How to Retire Early: NHS Pension|Self-Invested Personal Pension | ISA

36% of medics, the doctors, 36% are in debt, 55% don't have an emergency fund. 67% are unsure if they will have a comfortable retirement.

Over years we pay say around 300, 400,000. How many years do I live after the age of pension? 65. To get benefit, to get back all the money I pay.

Most of us, we come in during our 30s or early 40s, something. At this situation, you are married, you have a family, the first thing you discover that.

But the value of itself is dropping because of what we call inflation. You know about inflation?

I. I don't know what will be the prices of the houses by then.

It's not going that higher. Now if you are closer to 40, you need to listen to this one. You need to lean in and listen to this one. Lifetime ISA is a special account he can open between 18 years and 39 years. You have a lifetime, Isaac. Any money you save in that lifetime ISA, the government is going to give you 25%. If you have already bought your first house, you can only use an isa, a lifetime ISA for saving towards your retirement, To publish them on YouTube. So if you've got questions, you can continue your questions there.

But thank you all for your time. I am Gaif Kasus, I am a cardiothoracic registrar in Edinburgh and I am one of the founders of Jordanian Doctors association in the UK and also I am the cardiothoracic trust appointed doctors trustee in the Society of Cardiothoracic Surgery in the UK and Ireland. So I would like today to it's my pleasure to introduce Dr. Andy, Andy Egwam. He is the founder of Moneywise Doctor which is a platform empowering medics to take control of their finances and build a secure future. Dr. Andy is a former Seller GP investor and he brings over two decades of investing experience and specializes in guiding healthcare professionals, particularly those who's in nhs, toward financial stability. Only in last year he published more than 100 articles and he created more than 300 videos and he did more than 50 podcasts and he spoke in more than 10 live events. He is a really expert and very kind gentleman who agreed to participate with us for free. He was very kind to accept our invitation and to attend for free to help us to understand the financial situation in the uk, which is very complicated, a bit for many of us and I hope that today at the end of this webinar, we will have little bit more clear understanding to our financial position in the UK and how we can invest correctly. So Please join me in giving one.

Thank you so much. I really appreciate that. That's a very generous welcome. I'm really pleased to be here. Like you guys, a lot of IMGs are here. I also came to the UK as an IMG. When I came as an IMG, to be fair, I was not new to investing, but I was new to the UK system. I had to learn everything. And UK system, like, you know, everything is complex, everything is complicated. So many things are not straightforward. I mean, they will be straightforward with the right information, but it's not. It doesn't hit you in the face. Like, you hear about isa, you hear about the sip, you hear about should I keep NHS pension or not with much good advice or should I use how should I start investing? These are all different issues. So what I've decided and chatting with Mr. Garrett here, is that rather than me just give you a presentation, just talk about different things. It's going to be a Q A. Okay. Unfortunately, my. The member of my team that usually moderates this session, she's writing Life in the UK today. She's a. She's a GP and she's an IMG as well. So she's writing Life in the uk, so she's not here to moderate. But I think we're going to be fine. The doctor's here. What we're going to do is that if you have a question, if you raise your hands, I'm sure there must be a function to raise hands so that if you look at the bottom of the screen, you see a hand raised. So if you raise your hand, there will be a cue and what we'll do is that I'm going to ask Mr. Gate to call people in order of how their hands are raised, then we'll ask the questions. What sort of question can you ask? I can't. I can't. I'm not an expert in politics. I can answer any question on politics or your relationship, but if it's about finance. So I'm financial advisor, I've been an investor and I've been in the uk actually, I've actually been publishing these articles for more than a year, but also before then, I've had doctors, colleagues asking me questions about finance for. I would say for the. For my whole professional life. I tried investing at 19 years while I was in Guinea. So if you've got any question on finance, whether it's NHS pension or SIP or mortgage, or how to automatically save money or investing safely, or. Some of you are very interested in ethical investing, some People are looking for halal investment. I think that's how I started talking with Mr. Gates in the first place. And sometimes it's difficult to find. So these are all areas that we can touch on. Obviously we already agreed that Ahmed will go first because he was in the last seminar. He had questions to ask, but he didn't get the chance to ask them. So if you have a question, it's better you raise your hands now because what happens is that towards the end, so many people have questions to ask. But we've got like an hour and a half and then I have another session with doctors in North East Scotland. It's not so far from New Gates, but it's very far from me. So I couldn't go there in person. All the speakers are there in person, but I'm not flying from Cornwall to, to not Scotland. All right, is that, does that seem fair?

Yes. Yeah.

Right, lovely. Okay. All right. And of course, if you, if you feel like it, if you put on your camera, that would be great. At least I can see, see your face and know whether you're understand. We are discussing. All right. Okay. So Ahmed, do you want to go first?

Yeah, thank you, Andy. So I think it's, it's not a specific question for me. I think it's like a common thing that face every. IMG Dr. First time come to UK. So first. So most of us, we come in during our 30s or early 40s something. And most at this situation, you are married, you have a family.

Yes.

And once you settle down, you start. The first thing, you discover that you don't get enough, I would say enough salary. It's just the first thing is just the salary. It might be barely enough to support just your day to day needs. And you discover that the NHS pension is asking you to cut about 12% of your. In order to put that. I mean for the future.

Yes.

I tried that twice and I quit twice because I couldn't beat it. This is because of. I need after five years.

Yes.

To just have enough money for application for the ILR.

Yes.

Which is now about 2, 700 per person, almost 3,000.

Okay. It's a lot.

So that means for application of ILR is not only only me, it's me, my family and that at least we require £12,000. And one year later, again, I think average, I'm not sure, 600 or £1,000 for, for getting the British passport. That means collectively everything should go for £15,000. Okay.

Yeah.

And then after you finish this, you discover that you Again at level zero because you don't have enough money for getting a permanent home. You, You. You buy a home for yourself and your family and then how, how so you need to start the whole thing again. I mean just saving money in order to. In few years time to get the enough money just to start buying your first home. And I think this is. I'm not sure but playing this game in such way, I mean is hectic and it's wasting of time because you know like for every step in your life you need just to work for.

For.

I mean cutting or trying to save some few hundreds of your. If there is any remaining of your salary in order to just meet specific requirement or specific. To solve a specific issue in your life after a few years time. That's. That's a lot. For example, if. So if I manage to collect that 15,000. 15,000 GP for. For myself, for my family. So wife and two children.

Yeah.

That means I need to. I don't know what will be the prices of the houses by then. Probably I need to wait for few more years, maybe seven years more or something. Collect again another. The initial installment for buying a house.

Okay.

And after that I'm not. During all that process, I'm not financially secured even. You know, like I. I didn't do anything for my family for you.

Sorry.

I didn't do anything for my pension and do anything for. I don't do anything for being financially independent even.

Right.

So I'm not sure but I feel that this is. The monetary system here is so tight. Is, is they are just not giving you like enough space in order to just try to secure yourself or your family. I actually I tried as I mentioned twice to opt in. In the pension two times but I couldn't manage actually. How is. Especially actually, you know, like you have other things you need to attend courses you need to prepare for examination exams you need. All these things are very expensive as well, you know, like. Plus even the. Every doctor knows that the. All the subscriptions, the. To the GMC to the Royal College.

To the S case.

All this kind of hassle actually. So I'm not sure how did you manage to play that game or just to find the. The correct equation.

Yeah.

In order to save time.

Yeah.

To play it in the right way. So this is my thing, I believe, I hope that. Sorry if I took so much time, but I think each immigrant doctor who is with me here in this group.

I think so I think you're voicing the frustration of doctors. I mean not only Doctors, not only IMG doctors, a lot of UK doctors also are struggling. But IMG doctors in particular are struggling more. Not just because of, there's some, there is inflation. So the value of the money are being paid is going, it's not going that higher, but the value of itself is dropping because of what we call inflation. You know about inflation?

Yeah, yeah.

Obviously what you bought last year is less. I mean it's costing more now. Now there is fiscal drag which I explained in my video after the budget, the recent budget, which means that even when they pay you more, let's say you become a consultant gate and they pay you more, but you are being dragged into a higher tax band so that more of your money is going into that. This is in addition to everything else you've said. Like we all have family, friends, relatives you're supporting. You didn't even mention supporting family abroad. We call it black tax. So this, these are the pressures that IMG doctors face in addition to other pressures. Now I'm not claiming that I have the solution to everything, but I can share what I've done. I can share what has worked for some people. The game here is to find, where can I find an opportunity, where can I find advantages? Am I taking advantage of every possible route? For me, that's the first place to start before we gonna start looking at making extra money. Now just to echo what you've said in our money wise doctor survey, that's been done by over 500 doctors now, 20, 24 survey, 36% of medics, the doctors, 36% are in depth. So this is not mortgage debt. Look, I'm not talking about new people in the uk. I'm talking about senior consultants. Some of them have been in the UK for, I know because I talk to them. I've had, I have one on one sessions, I have a mastermind group, have a community group. I say this guy is a consultant. Over 100,000 is in debt. Okay, that's 6%. Now look at the other figure, 55% don't have an emergency fund, just like you mentioned. You know, an emergency fund is money you save. I usually say save up to three to six months worth of your living expenses. And you have to, I say you don't have to do anything I say here, but I feel like it's a good plan. I usually say don't invest any money till you have your emergency fund. My experience, I've seen many market crashes that people who don't have emergency fund, they sell their investment during the market Crash or when things are tight or where maybe somebody fell ill. So emergency fund. 55% don't have an emergency fund. 67% are unsure if they will have a comfortable retirement. So Ahmed, you're not in the minority here. I think actually you're in the majority. 67% not even sure about the NHS pension, even though I've made videos, one of our most visited videos about NHS pension. Should I opt out or should I stay in? I don't have any transperson because I don't work as a salary doctor. Right? So if I were like you, at least I have that option. But because I don't have a job where I show up every day, so I don't have an HS patient. NHS pension is fantastic and it's great, but I'm sure you're thinking about eating today as against tomorrow because you need to have money for today. Now, again, just this last data, 73% of doctors, medics feel behind financially when compared to their peers. Thank you, Amak, I really appreciate that. So 73 of doctors medics feel behind. So I feel your pain. I understand we've been very fortunate, right? But I feel like there are ways to approach this thing. If you find yourself in a situation that is not ideal, we could either say, look, it's really hard. What can we do? Okay, you might get out of it. Okay, thank you, Anthony. You could get out of the situation. I have people who call me from Canada, right? I've had like JP's, they moved to Canada, then they realized the problem. From Canada. I have calls booked in with people from British Columbia and I have called, booked in with somebody from Saskatchewan. Why? Because they reach there, they face new problems. There's no NHS pension, state pension. They are making more money, but now they don't know how, how to invest, they don't know how to manage money. And they are trying to learn emergency plan, financial protection and all that. So basically you can say, I'm going to get out of the situation. You can say, well, I'm just going to stay and just get boiled like a frog. You know how frogs get boiled? You just put in the water, I don't eat frog, but basically just start boiling, boiling. They don't know when it gets too hot. Or number three, which is the plan. We usually suggest you make a plan. How am I going to make a realistic plan to manage this situation? Okay, now let's look at what you've described. You've got ILR money to pay. If you want to pay for ILR it is humongous. When I paid for my ilr, I was so sick of being on tier two because I've done a master. So I was now on tier, tier two. From tier four to tier two I had to pay like was it 3,000, £3,300 on that day just to get the same day. But I know the price has gone up now. So imagine I had a friend who we did our masters together to pay for his Tier 2 visa alone, he had to go and borrow a bank loan at very exploitative interest rates. And this was five years ago. So I'm just trying to tell you that none of what you said is totally, absolutely new. But what we are proposing is basically having a plan around it. Okay? Now when you come into the uk obviously you have five years now, but when someone comes in newly most time you are dealing with so many things, getting used to the nhs just figuring out your way around that you are not seeing five years time. Then in five years they're going to need ilr. You're thinking of how can I do this, do this, do that. So most times, so that's usually the time to start planning. It's very difficult. Okay, now here are a few things I'll suggest. Let's go down to practical steps that I can suggest. What's your job? What do you do?

I'm cardiothoracic actually. I like grief as well.

Oh, excellent. We have a lot of CTSU doctors here.

So I'm in the middle grade. You know the, the, the salary is.

Modest actually, so that's, that's one way to say modest. Okay, thank you, thank you for that. So let's say your job is ctsu. I'm going to take a guess and say that Your annual salary NHS salaries are public anyway. 70 Is this 75 or, or that or less than that depending on what level you're working on.

45, 46 something around that.

Okay, so let's have to ask the band.

It will be 60 something.

Okay. Dr. Reynolds says 70 almost. I think 70 should we use 70 as a middle ground? Because we are at different levels obviously in the training. So what I'm gonna do so that we can all get very practical because I don't want us to hang in the air. I'm going to share the NHS salary calculator. I don't know how many of you have seen the NHS salary calculator.

Yes.

Here's something quick and useful.

If you ever wonder what your actual.

Take home pay is after taxes, ni, pension deductions, or you just not sure how paying more into your pension will affect your take home pay. Our free NHS salary calculator will give you a clear instant breakdown. It's perfect for planning your finances, checking deductions or even squatting overpayments and helping you determine how any changes in your pension contributions can affect your take home pay. You want to make sure you're taking.

Enough home now it's easy to use.

And install it for NHS professionals like you. You can try it now for free on NHSSsalarycalculator.com so it's NHSSsalarycalculator dot com the link is in the description. Now let's dive right back into the episode.

Okay, so that's the NHSalancy calculator.com is a totally free website. We developed this website because people asked a lot of questions. They didn't know how to work out how much they can increase whatever to affect their take home. So it's a free website. NHSR calculator.com let's look at NHSRI calculator. Now let's say 70,000 is your take home pay. Okay. So your GROSS Income is 70,000. Can everyone see the calculator? Yes. Thank you. So your gross income is 70,000. Say you do a local surgeons mostly do some luke control or you don't.

Not always.

Not always. Okay, but. But in a whole year, let's say you did look who that is just like 20,000. Is that possible? Yes, for the whole year. Okay, so I'll say 20,000. Thank you for the response. So I'm back to the calculator. Let's say all the extra money made in a year, 20,000. So what this means that okay, let's say every month maybe you made like 1,005 or 2,000 in locum extra money. This is before tax. Okay. Okay, so NHS pension is here already. You can see it's already there. You can either leave it or you can add it. So for now the NHS pension is there, let's say additional pension contribution. You didn't contribute any money to pension extra. You just normal NHS pension. I'm assuming you don't have a student loan? No. Okay, excellent. So now let's continue tax relief contribution. This is a different story. I'm going to share to you how to get this. But let's call it zero for now. And of course we check the tax here. We are looking at 20, 24, 2025 tax here. Lovely. So if you key in all these details, what is coming up for you is that Your take home income is 57908 per year. So that's based on an income gross income of 70,000 plus 20,000. So a plan is beginning to form. Yeah, at least you can't, you can't really make a plan without really knowing. Just like a surgeon, you want a chest X ray, sometimes you want a CT scan, you want to see what's going on before you even make a plan. I know, like I'm not, I'm not a surgeon, but I know surgeons usually want to see what is going on before they dive in there. Except the exploratory. Okay, so now we've got a picture from in here we already see 57, 908. Monthly income 4800. Now obviously you can see your taxi if you have a personal allowance of 12, 570 pounds. Okay, obviously if I say anything you don't understand, type it in the chat, get to pick it up. Between ourselves we'll answer the question. Okay. Now every year the government allows you to end 12, 570 pounds tax free, no tax on it. My first year in the UK as a master student, that was me, I didn't end up to that amount in the whole year. So that's tax free. No doctor ends below that. Okay, so now. But then it goes ahead to calculate other things. There's a pension deduction for your NHS pension is taking 8,750, it's automatically keyed in. So your taxable income is 68, 680. Your income tax, what you are paying to the HMRC and I, I refer to them as the owners of the land is almost £20,000. Okay. And your national insurance, obviously the deduct is 3410. So your net income, we already, we already understand this part so far. Do we understand this part so far? Excellent, Dr. Ahmed. Now let's go back and do something. Let's remove the NHS pension. I'll put it back. Look at this number 57,908. Your monthly income is what, 4800, 4825.67. Now look at what happens. Let's keep your eye on the take home income when I remove the NHS pension. So if I remove the NHS pension, your take home pay goes up to 63, 158. And your monthly income goes up to 4263. The only problem is that is that there's now more of your money getting into tax that could be taxed because the NHS pension is pre tax. The money goes out like salary sacrifice, NHS pension, any pension is pre tax, obviously. Now if you go back and look at what will happen to your tax Now I'm putting back the NHS pension again. That's the tick I've ticked here. Look at what you are paying in taxes. Your taxable income here is 68, 000. That's the amount of your income that can be taxed out of the 90, 000. Okay? Now your income tax is 19,932. But once we remove the NHS pension, I want you to look at the income tax. Lovely, thank you. So your income tax goes from 19 to 23,000. Now your taxable income goes up. Why? Because more of your money has been pushed into taxable region. Okay. Now obviously if you need, if you need to take money home, you need money. Yeah, you need money, basically. What can you do about that? As long as you understand that it's placing you at a disadvantage in that you are already paying more tax. And this becomes more important for those of you that are consultants. Let's say you're a consultant. Let's say you're making, I don't know what consultant surgeons make because you all make different things. I've talked to so many. The last one I talked to a neurosurgeon. His income is much, much different than other people. But let's say you're making like let's say 105, 000 as a consultant. Okay, just watch what happens on this calculator. Let's bring it down to first of all, starting with 90, 90 000. Okay, so you're making 90000 and that's your income. If you watch this area, I hope you can see my cursor on the right side, you will see that you have your personal allowance. This 12, 570 is there. Okay, now look at what happens where your this income goes up to 105, 000. So in addition to the 20,000, this consultant is now making 125,000. What happens is that they start to lose. You see the box pops up here. Your personal tax allowance starts reducing. In this scenario, the personal tax allowance has gone from 12, 570-6632. So but in this case the consultant is still paying NHS pension. Now watch what happens if we remove the NHS pension. The personal allowance goes down to 70 pounds. What that means is that they have to pay more tax. Basically, you can see what happens. You see that there, obviously their personal allowance goes to £70 and now their taxable income is 124,000. Do you understand? So the more of your money that comes out, especially your paye, the more of your money that comes out after tax, the more tax you're paying. So if you're able to put some of your money aside, is a more cost effective way of saving for pension. Okay. Why I said that is that I appreciate the fact that obviously you need more money to take home, but I'm just trying to explain to you the cost of not being in that NHS pension. It is a bit costly, I would say, because you are paying more in taxes. Okay, but we'll come back to this calculator. But I'll just tell you a little bit more about the NHS pension. And I'm telling you from the point of somebody who is not even in the NHS pension to start it because to be nice to have, but you know, I don't want a job. So NHS pension I will share, I think I did a video on it. But basically the NHS pension has some other benefits as well, other than just the tax benefits. And saving for the future is a salary for life. Once you retire is a sign for life. It doesn't matter if the stock market crashes or it goes up or down. As long as the government is still alive and the NHS pension is still there, you are entitled to a salary for life. That is one of the benefits of the NHS pension. Okay, so now that is not even all. So there are other things like your disability benefits. Okay, There are sick benefits in the NHS pension. For instance, if someone were to work in the NHS and they unfortunately became ill, then they're going to get some payment from the nhs, from the NHS pension. So if you cannot work for a long time due to disability or permanent injury, the NHS patient can provide you enhanced benefits for ill health. There's debt in service, lump sum benefit. I'm just going to share the article. When you guys have a minute, you can read it and if somebody wants, they can get the video from my YouTube channel and share it. So all this I've said is just to demonstrate why the energy expansion is not the first thing I'll cut. If I'm going to cut expenses, I'll look at other things. It's not the first in our court because it's free money that 14 you are putting in, your employer has to match it, right? You are Putting in, sorry, 12.5% your employer has to contribute. Did you know that? That when you contribute money, your NHS pension, your employer has to also contribute. So if you opt out of the NHS pension, you are indirectly taking a pay cut. The money they are paying you is not enough. It's not all the money you're supposed to be getting, there's an additional one they're supposed to pay. They're supposed to pay you now and pay into your future. That's the NHS pension for you. So when you contribute, the employer is supposed to contribute. Like if you opt out of the NHS pension, employer. Okay. They don't have to pay anything. So having said that, I would say even after saying all that, some people might still have a good reason to opt out of the NHS pension. But at least it's important to really think about it because I rather think of what else can I cut that. Okay. If I cut down something else other than the NHS patient, it might be a better option for me. Okay, now that is just to answer the beginning of your question because I feel like if your question is many people's questions, so if I answer that then maybe some people's question will be answered. The second thing is saving. How can you save any money? It's very difficult. The economy is quite stretched. You have a lot of responsibilities. You live in Wales. I have some people in the money wise doctor community that live in London. Some of them that attended my last master class. They're also doctors and London is very expensive. Okay, so basically. Oh yeah, thank you, Mary Jane. I've seen a few people here from my mastermind. Thank you so much for sharing that video. Some of these guys, yeah, they've attended some of our master classes on investing and all that. So yeah, so have a look at that videos in your own time or don't worry, you might find a way to share it anyway, even after we are done. Maybe Gate will share all those videos. So don't worry too much about it. Right? So saving money, there's not too much you can do about it. You can only save from what you have if you earn 70,000. My driver, so when I was doing out of hours, my driver, they hear that somebody is earning 70,000, they think you are a multi millionaire. They're like, this is crazy, this is unbelievable. I mean, someone else ends 40,000. Obviously my first salary in the UK when I said working as a doctor was 36,000, but that was a while ago. So basically what you earn is what you earn. You can either increase the income or reduce the expenses. These are the it. Now, reducing expenses may be difficult if you have a family. Now, if you go back to the aspect of saving, basically it boils down to. Is there a way to systematize your saving in such a way that, well, it's a first saving. What worked for me, and I'm not saying it's going to work for everybody, is that I set up a direct debit before my money hits my. As my money is hitting my account, the direct debit is going out. And for doctors, I usually say 15 to 20%. 15 to 20% of what you earn instead of a direct debit, you will find out, it will surprise you that somehow you'll be able to manage. Now, not everybody should do this, but maybe give it a try for a month or two. Now if you set up at least, okay, if 15 is too high, maybe start with 10. Basically from what we did, from the calculation we did, for those of you who saw that calculation, it was showing that you can take 4800 home. Let's assume, let's say best case scenario is 5000. It might be less for some people here. Again, remember, everybody's at different levels. So 10% of that is 500. If you set up a direct debit every month, 500 goes out and it's going into a separate account. That account is only for two things. It's for saving and it's for investing, is nothing else. Obviously if you have other needs, like if you have a debt that you need to pay, then that account is for paying off your debt first, then saving and investing. If you are saving for ILR in the future, that account is for saving for your ilr. And then when you pay, your ILR is for investing. If you can save more, that would be great. But if you can't save more, that is fine. That's why I usually say don't try to save money at the end. There's absolute someone like me. I've got like my business commitments, I've got family, I've got friends, I've got like, I've got like charities, I sponsor organization. So if I dare to save money at the end, there will be absolutely nothing left. So what do I do? I set up an automatic saving. Yeah, I like that. So you pay a tight to yourself or Zakat, you pay something for yourself. Have, have messiah yourself, put some money aside. 10 is not that much. 10, 20. And save for yourself before you start spending. And don't try to be disciplined about it. Discipline is going to fail. Use systems, you set it up. There's a direct debit and is in place before you even start doing anything. So you pay yourself first. Anthony, thank you. Right okay, so this is it. If there's anything you're going to take away from here, Ahmed, is that government is not going to come and save us. The NHS special is not going to come and save us. God. God will help. I know many of us are believing God, but he also just give us the idea sometimes, maybe that. Okay, you expose it to the information. Okay, now. But the next action is having a plan and a system. And for me, what I found useful is certain of a directive. I'll tell you, there's one direct debate to set up. When I got married, my wife joined me in the uk. Then I was a ST one in Cornwall. I was about to buy my first house. Doesn't you know, there was money. We did our wedding and I don't know what I don't know about you, I don't know what Jordanian weddings cost, but Nigerian weddings are a big party. We spent quite a bit of money in it, so. But what we did when she arrived, we set up direct debit, is paying a few hundred into an account. Now, that account was an account we call HELP to Buy isa. And I'm going to come to you guys about ISA in a minute. Help to Buy isa. So worry about isa. We are going to break ISA down. But I just want you to understand that we're sending this money to that account. And it seemed like nothing, £200 per month, £100. But where you're not expecting it, that money is accumulated. It's become something. Okay, it's better than zero, even if it's not hundred thousand, but it's better than zero. And that is usually like somewhere to start where many people make a mistake is that they stop there. You can't stop there. After you've done the basic thing, the next thing is you need to start investing. Because inflation, fiscal drag, there are so many things dragging down the value of the money. And if you just put it in the bank, you might as well put your money under a pillow for tamas to eat it, if there are tamas around you. Because the inflation is going up and at the same time, the value of your money is staying the same. It's not going higher. The only thing I want to point out is that you shouldn't invest all the money. There's something we said at the beginning, three to six months worth of your living expenses, which is called what Emergency. Thank you so much. Thank you. Thank you, Ahmed. And thank you the clay. So your emergency fund, three to six months is not for investing. I. I get shocked sometimes. When people say, again, I've seen doctors in private practice, they, they earn quite a bit of money, they're working in Harley street and then they are investing. And then they say to me, I had a million pound house, I had this harder, but I didn't have savings. So when this happened, I was suddenly in debt. I'm like, no, no, you need to have the right principles. First of all, if you see a patient you want to take for surgery, what do you do? First, you resuscitate before you even dive in. But basically you've got to resuscitate the patient so you don't dive and invest. You first of all set up an emergency fund, have a good savings habit. Good. And now the next step will be, okay, then I can start investing. And when I say investing, I don't mean, oh, my brother, my cousin came up with one scheme where they're going to put my money in many crypto. No, I'm talking about sound, solid, low risk or very reasonable investment, which is a different topic, but we can touch on as well. Going to pause here now, Ahmed, because I'm looking at your face. I'm not sure if I'm beginning to move too quickly. I'm going to pause here now and I ask you to ask one more question before we move on to the next question. If there was something that wasn't clear.

No, actually, Andy, I think you are. At least you give the direct message that you should pay yourself first before others start paying you. That means whatever happened, whatever you, whatever the salary that you are getting, so try to cut part of it. Yes, that's, that's very nice. And actually, I think every one of us is the salary that you are getting, so try to cut part of it. Yes, that's, that's very nice. And actually, I think every one of us is just adopting the same strategy. But again, it's like, you know, like, on the other hand, if you are going to pay yourself and you are, for example, having all these commitments, family life, all this kind, I think it would be difficult even if you are inside the NHS pension. Thank you for everything that you have explained about the NHS pension. But, you know, like, I think NHS pension plus 10, 10 more percent of the salary, I think that would be a lot. So there's nothing left.

Okay, okay, I, I understand where you're coming from, Ahmed, but let me say this. We all have like, family, extended family with support, extra expenses and all that. But let me ask you this. Will you take your mortgage or your rent and Give to them if you didn't have mortgage or rent, no one can do that. No, you can't because you are a sensible person and you have a plan. That is because you want to pay the bank first, you are paying the your landlord first.

Okay, now let's just adapting the same strategy, but again it's like, you know, like on the other hand, if you are going to pay yourself and you.

Are, for example, you have car payment. Okay, I don't know if you have company. When I left my salary job, I got rid of car payment. I decided if I want to buy a car it's got to be cash or not because I didn't want to be forced to have to go back to work. But let's say you have a car payment or something you're paying and if you didn't have the money to the last one you had, will you take the car payment money and give to someone? Maybe or use to spend on something else without paying.

The example, having all these commitments, family life, all this kind.

I think it would be payment.

No, I don't think so.

Unless you don't want the car anymore. If you like a scooter.

I can get actually the idea that this strong mindset of just. You need to just make sure to save this amount of money regardless.

No boss, no there is a family. You don't. A strong mind will fail because there's too much pressure. It's difficult. It's not the strong mind, it's system. If you set up the system is automated. Like the direct debit for your car will go out. Even if you have a strong mind or not, the direct debit for your mortgage is going to go out. Strong man or not. If you have a direct debit going into your savings account for saving, it's going to go out. You don't even need any discipline. In fact all you need to do if you save, if you set it up and it's better if it's going to an account that you difficult even.

If you are inside the NHS pension.

Thank you for you don't touch, you don't see often. Okay, so this will give you better financial health. It may not feel comfortable at the beginning, but what's going to happen, for example will be okay, let's say you get like 5,000 and okay, then 500 goes out, you end up with four or five. Obviously your mortgage goes out, then your car payment goes out. Obviously you've got to eat because you can't, you can't play with food, whatever is left there, you start making the type of decisions that it's going to be like, okay, do we really need to be. I've been a member of this gym. I've not gone in the last like 12 months. Guys, I'm talking to myself here. I've not gone for the last 12 months. Do I need to keep going? Because I'm already running outside anyway, so what's the point? Can I cancel this? Okay, I really love this. Nice watch. I've been looking at Rolexes, but, you know, here's the situation, man. I paid my rent, I paid myself.

Like, can I afford for everything that you have explained about the NHS pension, but you know, like, I think NHS pension plus 10, 10 more percent of the salary.

I can still buy it, but maybe later in the future because right now I haven't got the money for that. I want to buy a bigger car. But this is. It doesn't mean you're not going to enjoy your life, but it could even lead you to start thinking of where can I save money? And let me give you an example. Tax relief. It shocks me. It shocks me. Recently I had a meeting, I think I shared the testimonial with Gate here. So we have something called a wall of love, where doctors go to share. Oh, thank you moneywise doctor for helping me and all this kind of. Okay, okay, I. I understand where you're coming from, Ahmed, but let me see. It helps us feel better about ourselves and makes us think it's not a waste of time. But basically, okay, I'll share it. In the group, there was somebody, a very nice doctor, she was born in the uk, very smart. And first of all, she was talking to me about ethical investing. She didn't want to invest in something that was not allowed because she's Muslim. But she's also very. She's also felt she was overpaying taxes. Right? He has a thin house. But I was an accountant, but obviously was interested in maybe big million dollar accountants, accounting deals. But she was here for 15 years as a doctor. And then I say this, we all have like family, extended family, we support extra expenses and all that. But let me ask you this. Will you take your mortgage or your rent and give to them if you didn't have mortgage or rent?

No one can do that.

No, you can't, because you are a sensible person and you have a plan. That is because you want to pay the bank first, you are paying the. Your landlord first. Okay? Now, lectures hadn't claimed her tax relief. So when I walked it out in my head I was thinking, oh, this could be more than £40,000. Obviously you don't cry over spilled milk. Anything that has passed has passed. But many doctors have not even claimed work related tax relief. So did you know that say you have car payment. Okay, I don't know if you have company. When I left my salary job, I got rid of car payment. I decided if I want to buy a car it's got to be cash or not because I didn't want to be forced to have to go back to work. But let's say you have a car payment or something you're paying and if you didn't have the money to the last one you had, will you take the car payment money and give to someone maybe or use to spend on something else without paying the car payment?

No, I don't think so.

Unless you don't want the car anymore. If you like a scooter.

I can get actually the idea that this strong mindset of just, you need to just make sure to save this amount of money regardless.

No, boss, no, no, no, no, Mr. Farming, you don't, don't. A strong mind will fail because there's too much pressure. It's difficult. It's not the strong mind, it's system. If you set up the system is automated like the direct debit for your car will go out. Even if you have a strong mind or not, the direct debit for your mortgage is going to go out strong man or not. If you have a direct debit going into your savings account for saving, it's going to go out. You don't even need any discipline. In fact all you need to do if you save, if you set it up and it's better if it's going to an account that you, you don't touch, you don't see often. Okay, so this will give you better financial health. It may not feel comfortable at the beginning, but what's going to happen, for example, will be okay, let's say you get like 5,000 and okay, then 500 goes out, you end up with four, five. Obviously your mortgage goes out. Then your car payment goes out. Obviously you've got to eat because you can't, you can't play with food. Whatever is left there, you start making the type of decisions that it's going to be like, okay, do we really need to be. I've been a member of this gym. I've not gone in the last like 12 months. Guys, I'm talking to myself here. I've not gone for the last 12 months. Do I need to keep going? Because I'm already running outside anyway, so what's the point? Can I cancel this? Okay. I really love this nice watch. I've been looking at Rolexes but you know, here's the situation, man. I paid my rent, I paid myself, like, can I afford this Rolex? I can still buy it, but maybe later in the future because right now I haven't got the money for that. I want to buy a bigger car, but this is. It doesn't mean you're not going to enjoy your life, but it could even lead you to start thinking of where can I save money? And let me give you an example. Tax relief. It shocks me, it shocks me. Recently I had a meeting, I think I shared the testimonial with GATE here. So we have something called the wall of love where doctors go to share. Oh, thank you money wise doctor for helping me and all those kind of things. It helps us feel better about ourselves and makes us think it's not a waste of time. But basically, okay, I'll share it. In the group there was somebody, a very nice doctor. She was born in the uk, very smart and first of all she was talking to me about ethical investing. She didn't want to invest in. I was not allowed because she's Muslim. But she's also very. She's also felt she was overpaying taxes. Right. Here's the thing. Her husband was an accountant, but obviously was interested in maybe when you pay gmc, like you mentioned gmc, you mentioned md, there's mdu. You are paying for exams, you're paying so many things, you are entitled to claim back that money as tax relief obviously so that, that will reduce your taxes. Now you know that, but many people don't know that. In fact, until last year or early decision we did videos about it. Then we had like downloadable book and so many people are like surprised. Obviously HMRC has changed the system now so you need a paper copy to do it. But even if you find yourself in a situation where you pay yourself first and you're struggling, you might now start thinking, oh, where is my money? What can I do to get some money back? Can I do some surveys? There's medical surveys for doctors. Did you know about that? Did you know there were paid surveys that you can stay in your house and do and you get paid?

No, that's new for me. I don't know that.

Good. So what I'm going to do, I'm going to share them in the comments for you and Also I'm going to share it as well with Gates. So there's survey, you can actually do one of them. I think we partnered with them. So basically if you said doctor, you do a survey, sometimes the survey might be for your specialty, other times it might not be for your specialty, but you do a survey, they pay you money for the survey. And this is not something I heard about, it's something I've actually used for a while now to make money. It's not going to make you money to buy a Mercedes. It's not going to make you enough money. I've posted it right in the comment section. Anyone that is interested is the second one Semo. You can click on it, go have a look. This is just one of them. There are quite a few of them. So this is you now beginning to think, how can I make some extra money? Maybe might be an extra £50 or £100 just to allow me to be able to, you know, meet up my bills. And that way you have a clear plan, you're working towards something. You're no longer just waiting and hoping that things will go all right, but you're making some efforts. And some of that effort in some cases for some people might be I need to do one extra locum shift to be able to meet up my bill. Because you've got to be realistic. Sometimes I mean, oh, I just need to do one extra location. Some people might be like, okay, I don't need to do an extra local shift but I just, I need to find a different way actually to get some income. Okay, so I've posted two separate websites here. Now I've shared this with my newsletter yesterday. For those of you that read my newsletter, moneywisedoctor.com subscribe I share these two links for those who are interested to go and sign up and obviously use it to try to do surveys in your spare time. So basically what you are doing is how can I increase my income and reduce my expenses? There are many other ways one can think about increasing income. Obviously for someone like me, I had a business when I was, when I was in med school I had a business as a registrar. I had an e commerce shop and then I have obviously money wise doctor now and I've had a real estate investment. But basically what I'm trying to say is that you don't necessarily have to start a new business to be able to improve your finances as a doctor because as a registrar you're already very busy. So you're already busy even if you're not in direct CCT training, but you are very busy, obviously. So if you can do what you can with what you already have, that can go a long way. I think it might be time to ask, to allow for someone to ask a question. But I just want to mention this final point where you save the money matters. The money you are saving, where it is matters. Emergency fund is saved in a cash account that you can easily access. It's not saved in stocks, it's not saved in crypto, not saved in your brother's business. So it's in a cash account that you can assess for emergency. And emergency is not like, oh, somebody wants to borrow money. That's not an emergency emergency. Maybe your boiler goes off and you've got kids in the house, you need to fix them or your tire goes. Or maybe. Unfortunately, I've had doctors who had to go out of work because they had a nasty accident. Some people just developed eye problems. So that's. The emergency fund is for emergencies. It's not for every other thing. Okay. All right, so I'm going to pause here now and say save it in the cash account. And for. For. I. I believe that we have two groups here. If you put it in a cash isa, you're going to get interest in the uk, wherever you put in your money, there's interest in the bank, you put in a savings account. And I understand that for some of our colleagues here, who obviously is not allowed interest. So basically, what is important to note is that if it's in a cash isa, there's no tax on the interest. You don't need to declare the tax. You don't need to declare the interest. And that's just something to mention. All right, I'll post here now. And I see. I see that there's quite a few hands raised. And I'll say gate. You can call the next person.

So we have a question from Kirill.

Please go ahead. Please go. Hi. Hi.

Actually, I have a few questions. First, in terms of the pension benefit, over years, we pay say around 300, 400,000. How many years do I live after the age of pension? 65. To get benefit to get back all the money I paid.

Does it.

A question in different way.

If.

It'S helpful for people who lives for 90, 80s and more. If someone died or died at the age of 65, any benefit I will get from the pension.

Powerful question. Okay.

It is one question. The other question I would like to ask about is the ISIS and tax free and the bank accounts and the, the tax on it.

Lovely. Should we answer the first one, then we'll go to the next one. Thank you so much. That is a big question. That's a key question and most people think about it. It's just a shame you can't see my face. You see that I'm animated about these topics. All right, so basically, how long do you have to live after you retire? Who knows the answer? Who knows exactly what day or how long they've got to live? Does anyone have the answer here? No. Nobody. I have no idea what I can give you. Data, Obviously, my training in statistics and advanced stat and epidemiology, public health makes me always fall back to data. The average lifespan in the UK in 2020-2022 was 78.6 years for males, 82.6 years for females. Obviously it means that, okay, look, this is the average. But we all know that some people, like, I have a very good friend, childhood friend, sadly, last year, he was a surgeon. He was in London, a surgeon in training in London. He died. He was 36 years old. Fantastic fellow, great chap. Just went to bed, didn't wake up. Okay, now that was a very sad. And he didn't expect it. I never expected. It was a massive shock to me. And that is why I talk about life insurance, I talk about income protection, I talk about having financial protection. Now I know people. I have like a great auntie who is 90, almost 90 now, if she catches me saying she's 90, she's 89, maybe so 89 and night is almost the same to me, but to her, it does make a difference. Now, at 89 years, 90 years, she's lived that long. Her husband passed 20 years ago. Nobody really knows, because the big question, this is why I was worried. With NHS pension gone from 60 years to 65 years, from 65 years to 68 years. Now somebody might say, why am I bothering? I don't know how long I'm going to leave. But the question is, what if you live to 80 and run out of money? That might be a bit more difficult. So if someone gets to the point where they don't live that long, they're able to pass on the pension. You know, previously, before this last budget, on October 30, you could pass on the pension to your family and it will be outside your estate. But now, with the new labor budget, if you watch my video on the budget, part of the reason I was a bit upset is that the pension has now been added. It's been added very soon as part of your estate for inheritance tax. So if your family inherits your pension, they're going to get inheritance tax on it. And some of you know the inheritance tax is 40 here. Yeah. So it's quite a bit of money. So it's a bit of, for the curious is weighing the, the pros and the cons. I'd rather be in a position where I have money and I don't need it than be in a position where I need money and I don't have it. Worst case scenario, if somebody had NHS pension, they retire 68 and then if they unfortunately, and God forbid Unfortunately, die at 70, that means that one, if you die before 75, with the new rule, your family will get all your pension without inheritance tax. If you live beyond 75, then inheritance tax will apply. Which is very strange if you ask me because I'm thinking like, why 75? Are people going to start asking their parents, what's the plan here, man? You're 75 now, I don't want to talk too much about that, but I hope you get the point. Okay, so we don't know how long. But what I will also stress is the value of having plan B. So even if you have NHS pension, my last two seminars, a retiree attended the pension. I said, oh, thank you for everything. You are sharing. I wish somebody told me all this thing. I was just lucky I got a sip. So he had a private pension. He didn't even know what it was. He wasn't even sure why he had. He almost canceled it, but he said that actually helped him in retirement to continue to live to the standard of life that he wanted to live because he had an additional pension, that's a plan B. Okay, that's it. But the decision of whether to stay in the NHS pension or opt out because you don't know how long you live, that is purely a very personal decision.

Do they give a lump sum in, in the event of this for the.

Family, yes, there's a lump sum. So now if the pension, if you took it before, if the person died while still working for the nhs, then they are going to get a lump sum. The family will get what we call debt in service lump sum benefits. So in addition to providing for a retirement, the NHS pension scheme will still offer valuable benefits for a loved one in event of your spouse of your person. So your spouse, your legal spouse or registered civil partner or qualifying partner or independent children, they may be entitled to a tax free lump sum payment which will be done if the person dies while working for the nhs. If you die. Why you're not working for the nhs. You finished, your family can still get a lump sum. Obviously, this will depend on how long you've lived, how much you've taken. And this will be sort of like the sort of like nitty gritty that will now depend on individual circumstances. Okay.

And if I did before the age of pension, they will also get a pension as well. With the lump sum.

Yes, your family will get your lump sum. Okay.

Even if the kids grown above the age of 18 or 18, I think 2 or 20.

Yes. So. So if you die, you've taken everything from your. If you, if you die before, you've taken everything from your pension spots, the value normally will be paid to your beneficiaries. Okay. So if there's still money left because the pension port. Right. The value will be paid to your beneficiaries. Okay. Okay, thank you. Right, so how about ISAs? You have a question on ISAs?

Yeah. What is the best ISA account to be used? And regarding the tax on bank accounts, some bank accounts, they give you taxes like 3, 4, 5 pounds every month. Do I need to calculate at the end, at the year and form the HMRC that I, I got this money or.

I understand your frustration and that is why ISAs are terribly important. I mean, ISIS. Yeah. Let me tell you the truth right now. Now, Everybody in the UK who is above 18 and for some ISA, 16, you're eligible to £20,000 ISA allowance. So you can put money in that, Isaac, and invest the money in the ISA and, Or just save it. And any interest or investment returns you get is tax free. Let me explain that. What this means is that if you take £20,000 and put it into a bank account, your ISA account, let's say stock and shares, isa, and then invest the stock and shares. Invest into stock and shares or bonds or whatever. If you're fortunate, let's say you bought Nvidia or whatever and the 20,000 becomes 30,000. You've made £10,000, what we call capital gains tax. Sorry, You've made capital gains. That's what has happened because the money has gone up from 20 to 30. So 10,000 30 minus 20 is 10,000. You now have to pay capital gains tax to the government because you made money and they own the land. Okay? So capital gains tax. I know, I know there has been a little change recently, but capital gains tax could be anywhere between 20 to 24%. So if you check capital gains tax on stocks in the uk, you see CGT in The uk. Let's see the current one in the uk for shares, if you're a basic rate taxpayer, which I suspect you're not, if you're basically a taxpayer, which means that your income is less than 4,40 for 5,000, 50,000, so you're paying 20, your capital gains tax will be 10%. If you're a higher rate taxpayer, which a lot of us are, if you are like any above 50k, then your capital gains tax is 20%. So that means that if you make money, let's say you buy a house and the value goes up, you sell it, you make any money, extra money you make, you're going to pay 20%. Okay, if it's stocks and shares, but for properties, 24%. Nice. Now if that money was invested through a stock and shares isa, you are free from any capital gains tax. There will be no tax whatsoever on that money because it was, it was invested through a stock and shares isa. This is why one of the big mistakes I made when I came to UK and I I before I learned about stock and shares isa, I started by investing without a stock and shares. I saw and I made some money and I then realized, oh, there's stock and shares isa. But because I made money I have to pay capital against that. So I held on to those shares for many years until four days to the last budget. And for those of you who Follow my newsletter moneywisedoctor.com subscribe you know that that Sunday I sent an email, say this is why I'm selling all my non ISA shares. If you remember, the email was sent on 26th of October. Those of you that got the email is still there. I sold all the shares because I knew that the capital gains tax was about to go up. I susp. I didn't know, I suspected that labor will increase it. Now that could have been avoided if I had invested through a stock and shares isa. Okay, now to answer your question, if you save money in a normal savings account, you're going to make interest, okay? Whether you like it or not. Except you've saved in a special account like if there's an Islamic bank or somewhere that they don't pay interest. But if you save money in a normal high street bank, you're going to make interest, okay? Now the interest varies because the government keeps changing it. But let's just use 5%. Now you're making 5% on the money. So if you save £1,000, Dr. Kilos on top of your £1,000 are going to make £50 interest you don't need to say anything to HMRC at that point. Now if you save up to £10,000, let's say your emergency fund is £10,000 and you are not saving it in a cash ISA, then on 5% you are going to make £500, okay? So once you make that £500, now there's something in this country called the savings allowance. The savings allowance, once you make any money below that savings allowance is tax free. So if it's tax free, that means you don't even need to declare it, okay? Because it's tax free. Now if you cross that allowance, then you need to declare to HMRC so that you can pay tax on it.

How much the tax allowance, Andy?

I thought you were never going to ask me. Don't forget. So the tax allowance is £1,000 if you're a basic rate taxpayer and £500 if a higher rate taxpayer and £0 if you're an additional rate taxpayer. Now if you don't know what type of taxpayer you are, it's not difficult. I have a whole article on this, I'm going to share it. Basically because if you are paying 20% basically taxpayer, if you're paying 40% on some of your income, not all your income, you are a higher rate taxpayer. If you are paying 45% then you are an additional rate taxpayer. Okay? If there's most people, the additional rate taxpayer, people ending above 125k, big million dollar accountants, accounting deals. But she was here for 15 years as a doctor in the NHS, hadn't claimed her tax relief. So when I walked it out in my head I was thinking, oh, this could be more than £40,000. Obviously you don't cry over spilled milk. Anything that has passed has passed. But many doctors have not even claimed work related tax relief. So did you know that when you pay gmc, like you mentioned gmc, you mentioned md, there's mdu, you are paying for exams, you're paying so many things, you are entitled to claim back that money as tax relief, obviously so that that will reduce your taxes. Now you know that, but many people don't know that. In fact, until last year or early this year we did videos about it. Then we had like downloadable book and some people are like surprised. Obviously HMRC has changed the system now, so you need a paper copy to do it. But even if you find yourself in a situation where you pay yourself first and you're struggling, you might now start thinking, oh, where is my money? What can I do to get some money? Back. Can I do some surveys? There's medical service for doctors. Did you know about that? Did you know there were paid surveys that you can stay in your house and do and you get paid?

No, that's new for me. I don't know that.

Good. So what I'm gonna do, I'm going to share them in the comments for you and also I'm going to share it as well with Gates. So there's survey you can actually do. One of them I think would partnered with them. So basically if you said doctor, you do a survey, sometimes the survey might be for your specialty, other times it might not be for your specialty, but you do a survey, they pay you money for the survey. And this is not something I heard about. It's something I've actually used for a while now to make money. It's not going to make you money to buy a Mercedes. It's not going to make you enough money. I've posted it right in the comment section. Anyone that is interested is the second one Semo. You can click on it, go have a look. This is just one of them. There are quite a few of them. So this is you now beginning to think, how can I make some extra money? Maybe might be an extra £50 or £100 just to allow me to be able to, you know, meet up my bills. And that way you have a clear plan, you're working towards something. You're no longer just waiting and hoping that things will go all right, but you're making some efforts. And some of that effort in some cases for some people might be I need to do one extra locum shift to be able to meet up my bill. Because you've got to be realistic. Sometimes, I mean, oh, I just need to do one extra location shift. And some people might be like, okay, I don't need to do an extra locum shift, but I use. I need to find a different way actually to get some income. Okay, so I've posted two separate websites here now I've shared this with my newsletter yesterday. For those of you that read my newsletter moneywisedoctor.com subscribe I share these two links for those who are interested to go and sign up and obviously use it to try to do surveys in your spare time. So basically what you are doing is how can I increase my income and reduce my expenses? There are many other ways one can think about increasing income. Obviously for someone like me, I had a business when I was, when I was in med school, I had a business as a registrar. I had An E commerce shop and then I have obviously money wise doctor now and I've had a real estate investment. But basically what I'm trying to say is that okay, if there's any confusion in that, don't worry, I'm going to share an article on your tax bangs. So tax bands money wise Dr. Yeah, we'll share that article. So you know exactly where you are. So your allowance on so many things is dependent on how much you are paying. So how much you're paying affects your allowance basically. Okay, there's this manual you cannot download simply sort of like how to avoid the 60 tax trap and I explained those things but you can also just go ahead and read the article, let me share it so that you can, you can easily have a read when you're ready.

This could save you several thousands of people pounds not just in your taxes and pensions. Have you fallen into the 60% tax trap as a doctor, healthcare professional without even knowing? It's crazy. I know you think the highest tax you can pay is 45% but here how it works. If your income exceeds 100,000, you start to lose your personal tax allowance and by the time you hit about 125,000 you've lost your entire tax allowance. This means you're paying an effective tax rate of 60%. That's not good. You lose a lot of other benefits with it. Now if you if it's something you've never thought about or you're worried you're not sure how to navigate it, you're in luck because I've written a very clear guide with a 10 point checklist that you can use to avoid the 60% tax drop. One of the biggest one is obviously paying more into your pension. But there are nine other steps you can take. Check the link in the description and download it for free. Let me know if it helps. So let's jump right back into the episode.

So to answer your question Dr. Carillos, no, if your savings you're making is not accessible, you don't need to. But sadly or even not sadly, a lot of people save money and if you save money you end up with interest. If you end up with interest and you cross that allowance, then you do need to declare it in your self assessment so that it can be factored into your tax. It doesn't mean you pay tax on it because you might claim some other things back your self assessment but you need to declare just like you declare your income from other sources like a rental property.

Okay, so is there ISA is allowed 20 sounds sound. 20,000.

Yes.

Tax here.

Yes.

And keep building up.

Yes.

Is this, you said share, share isa, is this the way of investing or you mean. Okay, is it different ISA or is this fixed rate ISA and saving accounts?

Okay, this is a good, is a very good question and in a good opportunity to just explain ISA as student a, a whole. Even though for anyone that wants to understand ISA once and for all. I've got a very detailed video on Isaac which I suspect somebody from my team will share. It's called the ultimate guide to maximizing your isa. Okay. I think I found, I found the video. Just going to post it and share it in the chart. So anyone who needs it, you can open it and then have a look at it later. Oh yeah, Yudi is very quick. He's already shared it. Thank you. So now the video on ISA will break down the ISA, but I'll summarize the ISAs for you.

But Andy, sorry, before starting with ISA, I have two questions on the chat.

Yeah.

So first question is from Taraq. Do I need to register my marriage in the uk if it was done outside the UK for my wife to get the benefits?

I'm not a legal expert, but I'll say no because my wife, we got married abroad and we didn't register nothing. We just. When you affiliate your bank form, just declare that your wife is your wife, lives in the UK with you and that's it. As long as they are resident in the uk, they are entitled to whatever a resident is entitled to.

And Andy, this is a question from me. Should I have my will written in case I, I died in any time and just to, to be sure that my family will get the money.

What do you think? I mean, just what's your gut instinct about that? Should you have a will or not? What do you think?

Usually in my country we don't try to will.

Ah, right. I didn't know that. Look, I'm learning something. I didn't realize that. So in Jordan, no will. So how do you decide who gets what if the person dies?

So in my country it go to the like, but we are going with the sharia, with the so like my wife, my brothers. Yeah, so.

So in the UK as well. I mean, ideally it's better to have a will because if you have a will, then it's very clear where everything is going. But if you don't have a will and you're married, obviously tends to go to your wife or your husband, your partner. Yeah.

Even if, if I don't have A will the money, the pension or anything will go to my wife?

Yes, to go to your. Your wife will be your chief dependence.

Okay, okay. There's a second question also from Ammar. Is it better to save money for the emergency fund into EISA or basic account?

I would suggest a cash isa. Okay, this is why I thought it was a good idea to explain all the ISAs. I'm terribly sorry again. I don't know why this ended, but I don't know who is on the queue now. Hopefully you'll be able to form back the cable. I'll do my best. My next event is by. I need to leave by half. Half six, my left event. So I'm going to stay and answer as much questions as possible, so don't worry. Now the question is where should I save my emergency fund? I prefer the cash ISA. I simply prefer the cash ISA. Why? Because of the question. Remember the question Dr. Kyrilos asked? He said, oh, do I have to now have to tell HMRC if I get a Kobo or a dime anywhere I get it? No, but when is the cash isa? All the money that comes from it, whether it's interest, whether it's dividend, whether it's return on investment or any of those things, they don't necessarily have to be. There's no tax on them, so you don't really need to declare anything. It's just your cash ISA. Okay, I'm going to explain the, the ISAs now.

Yeah, please.

Yeah. And I, I know, I know my, my colleague has shared the link to the video, which is very good. If you don't have it, don't you worry about it. What? I'm gonna do that. I'm going to share those links in an email just to those who are registered, who register for the event, because we don't want to share emails to people who don't want to see the emails because people might get upset if you're sending them emails. So for those who are registered for the event, we'll email you at the end with the video and then also some of the links that were mentioned. Cash ISA is one of the ISAs. There's stock and shares ISA and there's lifetime ISA, and there's innovative finance ISA. Now, to understand the ISAs, you must think of them like a big pie, a secular pie. And that secular pie is 20,000. Everything that goes into it is £20,000. Okay, good. Now, no matter what you do, you cannot go above that 20,000. If you go above 20,000, you can still Invest like there are many years I, I have to go above the 20,000. I decided I want to invest more, but I will not get any that ISA benefits because I've gone above 20,000. Now. Number one is the simplest. It's cash ISA. Cash ISA is basically a savings account. You put your money. You don't necessarily have to start a new business to be able to improve your finances as a doctor, because as a registrar you're already very busy. So you're already busy even if you're not in direct CCT training, but you are very busy, obviously. So if you can do what you can with what you already have, that can go a long way. I think it might be time to ask, to allow for someone to ask a question. But I just want to mention this final point where you save the money matters, the money you are saving where it is matters. Emergency fund is saved in a cash account that you can easily assess is not saved in stocks, it's not saved in crypto, it's not saved in your brother's business. So it's in a cash account that you can assess for emergency. And emergency is not like, oh, somebody wants to borrow money, that's not an emergency emergency. Maybe your boiler goes off and you've got kids in the house, you need to fix them or your tire goes. Or maybe. Unfortunately, I've had doctors who had to go out of work because they had a nasty accident. Some people just developed eye problems. So that's. Your emergency fund is for emergencies. It's not for every other thing. Okay. All right, so I'm going to pause here now and say save it in the cash account and for, for. I, I believe that we have two groups here. If you put in a cash isa, you're going to get interest in the uk, wherever you put in your money, there's interest in the bank if put in a savings account. And I understand that for some of our colleagues here, who obviously is not allowed interest. So basically what is important to note is that if it's cash isa, there's no tax on the interest. You don't need to declare the tax, you don't need to declare the interest, you save your money. The only difference in cash ISA and the only difference between cash ISA and other types of ISA is that if you get savings in a savings account and you pass the savings allowance, which Dr. Gates who said was 500 right for a higher rate taxpayer, 1,000 for the basic rate taxpayer. So the difference is that in cash isa, if you get an interest or not you don't need to declare it, there's no tax on it. It's not even mentioned. Because the cash ISA I think is a good place to save your emergency fund. Obviously, if your faith is different and you're thinking around interest is different, then you don't even have to, you know, you don't have to use a cash Isaac, you can just use a regular account. But the problem with that is you then need to then start dealing with interest, declaring it and messing about with it. Okay? So that's why cash isa. Think of ISA more like a tax protector. So anything you want to do, if you put it through an ISA before doing it, then you have already protected it. Okay, Right. Now, number two isa, we've talked about cash Isaac. Number two is stock and shares isa, my best ISA by far, stock and shares ISA is for investing. If you want to invest in the stock market, if you want to buy bonds, if you want to buy guilt. Guilt is just bonds. UK bonds, they call it, a fancy name is guilt. Let's not go into the history of the paper, the gilded paper, how it became called guilt. But basically, if you hear guilt, don't let them confuse you. It just means bonds. And what bond size like Bonsa is fixed. They fixed them fixed assets. They are fixed income assets. So remember, if you buy shares, you can go up, you can come down, you can go up, you can come down and maybe. Obviously stock market have been investing for 20. That's just something to mention. All right, I'll pause here now. And I see, I see that there's quite a few hands raised. And I'll say date, you can call.

So we have a question from Kirill Ramsi.

Please go ahead. Please go. Hi. Hi.

Actually I have few questions. First, in term of the pension benefit over years we pay say around 300, 400,000. How many years do I live after the age of pension? 65 to get benefit, to get back all the money I paid.

It doesn't matter over a period of time the trajectory is high if you are buying the right things. If you are buying. Maybe if you're buying a well diversified index fund or you're buying good companies bonds, on the other hand, it doesn't go up and down. It's fixed to buy UK government 30 years. Once you buy a 30 year fixed bonds, what you are going to get is if you say it's 4.38%, you are going to get 4.38% for the next 30 years. Let's say you bought 20,000 with the bonds at the end of 30 years, they will give you back your 20,000. So you've gotten back your original money and you also got interest. So if you're here, debt market, debt market is bond. You are borrowing money, the government is owing you money, the government is in your debt. So if you buy sovereign bond in your country, in the uk, in the US or any country that is sort of like is debt, the government borrowed money from you.

A question in different way, if it's helpful for people who lives for 1980s and more. If someone died or I died at the age of 65, any benefit I will get from the, from the pension.

Powerful question.

Okay, this one question, the other question I would like to ask about is the ISAs and tax free and the bank accounts and the tax on it.

Lovely. Should we answer the first one, then we go to the next one. Thank you so much. That is a big question. The government. That's bonds. Okay? Now if you are buying stocks or bonds, if you buy them through an isa, then you don't have to pay tax on the gain you make in the stocks. Remember in stocks you can get capital gains tax because the value of the stocks go up. So if you sell it, you have to pay capital against us. You don't have to pay any interest on. You don't have to pay any tax on dividend. Remember, like me, sometimes companies will give you dividends, which means that you are getting money as part of the owner of the company are getting shares of a profit. Normally you are supposed to pay a tax on the dividend. Obviously there's also a dividend allowance which you exceed. Don't worry about it. It's only 500 I think. I don't know what it is now, but they keep reducing it. But basically if you are investing in an isa, then you don't have to pay tax on the dividend. Okay, Yeah, I was right. It's 500 dividend allowance. Suspect the labor government to get rid of it. So that's the stock and shares isa. So so far we've talked about cash isa. Secondly we talked about stock and shares isa, which is just for investment. And number three, ISA is the lifetime isa. So if you read one of our articles or our videos, we say life does not start at 40 and lifetime does not start at 40. Of course, I appreciate some IMG. By the time you've come to UK, you've already passed 40 and some we are closer to 40. Now if you are closer to 40, you need to listen to this one. You need to lean in and listen to this one. Lifetime ISA is a special account you can open between 18 years and 39 years. If you have a lifetime Isaac, any money you save in that lifetime ISA, the government is going to give you 25% of whatever money you save for free. If you save a thousand pounds every tax year, the government is going to give you £250. This is basically free money. Okay? Now if you save £4,000, the government is going to give you a thousand pounds. Thank you. I think you did. From my team, I shared the article. So this is Lifetime isa. Now, there are some issues with the Lifetime isa you should know. There's no free money. There's no free money. I'm sure you already know that. If you're able to save the maximum you can get that 25% is £4,000. Above £4,000, you don't get that 25% anymore. So if you can say that's why I know some people. I know a couple I've met, actually three or four couples. Say, we are reading your blog, we are looking at your videos. Once we get into uk, we open the Lifetime isa. We started saving the both husband and wife, they are getting their 4K annually so that they can get the full 1K. So they're getting 2,000 free per year. Okay? Now, if you go above 4K, you don't get the money. If you're above 39, you can't open the account. And the downside of that account is that you can only use it for two things. Two things. One is for buying your first house and the second one is for retirement. So if you have already bought your first house, you can only use an isa, a lifetime isa, for saving towards your retirement. We are back to retirement again because Dr. Gates said a lot of people want to discuss retirement, pension and other planning. So this is one of the tools you can use towards planning for your retirement. We've mentioned the NHS pension, we've mentioned now the lifetime isa. And of course the third one will be your private pension, which could be sipp, SIP or sass. That's another discussion altogether. We can get there when we get there. We're on ISAs now, so so far, can somebody who is bold tell me the 3 ISA that I've mentioned so far? That way I can sip some tea in the process.

The cash isa, the stock and share and life isa, Lifetime isa.

Thank you so much.

So, Andy, for a question to clarify, so you recommend the best and safest investment. We can do it the cash and stock isa, of course. Yeah, that I correct. And then Sadu.

Okay, so I would. I don't recommend specific investments. I can tell you what I do basically because everybody's circumstances is different. So I won't be able to tell you exactly because some people are paying off debt, some people have some extra money, some people inherited money. So we're all different. Now. For me, what I believe that once I've saved my emergency fund and is in my cash ISA sorted, my next level is to invest money. And for me to invest, I go through the stock and shares. Isaac.

And how much do you recommend to start with? Like how much? Because there is like a risk of losing money. Correct?

There is any investment. There's lots of. There's. There's a risk of losing money. Every investment, whether you buy a house, whether you buy stock and shares, even if you leave it in the bank, basically banks go bust, some banks close. And also if you, obviously if you live in the bank, you're already guaranteed of losing money because of inflation. So you're going to lose money anyway. This, the key here is to learn. So there are seven things I say you should do before you start investing. I've shared some of them with you. And one of them is to get some education and investment. And one of them is to learn about things like broad, well diversified index fund. Now what that means is that rather trying to, rather than trying to buy one share or two shares or three or four or five, like someone like me who has been investing for years, you can decide. I don't know which share is going to do well. So I'm going to buy a basket of shares. I say basket, but some people will call it index funds, some people will call it ETF Exchange traded fund. How many of us are football fans here? Any Chelsea fans? Okay. Okay. That's why United. Oh, Chelsea. Chelsea is going down. Any Liverpool fans or Baka fans? The key question and most people think about it, it's just a shame you can't see my face. You see that I'm animated about these topics. All right, so basically how long do you have to leave after you. Okay. At least there's anybody who is a fan of any club in the Premiership. Arsenal. Thank you, Roslyn. Right, okay. I'm going to demonstrate investing through index fund with Premiership. Okay. Maybe the rest of us are cricket fans. That's fine. So now let's go to the premier. Who knows the answer, who knows exactly what day or how long they've got to leave. Does Anyone ship is a number of clubs. I can't remember the number of clubs. You can say, I don't know who's going to win the have the answer here. No, nobody. I have no idea. What I can give is data, obviously Premiership, but I'm going to put all my money on Chelsea or my United. Anthony put all his money on my United. Now, if my United wins, he's going to make a lot of money because he was right. But the chances of my United losing is also very high, even if they're a good team, so there's more risk. But what if Anthony said, I'm not going to only invest in mind my training in statistics and advanced stat and epidemiology in public health makes me always fall back to data. The average lifespan in the UK in 2020-2022 was 78.6 years for males, 82.6 years for females. Obviously it means that, okay, look, this is the average. But we all know that some people like, I have a very good friend, childhood friend, sadly last year, the surgeon, he was in London, a surgeon in training in London. He died. He was 36 years old. Fantastic fellow, great chap, just went to bed, didn't wake up. Okay, now that was a very sad. And he didn't expect it. I never expected. It was a massive shock to me. And that is why I talk about life insurance, I talk about income protection, I talk about having financial protection. Now I know people. I have like a great auntie who is 90, almost 90 now, if she catches me saying she's 90, she's 89, maybe so 89 and night is almost the same to me. But to her it does make a difference. Now at 89 years, 90 years, she's lived that long. Her husband passed 20 years ago. Nobody really knows because the big question, this is why I was worried. With NHS pension gone from 60 years to 65 years, from 65 years to 68 years now, somebody might say, why am I bothering? I don't know how long I'm going to leave. But the question is, what if you live to 80, run out of money? That might be a bit more difficult. So if someone gets to the point where they don't live that long, they're able to pass on the pension. You know, previously, before this last budget on October 30, you could pass on the pension to your family and it will be outside your estate. But now with the new labor budget, if you watch my video on the budget, part of the reason I was a bit upset is that the pension has now been added. It's been added very soon as part of your estate for inheritance tax. So if your family inherits your pension, they are going to get inheritance tax on it. And some of you know the inheritance tax is 40% here. Yeah. So it's quite a bit of money. So it's a bit of, for the curious is weighing the. The pros and the cons. I'd rather be in a position where I have money and I don't need it than be in a position where I need money and I don't have it. Worst case scenario, if somebody had NHS pension, they retire 68, and then if they unfortunately, and God forbid Unfortunately, die at 70, that means that one, if you die before 75, with the new rule, your family will get all your pension without inheritance tax. If you live beyond 75, then inheritance tax will apply. Which is very strange if you ask me, because I'm thinking like, why 75? Are people going to start asking their parents, what's the plan here, man? You're 75 now, I don't want to talk too much about that, but I hope you get the point. Okay, so we don't know how long, but what I will also stress is the value of having Plan B. So even if you have NHS pension, my last two seminars, a retiree attended, a pensioner. I said, oh, thank you for everything. You are sharing. I wish somebody told me all this thing. I was just lucky I got a sip. So he had a private pension. He didn't even know what it was. He wasn't even sure why he had. He almost canceled it, but he said that actually helped him in retirement to continue to live to the standard of life, that he wanted to leave because he had an additional pension. That's a Plan B knighted. I'm going to invest in all the clubs the previous. Now, what does that do? You invest in all the clubs in the Premiership. The chances of one of those clubs winning the championship, not premiership, the chances of one of those clubs in premiership winning the championship is much higher than only the chance of Man United winning the championship. Okay, now that is like the way you look at index fund. They are investing in a broad, you know, investing in many rather than one. Another way to think about it, someone could say, well, I don't want to invest only in the Premiership now. I want to invest in all the clubs. I want to invest in clubs in La Liga, I want to invest in clubs in my United the Premiership. I want to invest in clubs, you know, in all the leagues, obviously that would dilute you further. Okay. And that would mean that even if you win, you may not be that great. So basically you are diversifying. But the more you diversify, that means that, okay, you have less chance of losing, but you also have less chance of winning big. So as an investor, because that's how I started, I'm usually in six to ten stocks. That's it. But will I recommend that? No, I don't recommend that for most doctors because you're not going to stay up and start doing the analysis I'm doing. You're not going to attend investment calls. Earlier this year I was in the US for Warren Buffett. You know Warren Buffett, I was in his shareholders meeting. Many of you, you don't have time. And I'm glad that you are busy because you are busy doing meaningful work and saving lives. You're doing so many things and as an investor, you might not even like to do that. I enjoy it. So that's why for most doctors, it's better to just buy a well diversified index fund which there are so many of them. Now some of you know some examples like S&P 500, which is like the top biggest companies in the U.S. but that's not all. They are global indexes. Now there's one that we discussed gate there's index that is for Sharia. Basically there is, well, I say not Sharia per se, let's say halal. So because, and we say halal, but I call it ethical because I also have some people who, they're not Muslim but they don't want to invest in companies that do some things like I don't want to invest in companies that do pornography or alcohol or different things. Some people don't want to invest in companies that are not carbon, not, you know, we porn companies or companies that energy companies are born a lot of. So they might want to buy an index fund. They don't want to buy just the S&P 500. They want to buy S P 500. That is ethical. They might want to buy S&P 500. So these are different baskets already exist.

So how to find this basket like it's through, through our bank or how.

To find like okay, that, that is a different question. But I want side now how to buy it is true investment platforms. When I started investing at 19 how to buy it is that I take my cash, I go to the stock broker and I said, please, I want to buy this share. And then he charges me a hefty commission and Then later on we'll do Bank Transfer and we'll call on the phone. But now there are multiple apps. There is trading 212, there's invest engine, there's Moneybox. There's so many of them. I've used like so many of them to test them and I've called them to check what they are doing. Sometimes I call them to say this is not clear on your website. This is what I do with my time. This is not clear your website. Then they'll say, oh, there's an extra fee. So some of them have, okay, that's it. But the decision of whether to stay in the NHS pension or opt out because you don't know how long you live, that is purely a very personal decision.

Do they give a lump sum in, in the event of this for the family?

Yes, there's a lump sum. So now if the pension, if you took it before, if the person died while still working for the NHS then they are going to get a lump sum. The family will get what we call death in service lump sum benefits. So in addition to providing for a retirement, the NHS pension scheme will still offer valuable benefits for a loved one in event of your spouse, of your person. So your spouse, your legal spouse or registered civil partner or qualifying partner or independent children, they may be entitled to a tax free lump sum payment which will be done if the person dies while working for the nhs. If you die, why you're not working for the nhs, you finished, your family can still get a lump sum. Obviously this will depend on how long you live. Hidden fees. So you need to be very careful what I use or what I recommend. After checking so many of them I recommend investing in and I'll tell you why. Part of why I use InvestEngine is because they don't charge you any fees at all to be able to open an ISA account. So you can open your ISA account, there is no fee on it. It's totally free if you open a nicer account. Invest Engine, I think trading 212 also doesn't charge a fee but Invest Engine and Train to answer they don't charge a fee for you to trade. So if you want to buy or sell, why I prefer investing in over trading 2 and 2. Like if you are not somebody buying individual stocks, you want to keep things simple. You just want to buy basket of stocks, that's ETFs. Then invest engine only offers baskets of stocks. They don't offer individual stocks. You're not going to wake up one morning and your friend will Tell you that Nvidia is going up or down, then you make a mistake and buy one single stock. Then you start regretting it. It goes down, you sell it to lose money. No, with Invest Engine they only offer ETFs, exchange traded funds. Basket of stocks now trading 212 is a good platform. It offers individual stocks. You can also buy basket of stocks. Obviously there's that element of gamifying investing which again, I'll say, I'll say, if you haven't got any training in investing, I don't think you should rush in. There's no rush. First of all, lend the basics. If you're hearing things like index fund for the first time, ETF for the first time, you're hearing Bond Guild, if you're hearing things like risk assessment, if you're hearing things like diversification, if you're hearing things like risk premium, if you're hearing asset allocation, if any of these things sound strange to you, don't rush to invest first. Just be saving your money. Save an emergency fund and try to understand these basic things. How can you learn it? I've got so many videos for free on investing you can watch. I've got many articles, I've got a free download which is basically seven things to do before you start investing. I'm going to share that for you to download and I'm also going to share it with them gate to share again in your group for you to to have a look. Okay? So don't rush to invest. Don't be pressured. They're not missing anything. Instead of you missing things. They're going to likely make a mistake if you don't understand the basics before you start investing. Okay? So that's it. All right. Now the thing about ISA stock and shared ISA is not an investment. Stock and shares ISA is not an investment. From what I've said so far, it's just a wrapper. Okay. It's just a rapper. It's not an investment. Right. Okay. I don't know if any of you have got questions on what I've answered so far. I've talked about the three ISAs. I've been the one doing a lot of the talking.

Okay, we have another question here from.

Sorry, were you calling me?

Yeah.

Okay, thank you. Okay, thank you. And doc, so far it's been nice listening. It's always a good time hearing you or reading about what you do. And I know a lot of people are benefiting.

Thank you. Just wanted to.

You have the isa. You have done a great. You have explained it in detail and I will read more about it. So since, since I think LEDC around that media about I had the trading two and two up and I've just been putting money there just to keep certain projects which it helped actually because just I ridiculously found out that before then I had money in HSBC accounts for a long period but I wasn't getting any. The interest rate was. Didn't really make sense but with the ISA I was getting at least a pound a day which I wouldn't get in a month if in some of those stuff. So that's a very good one. And just my question in regards investing and also regard isa now you talked about invest ng can I have if now I have trading 212 can I also have invest engine by the side or I have to have just one.

Excellent question Anthony, Excellent question. Just a fun fact. So Anthony is one of the newest member in our money wise Dr. Mastermind. So I've got like every year I try to do something, I've got 20 people, 20 doctors I'll be working with over the next 12 months. And what it is is that we go deep, we go deep into all this tax investment. Where are you leaking money? Are you not claiming your tax relief? Do you. Can you use a limited company or not? Do you have SIP? Do you have ISA? Is your ISA in the right place? How basically it's 12 months of just trying to take charge of your financial future and then that includes a four weeks. Every Saturday for four weeks we meet and we go deep into investing. We teach our set allocation, bonds, interest. So at the end of the four weeks you know your investment plan and then this year, this 20, 25 there's also a tax master class. So these are all part of what we are going to be doing out of those 20 people out of. Yeah, I would have shared the waiting. The waiting list is full now because I wanted just 20 but we have 160 people already on the waiting list. We've not made the final decisions but I'm going to share the waiting list anyway. If you've got a waiting list, share it. If anyone wants to join the waiting list just to see if you're a fit. I can't promise that if you're on the waiting list you're going to get a spot in the mastermind. Okay now Anthony, well congrats again. Now going back to your question prior to now the answer would have been no, you can only use one ISA account. But the penultimate budget, the budget before this last budget There were some changes that were made by the Tory government. So now you can have more than one ISA account. You can have more than one ISA account. Okay, so you can have more than one ISA account, but the maximum you will have in all of them will still be £20,000. So you need. Yes, so you need to be careful to make sure that. Okay, you are not going beyond the isa. So the responsibility of tracking that is left for you. So you've got to be careful that you're not putting more than that 20,000. Yeah, that's a new change.

You mean that.

Sorry. Let's say that I have cash ISA with 10,000, another 10,000 to use, for example, in cash and stock ISA.

Yes, yes, that's correct. That is very correct. And don't forget that the lifetime ISA also, if you've got like 4,000 in the lifetime, I say you get 1,000 free from the government. It's still part of your ISA.

Okay, just to find out. So the lifetime is. I also make up that 20,000 pool.

Yes, the Lifetime ISA is part of the 20,000 pool.

Like you said, a big pie with different components in it.

Absolutely. You get it now? It's a big part. It's got different components.

Okay. Now, I just want to say regarding my wife, because I also planned to having our own ISA and trying to get insulted. We are looking. We don't have a guest house. And you. You mentioned that the lifetime ISA is for first house and retirement plan. So we're planning to use it for the first house. And you mentioned saving 4,000 in each of it. And we get about 25% of that every tax year. So if we now decide to do this, do this. So when she creates her own account in the lifetime ISA aspect, she'll just put 4000 right. In my. In my own lifetime, I say I put 4,000 and we pull the money together into maybe a single cash isa. That will be the money we eventually used to get the house.

So, again, you know, we like to say this is not personal financial advice, but it's obviously very sensible. And if you go to our wall of love, you see a lot of couples commenting. Recently, a doctor called Esther commented on. This is what they did. Exactly. They were just following. Some of them have been reading our stuff for years. And what they did is the husband or one partner says 4000, the other partner says 4000. You are both entitled to that extra 1000. So year one, you get 1000 and your spouse gets 1000. That's 2000 pounds. That's free money. Okay, so already you've saved 10,000 towards your, your home. The next day you're able to save 5,4000. Your partner say 4000, you get the extra 1000. I'm not saying that that is enough to buy the whole house. I'm just saying that it's better than zero.

Yes, yes.

Getting an extra 2, 000 every year taxi from the government is better than zero. So that, that would help a lot. Yes.

Okay, I think I'll ask two more questions and that's it. So when you get this 1000 each, you does the money come at the end of the financial year or is there a particular period?

The money comes usually for some accounts. Once you invest it, you get the money immediately. But it doesn't matter. I'll tell you why. Because you can only use the money for buying your house anyway and you can only use it for retirement. And in case some of you are wondering, what does retirement mean? Retirement for as long as your lifetime is concerned is 60 years of age. So that's where you can get a lifetime but you can't continue contributing after 50 years. So once you clock 50 you can't put in any money again into the lifetime. Isa but from 60 years you can collect it. Why this is important because Dr. Gates stressed that a lot of people are interested in retirement and pension planning. Obviously having a financial advisor sit down with you one on one is really quite helpful. But there are a lot of things you can do by yourself. One, your pension, NHS pension, you can get it at 68 or 65 depending on which one you are in. Two, your lifetime. Isaac get past 60 years. So before your NHS pension because doctor, I can't, I think, I can't remember the doctor was asking how long are you going to live after you get the pension? So some people might want to get the lifetime. Isa if you have it at 60 years at least you can start enjoying that money. And there's number three is your self invested personal pension. So if you've got a private pension, a self invested personal passion that you can invest by yourself and control, that's if you have any extra money and you're trying to avoid the 60 tax trap and you wanted to put more money inside your pension because you allowed 60,000 pounds in a year, just like I say you allowed 20,000 for pension, you're allowed 60,000. That includes your NHS pension and any other pension you get.

So Andy, so you mean that I can put in my private pension if I have like and like more money and it will be tax free.

Absolutely. Okay, so it's clear now that saves you.

That also saves me. Your, your money out of your taxable income will reduce overall.

Brilliant stuff. I mean if you go back and look at the calculator, the NHSRI calculator, you can play with it. You see what happens when you put some money in additional pension. It pulls your money away from the higher tax band because now your taxable income comes down. I need to develop some models to explain this.

Do you recommend any private pension?

I don't recommend specific products again, but if you ask me again, I've checked. I did a video on YouTube. I compared all the private pensions. I didn't mention some because their fees were so high. That's ridiculous. So you. They are one of my team members. Check for SIP money wise doctor video. I compared each of them investing gym by far. Again, 0.15 was their fee compared to Moneybox was 0.35%. So more than double of what investing in charges. But you're not going to notice because Moneybox is very nice. They're not gonna like me saying this. They have nice software. You come in their lifetime. ISA is easy and quick to get and they sound very helpful. But behind, they're charging 0.35% for SIP and they charge you this for a lifetime, maybe 20, 30 years. The money is compounding. You always have to think about the fee, Mr. Gate, always think about the fee. Even if it's 1% is a lot. By the time it goes 20 years, that 1% could actually be like 20, 30, 40, 50,000. That could have meant that you could have retired one year earlier or two years earlier. So whatever platform you use, look for the lowest possible fees. Especially if you are not planning to do any complex investment. If you are just going to be buying the basket, so buy an index for an ETFs. Choose the one you want, just set it and forget it. Know that every month this amount goes there. Every month this amount goes there and that's it. So it's automatic investment.

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Okay, so that's in a nutshell. We've touched on the ISAs and we've also touched a little bit on basically, okay, SIP is 57 by the way. It used to be 55 but from 2027 they will increase it to 57. That's when you can get your SIP. And the final one is state pension. It's not a lot, so I don't talk too much about it.

Thank you so much. Thank you. Really, really, really, really helpful. All the links you have sent, I will go through them to get more understanding before I start considering stuff because I've had the trading 2 1, 2 up but I've never invested with it because I've been seeing it. I've seen a demo of the investment but I wanted to get more information before launching.

Oh, don't you worry. Look, you are in the mastermind anyway so you've got 12 months with me. So don't worry, we'll get into the details. But for anyone who didn't get any of the links, also don't worry at all because it's going to be made available. I'm going to email them to you. If you're not sure, you can head over to moneywisedoctor.com or go to our YouTube channel which will also be shared. I think my team member, you share the subscribe link for the YouTube channel just in case you want to be getting the video. I release one video every week, sometimes two or three. And every day we have a one minute video. So you don't need to sit down and be watching all the videos. Sometimes you just get that your one minute. You get something you didn't know and that's usually very helpful.

So here. And we have a question from Kurillis again, Carolus, please go ahead, go ahead.

It's my mistakes. Thank you very much. It's answered. Thank you very much.

No problem. Dr. Karina, it's good to hear from you.

Anyway, I have a question here like from myself. So I asked you this question on. On private so as ings like we don't know myself at least I don't know if I will stay in the UK or no. Yeah and like I. I was thinking about short term plan, like investment plan say for the next six years because then I didn't know if I will stay or I don't want to Buy a house, then I will leave. So as I understand from your conclusion, from your talk that the best short term plan for investment is to go with the like share and stock isa with invest engine to take any basket or short term. This is what. Correct. I understand you.

That is a. That's an intelligent assumption. That's an intelligent assumption. Of course I wouldn't tell you exactly what to do, but I will tell you what I can do because obviously I'm not your personal financial advisor. But yeah, short term stock and shares, I give you most control because you can sell it anytime you want, you can move anytime you want, you can take your gains and there's no, there's no capital gains. Right. It's still hard to believe and I've been using it for many years and I'm thinking there's going to be a government that will come and say oh, you guys are just investing now you have 1 million, give us some money. Basically they will say no more stock and shares. Let me let you understand this stock and shares. It means that if in year one if you are lucky to have 20,000 because many people in UK don't have 20,000 extra. If you have 20,000 and you put in your stock on shares ISA you2, you have to put in your stock and share that. Let's just assume that things you are going well obviously stock market can go up or down. Stock market crash doesn't bother me because fine, it will recover. So let's say you manage, you're investing 20,000 per year, you are your family, okay, or your wife because you look at tax as a family after a period of 10, 20 years, okay, you've invested, let's say 10 years period, you've invested 200,000 tax free. And let's say if you apply that the stock market, let's just say over a seven year period. If you imagine that the stock market doubled over a seven year period and by double. Basically we are using very conservative assessment. Obviously we've had our investments that did 150, there are some that did 57%. But let's just say you are just buying the basket. You're not buying individual companies like I do sometimes you're just buying the whole basket. And let's just say conservatively the stock market was returning 9% or 10% and over seven years your investment doubles. That means that you've gone from 200 000. And again we are not, we've not run the numbers on this. I'm just giving you raw numbers based on historical performance you've gone from 200,000 to 400 000. Your. Your gain, your capital gain is 200 000. Normally if you sell that you need to give 20% or whatever the capital gain stats will be by then. 000. Let's say it's 25. You need to give 25 of that 200000 to the government as tax. So we are talking 50k here. But if the money went into ISA there is no tax. I can't explain it's better than that. So that's why the stock and shares ISA gives you much, much power and flexibility is not the most tax efficient because your sip, the money comes out from your money before you are taxed. Because his pension the same way your NHS pension comes out before you are taxed your private pension, you can go and claim it back because it's supposed to not be taxed basically. So that's where it's superior to the stock and shares isa. But if you are thinking short term, I don't really know. I might have to leave then I would not be in a hurry to get the lifetime ISO. Especially if you've already bought your first house. Because if you. If you save money for the lifetime ISA and then you don't use it to buy your first house then it has to be for retirement. If you don't use it for retirement, if you remove the money from the lifetime I say you're going to get a penalty. You lose that 25% that you saved. Some platforms will even charge you an additional fee. So you have to be sure that if it's for first house then it seems like the best opportunity for the couple. Especially where there are two adults. Okay. If it's for a retirement, are you sure you want to save it? Because for someone like me I think okay, well even if I retire somewhere else, the money is still there. I can get it anytime. But if it's for retirement and you want to take the money along with you then you need to be carefully thinking about it. Do I really want to leave that money there till 60 years before I put it out? Of course. These are some of the options. Think about when you are considering and think of your specific issue. All right.

I think there was a question from Anthony again or no?

And think of your specification. All right. One.