If Dave Ramsey lived in the UK...
Ok, so I am based in the UK and did try reaching out to u/DaveRamsey in person but sadly he never responded (likely because of where I am based, so not his fault... I still respect the shit out of him).
I am in a "good" position, but not as far as i want to be (I know that's the same as a lot of people on here that I've read stories about).
My current situation (as a family):-
- We own a home (about £200K equity after mortgage settled)
- We own an investment property (about £90K equity after mortgage settled)
- We own 2 cars (both paid off)
- No Debt or Student Loans or etc. etc. just the mortgages
- My Pension (401K) is £30K currently (last year i discovered the tax advantages of pensions so invested in this) and will go to £60K+ this year invested in S&P500 (made £2K since invested 4 months ago)
- My ISA (RothIRA) is £2.5K currently also in S&P500
Technically my business makes a good income but last year was the first year i realised i could lower profit (and thus tax) by paying pension. Previously people told me "spend it" so i just bought computers, and tech stuff etc.
I've recently got a project running making £100K per year - £110K per year that requires nothing from me. It might not go on for ever, maybe this is the last year of it or maybe it will run for another 2 or 3, its very uncertain one month to the next, but it involves outsourced work and so i am monitoring it.
This contract came at a good time as usual earnings are slower this year, even though we have hired... just market turbulance (And frankly I've been goofing off too which i am stopping now).
So here is what I want to know.
I want to get to the £100K mark fast. I want to invest more, but feel the S&P500 is slow. I dont want to get rich quick, but Dave talks about high growth mutual funds, and everytime ive tried to look at those, but consider things like the country I am in, and the fact I use Vanguard, the fees always look like they would eat most of the profit.
So my next pension of £30K will be paid in this December. I'd like to know what to do with the money and how I should best put it to use to help my life. In a pension it is locked away until I'm 57, so should I avoid pension and pay the tax on it now to invest in a way that lets me lock down my earnings? how does it work?