10 Numbers That Will Change Your Investing Perspective

When I was growing up I didn’t like numbers. They scared me.

Now, however, I get it. Numbers are great. They are an efficient way to transmit information and show value (or lack thereof).

In the financial world, numbers are thrown about endlessly and it can become a bit much!

So, I thought I’d provide a distilled list of 10 numbers which will change your perspective on investing… and maybe even life itself!

A Word on Averages

Before we jump in, I’d like to add a note on numerical averages.

Averages can be deceiving. In fact, there is often nothing average about them.

If I was to ask you if you have an average number of legs, how would you reply?

Take a moment to think about it.

..

.

Continue reading “10 Numbers That Will Change Your Investing Perspective”

The UK’s ‘Not So Mini-Budget’: What it Means for You

What’s Happened?

Liz Truss (our new PM) and Kwasi Kwarteng (our new chancellor) dropped an economic and political bomb on Friday (23/09/22). The aftershock of which could be felt for years to come.

The bomb, which they are calling a ‘mini-budget’, is our first real introduction to ‘Trussonomics’.

In summary, the plan is to borrow more and tax less.

What the government has done is akin to someone increasing their living expenses (more borrowing), whilst simultaneously slashing their income (reducing tax)… not great maths.

They are gambling that UK economic growth will outpace the cost of borrowing.

The ‘not so mini-budget’ includes the biggest tax cuts in 50 years, whilst also increasing borrowing by £100’s of billions!!

This year alone government borrowing is set to reach £190bn

Continue reading “The UK’s ‘Not So Mini-Budget’: What it Means for You”

Financial Bloodletting: Don’t Let this Happen to You

Without data, you are just another person with an opinion.

W.E. Demming

Follow The Data 🧪

Science is the practice of observing something, recording those observations, then using the data collected to make informed decisions; it is an ever-evolving field of study. The never-ending pursuit for improved understanding. 

As time passes, many theories or ‘facts’ that were once revered are disproven and consigned to history. 

As a species, it is vital that we never stop probing, testing and questioning the status quo. 

If something is disproven, then it is only sensible to follow the data and move on. 

Fluidity is essential. 

Unfortunately, we (humans) rather like things to stay the same. We enjoy the comfort of consistency. The safety of the status quo. The reassurance of remaining in place. 

The Curious Case of Bloodletting 🩸

Bloodletting, the process of draining a patient’s blood to heal them, was an activity that persisted for over 2,000 years. 

Physicians from antiquity through to the 20th century were draining the blood from their patients for an array of aliments. 

Continue reading “Financial Bloodletting: Don’t Let this Happen to You”

The 5 Essentials to Becoming a Successful Investor

“The chief task in life is simply this: to identify and separate matters so that I can say clearly to myself which are externals not under my control, and which have to do with the choices I actually control.

Where then do I look for good and evil? Not to uncontrollable externals, but within myself to the choices that are my own…”

Epictetus

A successful investor is one who focuses on what is inside of their control, instead of concerning themselves endlessly with what is outside of their direct influence.

The media (both legacy and social) firmly direct our attention towards what is outside of our control. Keeping us hooked on a steady drip of highs and lows, short-lived dopamine hits and bouts of severe FOMO (fear of missing out).

For example, in 2021 it was outlandish returns and in 2022 it is stunning crashes and inflation.

Having your thoughts, feelings and actions dictated by others is no way to live – not just with investing, but life as a whole.

To quote White Goodman, you have to grab the bull by the horns!

Yeah, that’s me, grabbing the bull by the horns. It’s how I do business.

It’s a metaphor.

That actually happened, though...

So, to assist you grabbing the proverbial (or real) bull by the horns, here’s a list of the 5 essential things that are directly in YOUR control when investing!

Continue reading “The 5 Essentials to Becoming a Successful Investor”

Explained: The Benefits of Inflation!

2022 has thus far been a year of bad news and previously unimaginable events!

For those folks reading this in the future, I’m sure 2022 will have been a pivotal year that everybody points to for years to come – please correct me if I’m wrong!!

You would be forgiven, if you keep up with the news, for living in constant fear.

Petrol prices are soaring, economic and political pressures are rising and the general cost of living is said to be spiking 😰

Inflation is at the centre of this fear.

Continue reading “Explained: The Benefits of Inflation!”

Explained: How UK Income Tax Works

Have you ever wondered how your hard earned cash is actually taxed?

Well, wonder no more!!!

In this post I lay out how UK income tax works and what it means to you.

Myth Buster 101

In a recent poll on my Instagram page, 30% of the respondents believed a higher rate tax payer only pays 40% Income Tax.

So, if you only take one thing away from this post, let it be this:

Continue reading “Explained: How UK Income Tax Works”

“A Globally Diversified Basket of Equities”… WTF does that even mean?!

If you’ve followed me for any amount of time or spoken to me about investing, I have most likely pulled out this line:

A globally diversified basket of equities

Me (about every 5 minutes)

But for those just starting out on their investment journey, I am aware it could lead to a WTF?! moment… ‘if I just nod and smile long enough he’ll eventually shut up’.

So, it’s time for me to right any potential wrongs and lay out exactly WTF I’m on about.

Continue reading ““A Globally Diversified Basket of Equities”… WTF does that even mean?!”

Simple Wealth, Inevitable Wealth: An Ode to Equities

I’ve been attempting to write this blog post for some time, however I have never been happy with the result.

What I’ve come to realise is that Nick Murray’s words speak for themselves. Trying to comment on, review or explain his message just muddies the water.

Nick is a talented writer. His ideas are well presented and simple to understand. There is no fluff with his writing, it is ‘all killer, no filler’.

As such, I have given up my attempt to review his book, Simple Wealth, Inevitable Wealth, and instead I have picked out my favourite quotes.

The message is simple:

  • Buy and hold equities for the long term.
  • Do not listen to the financial media, it thrives off fear.
  • Your behaviour, not your investments, will be the #1 determining factor in your ability to build wealth.

Before we jump in, a special thank you to David Hearne, who was kind enough to gift me the book.

I will now be gifting the book on, to help other aspiring financial planners – hopefully the book will pass through many hands before its journey comes to an end.

David is a chartered financial planner who runs Phynancial, an online bookstore helping people get their hands on Nick Murray’s books. He is also active on Twitter. I’d recommend following David to gain insights on retirement planning.

Without further ado, my favourite quotes from Simple Wealth, Inevitable Wealth.

1. Somebody’s sitting in the shade today because someone planted a tree a long time ago (Warren Buffet).

2. When your investments, as distinctly opposed to the sweat of your brow, will provide you sufficient income to live a full and joyful life, you are truly wealthy – because you are truly free!

3. No matter how much money you have, if you are still worried, you aren’t wealthy.

4. Fear has a greater grasp on human actions than does the impressive weight of historical evidence.

5. If wealth is truly your goal, stocks aren’t part of the answer, they’re the only answer.

6. Investment performance doesn’t determine real life returns; investor behaviour does.

7. The only meaningful measure of long-term return… is the real rate you earn: the nominal rate less inflation.

8. If you think what you don’t own can’t hurt you, think again.

9. Volatility is not risk… The great long-term risk of stocks is not owning them (check out my post Volatility vs Risk for more on this)

10. Optimism is the only realism.

Thanks for reading,

Tom Redmayne

Financial Planner-in-waiting

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The UK’s ‘Not So Mini-Budget’: What it Means for You

What’s Happened? Liz Truss (our new PM) and Kwasi Kwarteng (our new chancellor) dropped an economic and political bomb on Friday (23/09/22). The aftershock of which could be felt for years to come. The bomb, which they are calling a ‘mini-budget’, is our first real introduction to ‘Trussonomics’. In summary, the plan is to borrow … Continue reading The UK’s ‘Not So Mini-Budget’: What it Means for You

Financial Bloodletting: Don’t Let this Happen to You

Without data, you are just another person with an opinion. W.E. Demming Follow The Data 🧪 Science is the practice of observing something, recording those observations, then using the data collected to make informed decisions; it is an ever-evolving field of study. The never-ending pursuit for improved understanding.  As time passes, many theories or ‘facts’ … Continue reading Financial Bloodletting: Don’t Let this Happen to You

Volatility vs Risk

“Real returns are found on the other side of volatility”

In the investing world volatility is used as a primary measure of risk.

However, once you understand volatility, you’ll realise the real risk is not investing.

Volatility makes for an excellent headline, but it is not a real risk over the long term – in fact, it can be your friend.

Continue reading “Volatility vs Risk”