As a mid twenties un-married child free guy I've started to think seriously about my finances and my future. I don't want to be part of the work force once feminism has destroyed it. I needed a plan, but realised that there isn't that much info for someone who doesn't want 2.4 kids and a wife. I've visited several financial and investment advisors, done my homework and now i'm dumping it here.

I am not going to go into conspiracy theories, bachelor taxes or anything extremely unlikely. I picked a path of high income and low work years which is right for me. You don't have to retire early, but it's nice to have the option.

 

Step 1: Save

We grew up being taught the most important thing for a man to do is to provide for a wife and kids so go earn like you have them. Now take a portion of that extra money you have by not having the ball and chain and save it. For me this is about 70% of my income.

Tell no one you have money

 

Step 2: immediate financial security

This comes from the /r/personalfinance crowd and it's solid advice. Work out 6 months - 1 year of your living expenses. Get this much in savings ASAP and keep them in the bank. This is your emergency fund should something shitty happen. For me that means keeping £10k-£15k in a savings account. You might need a bit less since the NHS has you covered for large medical expenses.

 

Step 3: pay your debts off ASAP

This is obvious, 17% interest on a credit card can kill your future.

The exception here is a mortgage - If you already have a mortgage, at a good rate then don't cripple yourself to pay it off. Unlike a credit card, the value of a home may increase by more than what you're paying in interest.

 

Step 4: Cut your tax

As a higher rate tax payer i was immediately urged to get married. This would allow me to shift some of my tax liability to my wife saving about £19k a year in tax. We're not going to do that.

The only other 2 options you have are NISA's (aka ISA's) and pensions.

Open an ISA, either stocks and shares or cash. These are tax free savings accounts allowing you to save £15,240 per year. The interest rates on cash ISA's suck, perhaps they won't in the future. Your first goal is to fill your ISA every year. In 10 years you will get hundreds of pounds a month in interest TAX FREE. Stocks and shares ISA's are probably best. I visited a financial advisor and setup a proper diversified investment fund and in two months it has made back the fees i paid to get setup forever.

If you have any money left after your ISA is full, optionally open a SIPP pension. This is simply a "tax free wrapper" around an investment fund. I'm keeping my contributions small. For me this is £500 per month (i was advised £850 per month). Giving me about £150k at retirement. You will be able to access this 10 years before the state pension. You will get 20% extra added on top of your contributions by the government. If you're a higher rate tax payer you can fill out a tax return and get an additional 20% back. This means the government writes you a cheque for thousands every year.

You will have to pay tax on your pension when you retire, but it's much lower than the income tax you're paying now.

 

Step 5: keep investing every month

This is the key. There are plenty of explanations on why investing monthly is better than doing it in a lump sum. Just keep adding what you can out of each pay cheque.

 

Step 6: diversify

Every type of investment comes with risk - even cash (via inflation). Typically diversifying means holding multiple asset classes. These can include: cash, stocks, bonds, property, gold / other precious metals. Your rates of return will vary on each of these but diversifying means you avoid a lot of risk.

 

Step 7 (optional): Retire early

I had to go through a few financial advisors before i found someone (a man) who would get on board with MGTOW personal finance. He ran the numbers for me and without the liabilities and kids i can retire at 40. I don't need to leave an inheritance, i don't need to fund my children's tuition and i don't need to spend money on a fancy wedding or a house with 4 bedrooms.

 

Step 8: The draw down

Draw down is where you go from putting money in to taking money out.

Start with your taxable investments. This is any money outside of an ISA or emergency fund. If you've invested in funds / stocks you will have to pay 15% capital gains tax on any increase in value your investments made above around 11k per year. Speak to a financial advisor, i was told not to worry about tax as there are ways to minimise it.

Now take from your ISA. You won't be paying any tax on this.

Your pension should kick in when you're around 57. You can take 25% tax free, then pay 20% income tax on the rest. - this money shouldn't be needed, but will ensure you don't end up in poverty like a large portion of your friends who will be working till 67 when the state pension starts to pay out it's measly sum.

 

Edit: updated to clarify mortgages.