crashmonitor Posted September 5, 2015 Share Posted September 5, 2015 (edited) Definitely concur with this. Never happier than when most of my money is liquiid and expensive cars and houses just bring grief. About 75% of our assets are in cash and shares with a modest detached house making up the other 25%. Can't help thinking the 100% cash members on here have sussed it and that is the best place to be. I was certainly at my happiest renting. Guess there is no point in being the richest man in the grave yard or living poor and being rich. but actually cash does make you feel good and a big house doesn't. Guess Bruce and the Count are the happiest members on here. http://www.telegraph.co.uk/finance/economics/11844576/Money-does-buy-you-happiness-study-reveals.html Edited September 5, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
bovinedealer Posted September 5, 2015 Share Posted September 5, 2015 Defiinitely concur with this. Neever happier than when most of my money is liquiis and expensive cars and houses just bring grief. About 75% of our assets are in cash and shares with a modest detached house making up the other 25%. Can't help thinking the 100% cash members on here have sussed it and that is the best place to be. I was certainly at my happiest renting. Guess there is no point in being the richest man in the grave yard or living poor and being rich. but actually cash does make you feel good and a big house doesn't. http://www.telegraph.co.uk/finance/economics/11844576/Money-does-buy-you-happiness-study-reveals.html Cartainly concur on the car front, unless you are so well off you can afford the depreciation whihc goes with the grief of them. Even if I became well off enough to justify a brand new or an expensive car, psychologically losing money on depreciation just doesn't sit well with me. I agree though cash and other portable assets does give me a sense of well being, strange eh. Quote Link to comment Share on other sites More sharing options...
Timak Posted September 5, 2015 Share Posted September 5, 2015 Definitely concur with this. Never happier than when most of my money is liquiid and expensive cars and houses just bring grief. About 75% of our assets are in cash and shares with a modest detached house making up the other 25%. Can't help thinking the 100% cash members on here have sussed it and that is the best place to be. I was certainly at my happiest renting. Guess there is no point in being the richest man in the grave yard or living poor and being rich. but actually cash does make you feel good and a big house doesn't. Guess Bruce and the Count are the happiest members on here. http://www.telegraph.co.uk/finance/economics/11844576/Money-does-buy-you-happiness-study-reveals.html I'm about 70/30 in property over cash/shares, it would be 50/50 but my house keeps going up in value faster than my cash/shares Quote Link to comment Share on other sites More sharing options...
ARIMA Posted September 5, 2015 Share Posted September 5, 2015 I've always got a warm feeling from having a large cash haul in the bank. Sadly at the moment I am pumping all my money into illiquids (home equity and shares in pension - tax efficient after all), but I long for that warm feeling to come again... Quote Link to comment Share on other sites More sharing options...
Frugal Git Posted September 5, 2015 Share Posted September 5, 2015 Definitely concur with this. Never happier than when most of my money is liquiid and expensive cars and houses just bring grief. About 75% of our assets are in cash and shares with a modest detached house making up the other 25%. Can't help thinking the 100% cash members on here have sussed it and that is the best place to be. I was certainly at my happiest renting. Guess there is no point in being the richest man in the grave yard or living poor and being rich. but actually cash does make you feel good and a big house doesn't. Guess Bruce and the Count are the happiest members on here. http://www.telegraph.co.uk/finance/economics/11844576/Money-does-buy-you-happiness-study-reveals.html From experience, being > 90% cash at any point does feel like a relief for a bit, but then you do feel like you're being a bit silly - the world probably isn't going to end tomorrow, and you go any put a few positions on, browse the listings for a Honda SP-2, perhaps buy another sov etc.... But having the option to be near 100% cash within a very short timeframe though is utterly priceless. It liberates you. And sticking all my eggs in a house at this point would destroy that for what? Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted September 5, 2015 Share Posted September 5, 2015 (edited) Cartainly concur on the car front, unless you are so well off you can afford the depreciation whihc goes with the grief of them. Even if I became well off enough to justify a brand new or an expensive car, psychologically losing money on depreciation just doesn't sit well with me. What works for me is having a classic car plus a cheap runabout for every day use, that way I get to own a "nice" car without the depreciation hit, also classic car insurance is dirt cheap. Edited September 5, 2015 by goldbug9999 Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted September 5, 2015 Author Share Posted September 5, 2015 (edited) I'm about 70/30 in property over cash/shares, it would be 50/50 but my house keeps going up in value faster than my cash/shares Living in the North the opposite would have been true...a 50/50 cash/house ratio in the early noughties would have become 70/30 in favour of cash. That's what 12 years of ball crunching zero house price inflation has done to northern balance sheets. Houses, bloody dead money. Edited September 5, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
sPinwheel Posted September 5, 2015 Share Posted September 5, 2015 So everyone here is happy. Quote Link to comment Share on other sites More sharing options...
pipllman Posted September 5, 2015 Share Posted September 5, 2015 Having no net debt is nice Being financially free, as in not beholden to anyone to have enough income to live as you wish is nicer If they taught that at school, the UK would be a different and, IMO, better place than it is now. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted September 5, 2015 Author Share Posted September 5, 2015 (edited) I've always got a warm feeling from having a large cash haul in the bank. Sadly at the moment I am pumping all my money into illiquids (home equity and shares in pension - tax efficient after all), but I long for that warm feeling to come again... I think they need to open centres to comfort those bereft of their stash once they have got tempted into bricks and mortar. I guess waking up in your house and realising it is a bit crap can be a bit of a shell shock and the money is all gone to boot. Edited September 5, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 5, 2015 Share Posted September 5, 2015 And sticking all my eggs in a house at this point would destroy that for what? For freedom from paying rent and being a second-class citizen? Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted September 5, 2015 Share Posted September 5, 2015 It's swings and roundabouts. A friend recently admitted to me that they feel they've made a mistake buying a wreck to do up two years ago - they work all the hours to pay the mortgage and don't have time for DIY or cash to pay for a renovation. The upshots that they have lived with their kids in a dump in a not very nice area for 2 years with no end in sight. On the other hand they are now considering selling up and going back into rented, and are getting valuations for £75- £100k more than they paid two years ago. Who's the mug? Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted September 5, 2015 Author Share Posted September 5, 2015 (edited) It's swings and roundabouts. A friend recently admitted to me that they feel they've made a mistake buying a wreck to do up two years ago - they work all the hours to pay the mortgage and don't have time for DIY or cash to pay for a renovation. The upshots that they have lived with their kids in a dump in a not very nice area for 2 years with no end in sight. On the other hand they are now considering selling up and going back into rented, and are getting valuations for £75- £100k more than they paid two years ago. Who's the mug? It really comes down to whether that fix me up was in Cambridge or Blackburn. No get out of jail free card in the northern addition of Monopoly. The best portrayal of a northern fix me up gone wrong was that of Anna Friel in the Street. She paid 120k for a house now worth 100k, she had to work as a prostitute to pay the mortgage and it was falling apart dry rot, wiring the lot. Edited September 5, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 Having no net debt is nice Being financially free, as in not beholden to anyone to have enough income to live as you wish is nicer If they taught that at school, the UK would be a different and, IMO, better place than it is now. Agree with this. I fully declared my assets in great detail here. I'm a big believer in a balanced portfolio which I derisk as I age. My aim is try and gain some volatility vs return free lunch. A rare thing in investing. Year to date that portfolio is down 2.7% and I'm sleeping very soundly. I'm debt free, a dirty renter and will eventually at current progress pay cash for a family home in another country. I currently have 76% of the wealth I need to FIRE (financially independent retired early) which I've accrued in the period I've been a HPC member. Even now this approach has been liberating. I can only imagine how much nicer it will be when I reach 100%. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted September 5, 2015 Author Share Posted September 5, 2015 (edited) Having no net debt is nice Being financially free, as in not beholden to anyone to have enough income to live as you wish is nicer If they taught that at school, the UK would be a different and, IMO, better place than it is now. Good job we crave houses and stuff otherwise we could all retire at 40 and GDP would fall apart. One of the best comments the author of the rich Dad books made was that rich people buy investments and the middle class buy stuff they think are investments.....houses and crap and become enslaved. Edited September 5, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 Good job we crave houses and stuff otherwise we could all retire at 40 and GDP would fall apart. Modified slightly. Good job some of us crave houses and stuff otherwise the rest of us couldn't retire in our early 40's. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted September 5, 2015 Author Share Posted September 5, 2015 Modified slightly. Good job some of us crave houses and stuff otherwise the rest of us couldn't retire in our early 40's. Agreed the economy would fall apart if everybody did it. Quote Link to comment Share on other sites More sharing options...
gf3 Posted September 5, 2015 Share Posted September 5, 2015 I find I love money more than the things it can buy. The main thing that having money gives me is if my job went tomorrow I know I would be OK. Money takes away the fear in life. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted September 5, 2015 Share Posted September 5, 2015 (edited) Agree with this. I fully declared my assets in great detail here. I'm a big believer in a balanced portfolio which I derisk as I age. My aim is try and gain some volatility vs return free lunch. A rare thing in investing. Year to date that portfolio is down 2.7% and I'm sleeping very soundly. I'm debt free, a dirty renter and will eventually at current progress pay cash for a family home in another country. I currently have 76% of the wealth I need to FIRE (financially independent retired early) which I've accrued in the period I've been a HPC member. Even now this approach has been liberating. I can only imagine how much nicer it will be when I reach 100%. My investment strategy is mostly equities and no funds. It's reassuring that I'm invested in companies held within the vanguard... I.e. Tate & Lyle, HSBA (both relatively new additions (1,000 shares apiece). I've moved away from SIPP to Stocks and Shares ISA as I prefer the liquidity and accessibility (interest to subsidise school fees next year). Only property investment is the home we live in although you've pointed me in the direction of British Land (might have a dabble). A little over five years ago we took out what seemed like a lifetime of debt while my wife's career took off so the original 2.5xsalary became 1.7, then 0.7 so naturally we cleared that easily. Yesterday on a whim I took my children up in a Piper Warrior for an hour, flew over our house then onto Grandmas who was in her garden waving frantically. While I don't fly aeroplanes I had control and made a text book base leg and finals only the instructor taking controls on landing as there was a fair amount of crosswind. I no longer see the cost in financial terms but weeks interest on my savings (about 2 weeks worth). By the time my children start private school I estimate we are on course to receive £500 a month in interest/dividend payments alone. I'm also in-line to inherit £250,000-400,000 from my mother when the inevitable time comes. I'm untied and these kinds of financial freedoms are bliss. Not planning on working hard ever again. The people I work with seem to think I'm the most minted of all bar staff. I'm not brash I've given up on chattels of desire including my posh car. Edited September 5, 2015 by longtomsilver Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 Agreed the economy would fall apart if everybody did it. Don't think there's much chance of that happening though. I've been writing about the themes required to do it (which are not complicated nor secret) since 2009. I've also posted my journey in real time. The result has been a couple of thousand regular readers across the world. We're really going to make no impact on the worlds economy. Quote Link to comment Share on other sites More sharing options...
justthisbloke Posted September 5, 2015 Share Posted September 5, 2015 My position: Cash: 2.63% - just float, really Equities: 21.47% - Mainly "HYP" style, plus a few divi-paying AIMs Bonds: 28.70 - Fixed term retail savings (some with cashout for £100 option) plus an est value of misc DB pensions Other: 0.34% - Bitcoin House: 46.86% - As valued by EA last year - no idea how achievable this would be. Debt: 00.00% - this is the line that brings me most happiness. I'm on the borders of FIRE (how I run the maths and deal with pensions dictates which side of the border I'm on!) Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 My investment strategy is mostly equities and no funds. It's reassuring that I'm invested in companies held within the vanguard... I.e. Tate & Lyle, HSBA (both relatively new additions (1,000 shares apiece). I've moved away from SIPP to Stocks and Shares ISA as I prefer the liquidity and accessibility (interest to subsidise school fees next year). Only property investment is the home we live in although you've pointed me in the direction of British Land (might have a dabble). A little over five years ago we took out what seemed like a lifetime of debt while my wife's career took off so the original 2.5xsalary became 1.7, then 0.7 so naturally we cleared that easily. Yesterday on a whim I took my children up in a Piper Warrior for an hour, flew over our house then onto Grandmas who was in her garden waving frantically. While I don't fly aeroplanes I had control and made a text book base leg and finals only the instructor taking controls on landing as there was a fair amount of crosswind. I know longer see the cost in financial terms but weeks interest on my savings (about 2 weeks worth). By the time my children start private school I estimate we are on course to receive £500 a month in interest/dividend payments alone. I'm also in-line to inherit £250,000-400,000 from my mother when the inevitable time comes. I'm untied and these kinds of financial freedoms are bliss. Not planning on working hard ever again. The people I work with seem to think I'm the most minted of all bar staff. I'm not brash I've given up on chattels of desire including my posh car. Great post. Wrappers wise I'm still at 45% pension and 9% ISA. The remainder is NS&I ILSC's or not tax efficiently invested. As a higher rate tax payer now and a 'lower' rate in retirement I just can't ignore pensions. That said next year should be my final run into FIRE and so I'll likely lower the pension contributions to enable my to build the final cash position needed for a family home. 'These kinds of financial freedoms are bliss' - couldn't have said it better myself. Quote Link to comment Share on other sites More sharing options...
gf3 Posted September 5, 2015 Share Posted September 5, 2015 Agree with this. I fully declared my assets in great detail here. I'm a big believer in a balanced portfolio which I derisk as I age. My aim is try and gain some volatility vs return free lunch. A rare thing in investing. Year to date that portfolio is down 2.7% and I'm sleeping very soundly. I'm debt free, a dirty renter and will eventually at current progress pay cash for a family home in another country. I currently have 76% of the wealth I need to FIRE (financially independent retired early) which I've accrued in the period I've been a HPC member. Even now this approach has been liberating. I can only imagine how much nicer it will be when I reach 100%. Year to date. Do you mean from 1/1/15 or 6/4/15? Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 My position: Cash: 2.63% - just float, really Equities: 21.47% - Mainly "HYP" style, plus a few divi-paying AIMs Bonds: 28.70 - Fixed term retail savings (some with cashout for £100 option) plus an est value of misc DB pensions Other: 0.34% - Bitcoin House: 46.86% - As valued by EA last year - no idea how achievable this would be. Debt: 00.00% - this is the line that brings me most happiness. I'm on the borders of FIRE (how I run the maths and deal with pensions dictates which side of the border I'm on!) Once I buy my family home I won't include it in my wealth. Doing that for yourself I get: 5% Cash 41% Equities 54% Bonds 1% Bitcoin Any particular reason why you're so light on equities? Is it just the recent market movements? Any particular reason why you're not carrying any commercial/industrial property or commodities? Always trying to learn from others... Quote Link to comment Share on other sites More sharing options...
wish I could afford one Posted September 5, 2015 Share Posted September 5, 2015 Year to date. Do you mean from 1/1/15 or 6/4/15? I always update my position weekly. Year to date for me is 03 January '15 to 05 September '15. How is Fundsmith doing in comparison? Quote Link to comment Share on other sites More sharing options...
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