Wahoo! Another £100,000 added to the kitty! Incredible to think that it was May 22 of 2020 when I first reached £100,000 in Index Funds. This just shows the power of compounding (and good markets) even in light of COVID-19. Just in case anyone doesn’t know, this is the fund I’m invested in. Over the last 4 years the average yearly returns has been 9.13% (insert disclaimer past results won’t mean future gains). This fund is balanced across 6,800 stocks and shares and is proportionately weighted by market size (country) and market sector. This means 50% of the fund is made up of NA stocks, mainly in technology. For sure, there’s riskier funds to be in, I could go all in technology and see much higher returns, but my risk profile wants to be diversified, especially when all in equities.
I would be more than happy to keep reaching £100,000 every year! If it continues at that pace, it means that I would be retired in around 8 years time! I don’t think I could quite afford to put £100,000 into the pot each year however. I seem to be maxed out at around £60,000 – £70,000 per year. But we shall keep calm and carry on and chugging away along the journey.
I’ve had a few questions about the fee’s of Vanguard and looking at potentially moving away from them. For me, I find it very easy to use the Vanguard platform, it may not be the cheapest, but the fee is capped when you reach a certain limit. Plus they’re a huge name and moving this kind of money from one account to another would really put me on edge. The account fee for Vanguard is capped at £375 per year for accounts over £250,000 so here’s hoping towards the end of this year we’ll be hitting that quarter of a million mark!
Of course, so grateful of the position that I’m in. Even though the work is relatively high stress and requires long hours jumping from one thing to another, the benefits far outweigh the cons.