As investors, we have to be flexible, and we have to adapt. This is from my experience.
This is what I’ve had to do in recent weeks to enable me to stick to my target of £1000 pcm. £1000 pcm into my LS 80/20 fund. For further info on my particular fund see duffmoney.com – index fund.
Me regularly investing in my index fund is part of my goals. This was written down in my 1st ever goals at the start of 2019 and I have maintained my monthly investment for over 2 years. And the aim is to continue to do this for the next 20 years at least …
This is because I am all about long-term buy and hold.
Another one of them goals written down at the start of 2019, was to get Mrs Duffy the extension she wanted (the one she had hounded me about for 2-3 years). That extension is almost complete.
To pay for the extension, we’ve had to remortgage our home to finance it. We are both happy with the extension. The issue is that the increase in mortgage has increased my expenses. This has meant my budget has to be adjusted to enable me to keep investing every month into my LS 80/20 fund.
Just to be clear, before the remortgage, I was investing £900 pcm into my ISA and £100 pcm into my SIPP. If you want to know why I invested like this, read my new book. This will help you to understand index investing and how to invest in index investing. And in my opinion, will help you to avoid the state pension.
Index investing is a big part of duffmoney. It is part of my long-term wealth strategy. My strategy to get some very early Financial Independence and help my family as much as possible.
With this, it was important for me to maintain that £1000 pcm investment. But I can’t afford it because of my new expenses. How do I find the money then?
Out of nowhere, I’ve managed to get a new job through DUFFY ELECTRICAL (a limited company I use for contractor services). This means that I can afford to increase the amount I invest into my SIPP.
The money I invest through DUFFY ELECTRICAL, is tax efficient. This is because it comes off my top-line and therefore reduces my corporation bill. Not only that, but the Government also add 20% to your monthly contribution. This incentive is because they want people in the UK to invest into a pension.
If you have excess money in a limited company, a SIPP is worthwhile for many reasons (including the tax benefits and Government contributions).
Disclaimer: this is not advice. This is information only. Please speak to a financial advisor before making any investment decisions.
My new allocation is £500 pcm into my ISA and £500 pcm into my SIPP.
What this means is that I can afford £500 pcm. The reduced amount I put into my ISA (from my current account) is what I am roughly spending on my new mortgage payment.
Both the £500 into my ISA and the £500 into my SIPP are going into my LS 80/20 funds. They are just different investment vehicles. For example, I can access my ISA money anytime and can only access my SIPP at 57 (currently). If you are not familiar with investing into ISA’s or SIPP’s, this can seem complicated.
If you want some further info on ISA’s and SIPP’s message me on any social media platform and I’ll send you some more info.
What to do
The main points from this week’s blogs are that it is important to have goals and it is important to be flexible. This is only my opinion.
From reading well over 100 personal development books, writing goals down is mentioned all the time!
Investing in Index funds is one of my main goals and is a big part of duffmoney. I have had to be a little bit flexible but thankfully have been able to maintain my index investing target of £1000 pcm.
Have a look into the importance of goal setting.
Have a look into index investing.
Have a look into ISA’s and SIPP’s.
And again, if you have any further questions relating to this weeks blog, message me on any social media platform.
Book of the week: How to Make Money in ISAs and SIPPs, Stephen Sutherland. This is a book on how to invest in tax efficient wrappers (ISAs and SIPPs). Well worth a read and will help you understand ISAs and SIPPs.
For a hard copy visit the excellent Imagined Things Bookshop: https://imaginedthings.co.uk/