Financial independence, but in pricey London
What’s it like to be in the top 1%?
According to the statistics, most of the readers of my blog are among the highest earning and/or richest people in the UK.
I bet however that not many of you feel that way.
To be in the top 1% of earnings in the UK in 2019 required pre-tax earnings of at least £134k. To be in the top 10%, you need to earn (individually) about £54k. By 2023, inflation has probably increased all these numbers by at least 10%, to say £150k and £60k.
May has been election month.
In the UK, some (but not all – and not London) local councils had elections. The Tories took a drubbing, as expected.
And overseas the notable election seemed to be Turkey, where autocratic Erdogan won (however fairly) another five year term – taking him into his third decade.
Australia has been transfixed by a war crimes defamation case.
And in the UK, doom and gloom about the UK and its stockmarket continued. Inflation is now clearly falling – the latest figures show 8.1%. However, given that energy prices are now dropping, the fall in UK inflation is less than the Bank of England anticipated, with food in particular showing steep double digit increases continuing. UK interest rates are up to 4.5% but, with this level still far below the rate of inflation, are expected to increase at least a couple more times. It still makes sense to borrow money and invest in inflation-proof assets – though don’t try this at home.
Continue reading “May ’23: Magic megatech”Regular readers will know what a fan I have been of margin lending from Interactive Brokers. No longer. If you’ve read my other posts (like this or this or this) on margin lending, and are interested in exploring further, make you read this post before you do.
IB offers credit secured on its portfolios, priced very competitively. This provides remarkable flexibility, at a low price. I have been an eager user, enjoying how I can stay (more than) fully invested but still find funds fast to make an unexpected angel investment, pay for a home improvement project or settle a tax bill. In reverse, I can repay instantly and very flexibly, and I can convert either cash holdings or loans from one currency to another instantaneously.
These advantages apply both to IB’s loans, but also to the portfolio loan I have from my private bank. However IB is much easier to operate, thanks to their excellent online platform and reporting. And IB is cheaper. So IB has been my ‘go to’ lender.
Continue reading “Mayday for IBKR margin lending”
FIRE v London 