The Optimal Order For Investing Your Money In 2024

Brilliant vid Damien, thank you.

I am surprised that nobody mentioned about stoozing using 0% credit card. You can buy something using your credit card and then keep the money you would spend on your purchase at high interest bank account - around 4.5%-5% nowadays. Given this you can make minimal payments for the period of time when you have 0% interest offer and keep the money in bank account = getting interest on it. Obiviously you can invest it in something yielding more return but I would not do that as savings account is quite safe and you do not risk ending up with debt and without money.

Great video. Can I ask where would you invest to get the best chance of a 9% return?

I love what he said about having a long term view so much. Being in the market demands a lot of patience. Im not close to being a great investor, but having a long term view has definitely helped me profit significantly, more than 400% in the last five years.

Worth noting that with examples for pension contributions, they'd need to be inflation-adjusted. At an average amount of 3%, £300k at retirement would only be worth about £50k in today's money.

Why do you suggest only investing into your employers scheme up to the match amount and put the extra in a SIPP? Why not make more AVCs intro the employer scheme?

Can i just send you £50 a month and you take 5% and do this all for me? Lol i just wanna lift weights, play guitar, ride my bike and shag. This is all too much for me lol. 😅

I’m on 20% tax basic income, but with bonuses puts me in 40% tax bracket! Problem is Stops child benefits doubles my company car contributions etc, is there anything else I can do? Looking at single pension contributions to lower my pay <£50k but means majority of my bonus is gone…any ideas?

Damien I think you missed a point re using a SIPP rather than a company pension. If you Salary Sacrifice into your workplace pension you also save on the National Insurance

We had more emergencies when we didn't have an emergency fund, and the reason was so simple. We didn't have a good budget.

In order to tell how long your emergency fund will last, you have to know how much you are spending. Once we created a reasonable budget for monthly expenses, we were less likely to go over budget. Whether we could afford a purchase was no longer based on how much money was in the account, or when we'd get the next paycheck. It was based on whether it was in the budget.

Is this advice based on the assumption that one is already paying off a mortgage/invested in property? Or would the above methods supersede a property investment?

At 21 I bought my first house in 2004 for 105k with a 2k deposit, whilst my friends partied and I worked my socks off, I'm now 41 live in a 400k house and I'll be mortgage free in 2 years, my friends are now renting and can't get out of the hole, I know it each to there own but hard work and smashing the overtime has put me in this position, I'm not flashy and I earn £46000k per year, covid allowed me to over pay even more, once I have paid off my mortgage I intend to enjoy live a little more and make up for what I missed in my 20s

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks this year. Hope to make millions in 2024.

Started a sipp way i see it if i mess it ub got no one to blame but my self

Dave Ramsey's baby steps are pretty much the same as these 👍👍 --he's worth a watch too. Take what you like from his advice. That's what I've done.

Blah blah blah. Just another twat that thinks everyone wants to hear what they’ve got to say. Total rubbish.

Just absolute shite! 30 mins of nothing.

Great video, I’m like many people trying to avoid the 60% tax trap and therefore putting a lot of disposable income into my pension - I’m not complaining since my earnings are clearly at a good level, but it would be nice to strike a better balance and some of these funds more readily available. The government have a duty to reassess this ridiculous 60% level!

Wish I'd known most of this 20+ years ago, mid 40s here with barely anything to show for it. future looks grim. I can't blame anyone for living for the now with the shit show we are living through at present.

I cancelled my pension, it's just not going to be around by the time we retire. There's nothing stopping a pension provider from moving losing investments into your pension account and taking winning investments out of your pension account, on top of that, there's the whole question of inflation, and the deduction of the pension contributions from your salary in addition to national insurance contributions taken for your state pension anyway.

In other words it's a scam. And that's why people are automatically enrolled in it by default. It's basically a trick to entrap people into the banking system so that when the banking system collapses, the banks can offload their failures onto pensioners, so that they don't have to beg governments and taxpayers for bailouts. And until they regulate private pensions properly, you're much better off collecting your pension and investing it yourself at least then you've got transparency about precisely what is being invested and you've got access to your funds in an emergency.

In my opinion pension should be the lowest priority investment of all.

Another thing you might want to think about: lots of people have pensions, but they die before pensionable age, but the pension isn't passed on to the next of kin for a variety of reasons - perhaps there is no next of kin. So where does that money go? Why isn't it distributed to other policy holders? See what i mean? The whole thing is a scam.

I’m screwed been self employed for 25 years.
I’ve only got £20,000 in a private pension.
I’ve just started paying into it again.

Thanks! Was wondering if you could carry on this list into high income earner levels. Ie once you’ve done all of this stuff, then what?

Ie GIA? Venture capital? Gilts? (No capital gains tax)? Onshore/offshore bonds? Bare trust for child’s education payments in future?

The later ones are things Ives started coming across but still wrapping my head around it all

So many good points here, i will bang on about mortgage overpayments. When i got my latest deal a couple of years ago my monthly went down by £150. I have since been overpaying at my previous monthly which i could clearly afford and means i hope to be mortgage free a few years before retirement. I could be mortgage free earlier but am totally focusing on pensions as i had quite a few lean years with no contributions and need to play catch while i can still get the power of compounding. Luckily, my employer makes a very good contribution allowing me to build the rainy day fund, make lump sum contributions to pensions. In my case i am investing my spare income upgrading and maintaining my home to give me the breathing space to not use the emergency funds or achieve a better/quicker sale of my biggest asset (my home). No one wants to have the burden of mortgage and home running/maintenance costs if they have to. The only thing i have lacking is ISA savings which i only do minimal but should ramp up in 2 year's time. Overall look ok with the way i have spread and saved my income. What's not mentioned is typically the second biggest cost after your house is motoring and transport which does eat into your disposable income and investment capacity

I'm considering investing around $700,000 in stocks as I've learned that savvy investors can still profit during challenging times. Do you have any solid stock market strategies for this year?

On the Junior SIPP part, the calculator had a monthly interest on. You need to be annual which is at the bottom of the list.

I wish the stock market could deliver 9% a month though!

Can you do a video on private pensions for the self employed?

Just moved to the UK from the Netherlands and im looking to continue investing here. Your channel has been a great source of information for me Damien, thank you!

I’m in my 30s -

My work pension is 60% in shares and some fairly well over last 5 years - but it’s a risk rating 4.

If I’m to change this to a fund that is 100% equities, should I just leave my shares in the fund I’m in just now and start with the new fund, or sell what I currently have and reinvest that in to the new fund

Hi Damien

I'm always undecided whether it is best to dump excess money into an S&S ISA before a works pension. I could sacrifice salary into the pension and save on tax and NI, but then pay tax at the other end on any income. Alternatively investing in an ISA which doesn't have the up front relief but does have benefits with tax free income

I understand what you say about the tax benefits of ISAs may change over the 20+ years I have before retirement so would the works pension be the best choice because of the uncertainty? (along with smaller contributions into an ISA to make sure all monies arent tied up in a pension in case I need future access)

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Is it not better to buy Vanguard shares than emergency saves as money can be taken out quickly.

Thanks for all the info. Trading212 are currently offering 5% for un-invested cash held in an account - It sound like a good idea to have cash in there while trickle feeding your stocks and share isa. Is there any chance you can cover this is a video, please? I just want to know what the risks are and is it possible to lose a large % of your cash, should something go wrong.

The example on compound interest was incorrect, you had the compound interval set to monthly rather than yearly...

my student loan has 5400 remaining and the interest rate is 6.25% my mortgage is locked in for 4 years at 4% should I start by getting that student loan paid of first?

Always useful as usual Damien.

If you are a higher rate tax payer pension contributions should be prioritized. Your fund can be inherited and you can take 25% out tax free.
Minimizing tax in this overtaxed era is the name of the game. Secondly look after your health, avoid sugar in your diet . There is no point in being rich and unhealthy.

Legal & General have confusing pension investment options in my opinion.

I'm developing an AI simulation that manages my bank accounts

This video has had about 10 different thumbnails 😂

Your videos are excellent. Well done 🎉

Hi
I have a question.
What truly is diversification ?
I will soon have a chunk of money to invest.(from a house sale).
I’ve been following index funds (S&P and global) for around 6 months. What I’ve noticed is when ever the index fund rise or fall so does my pension. This is sending me crazy as if I invest in an isa selecting passive index fund am I really diversifying? These investments will be important to my retirement (in around 10 years time) so I don’t want to experiment too much (ie select obscure funds). What advice can you give?

As always, a wonderful recipe of straight-talking, easy to action advice, with your brand of light entertainment thrown in of course too! Have sent to a few friends already! Thank you Damien!

Thanks Damien for this valuble informative episode it definitely helps like you said things happen keep the gems coming

Me and the Mrs, both 45, started overpaying our mortgage about 4 years ago. Covid actually helped as we couldn't go on holiday and we have no kids so that's a huge "saving".

Best thing we ever did. We've got the payments down from 800 or so a month to 500ish now. One day we won't have a mortgage at all, probably in just a few years. Under 50 years old and mortgage free, I won't work full time after that. Don't know how lucky I am to be honest.

A workplace pension beats SIPP any day. You are already paying fees on your pension, no need to pay double fees by opening a SIPP

"your wrinkly ass will thank your smooth ass for it"

Struggling to see how pensions are worth it. Say we retire around the 2060, where is all of that extra money going to come from? And the value of the £s you're going to be getting will be eroded to the bone due to inflation