2022 – November update

Target FI number – £1,000,000 (≈$1,164,390)

Current Net wealth – £406,716 (≈$473,259)

Change:

Going forward I will post these updates on Pay day hence the slightly delayed post! This month is +£56,900 total month to month change in net wealth. Main change is a huge win at work driving a cash payment and deployment into ISA and GIA accounts.

With deployment into GIA (to harvest the £2,000 tax free allowance for dividend payments) and ISA the total forecasted dividend income going forward should be closely approaching £10,000 a year which is a mile-stone i’m proud of. The plan has been to have this dividend income offset money being placed into the pension wrapper. i.e. a £10,000 tax free payment via dividends would be the equivilent of £20,000+ being shelterd into the pension which is invested in a global equity fund.

This is going strength to strength and i am now onto harvesting Capital Gains Tax (CGT) allowances only going foward. Although I am debating whether to pay down the house early or use this to start off with. This allowance is currently £12,300 yearly.

The current view is to use this allowance once harvested to put towards paying down mortgages payments. I will switch between Vanguard FTSE global all cap index and HSBC’s FTSE all world index fund (C) as when a fund is sold you cannot deploy capital back into that fund within 30 days i believe as it treats this as a transaction within the same fund rather than crystalising the gain.


Wealth allocation:



Updated net wealth graph:

The Circus continues!

The UK welcomes it’s third PM in short succession – driving some stability in markets with the appointment of rishi sunak. Chaos and uncertantiy continues with little to no action being actually taken.

More coming in December,.

Best,

FIN.

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