Monday, 15 June 2015

ERE14investing1

Living on the cheap is only one part of the story. The other is making the money and the saving of money. The third part is the most difficult.
Investing for early retirement requires an entirely different set of skills.

However, it has to be done. The information must be gathered, understood and decisions must be made. Even if the decision ends up being that the saved money is kept on a savings account, this really ought to be a well thought trough investment decision.

I can not tell you enough how utterly boring I find the financial part of having a little bit of money. If somebody guaranteed me the nominal value and 4 % return for 30 years, I might let them have any other profit. (no, not really, but  - no really not, but almost...)

I have truly forced myself to understand the basics of shares, funds and different accounts and risks. I am probably a quite well informed and still very risk aversive fool when it comes to money. That is who I an, what I am and what got me here.

I have taken the decision to gather most of the money and make a proper investment plan. It needs to work better and more long-term and I have to stop loosing money on fees and courtage.
Now is time to lock down and secure, while keeping it movable and accessible.

How did Jane Austen's heroines invest their money to give them a comfortable annual income?
What would Jane do?

4 comments:

  1. I was a stockbroker for 18 years. Now I am out of it I find it very hard to keep abreast with where to invest. It takes a lot of hard work, research and reading and a long term plan. If you are putting money into shares you must not be risk averse. Good luck.

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    1. Oh Rachel, you are good and spot on. Shares are actually not really my thing but I like dividends.

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  2. Jane Austen, and those in a similar social background, would likely have their capital invested in 3% Consols gauranteedd by the Britsh Government and paid in perpetuity. (Jane Austen makes a number of references to 3% Consols in her novels). Investment decisions would have been relatively minimal. The cost of living was low as was inflation enabling her to live off a modest income so long as she avoided extravagances. Safety first. She might have avoided the mania for investing in the new-fangled railways a few years later.

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    1. Great thoughtful comment Philip! Then and now are different things; the governments, the financial sector and investments have changed. On the other hand, living off a modest income and avoiding extravagances is an unchanged good advice!

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