have read, they say that when the there is chaos in the markets and the prices are going down, that it is key that you stay the course and remain calm.
When the stock market goes down, try and think of getting slices of companies (if you have a fund that contains numerous companies) for a discounted rate.
My set and forget strategy is a long-term investment strategy. I am very much aware that there will be ups and downs.
The hope is that the overall percentage will revert to the mean and have a gradual increase of around 7-8%. That has happened when you look at over 100 years of data.
No one can predict the future and what happens with the financial markets is anyone’s guess. Following the entire market is what my fund is all about.
My fund is made of numerous companies spread across different markets. US stocks, UK stocks and emerging markets stocks make up around 60% of it (plus another 20% spread elsewhere). I also hold 20% bonds. This way my money is diversified and will hopefully perform consistently well in the good times.
Then there are the bad times (i.e. right now as the world tries to deal with the coronavirus) and whether or not the fund you pick is protected. It will have a negative percentage in some years but can it keep the losses minimal.
Regardless of what’s happening in the markets year to year, I am committed to investing for the next few decades.
So if I have to sit in and drink 1664 in the house in order to raise my 1666, then so be it.
Try to be calm when it comes to investing. Try to keep your emotions out of it. And think about your goals so you have a target to work towards.