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Weekend reading: It takes a lot of money to replace a salary

Good reads from around the Web.

The last time [1] I featured Under The Money Tree as my sporadic blog post of the week, it was because I was taken with the neat way he’d tabulated just how much money was needed as capital to generate an income to pay various household bills.

Now he’s done it again, except this time [2] his table shows the loot you’d require to generate an income to match [3] various earnings brackets assuming a yield of 4.5%, and also how many ISAs you’d need to fill:

earning-power-capital [4]

He Who Dwells Beneath The Canopy of Currency notes:

Upon first glance it might seem quite daunting that you have to save the equivalent of 31 NISA allowances in order to produce a tax free income equal to the take home pay of the average UK salary (£1,748 per month).

It’s no lie that filling ISAs for 31 years to achieve the average UK wage doesn’t sound like a fast track way to financial independence.

Fear not, various things will speed it up. Check out the full post [2] for five of them.

In making the intangible tangible, this table is such a cool idea. Okay, it’s essentially the same idea as last time, but then personal finance is a bit like Teletubbies or In The Night Garden – repetition is effective and reassuring, and there’s not much that’s new to be said anyway.

The same can be said of investing, as I’m sure ever-repetitive Monevator exemplifies (“Yes, okay, index funds, we get it” shout the crowds) but I’ve still gathered three dozen exciting fresh articles for you to peruse below.


p.s. Thanks to the kind readers who noticed that the ECB did embark on QE this week and European markets did rise in response – as QE had actually NOT been fully priced in, and who then wrote [5] in to congratulate me on speculating as much last week. Alas I don’t intend making a habit of the Mystic Meg bit here, especially not on the back of a week’s coin toss coming good. Now if I had a fund to sell via lavish advertisements in the Sunday papers, that’d be a different kettle of fish…

From the blogs

Making good use of the things that we find…

Passive investing

Active investing

Other articles

Product of the week: ThisIsMoney has calculated [22] that pensioner bonds [23] could be sold out by the end of January, if OAPs keep gobbling them up like Mr Creosote [24] at an All You Can Eat buffet (and why wouldn’t they?) No wonder there have been problems [25].

Mainstream media money

Some links are Google search results – in PC/desktop view these enable you to click through to read the piece without being a paid subscriber of that site.1 [26]

Passive investing

Active investing

Other stuff worth reading

Book stores the week: The ‘Netflix for books’ model is attracting a lot of publisher interest, says Wired [41]. Probably because they don’t want to see Amazon own the market with Kindle Unlimited – in the UK it already offers 700,000 books for £7.99 a month [42]. I’ve also been playing with Readly, which does the same for magazines at £9.99 a month [43]. If only someone would let me have all the tropical fish [44] I want for a tenner a fortnight…

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  1. Note some FT articles can only be accessed through the search results if you’re using PC/desktop view (from mobile/tablet view they bring up the firewall/subscription page). To circumvent, switch your mobile browser to use the desktop view. On Chrome for Android: press the menu button followed by “Request Desktop Site”. [ [49]]