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    2 - Financial Independence UK - FIRE Flowchart

    Uploaded by

    Ray Jouwena
    1. The document provides a flowchart for achieving financial independence in the UK. It outlines steps for paying off debts, building emergency savings, contributing to pensions and ISAs, and maximizing tax-advantaged retirement accounts. 2. Key recommendations include paying off high interest debts over 10%, contributing to employer pensions to receive employer matching, and opening a Lifetime ISA or pension to invest for long-term goals. 3. The flowchart also provides notes on checking state pension forecasts, investing in low-cost index trackers, and maximizing pension and ISA contributions within annual allowance limits.

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    Download as PDF, TXT or read online from Scribd

    2 - Financial Independence UK - FIRE Flowchart

    Uploaded by

    Ray Jouwena
    80 views1 page
    1. The document provides a flowchart for achieving financial independence in the UK. It outlines steps for paying off debts, building emergency savings, contributing to pensions and ISAs, and maximizing tax-advantaged retirement accounts. 2. Key recommendations include paying off high interest debts over 10%, contributing to employer pensions to receive employer matching, and opening a Lifetime ISA or pension to invest for long-term goals. 3. The flowchart also provides notes on checking state pension forecasts, investing in low-cost index trackers, and maximizing pension and ISA contributions within annual allowance limits.

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    2- Financial Independence UK – FIRE Flowchart.pptx

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    1. The document provides a flowchart for achieving financial independence in the UK. It outlines steps for paying off debts, building emergency savings, contributing to pensions and ISAs, and maximizing tax-advantaged retirement accounts. 2. Key recommendations include paying off high interest debts over 10%, contributing to employer pensions to receive employer matching, and opening a Lifetime ISA or pension to invest for long-term goals. 3. The flowchart also provides notes on checking state pension forecasts, investing in low-cost index trackers, and maximizing pension and ISA contributions within annual allowance limits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    80 views1 page

    2 - Financial Independence UK - FIRE Flowchart

    Uploaded by

    Ray Jouwena
    1. The document provides a flowchart for achieving financial independence in the UK. It outlines steps for paying off debts, building emergency savings, contributing to pensions and ISAs, and maximizing tax-advantaged retirement accounts. 2. Key recommendations include paying off high interest debts over 10%, contributing to employer pensions to receive employer matching, and opening a Lifetime ISA or pension to invest for long-term goals. 3. The flowchart also provides notes on checking state pension forecasts, investing in low-cost index trackers, and maximizing pension and ISA contributions within annual allowance limits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Create budget FI before Investigate Open

    High interest Yes Pay off highest Yes Yes Lifetime ISA taxable
    Retired? pension
    debt >10%? interest debt first (LISA) 7 investment
    access?
    5
    account
    No No No

    Build Pension Open ISA or Harvest annual


    In employer
    Buy food emergency Yes trending Yes LISA and invest CGT and
    pension?
    fund with 3 to >LTA?6 in low cost dividend
    12 mths. trackers 4,5 allowances
    outgoings No No

    Increase Look at other


    Pay rent Other debt Pay off highest Join employer
    Yes pension/SIPP Hit annual limit? Yes investment tax
    or >4%? interest debt first pension
    contributions shelters e.g.
    mortgage scheme VCTs
    No No

    Maximise
    Pay essential Saving for Consider contributions Increase
    bills: council tax, first house? Yes
    Lifetime ISA and salary contributions
    gas, electricity
    (LISA)7 sacrifice if
    available
    No

    Notes:
    Look at high
    Pay job-related Short term Open SIPP and
    interest and Total cost Yes 1. Check here:
    expenses e.g. savings Yes invest in low
    regular >0.5%? 2 https://www.gov.uk/check -state-pension
    transport to work goals? (Optional) cost trackers 3,4
    savings
    accounts No 2. Check where the pension is invested and if necessary switch to
    No
    lower costs funds

    3. Additional pension contributions after you have maximised


    Maximise overall employer contributions and salary sacrifice options may be more
    Check state contributions and efficient in a self invested personal pension (SIPP)
    pension forecast
    1 claim tax relief
    due 4. Global index trackers are offered as a starting point see Asset Map
    for other options

    5. For the split between pension and ISA contributions see the ISA
    vs. Pension flowchart here:
    https://monevator.com/how-much-wealth-do-i-need-in-my-isa-ver
    sus-my-sipp-to-achieve-financial-independence/
    Taxable
    Basics Debt Saving Pension ISA/LISA Investments 6. Lifetime Allowance:
    https://www.gov.uk/tax -on-your-private-pension/lifetime-allowance

    7. Available to those between 18 and


    Financial Independence UK – FIRE Flowchart 40 https://www.gov.uk/lifetime -isa

    Based on the original by Gordon Copestake at https://www.reddit.com/r/UKPersonalFinance/ and https://ukpersonal.finance/

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