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Long Time Since I've Been On Here - Any Advise For Young

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments.

Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves!

After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments.

Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves!

After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

Good on you. I dunno about 'Boomers hating the young' as opposed to 'Bank staff getting whipped for sales targets'.

Next time tell 'em you'll get a great APR with 0% LTV, which it seems you're on track for.

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Obviously I'd have answered:

1) Freedom for all from the debt slavery of the banksters.

2) It's totally sh1t, which is great because I'm going to make a killing from going long gold.

3) I'll be in the market to buy a couple when all this is over. A nice one for myself and as many as I can afford as rentals for a lovely, low stress, non 9-5, nearly work-free yield. Call me after the sh1t has hit the fan and we'll talk, that's if the criminal organisation you work for still exists then.

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After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

It's not an age thing.

I've had a premier account, with relationship manager, for many years and it was always thus. After you've finished the business discussion, they always go into 'super salesman' mode and try to flog you whatever dodgy product the bank makes the most out of, it's their job. If I know the particular manager reasonably well, I laugh and say 'piss off'.

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Sounds like you've got your head screwed on. The only mistake you made was going to see their pushy salesman. If you don't want them to contact you, then tell them. If they keep doing it, tell them again and say if it continues you'll take your money to another bank. If it keeps happening, take your money to another bank. You could still give them a final chance when they beg you to stay before that final withdrawl. If there's already too much bad blood for you to be comfortable in future, make a complaint and find another bank. They're all the same anyway. With that much savings enjoy what little power you have over them.

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The ONLY special relationship the bank wants is with your money.

Had similar - went in for business briefing year and years ago - only thing they were interested in is whether I had this or that prouct from insurances to pensions.

Dirty little salesmen (and now found to be con merchants, beggers and thieves) in suits.

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments.

Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves!

After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

Rare post by me to, but what has 'boomer' got to do with your little story?

We also have a pretty large pot of readies spread around, 'personal' contact at the bank, etc. but I trust them less than politicians!

OK, we don't like bankers of any sort, but why make this an issue about 'boomers' ?

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Dude you've got 200 grand in the bank, you're richer than most of the country

But has he also got a pension of some sort. £200k is great being lieu of a future house purchase, but he should also have something aside for later.

I've not really ever kept that sort of money in a liquid form (with the exception of when I STRed). However, I did also have at the time £140k in pension running at 0.35% annual charges. The fund is doing well and I'd expect to see it grow substantially before I retire which is more than 25 years away. Even with the stock market being a damp squib a low cost fund should do well in the long term.

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I bet the OP is a troll, the way the post is written seems to be with all the right keywords to attract a lot of attention and controversy...

Don't feed the troll you are wasting your time.

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I hate to be the bringer of bad news, but 31 years old is not young. A new born baby is young, a 5 year old child is young, you could even say that an 18 yo is a young adult, but it is not often you hear 31 called young - other than it is a young age to retire or become a grandparent. Many sportsmen's careers are over before your age and you are too old to even go to 18-30 holidays!

Congratulations on saving up 200k, that is quite a nice amount to use. What are you an expert in analysing? I imagine that you are using your knowledge to put your investments to good use.

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Looks like the poster was talking to someone trying to sell him something and get a kickback.

If you can amass £200K in London, you're not that far off from leaving the rat race of London and moving out of there. You're only going to be able to stay in London for the long term if you have a business spinning off income to pay for all the expenses associated there. If you're an analyst and your return on your trades/investments are on average 15-30% a year, then that is better than the top traders in the world:

29% for 37 yrs. - George Soros

21% for 40 yrs. - Warren Buffett

29% for 18 yrs. - Eddie Lampert

29% for 18 yrs. - Peter Lynch

24% for 13 yrs. - Jim Cramer

15% for 20 yrs. - Benjamin Graham

Crispin Odey made a 69% annualised return in one year during the crash of 2008 by short selling banks

Insider trader Raj Rajaratnam made 21% return with insider knowledge/ betting on sure things.

---

Remember the broker/yacht story - A client visits a marina and sees all the brokers' yachts. He asks, "where are all the clients yachts?"

Edited by Money Spinner

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Sounds like you've got your head screwed on. The only mistake you made was going to see their pushy salesman. If you don't want them to contact you, then tell them. If they keep doing it, tell them again and say if it continues you'll take your money to another bank. If it keeps happening, take your money to another bank.

If he's really got his head screwed on, he won't have all £200k with one bank.

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When I was a poor, penniless student, my bank hated me. I would go in and no one would engage with me. I would of course get the dirty letters pushing me further into debt if I'd gone over my overdraft, but that was it. UNTIL I paid off my debts, and started to accumulate a bit of money. And then it started. First, offers to make an appointment for me to discuss my finances, and then demands that I speak to one of their financial advisers.

That's just what they do when you have money.

And don't worry, you are still young. I didn't stop thinking that I was young until I reached 40!!!! :lol:

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments.

Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves!

After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

...this is not about financial knowledge and survival ....this is all about common sense....a special relationship manager is a vulture who is there to make commission revenue for the bank and his own bonus out of your money....tell them to get lost and follow your own instinct.....this is not the time to buy...you know it...why ask ..?.....don't listen to these urban robbers....they are thick and greedy ...beware...:rolleyes:

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...this is not about financial knowledge and survival ....this is all about common sense....a special relationship manager is a vulture who is there to make commission revenue for the bank and his own bonus out of your money....tell them to get lost and follow your own instinct.....this is not the time to buy...you know it...why ask ..?.....don't listen to these urban robbers....they are thick and greedy ...beware...:rolleyes:

heh, we're not rich but my wife keeps getting hassled for chats because she was daft enough to buy some stuff once, home insurance I think it was, she's on the autodial for life now. I think I got scrubbed off the database when i was cold called once about some platinum account for 10 quid a month that would give me free travel insurance.. .I was like "eh? how's that free then if it's £10 a month?"

Edited by noodle doodle

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future.

When you said this bank wanted you to discuss what you wanted in future I thought that they were your employer.

But then when I read further I realised not.

If my bank asked me to come and see them to discuss MY future they would be told to Foxtrot Oscar - it's none of their bloody business. I'm surprised that you fell for it.

tim

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Suggest you don't waste time going to see your bank's special relationship manager ever again. Not sure what other advice you are seeking. If you don't have kids yet, keep that £200k handy, as it may come in useful.

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I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here

Circumstances

• 31 years old - was sharing with friends and now with a sibling -- you really do have to in London

• On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London

• Though do worry about my job -- no more or less threat than most but can't help but worry!!!

• Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month

• Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back

Story

The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency.

Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments.

Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves!

After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London.

I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!

Can you fill us in a bit more on the maths of how you've managed to save £200k? I'm guessing the £55k is the best salary you've ever achieved and you've already said you only save £2k a month. I can't get my calculator to turn this into £200k by the age of 31, even considering a 20% return if you timed the fall of sterling perfectly. Are you also getting chunky bonuses on top of the £55k?

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Can you fill us in a bit more on the maths of how you've managed to save £200k? I'm guessing the £55k is the best salary you've ever achieved and you've already said you only save £2k a month. I can't get my calculator to turn this into £200k by the age of 31, even considering a 20% return if you timed the fall of sterling perfectly. Are you also getting chunky bonuses on top of the £55k?

He sounds like a fairly prudent chap. If he started work 8 years ago on a reasonable salary, you could assume that he has saved an average of £1k per month since then - that is £100k to start with.

It sounds as though he is working in the City, so there would almost certainly be a bonus involved, perhaps 20% in the early years, nothing in 2007/8 and back to 10% now if back office. That would have added, say, £40k to the pot, and would be a LOT more if front office.

Add on a bit of interest, plus a good % for jumping out of sterling and back in at the right time and he'd be getting close to £200k.

This is a great achievement for someone not on mega-money.

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He sounds like a fairly prudent chap. If he started work 8 years ago on a reasonable salary, you could assume that he has saved an average of £1k per month since then - that is £100k to start with.

It sounds as though he is working in the City, so there would almost certainly be a bonus involved, perhaps 20% in the early years, nothing in 2007/8 and back to 10% now if back office. That would have added, say, £40k to the pot, and would be a LOT more if front office.

Add on a bit of interest, plus a good % for jumping out of sterling and back in at the right time and he'd be getting close to £200k.

This is a great achievement for someone not on mega-money.

I'm still not convinced. If he's earning £55k he'll be clearing around £3,300 a month. So to save £2k a month, he spends only £1,300 a month (fairly frugal for London). Assuming his spending has been constant since beginning work, to save £1k a month he'd need to be clearing £2,300 a month or approx £35k gross. It's unlikely that his starting salary after graduating was as much as £35k if he's in a career that pays only £55k at the age of 31 (unless his career progress has been pretty poor). More typical amongst people I know is to start on £20k - £25k and be on £60k - £80k by 31 (I'm 29). You would hit £35k+ after completing a graduate scheme of 2 - 3 years. Throw in some student debts as well and it's unlikely he made any real progress on savings until he was at least 25. So 5 - 6 years max to put together £200k in a period when his gross salary ranged from £35k to £55k.

I should have better things to do than analyse it to this level but seems to be something not quite right with this story.... apologies to the opening poster if I've missed something. If the explanation is bonuses then it's a bit disingenuous to claim a salary of £55k and make everyone else wonder why they have so little savings.

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I'm still not convinced. If he's earning £55k he'll be clearing around £3,300 a month. So to save £2k a month, he spends only £1,300 a month (fairly frugal for London). Assuming his spending has been constant since beginning work, to save £1k a month he'd need to be clearing £2,300 a month or approx £35k gross. It's unlikely that his starting salary after graduating was as much as £35k if he's in a career that pays only £55k at the age of 31 (unless his career progress has been pretty poor). More typical amongst people I know is to start on £20k - £25k and be on £60k - £80k by 31 (I'm 29). You would hit £35k+ after completing a graduate scheme of 2 - 3 years. Throw in some student debts as well and it's unlikely he made any real progress on savings until he was at least 25. So 5 - 6 years max to put together £200k in a period when his gross salary ranged from £35k to £55k.

I should have better things to do than analyse it to this level but seems to be something not quite right with this story.... apologies to the opening poster if I've missed something. If the explanation is bonuses then it's a bit disingenuous to claim a salary of £55k and make everyone else wonder why they have so little savings.

You are right, but there are too many variables to say for sure.

He does say that he is saving >=£2k per month, so he might be living very frugally and saving even more some months. That would be extremely frugal, though!

He would not have to have saved £1k per month since graduation, he could have started off with a few hundred a month, but averaged £1k per month over the whole period.

As well as bonuses, he might have had a big redundancy settlement or inherited some money. It all still counts as savings, I suppose.

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You are right, but there are too many variables to say for sure.

He does say that he is saving >=£2k per month, so he might be living very frugally and saving even more some months. That would be extremely frugal, though!

He would not have to have saved £1k per month since graduation, he could have started off with a few hundred a month, but averaged £1k per month over the whole period.

As well as bonuses, he might have had a big redundancy settlement or inherited some money. It all still counts as savings, I suppose.

It raises an interesting question though: Is it really possible to put aside serious amounts of money simply by working hard and living frugally ie without inheriting money, creating a business empire, becoming an unusually successful banker/footballer/celebrity, making it the board of a large plc (which takes most people till their 50's anyway) or anything else that applies only to the lucky / exceptional few.

If the OP has saved £200k by the time he is 31, what does he expect to have put aside by the time he is 40?

Even if it's possible, is it really worth the effort?

How much is enough? At what point do you say that's enough saving, it's now time to start spending? Is this based on age or an amount of money?

Answers on a postcard....

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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