7C Investors: The Master Page

3 Journeys

This is the master page for the hypothetical 7C investors – long-term UK DIY private investors on their way to financial independence and retirement. This page contains links to each of the 14 sub-pages described below.

Assumptions

Here are our simplifying assumptions:

  1. the typical investor will want to retire between the ages of:
    55 (when the cash in SIPPs becomes available) and
    65 (the closest round number to the state pension age)
  2. few people will invest before the age of 25; this gives an investment career of between 30 years (to age 55) and 40 years (to age 65)
  3. the base target income at retirement is the average UK wage (which I have rounded down to £25K)
  4. the maximum target income at retirement is the top of the basic tax rate band (currently £42K)
3 Journeys

Together, these produce three journeys to retirement:

  1. from 25 to 65, with target income of £25K pa
  2. from 25 to 65, with target income of £42K pa
  3. from 25 to 55, with target income of £42K pa
14 Snapshots

If we further divide these three journeys into 10-year stages, we derive a total of 14 snapshots, points along the way that we can analyse to see where we should be (what the portfolio size should be) and what we should be doing to stay on track:

A: 25 years old, aiming to retire at 65 with an income of £25K pa
B: 35 years old, aiming to retire at 65 with an income of £25K pa
C: 45 years old, aiming to retire at 65 with an income of £25K pa
D: 55 years old, aiming to retire at 65 with an income of £25K pa
E: 65 years old, aiming to retire at 65 with an income of £25K pa

F: 25 years old, aiming to retire at 65 with an income of £42K pa
G: 35 years old, aiming to retire at 65 with an income of £42K pa
H: 45 years old, aiming to retire at 65 with an income of £42K pa
I: 55 years old, aiming to retire at 65 with an income of £42K pa
J: 65 years old, aiming to retire at 65 with an income of £42K pa

K: 25 years old, aiming to retire at 55 with an income of £42K pa
L: 35 years old, aiming to retire at 55 with an income of £42K pa
M: 45 years old, aiming to retire at 55 with an income of £42K pa
N: 55 years old, aiming to retire at 55 with an income of £42K pa

28 Names

Each of these 14 way points has two names, one for each gender:1

Letter Male Female
A Alfie Amelia
B Benjamin Bella
C Charlie Chloe
D Daniel Daisy
E Ethan Emily
F Finley Freya
G George Grace
H Harry Holly
I Isaac Isla
J Jack Jasmine
K Kai Katie
L Leo Lily
M Muhammad Mia
N Noah Niamh
The 14 Sub-pages

The sub-pages  can be reached from the top menu,
or directly via the links below:

  1. the names are taken from the list of the most popular children’s names for the UK in 2013 []

2 Responses

  1. David Muldoon says:

    Hi Mike
    Whatever happened to Benjamin and Bella etc.?
    Cheers

    • Mike Rawson Mike Rawson says:

      Thanks for asking. The basic problem was that people didn’t like being presented with an onerous target, nor their lack of progress towards it.

      But fear not, the 7C investors will return in due course.

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