Our 21 year old son, FU#1, has been on his Fire journey for the last 3 years.
I last updated his figures in June ’20, so let’s check in on his progress.
Since the last update Fu#1 was made redundant from his first job due to the company being unable to operate under the covid restrictions.
Luckily he found a new job and has been working for his new company for the last few weeks.
Current Target – £650k by age 40 to be able to withdraw £26k/year @ 4%SWR
Strategy – Save 50% of net income. Max out S&S LISA each year @ £4k, Remainder of 50% into S&S ISA. No longer contributing to SIPP as contributing to AE works pension.
Current Investment Vehicles- S&S LISA, ISA, SIPP, Auto-enrolment works pension.
Funds invested in – Vanguard US Equity Index.
Sept ’20 Net worth £22,633 – LISA £15,794, ISA £4,716, AE pen £1,846, SIPP £277
June ’20 Net worth £18,034 – LISA £12,814, ISA £3,591, AE pen £1,367, SIPP £262
Feb ’20 Net worth £15,512 – LISA £11,665, ISA £2,535, AE pension £1,030, SIPP £281
Net worth is up by £4.5k since June, a nice rise of 25%.
He is hoping to progress quickly in his new job, and if everything goes to plan he has been told to expect a wage increase within 6 months.
We are planning to use the LISA to buy a property within a few years, with a view to improve and flip, to accelerate his progress to FI.
According to the mortgage calculator on MSE, even at this stage, he would be able to borrow about £95k, which would buy a decent terraced house in our area.
Who says young people can’t get onto the property ladder. All it takes is a plan and willingness to save.