They pretty much picked themselves.

  • The first stage in any project is to understand what problem you are trying to solve – in this case, how much money you will need and when, what you will need to put in to get there
  • Next you need to start the practical implementation – make a budget, live within your means, clear your debts and start saving
  • Tax is a big deal in the UK – the average tax take is 36% of GDP, but there are some really useful tax shelters (SIPPs and ISAs) available to everyone
  • Over the long-run, costs make an enormous difference to your returns – if you can save 1% a year on costs, over 40 years that will double your money. One of the ways to save money is to do things for yourself.
  • The next Circle covers the simple, low-maintenance, “set and forget” solution – passive investing, ideal for those who don’t have much time to devote to their finances
  • For the enthusiasts who can devote some time to it, active investing is much more fun than passive, and done properly, can be more profitable. But this is not for everyone, and requires an investment in time to get started.
  • The final Circle is spending the money in retirement, or decumulation as the industry calls it. The main headline here is that you shouldn’t buy an annuity before the age of 75 – use flexi-drawdown instead.

Category: 7 Circles

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Mike Rawson

Mike is the owner of 7 Circles, and a private investor living in London. He has been managing his own money for 30 years, with some success.