How to retire earlier
How retire two years earlier…
A fifty year old has built up a pension pot of £200,000. The fund is doing well and generating an average return of 6%pa compound. Having done his arithmetic he reckons he needs £400,000 to have a peaceful retirement, so he needs the fund to double. At 6%pa it will take 12 years.
How 1%pa can change your life
But he is not getting 6%pa. The fund may be generating 6%pa , but after adviser charges this is reduced to 5%pa. An annual charge of 1%pa over fifteen years will eat up 63,526 of his growth!
This is compound interest working against you.
It will take him another 2.4 years to double his pension pot, nearly 15 years instead of 12.
He will be a few months shy of his 65th birthday, not 62 when he reaches his target pension fund.
He doesn’t need to contribute more money to the pension fund, he doesn’t need to find a ‘whizz bang’ investment manager or take huge risks.
He just needs to reduce the charges on his fund and get compound interest working for him, not the financial institutions.
I have helped many people do exactly this, read more about how
Testimonial
Dear Nicholas,
I’m writing re the financial coaching you’ve been providing of late.
It’s been an education; your support and prompting has forced me to consider my existing investment strategy and the real costs associated with fund management fees, an area I was aware of and concerned about but didn’t really know how to address.
I didn’t want to go down the traditional financial advisor route as paying for advice on the basis of a percentage of the funds I have under management regardless of how well or poorly those investments perform feels like only the advisor and fund managers win – It is also very expensive.
Having researched the market alternatives with your guidance, then having the ability to sound out my conclusions with you was hugely empowering. Do I abdicate responsibility for my retirement to an advisor or take control myself? I now feel equipped to take control myself and of course have that sounding board to call upon if required.
The net result is that I’ve been able to save around £10,000 of hidden (or not very well publicised) charges a year.
Over the next decade that’s £100,000 of funds that will stay invested, compound up and grow that would otherwise have gone in fees perhaps enabling me to retire a year or 3 earlier!
Many thanks and warm regards,
Noel Kessell
A fifty year old has built up a pension pot of £200,000. The fund is doing well and generating an average return of 6%pa compound. Having done his arithmetic he reckons he needs £400,000 to have a peaceful retirement, so he needs the fund to double. At 6%pa it will take 12 years.
How 1%pa can change your life
But he is not getting 6%pa. The fund may be generating 6%pa , but after adviser charges this is reduced to 5%pa. An annual charge of 1%pa over fifteen years will eat up 63,526 of his growth!
This is compound interest working against you.
It will take him another 2.4 years to double his pension pot, nearly 15 years instead of 12.
He will be a few months shy of his 65th birthday, not 62 when he reaches his target pension fund.
He doesn’t need to contribute more money to the pension fund, he doesn’t need to find a ‘whizz bang’ investment manager or take huge risks.
He just needs to reduce the charges on his fund and get compound interest working for him, not the financial institutions.
I have helped many people do exactly this, read more about how
Testimonial
Dear Nicholas,
I’m writing re the financial coaching you’ve been providing of late.
It’s been an education; your support and prompting has forced me to consider my existing investment strategy and the real costs associated with fund management fees, an area I was aware of and concerned about but didn’t really know how to address.
I didn’t want to go down the traditional financial advisor route as paying for advice on the basis of a percentage of the funds I have under management regardless of how well or poorly those investments perform feels like only the advisor and fund managers win – It is also very expensive.
Having researched the market alternatives with your guidance, then having the ability to sound out my conclusions with you was hugely empowering. Do I abdicate responsibility for my retirement to an advisor or take control myself? I now feel equipped to take control myself and of course have that sounding board to call upon if required.
The net result is that I’ve been able to save around £10,000 of hidden (or not very well publicised) charges a year.
Over the next decade that’s £100,000 of funds that will stay invested, compound up and grow that would otherwise have gone in fees perhaps enabling me to retire a year or 3 earlier!
Many thanks and warm regards,
Noel Kessell