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Savings and
investments
What they didn’t teach you at school
but should have !
Jonny Mynes
Investment Team Director
James ...
2
Source: Google images, Colepalmer.com
3
4
Life cycle
4
5
Debt
The UK has a nasty debt habit. While many of the grandparent generation
follow the 'neither a borrower nor lender b...
6
• Credit Card Interest - 17.9% (pretty standard)
• Balance - £3,000
• Minimum payment – 1% plus interest
• Time frame Mi...
7
The Most important People in the Room
Source: Google Images, forbes.com Source: Google Images, businesfinancialpost.com
...
8
UK Base Rate over the last 100 Years
9
UK 10 Year GILT Yields
10
Compounding
10
11
Compounding Example
• £2,500 contributions per annum / 7% growth rate per annum
• Jayne contributes from 21 – 30 takes ...
12
Mr and Mrs Baby Boomer
13
• They both work in the finance sector.
• They bought their house in 1975 for £12,000.
• Both benefited from a guarante...
14
The changing world of pensions
15
• The States of Guernsey, at the prescribed retirement age, currently pays a weekly
benefit of £204.45 (£10,631.40 per ...
16
So how much should I contribute?
Take the age you start your pension and
halve it.
Put this % of your pre-tax salary as...
17
Exceptional Times.
The power of compounding.
Professional guidance
In Summary
18
Brooks Macdonald Funds Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No...
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Savings and Investments

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What they should have taught you at school but didn't!

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Savings and Investments

  1. 1. Savings and investments What they didn’t teach you at school but should have ! Jonny Mynes Investment Team Director James Hollowell Director, Private Clients
  2. 2. 2 Source: Google images, Colepalmer.com
  3. 3. 3
  4. 4. 4 Life cycle 4
  5. 5. 5 Debt The UK has a nasty debt habit. While many of the grandparent generation follow the 'neither a borrower nor lender be' mantra, some of today's parents are debt–bingers relying on plastic as a crutch to fuel unsustainable lifestyles. Martin Lewis, http://www.moneysavingexpert.com/family/financial- education-important
  6. 6. 6 • Credit Card Interest - 17.9% (pretty standard) • Balance - £3,000 • Minimum payment – 1% plus interest • Time frame Minimum • 1 Month £71.50 • 2 months £70.75 • 12 months £63 • 60 months (5 years) £39 • 120 Months (10 years) £21 • 240 months (20 years) £6 • 27 years 4 months and £4,000 interest the debt would be paid off Bob Lowincash
  7. 7. 7 The Most important People in the Room Source: Google Images, forbes.com Source: Google Images, businesfinancialpost.com Source, Google Images, businessinsider.com Source, Google Images, 365news.gr
  8. 8. 8 UK Base Rate over the last 100 Years
  9. 9. 9 UK 10 Year GILT Yields
  10. 10. 10 Compounding 10
  11. 11. 11 Compounding Example • £2,500 contributions per annum / 7% growth rate per annum • Jayne contributes from 21 – 30 takes pension at 70 = £25,000 • Bob contributes from 31 – 70 takes pension at 70 = £100,000 11 • £2,500 contributions per annum / 7% growth rate per annum • Jayne contributes from 21 – 30 takes pension at 70 = £25,000 • Bob contributes from 31 – 70 takes pension at 70 = £100,000 • Bob = £534,000 (5 fold return) • Jane = £553,000 (22 fold return) • Rule of 72
  12. 12. 12 Mr and Mrs Baby Boomer
  13. 13. 13 • They both work in the finance sector. • They bought their house in 1975 for £12,000. • Both benefited from a guaranteed pension. • Enjoyed 14% on their saving deposits in the late 80’s. • Enjoyed booming stock market growth. Employee Benefits: • Mortgage subsidy. • Lifestyle and flight allowance. • Company car. • Huge annual bonus – just for turning up! No wonder they look smug!
  14. 14. 14 The changing world of pensions
  15. 15. 15 • The States of Guernsey, at the prescribed retirement age, currently pays a weekly benefit of £204.45 (£10,631.40 per annum) for a fully funded contribution history of 50 years. • You may have a second home generating a rental income. • You may be lucky enough to inherit money/assets. • A structured tax efficient pension scheme. Income in retirement – where is it coming from?
  16. 16. 16 So how much should I contribute? Take the age you start your pension and halve it. Put this % of your pre-tax salary aside each year until you retire. I have a company pension scheme, I’ll be ok.
  17. 17. 17 Exceptional Times. The power of compounding. Professional guidance In Summary
  18. 18. 18 Brooks Macdonald Funds Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No 5730097. Registered office: 72 Welbeck Street London W1G 0AY. Investment Fund Services Limited (IFSL) is the Authorised Corporate Director for the IFSL Brooks Macdonald Fund. IFSL is registered in England No. 06110770 and is authorised and regulated by the Financial Conduct Authority. Registered office: Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Copies of the Prospectus and Key Investor Information Documents are available from www.ifslfunds.com or can be requested as a paper copy by calling 0808 178 9321 or writing to IFSL, Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Brooks Macdonald Financial Consulting Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No 2621847. Registered office: 72 Welbeck Street London W1G 0AY. Brooks Macdonald Retirement Services (International) Limited is licensed and regulated by the Jersey Financial Services Commission. Its Guernsey branch is licensed and regulated by the Guernsey Financial Services Commission. Registered in Jersey No 106423. Registered Office: Liberation House Castle Street St Helier Jersey JE2 3AT. More information about the Brooks Macdonald Group can be found at www.brooksmacdonald.com. Important information

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