Hey /biz/ Lets say my objective is to retire as early as possible

Markets could be down for an extended period of time

Are you planning on just selling off $20k worth a year and living off that?

I don't think an isa will pay enough in a year to cover even 1 month

>>1436451

Yes

>>1436458

I mean a stock and shares ISA, once money is in it you don't have to pay capital gains tax on the return

>>1436445
thats accounting for the fact that there will never be any low days, or another crash ever again

...

AHAHAHAHAHA

>>1436445
>10% per year
>reliable
In which universe are you living in m8?

10% :)

>>1436535

Hey retard obviously I will wait till the fund is high before I disinvest

and I will keep some money in cash under my bed for "low days" and "crashes"

Dumbass

>>1436543
>>1436550

Look up Blackrock US equity retards

There's no way a broad market fund will be averaging 10% long term in the next couple of decades.
You should be extremely happy with anything >4%

>>1436560

A lot of funds I have been looking that have achieved 80% growth over 5 years, that's about 10% per year. Given how low global growth rates have been since the financial crisis, if it made that much now why shouldn't it continue?

>>1436445
You can safely withdraw 4% of your portfolio annually. There are multiple personal finance blogs that focus on early retirement that you can look up and they mostly use the 4% rule. This means you need 500k not 200k, granted that you don't get any other kind of income on the side. Also 10% return annually is way too high

>>1436575
are you kidding? the years since the financial crisis have been one of the best bull markets. growth is not going to consistently be as good as since the financial crisis.

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>>1436560
a) last 5 years was a massive bull market fueled by QE money printing coming from a crash
b) 5 year horizon is not enough to reasonably judge any sort of long term performance
c) markets are cyclical in nature
d) we're at historically high average P/E ratios
e) gbp growth twice lower than the previous century, with no improvement in sight
f) historically low interest rates
g) debt as massive as ever
h) http://www.businessinsider.com/bogle-stocks-to-gain-about-6-over-the-next-decade-2015-11?IR=T

You're essentially buying at a highest price with all economic data pointing to a prolonged terrible future. Also, you don't include inflation in your plans.
Historically the safe withdrawal rate for US equities has been around 4%, lower for UK and the rest of the world. Look at Japan for example, haven't reached highs achieved in the 90s.

>>1436583

I'm not joking, I don't know a lot about finance. I was under the impression that growth had been low since 2008, so logically a global equities fund would also have low growth?

>>1436445
>I am happy with an income of £20,000
Hey OP. Is the cost of living actually that cheap in UK?

Do you live in a decent area or are you in the slums?

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>>1436635

I mean after tax and everything, living the NEET life. I live in the south but would probably move north of even Scotland to save cost of living

Anyway to all the naysayers this graph showing growth of 10K to 35K is about 7% growth per year, that's nearly 10%. How is my plan wrong? Is it because of inflation? Maybe I could work weekends or something to supplement the cost of inflation, e.g. if in a year Inflation is 2.5 (the average) I will work part time till I have earned 2.5% of my budget for that year.

I was just kidding above by the way, I would never move to Scotland