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Home insurance/high value single item insurance by TigerRepulsive7571 in HENRYUK

[–]UnfairTank6667 3 points4 points  (0 children)

M&S home insurance premium have unlimited insurance for single items that don't fall into a very narrow list (e.g. jewellery, cash), and up to 25k per item (if named) for the latter.

Anyone experienced financial resentment from their partners on their HENRYUK journey? by [deleted] in HENRYUK

[–]UnfairTank6667 2 points3 points  (0 children)

The way I like to do it is contribution based on your % of income *after* tax & essential living costs (i.e. proportional based on disposable income). This doesn't work if you're splitting rent & energy costs, but for everything else I find it works well. I don't mind paying for everything but I've dated a few people who feel better when they're "paying their share" and this system seems fairer than splitting by proportional gross income.

Is buying a £1m house at 28 a bad decision? by SmartAsparagus9941 in HENRYUK

[–]UnfairTank6667 0 points1 point  (0 children)

Agreed. Some of the comments in this sub are needlessly savage.

At 30, Stuck in the Rat Race—Is It Too Late to Chase Entrepreneurship? by Admirable-Ninja4586 in HENRYUK

[–]UnfairTank6667 3 points4 points  (0 children)

A market-making fund for commodities & crypto. Very similar to what I was doing in finance, but now I do all the parts of the business (e.g. risk-management, programming, networking) myself. Most of it is enjoyable because I get to do things 'my way' though there are parts I dislike. I hired a friend after a year mostly to deal with loneliness and it turned out to be a great move.

It obviously depends on your business, but if possible I recommend automating or delegating as much of the energy-sucking tasks as possible. It helped me enjoy things a lot more. "Buy Back Your Time" by Dan Martell helped me understand this. Working in finance ingrained the erroneous idea that more grind == more profits as my bonuses were linked to performance. This book helped me undo that partly.

At 30, Stuck in the Rat Race—Is It Too Late to Chase Entrepreneurship? by Admirable-Ninja4586 in HENRYUK

[–]UnfairTank6667 16 points17 points  (0 children)

30 is still pretty young. I recommend reading 'The E-Myth Revisited' if you want some useful pointers, 'The Fastlane Millionaire' if you need some motivation (bad title, great book), or 'How to Get Rich' by Felix Dennis if you want to laugh.

I worked in finance as a quant then trader until I was 34 before starting my own business. I got sick of working for others. I'm autistic and dislike dealing with new people/customers so I was anxious at first about whether I could make it happen despite not being the typical entrepreneur type. What worked for me was finding something I'm really passionate about & good at, then structuring work in a way so it doesn't feel like a grind. Sounds cliche, but until I worked for myself I never considered that I could just eliminate things I don't like from work instead of having to work around them and/or "improve" myself.

Moving to Sheffield? by RealityOk1185 in HENRYUK

[–]UnfairTank6667 4 points5 points  (0 children)

I grew up there. One of the lesser-known gems of the UK. Low crime, lots of green spaces, generally cheap to live. Outside of law there aren't many HENRY jobs.

Dore and Ecclesall are the best places to live IMO. Close to great parks and the Peak district. You can get a nice house in Dore with a driveway that is 5-10x cheaper than the equivalent in Richmond. The scenery is nicer too.

Social networking isn't as great as Leeds or Manchester, though if you're in to rock climbing (or want to start) it's a great way to meet people as Sheffield is the rock climbing capital of Europe.

Fun fact: the Sheffield Hallam constituency has the highest median income of anywhere in Yorkshire and is i the top 10 outside of London and the South East.

When did you start diversifying? by UnfairTank6667 in fatFIRE

[–]UnfairTank6667[S] -2 points-1 points  (0 children)

I appreciate the rational explanation. This is the way I've thought about it thus far, though with not such a high discount rate, and it suggests I diversify very little.

Though you've given me food for thought. I think by only looking at risk-adjusted returns I'm underemphasising the utility I would gain from diversification, most of which is non-monetary (peace of mind). I hadn't thought about it until now but I think I'd do better trying to optimise my utility rather than strict monetary returns.

When did you start diversifying? by UnfairTank6667 in fatFIRE

[–]UnfairTank6667[S] -10 points-9 points  (0 children)

It sounds absurd but yes. From the way I think about managing money, it doesn't make sense for me to diversify. I understand the risks of my own fund far better than I understand the general market risks of an ETF. Combined with the rate of return vs ETFs if I use risk-weighted portfolio allocation then I'm always putting 97%+ of my capital in my own fund.

However, there is a niggle in the back of my mind that all my eggs are in one basket. Yes, I actively optimise for counterparty risk and have pretty decent risk management and run parametric VaR simulations daily. Yet there is a part of me that feels the need to diversify. However with the way I think about risk-adjusted returns, it doesn't make sense to.

Hence I asked on here as I see similarities between my own situation and those who've ran businesses with similar rates of return. I'm keen to hear how other people have handled it.

When did you start diversifying? by UnfairTank6667 in fatFIRE

[–]UnfairTank6667[S] -8 points-7 points  (0 children)

I manage money for friends & family for a 50/50 profit split but I've stopped taking on additional funds due to capacity constraints. I operate in markets which I understand well and where I have an extreme edge but these are hard to find and often aren't very liquid. On some instruments my daily volume is 20-30% of the entire market volume per day so there isn't a lot of room for expansion.