How to Avoid Investing Mistakes | 7-Step Investing Blueprint

A lot of times you are playing offense. We hear about one crypto putting money there. We hear about, oh, there's, mmm, we're putting money there. I've seen people lose that. Oh, they say, I lost 60k, I lost 12k. And if you check, most times they haven't had a good financial protection. There are things like income protection. Income protection pays you a payment depending on your premium. And the income protection that you actually went for, it will replace your income if for any reason it can't work again. I gave this example of a very nice gp is very active and he had a knee injury and couldn't work. He was a locum GP and there was no income for six months. And he said to me, andy, I was lucky. I listened to your video about the emergency from Tax Efficiency. Some people call it tax avoidance and it sounds like a dirty word, but it's not tax evasion. You're doing what is available for you to help yourself. I mean, I don't invest any dime till I figure out how it's going to be tax efficient. Foreign.

So, yeah, there are two questions. One is, but Lomi, what investment advice will you give for a rookie investor in the uk?

Right? So, so thank you. That's a good question. I think if you are new to the uk, then you'll be interested in the next slide you are going to look at. We are looking at the seven steps and some of you have heard me talk about it. I usually suggest don't just jump into investing. First of all, you want to do the seven steps. Don't jump from step one to step seven. And then basically that's what I'm going to address next. Okay, yeah. So the seven steps. But before I do that, I know some of you have attended a previous master class. Can someone share with me in the charts, what are those seven steps? Or if you remember one or two steps, tell me. If you tell me step one, step two, step three. There's several steps I suggest that you do before you start investing. And I think this, if you do it, you have peace of mind. If you're investing, you're not too worried. If the market is crashing, it's an opportunity for you to buy, but it doesn't also affect you mentally. You're able to do things because half of the battle, most times emotional is psychological. So I'm going to be looking at the chart to see the seven steps. Okay. I'm expecting someone to just give me all of them now. Okay? Oh, lovely. Joyce says have an emergency fund I love that Emmanuel says emergency fund. Yep. And he says emergency fund. It seems everyone gets that first one. Okay, that one. What are the rest of them? Okay, there are seven of them. I need more. I'm going to give you time. I mean, when you did the quiz, I hope, I hope you guys did the, the investment readiness assessment. Those seven steps was one of the things that you were going to say when you did the quiz. You didn't realize, you thought you were coming to a master class. You didn't realize that in the class there was going to be assignments and you know, okay, think of investing in different sectors. Endo said, be debt free. Imano said be debt free. Clear your debts, pay protection and life insurance. Excellent. Mary says study investment. Excellent. Pay off high interest debt. Okay, this is beautiful. And for Bhatt, you're asking about what to do. These are the steps that I recommend and I'm just going to go through them one by one and then obviously we'll still take some questions along it. Part of it is basically being tax efficient as part of it. But the seven steps I recommend, I think we probably have to add a separate slide for the seven steps, but seven steps I recommend that you do before you start investing. Number one, I know it's a good idea to feel like, oh, you want to jump into investing. Especially when you hear people say, oh, I made this money and I made that money. Most times there's no risk adjusted returns. And just when they lose the money, sometimes you don't hear about it. Unfortunately, because I've now talked to thousands of doctors, I do hear things. People tell me things, even in conferences. I think the last conference I spoke in, a doctor shared how he lost over a million pound in crypto. And the room went silent immediately because people like, wow, some people thought they lost money in investing. They lost 60k and then someone said they lost 1point something million. A lot of, a lot of it was because there was not an appropriate risk management in place. I'm not saying whether investing crypto, investing in crypto is wrong or right. Obviously some people will have it as 5% of their portfolio, but there wasn't any proper asset allocation. So when you think about investing, if you haven't set those seven steps, those seven steps are like your foundational steps. If you have not set them in place is that when the wind blows, when the storms come, rather than thriving, rather than being like a house built on a solid foundation, you're going to be struggling.

Right.

So what are those seven steps? I think Someone already said, number one. Number one, I say is invest in yourself first before you start investing in stocks or bonds. A lot of times we're talking about S P 500, which is great. And we're talking about NASDAQ, we're talking about Facebook, we're talking about Nvidia and there's S P 500 is great. But someone says, how about SME 500? Invest in yourself first. Because part of the reason that helped me to get to financial independence was not just because I invested. I mean, my first investment was less than $1. Now, I don't know what, what £1,000 was back then. I know the stockbroker took almost half of it as commission. Many of you don't realize there was the days where I had to go to the stockbroker's office or call them on the phone and then pay huge commissions and then they wired the transaction to be done. So investing in oneself like I did actually helped a lot. And how, how do you invest in yourself? That's what you're doing right now. Could have been doing many things. You could have been watching YouTube or scrolling on Netflix or even, just, you know, ch out. But you're investing in yourself and for doctors and healthcare professionals. Again, because you are busy. I don't expect you to go into a deep dive. I don't expect it to be nerdy like I do, studying bonds and trust and all sorts of things, analyzing companies and attending investors calls and all that. But there are some things you can do to invest in yourself. That's investing in your own education. One I usually suggest is the one that many people don't do, but when they do it, they find out I put them in a very good position. And that's one book. Read one good financial book every single year. One good financial book. Just pick your book if you're not sure. I've made A list of 12 top personal finance books I recommend. Even if you just read one, by year 12 you probably figure out more that you want to read. So one good financial book a year. You read many books, you read, you write exams. I know there are lots of like specialists, GPs and all that here. So read one good financial book. It's part of your job is to be financially smart, to manage your financial resources for your family and for your future. Number two, I say attend at least one financial workshop. It could be something like this. It could be about pension, it could be about investing, it could be about taxes, it could be about anything. But just make it a goal to Attend one a year if you do that. And then number three, follow one newsletter or podcast. Obviously there are many good newsletters, but if you follow one that's actually sort of like focused on doctors, healthcare professionals, it's usually good because there are some things that the population, like general population might not be affected in, like the NHS pension that you can get.

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There are other things like I'll give you an example, like I know quite a lot of us here are actually like immigrants. You move from different countries just like me. And there was this non dumb tax regime that was introduced last year, October. Many mainstream finance media didn't talk too much about it because it didn't seem to affect them. But I knew that for lots of people who have actually moved from different countries to the UK who had assets abroad, this was something that was they were affected and I covered it. My podcast so you can follow Moneywise Doctor on the YouTube or the podcast or the newsletter, whichever one you prefer. And there are multiple other platforms you can also look at. But if you have one book, one conference or seminar per year, and at least one podcast or newsletter or blog you follow, that could actually help a lot to increase your financial education. It makes it harder for you to mix, you know, costly mistakes that are common with doctors and healthcare professionals. It even makes it harder if you decide that you're going to hire a financial advisor or a financial coach, or you want mortgage or you want the trust. If you already know what you need, it does help in order to make sure that you're not being taken for a ride. Okay, so that's just number one. Invest in yourself. Okay, so this is where I would usually suggest people start. Don't rush to invest money first. Invest in yourself. Currently you are doing like a four weeks investing academy. You see people who you know joined from hospital when they on call and some people can't join, then they go back and watch the videos, then they come back to the group, I will chat about it. You see people who start from zero have no experience of investing and they become actually like very, not very experienced, but very confident and understand what they are doing. That's a skill like riding a bike, like driving that they can use for the rest of their life. They no longer scared, they no longer keeping 100k in their account. So invest in yourself first, that's really important. Before I go to number two, I'm just going to touch something about keeping money in savings. You, there's nothing wrong with it, it's good to save. But I hope you know, you mention PSC personal savings allowance if you're a HRT, higher rate taxpayer, if you save money in the bank and the interest exceed that allowance, then you have to pay tax on the interest whether you've paid it or not. You know that you're owing HMRC now because now banks now automatically report. That's a new thing. They now report to HMRC when you get that interest. So how to avoid that? If you're saving money, try to put it in a cash isa. And if you're investing money, you want to invest it through a stock and shares isa so there's no tax on it. More on that later. So that's number one. Now number two, seven steps to do before you start investing. And some of you have already done a lot of this and you're ready to start investing. Great. We have people who join the academy, they're already investing and there are people who join and they have no experience of investing. But it's very good to understand where you are in the seven steps so that you can complete it. Number two is conduct a personal financial audit. You want to go through your finances. Sit down, this could take you an hour. And go through your personal finances. What are areas that you might be leaking money without knowing? Are there things I need to do? Have you claimed tax relief on your professional expenses? Are you using the right account? Have you. You go to your credit card statement, you might start seeing that you are paying for things that you don't even use. In fact, I've had a GP partner who said, oh, I can't really find money to invest because I have all these bills. And by the time they went through the account, they were canceling things that they were paying for. They weren't even using and they found out they were able to actually find £350 extra per month. So conduct the personal financial audit. That's number two. Number three is the popular one. Every one of you have said it. Build an emergency fund. Okay, before I go for an emergency phone, can someone tell me, either come off the mic or tell me in the chat box in emergency fund, what does that mean? What does that even really mean? Six months of your monthly spending. Excellent. Jimmy said six months of your monthly expenditure. Some people say three to six months. I think it depends on your personal circumstance as well. Emmanuel said, just in case. Money. I love, love that confidence at three to six months. Yeah. And it depends on your, your personal situation. For instance, someone like me, I haven't got, I'm not like an employed doctor or regular anything. I sort of like my own boss. So why I've got to. I want 12 months or more on emergency fund. But if you're working in a job, like you've got NHS pension, you haven't got that much money to put aside in the first place. You've got income protection and all that. You've also got like the NHS pension also has sick pay. So you might want to start at three months and that could be what you could do. But for some other person, let's say you're an entrepreneur, you are building a startup or you're a local GP and you don't have any NHS pension, then you should be looking at at least six months. That's why I recommend three to six months. So that's the emergency fund. I think this is the bedrock. It's really important before you start investing, have that sorted out. I've had people in the Moneywise Dr. Mastermind our six months financial coaching program who are just itching, they see other people invest in moving ahead. I will say calm down, get it sorted and once they sort it out, they fly. They're able to fly. So you want to make sure that you put aside three to six months worth of your living expense. And here is the secret. It's no longer secret because I've said it a few times, amass the money. I must it, don't do it manually, don't say every month I'm just going to transfer this amount of money. No, no, no, no. That's going to fail. You don't need discipline here. You need a system. If you set up direct debits going from your bank account and it's going to this account, basically it could be your cash ISA or Your savings account. I prefer the cash ISA so that there's no tax on it. Because if you generate interest in a regular account and you cross £500 as a regular hrot, higher rate taxpayer, then you've got to pay tax on that interest. Or if a basic rate taxpayer is 1000 is the limit and if you are additional rate taxpayer, you have no save, no PSA at all. So that's why I prefer if you want to save that money, think about saving it in a cash isa. That's your emergency fund. This is not all the money. This is nowhere going to save all your money. If you've got 100k and your monthly expense is 5,000. It's a bit funny to be saving the 100k as emergency fund. I mean, basically I think that 6 to 12 months should be adequate while the rest of the money goes to work to make sure that it's winning me more money that's investing. All right, so that is basically number three. I think it's crucial. Save your emergency fund, amass it. And when I say a mass, a mass is just an acronym. We'll call it Automated Monthly Activated Saving System. So you automate it is monthly. You don't have to do it manually, it just goes out. This thing can do wonders. I've seen people use it to pay off debt and save an emergency fund and start investing. I've seen it personally for family setting up some money for them. Same money accumulate painlessly so that you don't have to be thinking about it. Go. Go big or go home. Go 20%. If you're getting like let's say 5k in a month, let me just say if you're getting 4K in a month, £800, that's 20%. That's your goal. If for any reason you can't get that 20%, you might think of doing an extra shift or not. You can think of doing medical surveys. We have some medical surveys that doctors can do. Some of them will share the links. I can do and get some money. You can just think about, okay, what can I cut? Is there an expert? I can cut even if you can't hit 20. But you can do 10. Do that 10. But automate it. Don't do it manually, do it automatically. Everyone in the moneywise Dr. Mastermind knows I'm very hot on this. Nobody saves or invests manually in the mastermind. Everyone's doing it automatically or I'm going to be on there on them about it. Right, so that's number three. Your Emergency fund. Build it. Now, number four, the first steps is you want to establish a financial defensive strategy. And some of you have actually referred to it. What do I mean by defense? A lot of times you are playing offense. We hear about one crypto putting money there. We hear about, oh, there's mmm, putting money there. I've seen people lose. I always say, I lost 60k, I lost 12k, my £12,000, £60,000. If this money was invested properly. And if you check, most times they haven't had a good financial protection. So you should have your financial defense while you attack, so that even if things go wrong, if things don't go as planned, you would have a fallback plan. Part of your financial defense, one of it is that your emergency fund is a layer, but the second layer is things like your life insurance. I mean, I know some of us here are going to live forever, but some of us know that life is not forever. Some people are gonna die at some point and sadly, nobody can accurately say how much of it they are actually going to live, how long their lives are going to be. So that's something to think about. So how long are you going to really leave? That's something to think about. Nobody knows. I mean, two years ago, I lost a dear friend, was childhood friend before we got into med school. We have friends. And then he became a doctor as a surgeon in London. He was only 36 when he died. Went to bed, didn't wake up. So things like life insurance are really key. If someone dies and they have a life insurance in place, then their family gets the payout. Now, this is the part where we do a little bit of tax planning. Like I said, tax avoidance is legal, is tax evasion, that is a crime. Now, if you think about it, you see that if you have your life insurance and it's just there, sitting there in your estate when your family gets it, if it's above what we call the new band rate. So if your estate, I know you don't think you've got an estate. Some people, but many of you know what I'm talking about. You've got an estate, your property, your money in the bank, your investment, your pension, if you're above 75, your life insurance, any money, those are all part of your estate. If your estate is above £325,000, anything above that falls under inheritance tax of 40%. 40%. Now, that's why you've got to do a bit of tax planning. Something like your life insurance should be in a trust. So just like you have a limited company that is separate from your life. Limited company is on a different entity. The same way the life insurance can be put in a trust. That trust holds it for you outside your estate so that your family gets the full payoff if for any reason the person dies and they need to be paid. I know we don't like to think about that, but unfortunately people die. And even if you die at 83 or you die at 43, you need to make a plan for it. Okay, now this is very crucial topic.

Have you secured your family's financial future? Many times you're busy as doctors and healthcare professionals, that's fine. But if we overlook our life insurance and income protection until it's too late, you're taking a bit of a risk here. I mean, nobody can predict the future. You need to protect what matters most. Think about life insurance and income protection. This is really quite important to protect your most valuable assets. Now, if you're not sure about what you need or how to go about it, check the link in the description. I have a free guide that can help you step by step. Let's get back to the episode.

Right, so that's a bit on financial defense and it doesn't just stop at life insurance. There are things like income protection. Again, I, I gave this example of a very nice gp is very active and he, he had a knee injury and couldn't work, was a local GP and there was no income for six months. And he said to me, Andy, I, I was lucky. I listened to your video about the emergency fund. I didn't have an income protection as well as he mentioned. So he just had to, you know, try to do some online shopping, you know, like E commerce. It's really difficult to be building a business when you're desperate for money. So you have to fall back to his savings. Income protection pays you a payment depending on your premium and the income protection that you actually went for, it will replace your income if for any reason it can't work. For instance, if you are sick, I couldn't work. That's what income protection is for. Again, I've written a full guide on income protection, life insurance and all that. It's on the website of moneywide doctor.com for free. You can download it for free or someone in my group will share the link for you to, you know, download it and have a read about it. So this is your number four financial defense strategy. Think about income protection, life insurance, critical illness protection, east critical illness insurance if you need it. For instance, great Kindness is if you have a heart attack or stroke or even cancer, then they pay out a lump sum of money. These are things to really think about. Everyone tells you about car insurance is compulsory, but nobody cares or tells you to insure your most valuable asset, which is your life and your income, basically your livelihood and your life. Okay, right, so I'm going to jump to number five step and then I'll pause so I can guess a couple of questions before we do the last two steps in just this bit. Then we'll go into tax planning. Number five. It's quite key and some of you have said it eliminate high interest debt. I don't think we need to spend too much time on this. Eliminating high interest debt is very crucial because I said to someone what is your credit card interest? What did they charge you? And he didn't know. And they were giving money to somebody to invest at 15 return. They said I'll give them money, they will build or buy this stuff and they'll pay me 15. And when they checked their credit card was charging them 24 and they weren't paying it off. So if you've got like credit card debt, if you've got like a big loan that is charging like a car loan and the interest is that high, that is a quick investment that will give you a quick risk free return. If you're paying 20 or 25 on something, if you pay back, you've gotten 25% before you take any risk. So it's just a bit like you're pouring money into a leaking pocket. If you are putting money inside one pocket and then leaking from the other side. So if you've got high interest depth, you want to go and eliminate it. That's a very key part of the seven steps to investing. So that when you start investing you can start investing and you move faster. You, you move in a sustained way because you've built that base. How do you pay off your debt and still continue to live? I've had people call me during very difficult situation for them. I've had someone who was in almost 200k and then suddenly locums dried up and there are a few personal tragedies and suddenly they were in there for 65k. And then when they booked into the one on one session, my financial insight session, one of the strategies they had to develop was this amass, set up a direct debit to pay off their debt because they were at the point of defaulting and I thought they couldn't find the money. But when they Started commanding their money on what direction to go. If not they're going to. Your money can go in different directions. Insensible time loss is a thing. Insensible heat loss is a thing. Insensible money loss is also a thing. So that's what they had to do. They set up direct debit 20 goes out into a special account, pay off the debt. And as soon as they paid off that debt, what happened in the next few months, the same money, I said I don't stop it. They had to continue using the same money to then build the emergency fund. And as, as we speak right now, this doctor, this GP is already started investing now because they build the emergency fund, they paid off their debt. So you have to have a system to deal with these things. Okay, right. Since we're almost at the end, number six, basically at the end of the seven steps, number six is define your clear investment goals. So what, what are you investing for? Have investment plan. Where are you hoping to get to? Where do you want to retire? Don't just box the air and just assume I'm just going to follow what everyone is doing. And then finally, obviously you want to continue educating yourself. I mean this seminar is great but for those of you already in the four weeks academy, you know that this is just like a scratching of the surface. And for those of you in the six months financial coaching, you know that there are many levels to these things. So you need to continue educating yourself, even if it means just reading a little bit there, a little bit there is really quite important. All right, so I'm going to take some questions at this point and then we're going to go a little bit deeper into tax relief hacks, NHS pension versus SIP, avoiding the 60 tax trap and how to make sure that you never overpay tax. Okay, so that's the next step we are going to go into. But I'm going to take some questions at this point. Dr. Pepper, do we have any pending questions? Okay, no new questions, so we'll just crack on. So before, before we proceed, I'm going to take a couple of questions now if anyone has a question. Right, so this has been a very rewarding session. I can read some comments. Do I pay high interest if my money is sitting in my savings account with hsbc? Yes. So that's the question is from whose question is that? Yes. So Blackstone was asking do I pay tax? Yes. So if you're a higher rate taxpayer and you have your money sitting in HSBC, once the interest that you get crosses £500. And that sounds like it's a lot, but it's not much. If you've got like 10k in an account and 5% of it is 500, you've already breached, you've already crossed and HMRC expects you to declare it to your self assessment and pay tax on it. So if you've got money sitting around that your investment, that is just your cash isa, you should be moving it into. Sorry, that is your emergency fund. You should be moving it into a cash isa. Okay, Right. So now what I'm going to get into, basically I'm going to look at tax efficiency. Some people call it tax avoidance and it sounds like a dirty word, but it's not tax evasion. You're doing what is available for you to help yourself. I mean I don't invest any dime until I figure out how it's going to be tax efficient. I'll give you an example. Think about Dr. Pepper. He's obviously a smart, handsome GP and Dr. Pepper is a doctor. And we both invest a hundred thousand. Invest a hundred thousand. I invest a hundred thousand and we sort of like hold it for five years. Basically. We're not, we did not invest all the hundred thousand that they go. Let's say I'm putting 20k in my ISA. Dr. Pepper is putting 20k, his regular investment account. We're doing for five years. We've got like a hundred pay an investment. Okay, well done, we've done it. Let's say that Dr. People and I happen to invest in exactly the same things. We bought like index funds or maybe we bought like individual stocks and maybe some bonds and we end up with, let's, let me just give a random example. Let's say our, our gain, our capital gain was a hundred thousand. So Dr. Peppo, because he's made a gain, he's got to hand over some of that gain to the government. It's called capital gains. I'm sure you guys already know this. So it's going to be 24 of that 100k he's made, which is 24, 000 to the government. But if I've actually been tax efficient and I've put my, my money into what you call tax avoidance, a stock and shares, Isa and invested and I made the same 100k. I expect someone here to tell me how much tax am I going to have to pay? Remember, he paid 24k. So tell me in the chat. He's paid 24, 000 from his investment. Okay, thank you, Tanvir. Zero Emmanuel says zero. Correct. So I'm going to have to pay zero pounds. Nothing, nothing at all, because I did that. Tax avoidance. So when politicians say, oh, we're going to stop all tax avoidance scheme, we are going to like probably, probably not very educated in terms of finances. Tax avoidance, legal tax evasion is a crime. So understand the difference and know where to use each one. For instance, some of you use a limited company for your job because you are sitting outside IR35, of course, and that makes you more tax efficient. You're not committing any crime, you're using it to be more tax efficient. So I've got people who maybe buy a laptop or they pay for a course or a mentorship program and that comes from their company because they require it for their job. HMRC has rules, it has to be wholly exclusively and also reasonable. And this is basically tax efficiency. So a good place to start, I'll say, is ISAs. Before you invest any money, like I. I think Dr. Bart was asking, if you are new to the UK, what do you do in terms of investing? And I said, once you actually, you have no debt, I've cleared your debt and you have saved the emergency fund, I think you should be saving it in an isa. So ISA is basically. There are four main ones, but basically three of them are usually more useful for you at this stage. Number one is cash isa. Especially if you're a beginner, your cash ISA is where you save your money tax free, is where you save that emergency fund. But the mistake most people do is that they just save money and then do nothing else about it. And then they come back and think, oh, isa, nothing is happening, it's not growing. This ISA is calm, is not going to grow because the cash ISA is just for saving. Inflation is going to attack it as well. So if inflation is attacking any money in a regular saving, it will attack a cash isa. Now, number two, obviously there's stock and shares isa, which is my best isa, is the platform that I used to invest in a way that you don't have to pay tax on any capital gains or dividends or anything. And then there's number three, if you are below 40, you definitely want to get this one. So if you are below 40, you want to get this one. I know a lot of people who, after they've crossed 40, they find out and they feel very bad about it. It's a lifetime ISA which allows you to save a maximum. You can, you can save whatever you like, but if you get a maximum of £4,000 India. Every year you get a thousand pounds for free just for saving your own money. So the government rewards you with us your extra 25%. So even if you save £100, you get £25 back. So these are ISAs in a nutshell. But the lifetime ISA can also be used for buying your first home. So the money you saved in your lifetime ISA is just for two things. Either buying your first home or you can use it for your retirement. You withdraw it at 60 years. So this is the first layer, one of the first layers of tax efficiency. I'll suggest. Okay, I have an ISAAC guide which someone from my team has kindly shared. You can download it for free and then have a read about it. If you've got any questions, feel free to send us a message. Okay, so that's ISAs, there's innovative finance ISIS, basically for borrowing, basically people borrowing money between peers, peer to peer lending. I would not suggest you start with that innovative finance isa, because if you don't already understand what you're doing in terms of your finance, it could be a little bit risky and is not guaranteed compared to ISAs. If you save your money in an account, any account, even if it's not an isa, there's an fcsc. So there's FCSC is the Financial Services Compensation Scheme or thereabout. I think it allows you to save up to £85,000 is covered £85,000 per marketing group, per individual. Even if the bank goes bankrupt, then you get your money back, they pay you up to 85, 000 or up to a million pounds for temporary high balance. So if you had inherited money or sold a house or there's been a diverse settlement or you won the lottery. I got up to a million pounds. You've got six months that you are covered and even if the bank suddenly folds, you still get like a million pounds cover. Okay, so that's the ISAs. Now, before we go into the next layer of tax efficiency, has anyone got any question on the ISAs? I think if you've got a question, raise your hand so that you be in the queue and then we'll come off the mic and you can ask. It's much more efficient that way and we can move a bit quicker. So if you've got a question, just sort of like raise your hands. You know, you've got like this hand raising stuff at the bottom. Okay, Dr. Pepper, who's going? Yeah, so Evans. Evans.

Chidi has a very good question.

Lovely. So Evans, what's your question?

Yeah, he said what are your thoughts on £1,000 per month in s P500 and visa plan for long term, like 20 years, which is quite a good time to, to invest and leave your money. Is it a prudent of investing?

So, okay, let's start with the Evans and see. So it's Evans here.

Yes, yes, I'm here.

Lovely. That's a very good question. Yeah, and thank you for, for that. My big question Here is why £1,000? Basically, how did you arrive at the thousand pounds?

Okay, the. So I, I used trading 212 and I did a projection for the investment goal. At least a million pounds.

Okay.

Yeah, so it's, it was hitting over a million.

Okay, right. That, that's not a bad idea. At least you've done some work. I'm not saying that. Okay, that's what I recommend. But why I asked is how to arrive at how much to invest. And I thought 20 is the number I work with. So why I thought, okay, if Evans makes 5K and is putting aside 20, 20% as 1000, okay, that's 20. He's investing basically and it's going to compound for him. But if someone is making 20k, I'm putting aside 1k. My question will be why was what's going on? Or if you're making 10k and putting aside 1k. Because remember, we're trying to catch up. So when we talk about invest 20% is that you want to get to where you're going as quickly as possible. And of course if you feel more comfortable with 10% or 15%, fine. But that means you'd also not accelerate your journey. So that could be a strategy for you. You could decide, I'm going to take this 1000, I'm going to invest in S&P 500. But that's a total strategy. That's your plan. You've decided it and that's what you're going to do. That way when the market is crashing, you don't start panicking because you know your, your plan is pound cost averaging. That's what we call it. You are putting the fixed amount into the account every month so you can even automate it. That every month a thousand pounds leaves your account, it hits your, your investment account, whether it's trading 212 or invest engine or any account that doesn't charge you a fee or charges very little fee or, and you can instruct it into the account to automate the investment. No money manager, nobody's managing the funds, therefore there's no fees on it. And it's just a platform fees if they've got like fund fees. And that could actually. So when I mean fund fees, I don't mean fees, I mean things like total expense ratio. So that could actually be a nice way to compound why you're busy. I know Dr. Evans here is a GP while he's busy in Cornwall. He's a GP in Cornwall. Going to surf, going to the river and going to the beach and doing all kinds of things. We are both training Cornwall. It's a nice job. So basically that could be your plan. You might not want to be active, you might not want to do things like okay, analyze companies, take a position, know how to. Yeah, so that could be a plan. But before you do that, you need to actually be consciously doing it. It should not be something that should change. Maybe you see your friends actually now buying one stock that is popular, Nvidia or something. I think, oh, I'm just going to this month take my £1,000 and put it in Nvidia. Basically I'm buying it at the height of the market. So I never ever buy any popular stock because by then everyone's. What am I doing? I want it on the Valley, they want it cheap. Everyone is already buying by the time you look at their PE ratio is really so sky high. So yeah, that could be a strategy. Good question, Dr. Evans. Okay, so does someone have who. Who has a. I hope that did justice. Did that help, Dr. Evans?

Yes, yes, bro. Thank you so much.

Okay, lovely. And again. Sorry, say that again.

Definitely. I think I still need the master class.

Lovely. We'd like to have you for four weeks. You just know exactly what you're doing. You get like that, hands on and you know, feedback. Okay. Yeah. Okay, so send me a message. Now number two thing I want to mention I. I know I mentioned already that that money, if you want to get of it. Imagine when you get to a million pounds, Dr. Evans, and then you have to cash it out and then the government is saying give me 24 of that. Or maybe by then it will be 25 or 30, who knows? And you then have to pay like 25, 250, 000 out of the million. Well, the mid. The whole million might not be your capital gain. Maybe your capital gain at that point might be 500k. I have going to pay 125k. That's painful. If you follow my newsletter. Last year in October I sent out a newsletter to thousands of doctors and I. The title was why I'm selling all my shares Now I didn't sell all my shares, but I sold all my shares that were outside of NYSER because I saw that the labor government, I thought they were going to increase the capital gains tax. That was the best decision I made last year and it saved me thousands of pounds. Because when they announced their budget, Halloween budget, they increased the capital gains tax and they made its immediate effect that any, any share that you've not sold by then and you realize that capital gives tax if whether it's house or shares or whatever you buy and then you sell it, you incur capital against tax. You needed to pay the new higher capital gains tax to the government. Yeah. So these things are really important. Well done, Dr. Evans. That's really good. A thoughtful question. Right, I'll take the next question. I don't know who is next? The honorable moderator.

Yeah, I mean if you can take Mary's question. She's asked this question for a very long time, so.

Let her ask. Thank you. So Mary, go for it.

So I was asking like I know it might not be part of the program but I'm just asking like thinking of been investing. Investing. So my question is like trying to get money for the investment. Like what kind of additional hustle can somebody do apart from locals and the rest. If you're thinking of setting up a limited company like a business, restaurant and all that, what's the best way to go about it?

There's a lot of things we could do, a lot of things we could cover but because we're limited in time, we've had like sessions that were just about tax. Had sessions. I was just about limited company. But basically what Mary is asking how to get the additional money? Well, one of the ways could be to set up a business as you're thinking about and the whole process of registering a limited company and you know, making sure your accounts are set up, sometimes you don't even need to do that registration first. You need to make sure that there's actually a business case like money wise doctor is a business and Baby Bomb park, which was my E Commerce business, was a business. But Mary, I'm really sorry, I don't think in the time left you can actually go into even for the whole seminar, even if you took up the whole time.

That's okay. I've gotten a hint.

Around it like setting up a business or maybe tax efficiency or know the structure setting up the limited company. Send me a message on our WhatsApp or in our WhatsApp community or email me your questions in a detailed way support moneywisedoctor.com or we've got a lot of videos in that area. We've got a lot of materials that can actually help you to have a look. But I can't tell you exactly what business you're going to do because I don't know your strengths, your weaknesses. I'm sure you have a lot of strengths and some areas that you prefer not to even do a business in. So those are things to think about and then figure out who's going to be your customer. Are they going to pay you? Is this something you enjoy doing? Do you want to do it alongside a medical career? Or do you want your medical career to become your side hustle? You know, these are things to consider, but basically for now we're thinking about how can we take even the little money you have and invest it properly? Because if you can invest the little money you're getting from your salary without even starting a new business, chances are that when you start a new business, you get more money. You probably invest it even much better. I hope that helped Mary. Right. Okay, so I'll take one more question and then we'll go into other areas, sort of like tax efficiency, areas that most people rarely talk about. Okay. All right. Mary said yes, thanks. So that's good. Okay, so I think we've, we've covered those questions. Unless there's one more, any, any other question waiting. I'll look at tax efficiencies. Okay. Well, I hope you found that helpful and more importantly, I hope it helped you to see investing in a new light. This is just a small section section of what we cover in the Flow masterclass. If you like me to drop more of these clips, just let me in the comments. Comment, invest and share this video as well with friends who may need to hear this. And if you are ready to stop winging it and guessing, guesswork is not good for investing. If you want to learn how to become a confident investor. To learn how to invest properly, check out our investing readiness scorecard with the links in the description. It will help you determine whether you're really ready to start investing on what you need to do before you even start thinking about investing to reduce the chances of you losing money. And until then, see you soon. Bye Bye.