Investing Masterclass - January 14th 2026 Edition

Baron Furnace, Toyin, Chisholm. Okay. Lovely. Manchester Center. Right. This is fantastic. I'm seeing all the answers come true. I've been looking out for. Oh yeah, AJ is in Cornwall so at least someone not too far from me ages in Cornwall. There's Monica is in Preston. There's Lois in excess. Lovely. Got you swimming. Maggot and Toyin and Baron Furnace and Zitwam is in Leicester. Same thing. Manchester, Sebastian, Manchester, Swansea, Birmingham. Wow. Emmanuel Kingsland and a little Telford. Ijama Durham. Right. So we're all over the land and breadth of the uk. Haven't, haven't we got anyone from Scotland today? There's usually a couple of people from Scotland. I have two of them, my mastermind and usually there'll be a sprinkler like two or three people from Canada, from Ontario or better. Oh yeah, Heather. Okay. Heather is represented. Excellent. Well, lovely to connect with you guys. I myself I'm down in Devon. It gets quite lovely at some point in the day then after that it gets raining again so we're getting the four weather. Right. So what we're going to jump into today we take the first 25 to 30 minutes to go through tax efficient investing. What I mean by that and then, then we'll have the opportunity to ask questions basically if you're new here, never my content in the community. I think it might be a bit of a question why the doctor teaching about t investing. That's a fair question. Well I've been an investor for 21 years now, going to 22 years. I started investing at 19 I 25 to 30 minutes to help me to hit financial freedom in my 30s which allowed me to live my salary GP joint and some people will say I retired four years ago and I'll say no I became work optional which means I haven't held a job all this while and then I haven't had to change my lifestyle or my living expenses and that doesn't mean I don't earn any income. But then it's sort of like I choose what I do now I still hope to be able to practice medicine if I get up to 20 days a year that's 40 sessions haven't done that yet. Hopefully should be able to do it before my appraisal. I've also taken fortunate to be a best selling author Amazon best selling author on investing, personal finance, tax efficiency and money management. So ranked as best selling author in this three categories. Right. Okay. I think my slides is coming on in a minute. Good. So spoken in multiple Conferences. We started money wise doctor in 2023 February after a few months of having left my salary JP job. I had a bit of flexibility and time and at that point I would claimed I was a stay at home dad. But my wife would never agree to that. She didn't believe I was a stay at home dad. She would rather describe me as more of a work from home dad. So Moneywise Doctor started as a blog that was going to basically teach and share and then from there it kind of like grew to and the way we say the. The rest is history. So now I've got a podcast and then we've got like things like YouTube channel. Quite a few going on. I don't know what's going on, but can you still see the screen? All right. I've sort of reclaimed as host so that the presentation will come out all right. It seems like there are three of us. Yeah. Okay. Right, okay. So if you could bring out this presentation so that we could. Yeah, get again. I could share it from my end. Right, okay. So when it comes to investing, I like to get a feel of who is in the room and what we already know. I know some of you have been to previous master classes and I've seen a couple of people who are in my mastermind now when it comes to investing, tax efficient investing or investing in general, could you tell me in one word in the chart what comes to mind when you think about investing? Tell me in one word in the chat. That's it. Right. Okay then. No idea. Mario. Fair enough. Mario might be the most honest person here, but I'm sure some people have an idea. S&P 500 and Evangelo says stock and shares. Isa. Well, there's more to it, but yep, there's a leg that says long term. And Vera says feature Mana says profit and return. I'm saying to say stock and shares is. Louise says shares and back then Sabah says buying property. I can say make him money. Fair enough. And I love that Amro said freedom and security. Of course. P. Ravi says stock and shares. Isa, is that you? Priya? And TO says Isa Toyin says yeah, says financial liberty. Preparing for the future. Freedom. Freedom. Lovely. Heather says I'm family. Fair enough. And then Abu says retirement planning. Okay, this is a little bit better. I've had master classes. Yeah. Umpire, he said capital at risk. Fair enough. When hard master classes when people say terror or terrified or really worried about when it comes to investing. But these are quite largely positive. I get the sense that most people here, you already Know you should be investing and basically what you're trying to learn is the pathway to starting is safe and confident way and also without taking unnecessary risk. Is that correct? If that's what you've come for, can you give me a thumbs up just to make sure that we've got the right set in the room? Yeah, because I'm not going to talk about relationships or how to level up your clinical skills. You're here to talk about typical investing. Right. I haven't still seen my slides, so I'm just going to crack on. Don't worry. Slides on those slides, it's not going to be dead by PowerPoint. Right, okay. So basically, if you went back, I'll say if you went back 20, 30 years, what you could buy, I'll give a clear example. I came to the UK in 2015, so more than 10 years now, what you could buy with a thousand pounds in 2015, you now need a little bit more to buy the same thing. You're going to need about 1,400 pounds to buy exactly the same thing. And again, this is something I think you should already know by just going to Tesco or okay, maybe shop in Waitrose, wherever you shop. Yeah. So basically you already know that if you just save money, just leave it in an account, it's not getting any sort of. Things are actually getting worse. Even if it looks like things are getting better, things are actually getting worse. And now in the past, it's all right because you could get some interest and then that interest makes sense and you could then, okay, that interest makes up for everything. But then what's happening, There are lots of changes. Previously you could save your money in a cash isa and all the interest you generated was totally tax free and the allowance could be. You could use up your entire £20,000 annual allowance, cash ISA. But then suddenly the goal post changed last year and the cash ISA was suddenly slashed to the point that you could only save £12,000 tax free. Now there's, you might think, well, what's wrong with just saving in a regular account? Then I'll introduce it to psa. Of what? I'm sure if you've been to my master class previously, you know that psa, I'm not referring to prostate specific antigen. When I speak with financial advisors and financial coaches, if I say psa, they know I'm talking about Personal Savings Allowance. If I speak to doctors, PSA means something entirely different. Yeah. So your Personal Savings Allowance is the amount you can generate in interest in your savings and it's tax free. Once you exceed that amount, you are suddenly in a territory where you have to pay tax on your savings and that tax is charged at a higher rate. So if you're a higher rate taxpayer, your PSA now will be charged at 40%. So if you put in some money in your bank account and you generated, let's say £2,000 worth of interest after deducting your. Yeah, after deducting your tax free allowance, after your savings allowance, the rest of it is taxed at 40%. And even going forward now in 2026, April does this year, by the new tax year to be taxed at 42% for a higher rate taxpayer. In the past, HMS waited for you to come to self assessment and you know, kind of like declare it and all that stuff. These days they don't want, they don't wait anymore. They could just go ahead and change your tax code and you know, just get the money straight away. So that's why some people notice, oh, task code has changed what is really going on. So that's something to know. So that means that job saving is no longer basically like a safe place. And one might think, well, does it mean you shouldn't save at all? No, you should still save, but you should save with purpose. And for those of you who've read my book, you've read where I talk about not saving for the rainy day, what does that even mean? So saving basically should have a clear purpose, a clear plan. It could be saving for things like your emergency funds, which is basically three to six months worth of your living expenses or 12 months depending. If you're like me and you haven't got an employer of sick pay or things like that, you may want to go longer. And then you could either be, you could be saving to buy your first house, you could be saving for maybe a wedding exciting. Or you could be saving for a child who's going to uni, let's say in a couple of months or even a year or two. So in that case, saving, there's a rule for saving, but saving just for savings sake indefinitely, you're paying a huge price and that price is the price of inflation. Okay? Right. So these are the reasons why tax efficient investing becomes more and more important. But now if you're a higher rate taxpayer, that's even much more important. If you think about it something like when we talk about how to avoid the 60 tax drop. So if a higher rate taxpayer and you've hit that point where you've crossed 100,000 in terms of your income, your adjusted net income, I'm sure you've heard me talk about it for so long that if you are a higher rate taxpayer and you cross 100k, you start to lose what we call your personal tax allowance. Basically for everyone in the uk, in Canada they've got a slightly different system, but for everyone in the uk, you've got a personal tax allowance. So if you end up to £12,570, there's zero tax on that earning above that, then you get taxed at 20%. So anything between 12, 5, 71 to 50, 270 pounds is taxed at 20% and anything above that it starts at 40% until you hit 150k, then you go into what we call the additional rate taxpayer at that point is 20, 45%. Okay, Scotland is slightly different now when it comes to the 60% tax trap. There's no mention of it in HMRC tables, but the rules are there. What eventually happens is that your tax free allowance, the first 12, 570, once you hit 100k, you suddenly start losing that tax free allowance. What that means is that if you hit 100k adjusted net income, for every 2 pound above 100k, you lose 1 pound from that tax free allowance, it just starts getting deducted. That means that if you earn 120k now, I want you to participate because these things are usually two ways. Let's say your adjusted net income is 120k. Can you tell me in the chart how much will be lost from your personal tax allowance? The adjusted net income is 120k. How much will be lost from your personal tax allowance? Let me get you to do some work. Okay. I'll be reading the answers before we go to the next slide. Right? Okay. Yeah. Look, you guys are good. Thank you, thank you, thank you, thank you, thank you. Are you all that smart? You're all brilliant. Of course, your doctors are healthcare professionals. Right now if you cross 100k, you start losing 2 pound per. For every 2 pound you lose 1 pound. I think another way to think about it is just to half it. Right? For every £1 you lose 50p, but it's easier to say £2, you lose £1. Now that means that by the time you hit 125,125, 140, just divide it by two, that gives you 12, 5, 70 at that point, point you've lost the entire tax free allowance. And remember, you were still paying your tax at 40%. So basically you're now Paying an effective tax rate, if you consider you the rest of the population, for the fact that you've lost your 12, 5, 7 0, you are paying an effective tax rate of about 60%. Doesn't seem fair to me because some people find themselves in a situation where they are doing a job, then they do a bit of locum here and there and then they hit that 60% tax. And I've had people giving like, oh, I'm just going to stop working. It's better to be poorer, it's better not have any income. I was saying, no, if you want to stop working because you want more time with your family or you want to write a book or you want to do something else, yeah, that's fine. But don't slash your income. What you should be thinking about is, how can I earn more and still be tax efficient? That's part of what we are covering in this session. And basically what happens that when you're more tax efficient, one of the strategies you learn is that tax efficiency is putting some money aside into your pension and then investing that money. So you're killing two beds with one stone. You're getting tax efficient by coming out of the 60 tax trial because by the time you contribute that extra 20k into your pension fund and then invest it, you've not just returned your, you've gotten back your tax free allowance back and dropped your tax level. But at the same time, if put money into your future that you can invest as part of your pension, that you can, that you can control. And with SIP personal pension, unlike the NHS pension you can add, you can decide to take it at 55 and it's rising to 57 from 2028. So you've got a bit of option, you've got a bit of flexibility, and as you know, when you put money in your SIP, what happens? You get 20% back automatically. So if you put in that 20k in your pension, you get 20% of 20k, which is basically £4,000. Well, what you get will be more than £4,000. You get like £5,000 because it's 20% gross, but it's actually 25% net. And then you claim another 20% in your self assessment. I mean, if you've been through my master classes, you already know this bit. And if you're hearing it for the first time, don't worry, we're going to have time to answer questions. All right? Now, I want us to dive straight into the seven crucial steps to take before you start investing. Like I said, I've been investing for 20. Okay, if, yeah, stop at that slide, this is fine. I've been investing for 21 years. During that period, I've seen three different stock market crashes. I saw some, there was a bit of a drop in the market last year around April. And some people say, oh, like a market crowd like this, this is not a market crash due to the trade wars, Donald Trump and the US and the rest of it. So there was a bit of a drop. But when you see a crash, usually you see valuations drop by more than 20% and it is not a one day thing. So we saw what happened during the COVID pandemic, we saw what happened during the global financial crisis. So you see that kind of crash period. If you don't know what you're doing. If you ran even on like some people start investing it. Yeah, I just put some money goes up during that period. People tend to lose money if they weren't very clear on what they were doing. And I spoke to someone today who said, well, you know what, I left it for my financial advisor. But they just kept charging me more fees. And when I read took my time to understand what they were charging me, I realized that they were charging me almost 3% of my money. Now that 3% looks, even if it's 1%, it looks like it's not much. But when it starts compounding, remember that's money that should actually be going into building your own financial future. But if they're taking out 1% every year, even before they've achieved any investment returns, that already puts you on a back foot. So if you learn how to invest, whether you want a financial advisor, at the end of the day it's fine. But if you learn how to invest, then it's your own skill. It's like swimming. Someone might learn how to swim. That doesn't mean that lifeguards are not there. I mean, I didn't learn to swim till I was in my 30s, but. But basically when you learn, it is your own life skill. And that's the same thing with things like investing or driving and stuff like that. Okay, I'll take questions when we go on the question break. But I just want us to get through, have a good understanding, get a good grasp and then we'll go through the questions one by one. I'm sure someone in my team is taking note of the questions and can call you when it's time. Right. Okay, let's look at the seven steps. But if you wanted to download this guide. Okay. Someone will share it in the group. But if you've got your phone and you want to download the guide, you could just point it at the barcode and download it is totally free. Okay, should we give maybe 30 seconds for anyone who wants to download it? You can see it in the barcode. Okay, now. Okay, let's look at number one. So the seven steps before you even start thinking about investing. Look, we dive into investing, whether it's passive investing and whether it's active investing. So I've done both. And in Investment Academy, which is a deep dive, we look at both. Basically, we practicalize both and we get a good grounding. But before you even get to that point, there are a few things you need to put in place. Okay. Whether the style you decide to go is passive, which is great for busy professionals like doctors, basically buying a broad, well diversified index fund or ETF and then investing regularly in it without having to try to decide which stock will win. That approach has been shown to outperform More than 95% of active investors who are trying to pick and choose. By active investors, I mean fund managers, professionals. Okay. Or if you decide that you are, oh, yeah, you want to go active. And yeah, people do still do well quite actively, but that means you really have to be good. To be able to do it on a consistent basis is very difficult. But irrespective of which angle you want to go, you need to start by doing the seven turns. Okay, now, now, before I dive into those seven things, I'm just going to mention that even when you think about investing, before you think about these seven things, any investment you want to make, you want to consider three things. One is, when do I want this money back? How quickly do I want it back? And two, how much risk am I willing to take? So what's your risk tolerance in terms of your psychological approach to risk? Are you able to sleep well at night? Some people can't sleep if the market is down, even when they know that, oh, the investments are made, are solid and the market will recover, so other people are fine. So risk tolerance is basically your psychological approach. And then number three is your risk capacity, your capacity to bear loss. So even if you can sleep well but you're 60, or let's say you're 65 and you're planning to retire, like in the next few months, then at that point you might not want to be taking a lot of risk with your portfolio, especially if you haven't got many other sources of income in retirement. So you might want to Be going for less, you know, risky investments like fixed income assets like bonds or guilt and, you know, treasury bills or even savings in cash. Because at that point you're like, you've won the game and you want to be out of it. But if you're like 30, 35, and you think, I don't, I'm going to be working till I'm 60, then you want to be thinking, maybe I can take a bit more risk. Because if the market crashes now in a couple of years, I expect it to recover. And of course, if you've bought good, high quality companies, got good investments, or if you've bought a broad, well diversified fund, then a market crash would not often give you palpitations. It will not make it really start sweating because you think, well, is the world coming to an end? Maybe not yet, so maybe the world will recover. I'll give you an example. During COVID when the markets were down and everyone was selling everything, that was a very good time for me because that was the time I was buying a lot. At some point I remort gauged my house in Cornwall and had some extra fun and did a bit of buying extra. And that helped accelerate my journey to financial freedom. But you've got to understand what you're doing, understand what your goals are, understand your long term goals, your short term goals, how much of your money should be in the market, how much should be in saving. And we'll come to all that in a minute.

It.

But in the meantime, let's jump into the seven tens. So if you're ready to look at the seven steps to take before investing, tell me in the chart. Seven. This is not number one. This is. We're getting to number one. Oh. Louis asked, does this count as number one? That's very smart. Yes, this counts as number one. Yeah. Seven. Okay. Only one person wants to look at the seven things. Maybe the rest of us are. You've heard about them before. So seven things. Yeah. Louis, basically investing in yourself is, is the first step. Yeah, Seven. Seven. I can see more sevens now. So the first thing you want to do. And look, you might have heard this, but you know, we need to be reminded more than we need to be taught. Investing in yourself comes in different forms. For instance, you're attending a workshop this evening. You could have been doing anything else. That's an investment of your time. You're investing in yourself. You might even read a book. So I've got my bookshelf here. I've got more digitally. I do like an average of 50 to 60 every year. I'm a bit of a nerd when it comes to history, finance and economics and I enjoy it. So mostly audible. But investing in yourself the same way you do CPDs as a doctor, dentist, nurse, healthcare professional, you're doing your continuous professional development. When it comes to investing, you don't need to read the 50 books or 60 books or anything like that. Even within one good book every year can do it now. I'll say I use 1, 1, 1 to kind of teach this thing. 1, 1, 11 workshop or course or training or seminar on investing each year. And doesn't have to be investing, might be tax efficiency, might be pension, it might be about financial protection, understanding life insurance, understanding your business. For a GP partner, you've got a business. Most GP partners don't realize they've got a business, okay, Understanding how your business works and what to do. We've had like sessions for GP partners thing. Last time we had 20 GP partners and many of them didn't even know what their cash flow in their practice was doing. So number one in the 111 think of NHS 111 is investing in yourself. I mean, it's very difficult to rise above what you've invested in yourself, because part of why you're a doctor, you're a surgeon, you're a gp. And I know we have other healthcare professionals here as well. We have a banker and we have a former banker who is now a doctor too. What got you to where you got to was basically what you invested in yourself. So it's very strange for people to be thinking, well, now I've gone to medical school, I invested in myself, but I'm just going to carry on and not do anything to improve my financial knowledge or my business knowledge or even my medical skills. But they want to grow in terms of income. No, I said to someone my entire. So when I started working in the NHS 2017, my entire annual salary that I got before tax, that means it's less than what I actually got in my pocket. So my entire salary is less than what I'm spending on investing in myself. Now when I say my investing myself, this is not like random stuff, this is like, I want to learn stuff like leadership, or I'm running a team now, or I want to scale my business, I'm doing stuff like that. I go after what I. I need to learn because my 20s, 30s, I'm a bit scrappy. I'll just pick up everything by myself. I'll learn it, you know, I'll Read the book, then I'll make the mistakes and all that. So you can do all that when you are in your 20s. So I started my first company at 22. I started on campus as a medical student. So you do that because you know, well, I've got enough time to make mistakes. But when you're your 30s, like when, by the time I left my satellite GP job, I was like almost 37, or I was just about 37 then you don't have that much time to make mistakes. If you're just starting to invest now, you're just starting your financial journey or you find out that you owe HMRC money, you haven't invested anything in your pension locum, you haven't done any of that, you don't really have too much time to make mistakes. So. So whether you need to take a course or you need to buy a book or you need to, you know, kind of like get advice wherever you need, invest in yourself. So it's one, one, one, one book a year. I know someone said it's hard to get personal finance book for uk. I said, yeah, that's true. That's why I wrote one. That's why I took like two years to write one. And I hope that was helpful because you have gotten really good reviews. The Chow said, Andy, you've written a great book. Well done. Thank you. Dichao. Yeah. So one book, one seminar, you've already ticked one box now and then. One newsletter or podcast or something that can just give you 10 to 15 minutes updates every week. So one book a year, one. You don't need to overdo this because basically finance is boring for many people. It's exciting for us, but it's boring for many people. But if you can do your one, one, one, find one podcast, one blog or one newsletter or one person you follow on LinkedIn just to get that bit of snacks. Updates, for instance, for those who follow my newsletter, you must have heard when the government makes changes in the taxes or when they're about to make changes that could affect you. You probably hear me writing about it or talking about in my podcast. One of the ones I keep referring to was in 2024, October, the notorious Halloween budget where the capital gains taxes were increased suddenly from 10% to 18% for basic rate taxpayers and from 20% to 24% for additional for higher rate taxpayers. And I remember in my newsletter the week before this was done, I had written about why I was selling all my non isa shares because I didn't want to pay the New capital gains tax. And I had taken all of that and invested it back into my ISA in a process we call bed and isa. And if you read my newsletter on Sunday, you would have read about bed and isa, how you can correct the mistake if you've invested outside an isa. Okay, so it's all from investing in yourself. Look, I needed a swimming instructor. I hired one. I mean, they said you could go to the. There's a general swimming training there provided by the council. It was cheaper. I wasn't learning anything. I wasn't getting faster. They were like, maybe so many of us learning to swim. So you know what? I thought, I'll hire the best private instructor I could find. And my wife and I went and he just trained us privately. It cost us a bit of money. Money. But this is three years. Eventually I figured out, oh, I can now swim, so maybe the next thing I'll learn how to surf. And before then, I was stuck at bodyboarding. And if you just bodybuild in Cornwall, it's not that much fun. You want to stand and maybe hang 10 one day. So basically, invest in yourself. Whatever you need to do, whatever level you need to do. It might not even just be in your finances. It might be in something like you need a coach for physical fitness, or you want to get better at public speaking, or you just need a mentor. You kind of like in an area in your professional development, or you need to learn a course to get more skills. Invest in yourself. I'm investing over 30,000 myself this year and I'm excited about it. I'm looking forward to doing more next year because guess what? When I invest myself, I see the returns on my investment. I don't just invest in S P. 500 is good. I want to invest in SME 500. Really important. Okay. So number one is really important. So once you understand that, the rest of it makes sense. Number two, now, beyond investing in yourself, you go for the next step in the seven steps you need to look at. You want to look at a financial audit. So the mistake I've seen many people do is that they jump in and start investing. And I've seen people do things that are really very costly mistakes without even thinking about it. I'll give you an example. When I mean, a financial audit got like a doctor is a consultant in. I think he was a urologist. Yep. I'm not going to say more details. Okay. So that we don't. Maybe this person is your colleague and had this credit card debt of 35,000 pounds and the interest on the credit card debt was 27%. And I asked when we had a one to one session and you know, basically he was in my financial coaching program, Mastermind and when we're reviewing his financial goals and all that stuff, he said oh, I, I have an investment, I, I have this body who builds houses and he does like all this kind of like refurbished houses. So I gave him some money and it's doing quite well. It's giving me 15 returns guaranteed. Oh, okay, that's really impressive because if you went to buy a bond, the government bond, like a gilt, UK government gilt basically, which is highly rated bond, you probably get like 4% and there's no capital risk because it's backed by the UK government, except the UK government goes down. So 15% is, okay, is decent income, which makes sense because you'll be getting better reward if you are taking more risk. Of course, if you go for Argentina government Bond, you get 49 for seven years. But hopefully you get your capital back. But back to this gentleman, when we looked at the finances we saw, okay, so you're getting 15 return and you've given this guy 30k. It's giving you 15 return. And that sounds fantastic, impressive except that you've got this 35k on your credit card that you're paying 27% interest on. So at this point, if you had already done a financial audit before I started investing, you'd have come to that conclusion. That look, a more guaranteed sure banker way of getting a return on my money will be to pay off this debt because basically that just gives him 35 return. It doesn't sound, as we say, sexy or exciting, but that's what a financial audit can do. Now a few things that a financial audit can help you do also is that you find where you're leaking money. For instance, can I ask anyone here in the last four years have you claimed tax relief on all your professional expenses? All. I don't mean like one or two. So if you just, if you have claimed, give me a thumbs up, okay? Or better still, if you haven't claimed, give me a thumbs up tax relief on all your professional expenses. I want to see who hasn't claimed. Don't be embarrassed, don't be shy. I just want to illustrate a point, okay? A few people said no, I don't know how to do it, okay? Monica has not done three years or has done three years, he hasn't. So I've got a gift to give all of you. Hey. That you haven't, don't worry. So I've done a step by step guide on how to claim tax relief for your professional expenses is a PDF guide you can download. But after making the PDF guide, most people are saying, well, it was very helpful. There were screenshots and all that, but I still had two or three people who said, oh, it would be nice to get it on video. So we've done a video, it's inside the PDF guide. So you can either use the video, use the PDF guide or both, and you can use it to log in and claim tax relief, your professional expenses. And it does add up. In fact, One of the GPs we spoke to after he did his financial audit, he was able to claim back £9,650 because he had not claimed in four years. Remember, you have to claim within three years. Right, you can claim. Sorry, you can claim four years and the current year. So you can go back four years and claim the current year. I hope they haven't changed that rule yet. So you can claim four years and the current year and four years back. So one of the saddest things I've seen, it makes me. It makes me upset is seeing a doctor. I remember OPS dying consultant. I wrote about this one in my book, been in the NHS 15 years, lovely lady, very skilled, never claimed tax additional expenses, didn't know about it. Said, my husband is a very senior accountant in a big firm. Why didn't he tell me about it? I said, well, I don't know, I don't know. I'm not going to come in between you and your husband. But basically I've got a guide. So she wasn't able to claim those 15 years. She could claim like the current tax year and then five, four years back, which is great, but had to give up the rest of it. So it's really important. Missing these things already means you're leaking money. So that's what a financial audit can help you do. It helps you find where are the leaks. If you want to take a financial audit, there is moneywisedoctor.com Medscan or someone from my team will share it as well. What it is, is your scorecard. You know about the new score, like your early warning score. I refer to this one as your fuse score, your financial early warning score. It allows you to go through your finances and check, oh, my, am I having issues with my savings? Am I being impulsive with my spending? Am I going investing? Am I missing tax opportunities like Isa sip? Have I claimed tax credit for my professional expenses? Am I taking huge risks? I'm not noticing, like my financial protection, Have I even got life insurance? Is it in a truck? Cost all those kind of things. So it's a 3 minutes quick snapshot will help you to find areas. So you want to do a financial audit before you start investing because most people want to go out to make money while they are still losing money, like pouring water into a leaky bucket. If you get tax efficient and you get efficient with your finances, you stop missing payments because you are doing it manually and having to pay more because you missed the deadline, then you find that, okay, you have that much money left to then invest such that you no longer need to take crazy risk to get like crazy returns. Okay, right. So I'm going to jump to number three which is just as important. Okay. If you've got any questions, don't worry, I'm happy to take them at the end as well. Number three is basically having an emergency fund. Again, this is just sensible. It's just like, like think of your emergency tree. I don't know if in your world, if you're like in the hospital, you've got your emergency tray on GP surgeries, emergency trolley and you just want to separate yourself from, you don't want any small thing to become a crisis. So for instance you suddenly I had to go change the blades on my wipers and then the other car, I had to go and change two tires and suddenly, you know, for some people that will become a crisis or they have to think, oh, where do I get the money now, now? And that's not because they don't earn enough sometimes because there's no clear, you know, mapping or structure. They haven't got that emergency fund. I've seen someone say, why should I even save money? Why don't I just invest it and give it to my, you know, cousin who, you know, trades crypto. Bad, bad idea. So establish a robust emergency fund. Aim to save at least three to six months of your typical living expenses. That financial cushion is, it serves a bit of like a safeguard. It prevents the need for premature selling of investments during unforeseen crisis. Again, in my book the Money wise doctor, I gave an example with this lovely couple in my mastermind because I like to give life examples. It brings it home. These days, content is everywhere. Context really matters. Any 17 year old boy standing next to a rented Lamborghini will probably be teaching how to invest. But context is different when you've been there, done there, got the scars, known the, the things to avoid and then you have a chore. You've seen other people who have been through the journey, who you've guided to the journey. So that's why I like to give some context. So this couple, ST7 in surgery and GP, they work, they're a couple, they've got a kid and in one month, I think that was April of 2025, they needed to fix their boiler. Not something that could wait. They had a family member abroad who needed private health care. I think it was dialysis or something. And they needed to step in to support. And then the one family car, I think they've got two, but one that, okay, the lady, the JP needed to get to work, needed something to fix and there are several thousands of pounds they needed to spend in one month. And then they said to me, at that point they understood the real value of having an emergency fund because they thought about it and thought, there are three options. One, if we didn't have an emergency fund, would have had to sell some of our shares. It was a very bad time to sell their shares because due to the trade wars, the stock market was down. That was at the point when we are buying more, when it was a good bargain, we were able to buy more. So but if you're suddenly forced to sell, you sell at at the worst possible time. So that was one option which they didn't do. Number two option, they could borrow money in different ways. They could borrow money from the bank, they could take a credit card loan, they could do an overdraft and order, but that already creates like more leakage. So rather than putting the money into building their financial future, they're helping giving it to the bank to fund the next private jet that the bank executive will fly. So that was the second option. But they went for the third option which was basically to fall back on the emergency fund and they felt, oh, we had to spend the emergency fund. Yeah, that's what the emergency fund is for. Now I'll give another example. Me, for example, the reason I was able to work away from my salary job and wasn't that worried about it. I was excited thinking of the next thing I was going to build. Part of it wasn't because of my investment, is because I had an emergency fund. Not just six months, like, okay, worst case scenario, 12 months. And then if you decide to do something else, or if we get too bored and decide, oh, I missed it so badly, I could always come back and do something else. So it's getting to four years now. It's more than Three years. So we're now on our fourth year. So having an emergency fund allows you to have that psychological cushion as well when the market is up and down. If you remember that, well, if you had a need suddenly you could fall back on something. And I usually say three to six months. If you can get up to six months, fine, that's great. If you're a local doctor, you haven't got income. If you're a local doctor, you haven't got NHS Sickness Disability allowance, sorry what they call it ill health benefits, you haven't got any sick pay. Then you may be thinking more, more about, you know, your emergency fund. You might be thinking about having a bigger emergency fund. Okay. Very, very important. Okay. And there are a few other things you need to think about and I'm going to mention them as well. Okay. So where do you save your emergency fund? Because this is usually a common question we get. Yeah, someone has already asked it. D. Thank you. It seems like you read my mind. The emergency fund needs to be inside the cash isa. That's where you could save it. It doesn't have to be only inside the cash ISA. But if you are doing things wise Dr. Way, the tax efficient way, you don't want to leak taxes, you don't want to pay any taxes that you don't have to pay. You want to pay taxes, you're not going to dodge your taxes, but you don't want to pay more than you have to pay. You have to be fair to yourself. Okay, so if you save your money, your emergency fund, let's say your monthly expenses is £5,000. So your emergency fund for six months is 30,000. It's quite a bit. Okay, let's say it's £3,000, non negotiable expenses and you save six months worth. So that's already £18,000. It's a chunk of money that you put aside in a regular bank account. If it generates you interest at 5%, what will 5% of 18,000 be? Probably around 900 pounds. So you're almost at a thousand pounds. If you're a higher rate taxpayer, your personal savings allowance is only £500. Anything above £500 is fair game for HMRC. They'll charge 40% of that as tax on your savings interest. So but if you put it in a cash isa, you don't have to deal with any of that annoyance because it's in the cash ISA and basically it's just there and there's no tax on the savings and someone might be thinking, well the cash ISA is going down to 12,000 and like not yet, you obviously can use up your cash ISA allowance for this year and then by then you already have something in your emergency fund. Now the cash ISA is not the only place to save your emergency fund. There are other options. Like there's the premium bonds, NS&I, the bonds, I said they are not real bonds. They're more like raffle draw, like government raffle draw, where your capital is not at risk but you can actually put in your money. The maximum you can put in every, the minimum you can put in is £25 and the maximum you can put in is £50,000. And there are draws where you might win a prize. Maybe you win a million dollars or a million pounds or maybe you win nothing. The downside of the premium bonds is obviously you're not guaranteed the interest compared to if you stick it in the bank. So there's also no tax on your winnings in the premium bonds. Of course, if you've used up your ISA allowance, there's the option of put in a regular savings account or let, for instance, if you had 18,000 you could put in 12,000 and then put in 6,000 in a regular savings account. That way you're generating less interest in the account that is not tax protected. Okay, right. So that's your emergency fund. How you can save it, Your emergency fund is not for a person. I want to put my emergency fund in a crypto. Like I'm not really sure about that. I wouldn't even put it in a blue chip stock. I didn't buy it in the best stock in the world. And emergency fund is not for investing, it's for a cushion. So really important. I hope you get that. So someone says how do we go if the savings for cash go down to 12k? I think we answered that. The church said silly question. Emergency fund needs to be no D D this, this, this is not a silly question. And there will be no silly. Any question here is really important as you can see. I think Olichuku said silly as it sound. Some of us didn't know that. Yep. You find out that the questions you ask. And this is what I love about the moneywise doctor community. There's no judgment. Everyone is learning at the same time. And what you think, oh, sometimes you know something but you know the wrong thing and when you say then you get that correction and it might save you just 10 or 15,000 pounds basically quickly. I've seen people save like 13,000 pounds just from correcting A mistake. Okay. Right. How do we go if the savings for cash go down to 12k? I believe we've touched on that. Does it matter if cash ISA is inside a particular bank account or if there's a different place where the cash ISR can be created? No, you can create your cash ISA with any bank you prefer. It doesn't matter. Just look for the best rates and just understand that there are different types of isa. There's a fixed isa, so if you. If you fix it, which I don't think is a good idea, because why are you fixing it? The money is for flexibility. It's so that if you need it, you can get it. The idea of the. The emergency fund is not to make money. The idea is to be there so that when you need it, it can be a cushion. So I prefer to have a flexible isa. You might get less interest, but you get your money when you need it. Now, cash ISA, is it 20k yearly, please? No, the ISA allowances is 20k for now and you can combine it however you like. You can decide to. For instance, there are years I do 20k all through my stock and shares ISA. And if ISAs are confusing for you, I've done an excellent video on my YouTube channel on ISAs breaking them down. I'm sure the excellent UD on my team will share the link to the video at some point. Or you can go to Moneywise Doctor YouTube channel and look at it. I did it like two weeks ago. Now you can combine your ISA allowance however you want. If it's 20k, you can decide to put £20,000 in your stock and shares ISA, if you've got 20k to spare. Or you could decide to put 10,000 in your cash ISA and 10,000 in your stock and shares Isa, but that's till 2027. Of course, there's a lifetime ISAAC, which you can only open if you are less than 40. So between 18 to 39 and the lifetime ISAAC is where you get that free £1,000 per taxi year. So if you save up to the maximum £4,000, you can get the 25% bonus every single year from the government between 18 years and 50 years. After 50, the government stops contributing to your lifetime ISA. But you can't cash out the money till you are 60, except you are buying your first house. So if you're buying your first house, you can cash in your lifetime ISA and use it to buy your first house. But just make sure sure that the house is less than 450k, if that's unclear. I'm more than happy to take questions when we break. Okay, so we're number three, emergency fund. I believe we've covered that robustly. I'm just going to jump through number four which is basically having a financial defensive strategy. So you want to protect your financial future. It requires the right insurance coverage. Look, if you're a doctor or healthcare professional, I don't need to tell you about indemnity. That's non negotiable. You're practicing indemnity because you don't want to be sued and find out that you need to come up with thousands of pounds or a million or so. So that's one. But there are other things. There's your life insurance and I give this example because it's the one closest to home of my, my friend and we're friends in childhood, when we're teenagers, everything, we'll go to med school. And we ended up in different med schools and then we met again in UK and then two years ago is now three years. Unfortunately at 36, it was a surgical registrar in London, went to bed, didn't wake up and he was basically the provider for the family and suddenly it was gone, there was no income. So that's part of why I'm hot on life insurance. It doesn't cost that much. Get the proper life insurance cover. Look, you don't even have to get like a million pounds in life insurance. But if you talk to a good advisor, I would usually avoid a restricted advisor for good reasons. I prefer to have an independent advisor who can assess the whole market and give me the best available products at the right price. Not just a restricted Advisor who has 20, 30 or just, you know, they've got a panel of insurance products that they sell. So even if that were not the best option for you, they might still recommend it for you if you give them better commission. But that's a different discussion. Make sure you have the life, life insurance, you have the right cover. Of course, if you don't have any dependence, life insurance might not be your ultimate priority. But then of course you know that when you talk about life insurance I want to make sure that if someone passes, the government doesn't take like 40% of its inheritance tax. So that's why I prefer to have my life insurance inside the trust, which means that my family gets 100% of it if, I mean nobody's planning to die. But if at any point my family needs to get it, they can get a hundred percent of it and it comes quicker. It doesn't have to go through probate for the government to work out the inheritance tax and all that kind of stuff. So think about life insurance, think about income protection. I've given multiple examples here. One of them was about a GP who unfortunately, locum gp, developed knee injury, tore ligament or something. I mean, the orthopedic surgeons here would tell me, and then couldn't work for six months and he had to crush his emergency fund. He didn't have income protection insurance because he wasn't even working the nhs. So the nhs, there was no sick pay or anything like that. And even if you work in the nhs, so the NHS pension has got some ill health benefit. But remember, it's limited. If you've been working for more than five or six years, I think it's six months and after that, that's it. So I gave an example. If you go to my podcast online on YouTube, you see Dr. Ruth Machin was this excellent radiology consultant. 2020, 2020, Christmas, the 25th of December, woke up with severe eye pain. So developed, I think that was cornea neuralgia. I know I've got like some eminent ophthalmologists here. Two of them have been in my mastermind. And, yeah, that was the end of her career as a radiologist. And of course she got her emergency funds, fell back on it, but then it can only go so far. Then there was the NHS sickness benefit and six months. And after that she said to me that her saving grace was because she had an income protection insurance, which basically took over paying her a percentage of her income. And she had that insurance when it was really cheap. She bought it in her 20s. I had always been wanting to cancel it, but didn't cancel because she kept wondering, why would I ever need more than six months of work? So she's landed on her feet and she's managed to now retire from the NHS on account of sickness after five years. Years and have started a new career as a health coach. So. But some people haven't been that lucky, unfortunately. They find that, oh, I had an income today, tomorrow I don't have an income now. Suddenly my family is struggling. I've had them. A wonderful gentleman, a GP partner, who told me how he had to go learn how to drive. He was trying to go and get like the form to apply to drive Uber because his license was suddenly in jeopardy with gmc. So that's why it's important to have that buffer, have that income protection. Have your. Your income protection might not help if it's gmc. But it helps with sickness. But then you can also have your emergency fund and then you start investing so that you can have multiple options to land on your feet. So think about this thing. Think about critical illness cover which covers through stroke, heart attack and cancer. So critical illness just covers those three major things and sometimes it covers disabilities as well, like injuries at work and the rest of it. But critical illness is very specific for stuff it covers and it pays a lump sum compared to income protection that can actually, you know, cover for any sort of illness. The only difference that physical critical illness pays a lump sum. Income protection just pays monthly. Now this session, we can't go into income protection and life insurance and all that, but I just wanted to give you a bit of an idea on why it's important to do all this. If you do that as one of your financial defensive strategies, then you wouldn't have to suddenly sell your investments at the wrong time. You can allow it to grow and allow the most important ingredient in investment called time. T I M E not the spice T Y M E so the most important is time. Allow your investment to compound in a way that is actually something, you know, fantastic at the end. Okay, right, so I'm going to look at number five number system number seven quite quickly because we've covered most of it and then I'll take some questions and then we can then look at other things as well when it comes to investing like approach to investing, diversification and all that. So I've already touched on this. Eliminate high interest debt. I said there is no point in earning 20, 15% return when you've got 27% credit card debt. It's mass. But you know, most people don't think about it. It's not your fault. Most times as a doctor or dentist, healthcare professional, you are busy with life. I spoke to a schoolmate of mine Wednesday. School, school. So he's training to be a surgeon. I think it's ST5 or so I said he's been on call since Christmas and all that. It's not hard time. I mean I've been away. I think I took two, three weeks break. Been away to Portugal, gone to Cardiff, Manchester, traveled around, came back and he said to me during that period he's had how many nights of work? So basically we all know that doctors and healthcare professionals, especially doctors, I don't know, I'm a doctor, I can talking for doctors, even nurses, worse, we own that we are not rewarded as much for our services. But also it's not the job of the Government or anyone to take care of us. We have to start making our own plans. So it's really difficult when you're working all the shift to actually have the time to notice that, oh, I've not done the math. My credit card is 27% and I'm getting these returns of 15% is ridiculous. I'm just going to, going to pay it off. I've even got credit card, I think this one, my business credit card, the interest on it is 102%. Do you think I'm ever going to ever let it, you know, cross the timeline? No, you set it on direct debit and make sure that it gets paid off in full and you never have to pay any interest on it. Or if you can't do that, maybe just leave the credit cards alone. But eliminate high interest debt Debt, one of the commonest things I've seen that causes stress for very senior doctors, it's been high interest debt. Like sometimes it just creeps up on them and then they do things like, oh, they're going to change it to zero, zero balance and all that and then when it's time to pay, they don't pay. I've seen a doctor who and the previous year he earned over £200,000, was a local GP. The next day some things went wrong. He couldn't get a lot of locum jobs and suddenly he was in debt and gotten to the point that it was damaging his credit score and he was even at risk of losing his house and sadly was also passing through a bit of a messy divorce at the same time. So when you look at the situation and when we had a review, you could see that he didn't have an emergency fund. He was in depth for things like, oh, I traveled on this multiple holidays, bodies, designers, nothing wrong with that, as long as he can can afford it. I mean, I bought like cars I liked and I paid in cash because, well, I didn't want to pay anyone 10 interest. So it's just basically eliminate high interest debt because it's hard to build a strong financial future when you are sending away your most important equipment for building the strong financial future, which is your income. If all you're using your income to do is to, to pay debt, pay debt, pay debts, there's not a lot of it left for you to then invest. Okay, so something to think about, right? So that's number five, I think it's as clear as day. And then obviously if you are in depth, don't worry. In my book I actually put in Like a list of numbers you can call to help you. There are experts who can help you for free to start clarifying your depth. I talked about the different approaches to debt, like basically your snowball method that you can actually start with the lowest depth and start paying it off. And then the other approaches. Again, because of the limited time, I'm not able to go into all of this in detail and I want to leave some time for questions as well. Now, number six, obviously is investing through tax efficient accounts. I don't want to spend more time on it because I've already explained it at the beginning. But I'll give one quick example, which I like. I gave an example in my last newsletter of. Let's say, I'll say Dr. Monica. Let's say Dr. Monica and I, we started investing together. We started when we're 35. Dr. Monica was 35. Was 35. And we're investing £20,000 every single year. And we're getting exactly the same return, we're investing in exactly the same things. And we decide, you know what, at 55, that's when we're going to start up. So that means from 35 to 55 we invest 20k every year. Can someone tell me, because I want you to be part of it, tell me, if we put in 20k every single year, how much all together have we invested over 20 years? I'm going to be reading the charts. Tell me in the charts. I just want to make sure you're there. Let's see, get a few questions. Okay, yeah, so straightforward 400k. Right? GID 400k bit. Okay, now we got that bit right. Now this is a tricky bit. Dr. Monica was investing through her general investing account, or what we call dealing account or just invest account. Different platforms, it's called, different names. So throughout that period she'd be investing the same 20k through her general investment account and I was investing through my stock and shares. Isa. Or maybe a combination of stock and shares. Isa lifetime. ISA stock and shares, but let's just say stock and share. Lisa, the result of it is that at the end of it, Dr. Monica and I invested in the same thing. Let's say we did quite well and we ended up with a portfolio of 1.4 million over the 20 year period, which is not unreasonable. So let's say you ended up with 1.4 million. That means the money we invested is 400k, but we ended up with 1.4 million. So have 1 million in what is called capital gains. This is where things change. For Monica, she's got to pay capital gains tax and currently is 24% for a higher rate taxpayer. So basically she's going to have to pay 24% of 1 million. I know, I know. She can deduct some allowances. She can deduct her capital gains tax allowances which used to be sizeable, should be. It used to be about 12, 300, then it got reduced to 6,000 and now it's 3,000. So she can deduct the capital gains tax allowance 3K. Okay, whatever. But she still has to pay almost above £200,000 in taxes out of her million. She's still. Alright, okay. She's still going to have a huge chunk, but for me I'm going to pay zero. Why? Because I've used the right tax efficient investing account. So this is why it's really important. And for a higher rate taxpayer. I was explaining this thing today to someone in my mastermind. If you're a higher rate taxpayer, you're about to hit the 60% tax trap. Basically deciding to prioritize your personal pension or your SIP or your SaaS, whichever pension you're using, as long as you can invest it. So if you use it as your primary investment tool, then you're getting back 40%. So before you've even taken any market risk, before you've taken any risk at all, before you've done any investment or exposed to market risk because obviously capital is at risk, what you invest, it could go down, it could go up and you could lose all the money. Especially if you don't know what you're doing. If you don't have any investment education and you just go in on basically okay, let's see how it goes and vibes and what people said in different charts, you've not had a proper education, you're at higher risk, okay? Now if you do it through your personal pension or your sip, you, you automatically already tax efficient because when you put in that Your, let's say 20k per year, you get £5,000 automatically from the government and then you've got another 5,000 basically that you can claim through your self assessment. So you've gotten 40% back which you can reinvest and that's before you've even invested. Let's say you then end up with 12% or let's say 15% on that investment. You've already grown your money by 55%. Of course that's 40% plus 15%. Of course someone might say, well they would tax it at the end when you take your pension, I'll say, hang on one at the end, you can take 25 of the lump sum that has grown totally tax free. You can take 25 of it, lump sum, and the rest of it is not tax or capital against tax, it's only tax bill on income. So depending on how you withdraw it. So you then have control of how you withdraw it. And even more lovely if you've got a limited company, I say it's lovely, but yeah, okay, if you've got a limited company, like a GP or psychiatrist or you've got a company, basically you can have your own employer pension, you can create your pension and that is counted as an expense. So you can move money from your limited company into your pension and you don't have to pay tax on it. It's going from a limited company account into your personal pension and you invest it, you don't have to pay tax on it. Of course, when you withdraw pension you are taxed as income, which means you can decide how much income you take depending on how much much tax you're going to pay. And most people find out that, okay, when they need this pension, they are no longer working as hard as they need. They usually work and they might just need 50k. If you get 50k, that means you'll be paying 20 tax as opposed to the 40% you'd have paid. And remember, your money has grown tax free all this period. Right, okay, so the seventh step is quite clear. It's basically just to seek advice. If you are not sure what you're doing, seek professional advice. Speak to a financial advisor, a financial coach or an accountant. I would say exercise caution. I've had too many people who I think last year we had this gp, lovely GP partner passed through our investment academy and said, wow, for the first time I understand my investment that my financial advisor has been sending me. And I realized that my investments were performing worse than the average market returns and the difference was just the fees. I'm not saying there's anything wrong in paying fees, but I feel like if you're charging me a fee, I want to see some results better than what the average market. Like if my late grandmother, blessed memory, was just buying a Broadwell diversified index fund without understanding what she was doing, she will still outperform some professional money managers. Basically because most professional money managers, when you look at their portfolio, their special portfolio tends to be the same index just with a fancy name and then deducting their fees. I'm not saying it's a Waste of money, a waste of time to speak to a financial advisor. But be clear on what they're doing and how they are charging you, because most time it will be free, but then there's a 1% per annum that's compounding and that's a lot of money. And one of the things I'm working on is to get a calculator to build out something. Some of you have already used the one I built two years ago, NHS salary calculator. I want to build out something for people to be able to see what the fees they are paying actually means in the next 20, 30 years. Because that 1% could actually be 20, 25K, 30, 40, 50K. That could have meant you could have retired maybe one or two years earlier, depending on your expenses. Right, so get the right help. Look, if you need to understand taxes, we have our tax hacks, we have our investment academies and all that. We don't always have them open because when we have a cohort we have to take them through. But if you get an opportunity to join any of those things, it's a good investment of time and some of them are free and some of them are paid. The Deep Dive saves. So take advantage of it. It's an investment into your financial future. And if you go through a class and it helps you to save 10 times over a period of time, it helps you to save 10 times over your life or even in a year. So some people pass through the tax hack or the Mastermind, I think my six month financial coaching, one of the senior doctors who passed through it in a year, save £13,000 in taxes. Of course it's not a guaranteed result, it's based on her own affairs because she found areas where she was leaking tax. So I'm going to take some questions now and maybe for those of you who are interested, who have been asking about the Investment Academy, the Deep Dive, we're starting it on Saturday. I'll be able to answer some questions around this as well. But I understand there are lots of questions around what I've just explained the seven steps. So I'm going to take those questions and if you're someone here, you already know about the Mastermind. Look, if you're totally new, you've just meeting me for the first time, you don't have to join the Mastermind or the Academy or anything. In fact, I've got like almost a thousand free YouTube videos. You can go and look at them for free, use them to learn, to upgrade and then avoid making costly financial Mistakes, you can go to my blog and download the free guides, basically. But if you think, well, I want to take charge of my financial future, I don't want to guess, I don't want to be stabbing in the dark, I don't want to find out. In five years I've made this costly mistake that's going to cost me 22, 500 pounds. Like the doctors told me, he's gotten a letter from HMRC, the brand envelope that is owing 22,5 and they didn't know what to do. If you want to avoid all those kind of mistakes, that's the place for the Mastermind and that's the place for the Investment Academy. I'll tell you a little bit about it later if you're interested in but if you want to get more information about the Mastermind, if you type MM in the chart, then someone from my team will send you the offer document or sending my number and you can answer questions around it. So if you send mm, yeah, then someone I think d send mm. So maybe sending my number. I'm happy to answer any question why we do it that way is because I think I said the last time I checked before we joined the session, we had three slots left. So we don't want to have like 30 people showing interest and we've got three slots left. We've got like 570s on the waiting list. But of course not everyone on the waiting list can join because we cap the class at 30. I like to have like 500 people in my class. I don't mind, but it's just more effective and the sweet spot for some of you who've been through the classes. You know what it's like is a lot of deep dive. It's not a seminar webinar type of thing, is more like practical, hands on, we are doing stuff and then you kind of like see me log into my account, do stuff, record the videos. It's all recorded. Some people are not able to attend because they are working and that's not usually an issue because it's all recorded throughout the four weeks. It's like four Saturdays all recorded. You can watch it, re watch it, come back to the group, ask questions. There's four weeks of support after the that, but for the Mastermind, there's a whole six months where you can get access to one on one sessions with me, do a full financial review, look at your goals, your financial goals, clarity, find where you're leaking money. And you can also get access to my AI, which I'VE built based on my content. Some people have said, wow, it's like having ND and you can talk to him by 2am and not feel embarrassed. I didn't know these things because some people are a bit shy to ask questions questions in the community. So there's a private community as well. Right. So that's a little bit about the Mastermind. If you haven't mentioned, if you haven't typed mm or send me a message. We're not going to send information about the Mastermind. Nobody's going to say, oh, remember the Mastermind, don't you join. There's no hard sell here. Okay. So if you're interested, if you type MM in the chart or if you send a message to my number, if you've got, if you're already in the WhatsApp community then you should be able to reach us or support moneywise. Doctor.com yeah. Thank you so much Priya. Priya said the four week investment deep dive was really good and very useful, highly recommended. I appreciate that. So Priya was one of the best students in the forex investment academy. I'm not saying that because she was here, but she was very active and it's all those people, you just know that they are not going to sit on the knowledge, they're going to going to do something about it. And I saw her actually moving towards knowing what to do because whether it's your SIP or whether it's your ISA or your stock and shares ISA or your lifetime ISA stock and shares, the same knowledge about investing could be applied in multiple ways. And even if you're looking at investing in property or gold or crypto, understanding asset allocation and risk management is really important. Okay, so understanding asset allocation. So unfortunately or fortunately, we've now grown to the point that the government is taking interest in our business and wants us to charge VAT. So VAT, VAT, we've got to charge 20% of VAT and they've written us a letter yesterday to tell us to charge vat. I think it's unfair because. Not unfair to me. I don't, I mean we can pay vat, but the way that works is that if something is like let's say say 3,000, then we've got to charge 20 for it. I'm just giving examples. Go to charge 20 of 3,000 and then take that money and give it to the government as value added tax. But I'm aware that some people have been on the waiting list for a while to join the vat. I'm sorry to join the academia or the. Yeah, you bring up the mastermind. I think the mastermind kind of like encompasses everything. We're kind of like, yeah, okay, let me see this test. Yeah, that was a mastermind and maybe look at the testimonials. So basically now those who are trying to join now need to pay vat. But what I've decided to do is that I'm going to pay the VAT for, I mean the three spots we've got left because I know some people were waiting, they could have joined since if we had started but now I've got this VAT thing they don't want to, I don't want them to have to pay it. We'll cover the VAT bit so if you're interested, if you send me a message, give the voucher to get the that VAT discount. You don't have to pay that VAT yourself. We'll cover it from our end. That's 20% of the fee. It's not a discount per se. I would say what it is that we're just paying the VAT it will appear is the same mathematically quote being to getting 20% discount. So rather than paying the new increased value on the vat you get that discount. Of course after this batch obviously anyone joining has to pay the VAT because we can't continue paying VAT for everyone. Okay so scroll up and back to the testimonials and leave it there, then I'll take some questions. Okay. Right, that, those are testimonials from some of the Doctors I think Dr. A is in Canada, he's now in Manitoba. He's doing really well, he said I strongly Recommend it. The 4 weeks deep dive will prepare you to succeed in business and financial world. And Dr. Vanessa, brilliant lady, she was a former investment banker. Dr. Vanessa is now an NHS doctor. Liam. Dr. And I'm trying to build a business as well. I'm really, really happy with the current service I'm getting from Moneywise. Dr. So Vanessa is very, very bright and of course Dr. Chi, Dr. Ayo is now in Nova Scotia in Canada. Dr. Anthony is in the UK and then we have, so we've got maybe like 120 testimonials. I'm not going to bore you with all of them. And we have, have the lovely Priya here who is an eye doctor. He's our resident eye doctor. I don't mean she's a resident but I mean like in house eye doctor that I remember on one of the investment academy days I came with the swollen eye. I thought, well, I've got an eye doctor in the house, right? So Priya thinks it's really good value. Right. I don't want to spend too much time talking about the mastermind and all that kind of stuff, because I think it's only for those who are interested. I think most people find it useful, especially you. I can share some more details with you, the offer document and all that. I want to answer your questions because I know some people had questions for my presentation. So I want us to have some time to answer the questions. How do you think we should go about it, Yudi? Should we go back to see who's already asked the questions and then ask them to, you know, respond to it or what do you think? So I think some of the questions have been answered. If they can just react for those that still have have. I love that. So I think I've answered most of the questions in my presentation. But if you've got a question, what we could do, there's a hand raising option in Zoom. We've used it before. So if you just raise your hand, kind of like it creates a key, doesn't it? You can ask your question, or if you still have a question, just pop it in the chat and then I can call you. I think you should be able to take three questions. So let's. Let's get it. Three questions, get it out of the way. And if you still have more questions, I'm happy to stay back and answer a few more as well. Okay. Or maybe I've answered all the questions. Oh, Sonia has got a question. Hey, Sonia, how's it going?

Can you hear me now?

Yeah, I can hear you clearly.

Sorry. I'm all right, thank you. Listening intently as I could, but I came late because of my children, so I apologize.

No problem at all. I'll tell you something about my child decided to fall ill on the road. Wrong there. Well, you can't decide distance, right? Sonia, what's happening? How can I help?

So my question was, when you were talking about tax wrappers and ISAs and things like that, and licers, I had a question that if your child has a junior isa, then that is their money. They can get it at age 18. If they then wanted to put that into a Lisa, can you convert a Junior Isa into a Lisa? And in the Lisa, if I understood correctly, you can put in 4000 and the government puts in a thousand. But if you transferred your junior isa into a Lisa, would you then get the 25% bonus on whatever amount you had saved up in your junior ISA. Or would it just still be the 1000 because the limit is 4000 a year.

Right. Okay, I think I get what your question is. I'm just going to to say it back to you to make sure that, yeah, we captured it. So what you're saying one, you've got a child. You guys, I'm sure if you didn't know about it before, I'm sure if you've been to my session, you know there's a Junior ISA. So ISA allowance is £20,000, but Junior ISA, you have £9,000 that you can invest for any child less than 18 years. That 18, that's UK resident. And of course they're the genius SIP. The SIP allowance is 60k, but for children you can have up to £3,600 grossed up. Okay, what that means that you can put up to 2880 and the government will add more money to get it to 36 each tax year. So Sunday, your question is, can you convert that junior isa? Because, yeah, some people are worried that when their child turns 18, they might go out and buy a brand new Lamborghini or Ferrari if the money is enough, or maybe throw a big party. So your question is, can we just convert from the junior ISA into a lifetime ISA instead?

Yes.

Okay. Now usually what happens, I can go from a junior cash ISA to an adult cash isa. Okay, you can go from a genius stock and shares isa. I'm sure you know my opinion about junior cash isa. I think.

Yes, exactly.

Yeah, you know my opinion. What's the point? If you go 2 year old, you're not gonna need the money for the next 20 years. So why is the money in cash? It's just losing value. But it all depends. Let me not go into all that. But basically, if it's a junior stock and shares isa, it will convert to an adult stock and share Lisa, not Eliza. Because Eliza, you need to be 18 to get a lifetime. So at that point, if the person decides to open a lifetime, I said they can go ahead and, and still have a lifetime isa. This is my understanding, anything different from that to introduce quite a bit of complication. You see, going from the Junior ISA to Lifetime Ice and all that. Because what if the Junior ISA already lice allows £4,000 maximum in a tax year? Yeah, yeah, I hope that's helpful. But if there's any new guidance from the government from hmrc, I'll be interested to know. I don't think they'll complicate their lives that way. I don't think they'll make things that way. I think it's probably going to be the same in the future. Going from cash ISA junior to Cash ISA adult from stock. Can I. Yeah.

Can I add a sub question on it then? So what about if you've got the junior cash ISA now, can you convert it to a stocks and shares isa? Because it seems like not everybody who does a junior cash ISA does a junior stocks and shares isa. Yeah, but is it actually possible to convert it from a junior cash into a junior stocks?

Your question, the question has the seeds of the answer.

So it's possible, yes. If your provider. If you can find a provider who. Who does.

Might be a bit tricky. I'll just pose back a question to you because I'm originally Nigerian. You see, we reply to questions to questions with questions. So what? Well, can you convert a cash ISA now as an adult to a stock and shares isa?

Yes, you can, as far as I understand. I mean. Well, okay, so you've got the 20k allowance total, and at the moment you can split that however you want into your stocks and shares and cash isa. But if you only had a cash ISA and you suddenly decided, okay, yes, I want to change that into stocks and shares because I'm very young and I have lots of time, then you could do that, I think. Unless I've misunderstood that.

I think largely you understood the principles, obviously, Sonia, if. Yeah, I think you've been quite consistent in the master classes and you're grabbing the concepts. Quite all right. But what. What I've seen done, I've done personally. I've switched my lifetime ISA Cash. Yeah, the lifetime as a stock and shares.

Yeah.

I'm not gonna get this money until I'm 60. Wow. Okay. It's not my main pension, but pot. But it'd be nice to have another like few hundred thousands there. And then I. Sweet. I don't know if it were up to hundreds of thousand, but we'll see. Okay. We are putting aside like 4k every year and then the government is stopping off 5k. And if the market does well and you've done it for 20 years, hopefully there should be something there. 20 years, did I say? Okay, so basically you can do that, but cash ISA is cash isa. You can open a stock and shares Isaac isa. But some platforms offer you the opportunity to switch your junior stock and share that your junior cash ISA to a junior stock and shares isa. For that to happen, the platform must already provide the stock and shares ISA what, what is hard to do, what most people can do is go from junior stock and share that to cash. That means selling the shares, that's liquidating the cash and then liquidating the stocks and ending up in cash position. That will probably be an a conversation to, to have with the platform you're using to find out. Okay.

But that's when it comes important to do number one, which is invest in yourself because I've come to that conclusion that that's what I need to do or rather to change the cash isa, the junior cash ISA into a stocks and shares one. But then you have to arm yourself with the knowledge to understand which there will be several platforms but then you have to be able to decide which of those platforms platforms is actually the best deal and has the lowest fees or no fees, etc. Etc.

I feel like you're reading my mind because I was thinking, oh, should we go into platforms? Have we got time for platforms? Because you guys know you're in the community, you know, like I'm very big on not paying fees if you can avoid them.

Exactly. I got told by somebody 0.9% fee. And when you were talking earlier I thought oh no, that's too close. That's too much of a fee. It will add up the phone down.

So say, say a little prayer for the consultant I talked to today whose platform and advice and all that fees have been amounted to almost 3% and they didn't know all this years and sadly they're not doing better than market. So I'm not against paying fees. I just told you guys I've budgeted 30,000 this year alone for personal development. I might even need to hire someone to help me with working out and whatever. It's not a waste of money. I'm investing my future, my health. But, but I'm against paying for what I don't. What am I paying for? Like if I've got like I gave an example even investing which is one of the platforms, I'm not promoting that platform in particular but if they charge me zero platform fees, I want to know why I'm paying another platform 0.99. And if they say it's because you can call us anytime, like I don't need to call you. I don't ever to want, want to call you. So but if you really need to speak to someone on the phone, they might want to go with the platform that charges. If a platform say we'll provide research, provide a lot of research. And if you're already like, if You've been through the investment academy like Priya, you already know how to research companies. Or if you've been through the Investment Academy like I.O. or any of these guys, you know how to analyze companies. So you don't even need that research. If you're a passive investor investor, you're only buying index fund and you've understood index funds properly, which is what we're doing week two, I think. Invest index funds and ETFs, all of them. It's week two of the investor academy. Then you don't need that research. You might think, you know what, I'm good. I'm not giving you 1% of my fees to get your research because I'm already a passive investor. But then lots of people make the mistakes of looking at their platform fees but not looking at exit fees. Sony, that's the one. That's the sneaky one. Some of them charge 40% exit fees.

Wow.

You need to check the agreement, read the fine prints that AI these days. You can download it and pop it in there. If you're making an investment and you don't know what the risk level is, you don't know what the fees are, you don't know things like basically I'll say what we call risk premium, you don't really understand. Or you're buying individual stocks and you don't, you don't understand the company fundamentals. You're really gambling. Right. You're not investing. So I think you're thinking about it from the right direction. But don't waste too much time. You know, if you're going to invest for your children, you want to do it as soon as possible. Why? Because the biggest ingredient. Yeah. It's not T H Y N E. For those of you, spicy food thyme is the main ingredient for compounding. Okay. Yeah.

I mean, if I've understood that then. Because the person that I spoke to, and this was one of these, who then eventually when I asked the question, oh, yes, yes, the 0.9% fee. But he was also talking about there's a charge, I think it was per trade. And I thought, oh, I haven't heard that in any of Andy's talks. I don't, I need to ask the question like, is that as someone. Because as you say, I will likely be a passive investor. So is that the kind of detail that you really want, need to bother about? Well, you do, I think, but I, I didn't know where to start.

This is a very fair question. Again, again, you see, because there's lots of people making YouTube videos. But now content is everywhere. Context, actual application is different. I would say to you that this is really really important. This is somewhere people leak money gradually.

Yeah.

Some of the platforms you see that you say you've never heard me mention is because they're not worth. I mean if their fees are so high they're not even going to make it into the top five that we review. So some platforms charge you for trading and I don't know why people use them I'm sure. Yeah they have beautiful trading platforms. Some platforms don't charge you any money for trading practically I went from IG to Free Trade because Free trade wasn't charging any money for trading. But then trade had a money leaf here which I didn't mind paying and I still have that account because then I like to go as far back for my investment records. Sometimes it's difficult to find piece your investment records together just to have things in place to, to be able to prove whatever you say. But for someone starting out why would you go to Free trade if they charge you a fee and trading 212Invest engine doesn't charge you a fee. Yeah, it all depends on what's really important for you. Okay. There are some platforms where if your investment port grows it becomes cheaper if you're investing above 200 and something K becomes a little bit cheaper. So these are kind of things to think about. Okay. At the end of the day keeping things as simple as possible. If you're a passive investor and you invest every month then it matters because every month you invest they're charging you a trading fee.

Yes.

Yeah, exactly. So if you are doing like sort of like what we call pound cost averaging or if you're for those in Canada or US dollar cost averaging where you invest the fixed amount every month to hit your investing goal which I usually suggest should be 20 of your net income should be going towards buying your freedom for investing savings or paying down debt depth. That means if you're doing every month then you're being charged the fee. And this is one of the things this senior doctor complained to me about, said my advice has been saying to me rather than putting a lump sum let do a monthly thing which I think is beautiful but it's just that what is the incentive for the advisor again getting charged the fee every month? So if you've got a platform that doesn't charge you per trade, beautiful. That's the pound cost averaging. Some people prefer to do lump sum investing so at the beginning of the taxi they put in their 20k if have it and that's it. Or at the beginning of the year they put in 20k in their sip and all that if they know what their pension allowance is. Well Sonia, I hope that was helpful. I'm just going to take a few more questions if that's all right.

Yes, thank you, that was very lovely, thank you.

No problem at all. Now I don't know who is next on the queue. I've got to find a queue. I'm sure you do. Tell me. Right, okay, I've got chip us off. Still here. Okay. So I go, I go to the next person. So I've got shah, Dr. Shah. Muhammad Shah.

Hey Andy, can you hear me?

Yeah, how's it going?

Yeah, good, good, thank you. I, I was on my way back in the car listening and I dropped the call wasn't very good so it kept dropping out. So I don't know if I've missed or maybe this isn't the right time to ask this question. Let me ask the question and see if you if it was covered today or if it's covered in your sort of master class thing. So I started investing about Quick history. So I started investing about six years ago or so I did a little bit of research and then got into it and then over the last 12 to 18 months I've got into routine and I use trading 212. I don't know if that's one of your preferred platforms but I've, I've become accustomed to it. I like the outlay. I, I, I do my research on the stuff that I'm investing in. In over the last 12 to 18 months I've, I've made, so I've made quite a lot of money on just the investment account side of things.

Right, okay.

And now I'm in a position where I wasn't backing that up by shifting money into my isa.

Right.

So I have, as an example, let's say I have, I don't know, let's say a Hun over 100 grand sat in just as of this in the last 12 months in the investment account. Yeah, I suppose you know where my question is going. Yeah, that's building nicely and I've got it invested in like a widespread, like ETFs, gold, individual companies which have everybody's now which is, which everyone's getting into which have hit the, you know, the AI companies that have hit above all.

That kind of stuff. Right. All the Nvidia.

Yeah, yeah. But I don't, I, you know, I'M now in a position where I, I can't, I don't want to take that.

Money out because I feel a pain.

Yeah, I lose, I lose everything basically. But yeah, I just wanted your advice on is there, is there workarounds over time. I don't even mind waiting. I, you know, do you know what I mean? Like I'll do it gradually but is there ways around or the flip side of me thinks is there just I keep doing my thing.

I wish. Dr. Shah, I wish you, you probably missed the part where I addressed this, but I wish you had. If you were there at the beginning, I asked this question then to make it more interesting when I explain it. So I'm going to, I'm going to explain it again and give you the answer to that. But thank you for sharing. Obviously nothing, nothing I say here is personal financial advice, all your circumstances, but what I wrote in the last newsletter on Sunday. I sent out a newsletter every Sunday where I share my thoughts and about thousands of doctors, few thousands of doctors read that you are not alone and it's not your fault. You probably didn't know when you started out that you needed to optimize your tax efficient accounts first. Yeah. So you learned investing bit because like me, when I came into the UK I already knew how to invest. So I started investing once I got a bit of money. But the problem is that I started using the general investment account just like you. Yeah. The problem with that is that you've created a massive tax bill because if I'm to guess correctly, you are a higher rate taxpayer. Am I right or wrong? What's your job role?

I'm GP Partner.

Excellent. So basically getting on the side of tax efficiency first is one of those seven steps I talked about. Yeah. So what could you do now? I mean there's no use crying over spilled milk. But there are a few things you could do. What I did last year before they raised the capital gains tax was I sold my holdings that were outside an isa. And then what you could do is if your capital gains for each year, for instance, you don't want to miss this one before April 5th, you've got a capital gains tax allowance of 3k. You could sell up to the amount that you can take 3k capital gains and that will be it in the meantime. So that would just sort of like help you to feel a bit better because then you can cash in that gain without having to pay any tax on it up to £3,000. But then if you want to hold the same stocks Then what we'll do, which I wrote in the newsletter as well, is what we call bed and Isaac. Okay.

Okay.

Not better than breakfast. I sell. There's better. It's more difficult to do in investing these days, but basically I sell. If I sold my Nvidia, I know that's one of the stocks you hold. I, I, for those of you who have been through the Investment Academy, you know I have really strong views about popular stocks. I don't ever own any stocks that are popular because I'm kind of like deep value kind of guy from fundamental investing background influenced by Benjamin Graham, Warren Buffett and the rest of them. So Investing Academy, part of what we do is like we are looking at income statement balances, you know, cash flow statement. And some people take that research and do more deeper research, learn how to analyze companies from the point of the story and the numbers. And some people also stick to week two, which is basically index fund and that is fine. But in your case it's not investing bit is the tax bit. If you are able to take advantage of your entire capital against tax allowance this year, if you sell them, that doesn't mean sell 3k worth of stocks. That means it could be 20k or 30k. That will give you that 3k capital gains. Then stop there. And if we had done this last year, you could have collected the 3k from last year as well. Yeah. Now after you've done that, you could then decide to hold on to the next year tax year, which is basically by, if you do it before April5, by April CCI in a new year, you can then sell down again, again, no financial advice and take advantage of that 3K. So you're kind of gradually coming out.

Yeah.

But you want to hold on to the same stock. So what you could do is you sell it and then you're buying it inside your stock and shares isa.

Yeah.

Which means that if you haven't used it. This is why I got a bit upset earlier in the day when a GP was a GP partner, I can't remember said oh, my advice, I didn't advise me. I was doing this general investment account. Like what was the blooming point of having an advice 10 years you're investing in that account. So if you do that, that's one way. Okay. The second way would be if you've had a capital loss in the last anytime in the last four years. Yeah. Lost money trading crypto. You've lost money trading stocks or anything. If you register it with HMRC within 4 years of that happening even if you lost like 100k? Like I've got, I've got like people in my mastermind who, before they started learning how to invest, they've lost like 60, 50. Yeah, yeah, serious guys, Sorry. Any amount you've lost, if you register it with HMROC within four years of losing the money, you can claim it back indefinitely against your gains. So if you've, if you've gained 100k, but you lost 20k like 20 years ago, but you registered it within the 4 years. So think back carefully, maybe that's what you should do at the end of session. If there's any point you lost a bit of money, then you should want to register it as quickly as possible. Obviously we're limited in what we can do in, in this 90 minutes master club, but these are the kind of things we delve into in the Mastermind, because the mastermind is more like hand holding. There's a community group, you get stuck, you ask questions. Is this someone who's already done what you've done in the group? And there's a lot of sharing. So like we've got people who have gone to Canada now and they're sharing like insights from Canada and we're also sort of like supporting them on the other side. Side. So basically what you want to do is to explore these two options. Those are the quick strategies you can use. Use up your capital gains tax allowance and of course use up your, any loss allowance that you've had. There are a few other things you could do. I mean, I, I could share. If you send me a message, I could share the same stuff I shared in my newsletter. I don't suppose you've seen it, my Sunday newsletter?

No, no, no, but I, I have just, I've just sent you a message on your WhatsApp group. I think.

Good, no problems at all. Or if you follow me on LinkedIn, I think I also wrote a post on it on Monday. It's all totally free, you can read it there. If you've got questions, send me a message. I'm also in the group. Okay. Right. Well, I hope that was helpful and congrats on your investing. I'm going to ask you what sort of research you do, but I think it's a little beyond the scope.

Oh yeah, I mean quickly. I mean, like as an example, I will go into. So I use trading 212. So I'll go into the instrument details, I'll open up the PDF document, have a look at the risk profile, have a look at the sort of risk potential. What, 10, you know, the common. What 10 grand might get you in a low risk, medium risk, high risk sort of. Of scenarios. I'll do a bit of research on the company potentially, if it's an etf, I'll have a look at what range of companies that are covered within. Within the actual etf.

Yeah.

A little bit of read around. That's.

Yeah, yeah. Have you that, that sounds like you've done a bit of research. But obviously we kind of like favor a fundamental approach where we're looking at the company financial, their free cash flow. Have they got any debt depth? Who are their management? What is changing around them? What is their future? Is AI making things worse or better for them? And obviously, have they got a mood, you know, about moats, like basically like how defendable. Yeah. Assets. So these are already important. Why I say this is because having been to three stock market crashes, I've seen periods of bullish markets like this when then everyone is doing well.

Yeah.

And then like in 08 or 2010, sorry, 2010 was just a flash crash, or 2020, things go haywire and then you start questioning the fundamentals of what you bought. Is it really a good company? If it's a good company, I don't care if it falls in half, I'll just buy more because I think it's a good company, It's a functional company. Like buying a farm. If I bought a farm in Cornwall, so I live in Devon and obviously people have farms here and it's lovely. If I bought a farm and this farm, I bought it for, let's just say a million pounds. And every year the farm produces hundred thousand pounds. In what of income. So I'm valuing that farm based on the hundred thousand worth of income and I'll be online, people might say, oh, this farm is worth about 5 million. I'm like, okay, that's brilliant. If you give me 5 million, I might sell it here year. But if suddenly farms are no longer cool because farmers are going with pitchforks to London to tell of the. The chance for changing their deal quite rightfully. And people say, I'm not gonna buy a farm. They've got this whole tax stuff and the people, someone offers me 500k, I'm going to think, are you off your rocker? I'm not going to take it for 500k because I generate 100k. Yeah. So that's the way I look at investment. So just because the market has fallen and in the short term, the market is only A voting machine. But in the long term, the market is a weighing machine. I'm only quoting Benjamin Graham, who was Warren Buffett's mentor. So in the long term, that's the important period. That's when you see if you've made the right decisions and you bought like good value on the valid companies, bought them at fair value or even deep value. The long term is fine. In the short term, them, there's a lot of momentum and emotional factors and all that kind of stuff and it's really good that you're getting your teeth into it. But cover the tax bit and the risk bit because if you have to yank off 24, let's say your capital gains is 100k. Now think about in the next 20 years, if you've got like, yeah, like let's say a million and you have to pay £240,000,000 in capital gains tax, that's already enough to make you retire a bit earlier. Because if you've got an extra 240k, of course it might influence whether you retire 5 years earlier a little bit. I don't know how much you spend, obviously, but it can influence your retirement at an early age. So tax strategy, you've just made the whole point of. Yeah, master class. Okay, well, I hope that was helpful. I'm just going to take one more question.

That's.

You're welcome. Yeah. So I've got like two more questions here. I'm trying to find who it is. Yeah, is. Oh, yeah, definitely.

Yeah. Thank you.

So I think it was quite helpful to note what you just said about losing significant amounts of money and being able to get that back. I did not know that, so that was great. Thank you for that.

My question, please don't tell me you lost a significant amount of money, but if you did, yeah, you can claim it back. Why we do stuff like this is. And why the community is really valuable, especially the mastermind, is you don't know what you don't know. How would you know? Because if you knew, you'd have already asked the question and sorted out the issue. And. And I also don't know what everyone doesn't know, basically because I just share these random facts now because of the question that was asked by Mo. Yeah. So thank you for highlighting that. I hope you help someone claim back some money. I love it when doctors and dentists, healthcare professionals claim back money. Feel like sticking a finger to the system. Right, so what's your question?

Given Mo's in depth knowledge, this is going to seem very elementary. However, I would need some clarification and I can see that Evangelos is writing some things about sipp, but I need some clarification on how people can get a sip, handle a sip, despite having the regular NHS allowed pensions. That's my first question. I do have more than one one.

Let's deal with the first one. Okay, so there are two elements in sip, right? There is the. I've got five minutes to go and for whatever reason, I'm sure my charger is somewhere around the corner, but I'll do it. So SIP is self invested personal pension. Right. There's the self invested bit, which people forget about, and then there's the personal pension bit. So it's both a tax play and an investment play, and also a pension play play. Does that make sense?

Yes.

So let's look at the pension play. You've got your NHS pension and that is deducted automatically. You don't have to do anything. I don't know if it's the same tubers I know. Is it urology?

Same one.

Same one.

All right. Okay. You appear as I job, as I know we've chatted that you bought a book recently. So. Yeah, I hope it's helping. Yeah. So your pension, as a urologist, you're getting at least 12.5% of your income deducted automatically into your NHS pension. So that forms part of your pension contribution. And your employer is also probably putting 23.7% of that, your income, into your pension. But your entire pension allowance, how much you are allowed to put in tax free into your pension, per tax here is 60k. Right? So if your pension impute amount, so you're using NHS pension, which is a defined benefit pension, so it's not just a simple subtraction from 60k, they have to factor in inflation and sort of like the uplift over a period of time. We haven't got time to get into how to work that out. But if your pension impute amount, when we factored in the amount your employer has given even input into the pension, your amount you've put in and the uplift, and you get to, let's say 40k, you still have another 20k allowance in your annual pension allowance, which is 60,000, and that's the bid that you could actually use to put in your sip, does that make sense? Now, when you go to putting that money in your SIP, don't forget that once you put in that 20, if you put in, let's say, 10k in your SIP, the government automatically gives you back 25% of that cash. So don't go and put in 20k because what will happen is that you will hit 60k and when you get that 20 back it pushes you above 60k.

Right?

That 40k was your pension. Input amount above 60k becomes painful because HMRC has some really nasty penalties because you've crossed the allowance for the year. The allowance is 60k in such instances where you can could do what a lot of Newer Consultants or GPs. I don't know when you finish Chibuza, I've known you as a urologist for maybe since we've been talking, but I know some newer consultants who haven't used their pension allowance in the previous years. They do what we call carry forward. So it's strange. But going forward means going backwards and bringing the pension allowance you haven't used over the last three years and then using them to be able to, you know, contribute money to your pension and then come out of that 60% tax trap. So if someone wanted to contribute more because they had some money from private practice, they had like I have rental income and dividend income and the rest you might decide to then use your carry forward. Another scenario, if you've got a limited company, then you could then contribute directly from your limited company. But all together the allowance will be 60k per tax here for this year. Last year, I think three or four years ago it was 40K here.

Okay, okay, okay, fine. That is helpful.

Can I ask my follow up question?

Yes, yes, go ahead.

Okay, so ETFs because of the instability that's going on, what's your advice not necessarily dollar based or USA based ETFs to diversify?

Right. Okay, so that is a fair question. I'm a big fan of if you want to be diversified, diversify properly. If you want to be concentrated at some point. I'd say I've never owned more than 10 stocks, 10 companies at a time, maybe usually six to 10. But if you're going diversified, there's no point in buying like hundred companies like Footsie 100. What is that you're not diversified enough? Because while Footsie 100 we might be biased, especially in the UK but the UK economy makes up for less than maybe 4 to 5%. I don't know the exact amount. It's not up to 20% of the world economy. Now the US on the other hand is a giant in the stock market. Maybe 40% of stock market might be accounted for by US companies is driven by things like the big tech companies. One Minute. Yeah, let me just plug in my battery. So it's driven by the big tech companies. So massive US companies, companies drive maybe 40% of the stock market. But remember when you buy S&P 500 which is basically the top 500 companies in the US based on capitalization. So that is just jargon to mean their size. If you multiply their number of shares outstanding by their share price, they are the big companies like Nvidia is maybe a few trillion now. So The S&P 500 is the top 500 largest companies, basically the biggest company. They're not necessarily the most profitable or the most run or the best deep value. They are the top 500 companies. And people say well if they gotten that big they probably know one or two things. That's why I see companies like Apple and Tesla and Nvidia and you know Amazon, you know all of them, Facebook. Now here's the big problem. If you go with only s and P500 Chris is good diversification because even a global index you see that maybe 40, 50% of it is S and P. But, but you are having a risk called geographical risk basically because they are all US based companies. They are still global companies one might argue but with policy changes, trade was on all that. If you really want to go through diversified then you might be looking at, looking at an all world index because there are huge giants like Taiwan Semiconductors which is a brilliant company producing chips as well and doing all that stuff of they are not part of the S P500. If you only invest in SMP500 you're going to miss out. The beautiful like companies are doing really well in Europe. You know companies like basically I think there's BAE Systems and a few other companies. Of course this is not a recommendation to buy any of this thing but I'm just trying to give you perspective. You miss out Japan, you miss out so many. So that's why people, people go for things like footsie all world. But then if you go to your app and you want to buy footsie or world then you realize that multiple footsie or world and how people go ahead and sort of like buy a foot sale world with a higher total expense ratio that means they are paying more again. And what I've seen is like I call it spaghetti portfolio where the person has Footsie all world in multiple places with different names but not knowing about it. And again you have to think about what's your investment horizon. If you are thinking I'm going to invest for the next 20, 30 years. Does it really make sense to invest in a fund that is an income fund or what they call distributive fund in some platform they'll call it dist. Maybe you might want to be thinking about things like accumulating funds where the returns on investment is being reinvested in the fund and it's compounding. That means that compounding can work more powerfully. But of course, if you're planning to retire in the next two to three years, you might want to be thinking about distributive funds income fund. So it's not just about the global the fund buying a footsie all world or buying S P500Is. Does that fund also hit all the other criteria that are important? That these are things that kind of like we look at in the academy. It's just hard to do that. I think we are here now for two hours. Had to do that. I would love to. I've done videos and all that stuff. But people just don't want to watch 900 videos. Sometimes they just want to boom, boom, boom at the end of four weekends rather than going guessing and trying and trial and error making mistakes. And then finally some people want to at the end of the four weekends they know they can invest. And for those in the Mastermind, it's beyond investing. Also looking at tax efficiency and all that stuff. Well, I hope that helped.

First of all, yes, it has. There's just an extension of that because of the stock and shares. Isa so will you say that for the stock and shares, with the stock and shares isa does one have to select what they invest in or can the bank or agency do that based on their recommendations and their knowledge?

Sound question. And this affects both stock and shares. Isasip any investment. The top There are three approaches and all of that depends on your knowledge and the amount of fees you want to pay. Number one approach is what I've done for 21 years and that's what people have passed through the mastermind. Do they invest by themselves? It's called DIY investing. You think, well, I'm a doctor, kind of like you're a surgeon and you're able to learn all this and maybe you can learn how to invest if someone shows you how. So that's diy. That's not for everyone. One DIY investment doesn't mean like becoming chained to your phone. I sometimes look at my investment for months, sometimes a whole quarter. I might not look at it except when I want to share it to someone to explain it in so that's DIY investing. If you're a passive investor, like you're buying S&P 500 or FTSE or World or any of those global things, you might not even need to be checking it. It might be an annual check you do. That's DIY investing. So whether it's stock and shares, ISA or SIP or lifetime ISA stock and shares, you can choose DIY investing. That's number one. DIY investing obviously is the cheapest because nobody's charging you 2% of your funds or 3% and hidden fees. Number two option would be you could go with rather than DIY, you could go for something like what we call target, target date funds where you specify I want to retire by, let's say 2046. That's 20 years from now. And then the target date fund will be 24. This targeted fund, then they will ask you about your risk tolerance. This is where things go wrong for some doctors basically because they ask you what's your risk tolerance? Guess what everyone will say for those of you who was a risk tolerance, can you tell me in the chart, is it like an adventurous or moderate or zero risk? I just, just to demonstrate something, if you tell me in the chat, let's just see what people say and feel free to type yours as well. So I'm seeing some responses already. Someone says a five new mild, mild, moderate, low. So a bit basically what most people don't understand when you say moderate risk, your financial advisor understands it as well. 100 minus X. You're 40 years now. So I'm going to say 40% of your investment should be in bonds and then 60 should be in stocks, which could be disastrous for. Not disastrous, but it's kind of like really a sad thing because when you were were 25, you weren't earning that much. When you were 26, you're in that much 30. That much. Suddenly at 35 or 38, you became a consultant. You're playing catch up. At that point you've missed out the years you could have invested and compounded. So at that point, for a doctor, that mathematics of 100 minus X doesn't quite apply in the best way because now you are your best earning years you can compound quite quicker so that you then have the option in the next year 10 to 15 years to say okay, I'm work optional. So moderate same moderate or mild. You need to understand what that means. They do something called psychometric test where you can answer some questions to say are you able to sleep at night? If the. So we do that as well. In the academy, are you able to sleep at night if the market goes by, you know, half. Can you sleep even if you knew that the market will recover? Some people can't sleep. And then you think about it. Also the platform. If you're using a target date fund, which is the second option, they will ask you those questions and then they can invest your money almost like an automated way in which it takes more risk when you are far from your retirement age. And when you're approaching your retirement age, it starts selling some of the stocks and buying bonds and fixed income assets like treasury bills and stuff like that that are less obviously less volatility but poorer returns. So target date funds can still work for someone who doesn't want to invest at all and they don't want to pay for management fees. But of course, targeted funds have a fee, they charge a fee. It's a reasonable fee for providing you that access. Okay. The third option, which works for some people, but most times I think it's ridiculous, is don't do target date fund. Don't manage your phone, just pay someone to manage it for you and they charge you a fee. When some of them charge a fee, it's hard to justify. And I think, well, if you don't want to do it, you don't want to learn how to do it. Maybe over the period of your career of investing, you might pay, if we check compounded, you might pay 30 to 40k in fees. It's not always upfront available. It's like 1% here, 2% there, there. But yeah, for some people that's fine. They can't be really bothered. And if you're paying someone fees and the market is averaging 10% and they are doing 20%, yeah, maybe they've made their fee, especially if their fee is less. What puzzles me and beyond my understanding is when there's a fee and the market performance is not justified, if the reason for the investment is not to beat the market or to do better than the market is, is what we call non correlated investment. For instance, you want to invest in gold in a gold mine, you can't assess it, or you want to invest in something that is going the opposite way of the stock market, then that is understandable. But this is kind of like stuff that sophisticated investors do. So your first investment wouldn't be like, oh, I want to invest in whiskey or those kind of stuff. So if that was the reason, I was okay. The goal wasn't to beat the market. The goal was to preserve the funds. But if it's just a simple investment, look at the portfolio. Just index funds, a mixture of index funds and then you still pay the fee. You are definitely going to underperform the market. And that is just mathematics. That's how it works. So these are the three ways you could invest. One, yourself. Two, you could buy like an automated thing like a robo investor, Robo Advisor or Target date fund. So I group them together and number three is actually having an active manager managing your funds who gets paid because they are doing some work. It's just that the research. If you go to my website, you see two articles I've written about it didn't make me very popular with wealth managers. But it's just the numbers provided by S P500 Spiva. 99% of active investors fail to beat the average market indexes or indices. I think that's the right plural word. Yeah. So these are your options. You can start from whichever one you feel most comfortable with.

Thank you.

You're welcome. I believe we've answered them all the questions for those who had their hands raised and the good time to draw the cutting. Look, I want to thank you all. This is our last free investment master class, at least for January. I might get tempted to do another one later in the year. Oh, sorry, Kem was here. I think it's fair to take our questions. Hi.

So basically I'm very new to this investment thing and everything you're saying looks like jackals to my ears. I was wondering to start with it. I want to start investing, but I don't even know where to start from. I don't know what platform to use. I don't know what it looks like.

I would say that before you put down money, maybe read my investment jargon buster. It's totally free. If you send me a message, I'll send it to you or someone from my team can share it to understand the terms. I know you're a doctor in Kim. I think you're a GP, am I right? No, no, I'm just an ED. Oh yeah. In ED. Okay. Yeah, I know we have friends on LinkedIn somewhere. So I would say basically starting from understanding is the best way. I'm not sure I still have a sport in my investment academy, but basically everyone in the Mastermind automatically gets a sport first, so whatever is left is available. But even if you don't get a spot in the Investment academic, which starts on Saturday, starting from. From understanding the basics. For instance, this master class, if you find it difficult, then reading My investment jargon buster is a good place to start. I've got multiple articles on the website as well. So that would be a good place before you start putting down money. Where people make a mistake is trying to invest money first before they've invested in their own understanding is basically a recipe for either losing money in the market or losing it to paying someone. You're not really sure what they're doing. I tell you, basically, if you learned Krebs Cycle and you learned neuroanatomy and neurophysiology, chances are that you can understand investing if you just have the direction to go with. Yeah, I hope that was helpful. Yeah. Okay. Right before. Because you need to understand the basics. Like we're talking about fees and all that kind of stuff. Stuff. Really understanding that before you start deciding which platform should I use. Don't be in a rush. It takes you before Valentine's day. Today is 14th of January. 14th of February is Valentine's Day. I know. Because yeah, usually you need to take my wife on a trip or something. But before Valentine's Day, you can clearly understand how to invest. Understand it to the point that that is an asset you have for life. You have that knowledge just like you learned how to drive or swim. But you just need to dedicate a bit of time. And for those in the academy, you don't join the academy and finish and not know how to invest. That's the outcome is at the end of the day, you know how to invest. You might not be able to do the kind of analysis Warren Buffett can do, but you should know how to set your goals, understand what you're investing in, choose your platforms, go in there and to make sure of it, at the end of the four weekends, we don't say bye. There's a community, the Mastermind community where you can actually ask questions. People sending screenshots. I'm about to do even this evening. We had people earlier in the day sending screenshots. I'm setting up my sip. This is what I saw. It looks very worrisome. Should I go ahead and then the explanations in the group. So I drop into the Mastermind group every. Every evening to answer questions and all this kind of stuff. And the other ones are you can use my AI as well in the Mastermind to start asking questions and don't feel. You don't need to feel embarrassed about any questions. Even if you are brand new. Everyone that is responding to things here, at some point, you are totally new as well. They had to learn it. Yeah. I'm glad them. I'm glad them. Yeah. I'm seeing some of the comments Priya said, as usual, generously informative and succinct. Thank you so much, Priya. And this is. Thank you, Andy. Yeah. Okay. Yeah, so I hope that was helpful. I think I'm going to check out now and of course, if you've got more questions, pop it in the chat, in the group chat, in the community chat, you can email me Support@Moneywise Dr. You can send me a WhatsApp message. I'll just say before we go, if you could spend two minutes to give me a feedback. All you need to do is to whip out your phone, point it at that feedback form. It will take you to where you can drop a feedback for us. Yeah, really value those testimonials. We invest quite a bit of time and resources in putting on these free events and then the testimonials are not a payment. But it's always good to know that it was useful to someone. And it also is an encouraging. I make, I make easy to make a case to my family to say, oh, this is helping out people. Maybe I'll be able to do another free one this evening. That means I have to do back time and bedtime a bit earlier. Sometimes, not all. Yeah. Okay. So if you want to give me a testimonial or if you, if you can't, if you haven't got your, if you're using your phone and can't point at the screen, then you can use the link. I think the senior link also will land on the chart. And of course, if you wanted a copy, copy of the Moneywise doctor book, you can get it from my website if you want all the bonuses or you can get it from Amazon as well. It's just moneywisedoctor.com forward slash book. I can get it on Amazon either way. It was important to me that you get it and you're able to use it to make smarter financial decisions. Okay. All right, guys, I'm going to draw the cotton here now. I think I'll hang around for 10 minutes for those who want to ask questions about the Mastermind here or if you've already sent me a message, sorry I've not responded to you because I'm in the master class itself. All right. Okay, thank you. Yeah, thanks, St and yeah, Dinaka, thank you. I appreciate that. Thank you very much. Yeah, yeah. Ada says thank you. Yes, I'll be seeing the Mastermind. I know you join the Mastermind recently and they're looking forward to seeing my next one to one with you, Monica. Yeah, I hope that was helpful. And yeah. Yeah, I'll see you. So I know you're in the mastermind, so I'll be. You'll be joining us in Investment Academy. Yeah. Sonia, good to see you again. Thank you. And Louise. Yeah, Louise, I'm glad it helped. Yeah. Grace, I hope it's. Yeah. Because at the end, at the beginning when you started, it wasn't clear. I hope he's a little bit clearer now. You build on it. Okay. Yeah. Someone says thank you, thank you, thank you. Santo said eye opening. Thanks. Right. Okay. Fantastic. I really love that. And yeah, Ikechuku. Thanks. Thank you. Thank you. Yeah. If you leave me a feedback on, you know, the testimonial platform, I really. Yeah. If you've got two minutes. Yeah. It's not. You don't have to do that, but if you can do it. I really appreciate that. That. But thank you so much and I, I hope it wasn't a waste of the evening for you. Feedback done. Thank you. All right, then I'm going to drop the mic here. Literally. Bye. Bye.

Sa.