The Meaningful Money Personal Finance Podcast The Ultimate Guide to INVESTING, Part 2
Nov 18, 2020
Get ready to demystify investing! Learn why cash is just for spending and discover the importance of an emergency fund. Dive into the two essential accounts everyone should have: pension and stocks and shares ISA. Pete sheds light on balancing contributions, advises against meddling with long-term investments, and emphasizes buying low-cost, passive multi-asset funds. Plus, find out how small, frequent savings increases can supercharge your long-term benefits. Keep investing simple and focus on achieving your life goals!
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Keep Only Necessary Cash
- Hold only the cash you need for spending and an emergency fund of three to six months' minimum expenditure.
- Keep any money needed within three years in cash to avoid being forced to sell investments at a loss.
Use Two Primary Accounts
- Use only two main wrappers for most investors: a pension and a stocks and shares ISA.
- Prefer a Lifetime ISA only if saving for a first home or retirement due to withdrawal penalties.
Maximise Employer Pension Match
- Join your employer pension and contribute enough to get the maximum employer match.
- After securing employer contributions, prioritise investing additional savings into an ISA for flexible access.