Let’s face it, we all would like the option not to work, the freedom to do what we want.
212 is one of the better platforms that helps enable this faster, and with the upcoming SIPP, can potentially take weeks / months of achieving this goal.
People talk about investment performance, OCFs and other fees, but could it be flipped the other way round? How many days / weeks are you adding to reach retirement, on anything you spend / borrow, and if so, how could this be calculated?
Let’s consider some popular ETFs
VWRP 0.22% OCF
FWRG 0.15% OCF
Now if the performance was the same excluding fees, then VWRP is 0.07% more expensive.
Let’s say £1m is the target retirement amount, and you save the full ISA allowance each year, with an annualised return after inflation of 6%.
Starting at zero, it would take 267 months to reach a million with VWRP, but with FWRG it would take 265 months.
The small things are important!
. But it is arguably a really good way of framing your financial goals.