With that time horizon mate, stick it in a FTSE 100, 250 and S&P500 tracker and you’ll easily clear that annual rate of return. Just don’t touch it in the bad years (literally don’t, just leave it in play). You don’t need anything fancy to get those returns over the long term.That's interesting, thanks for that. Might even be able to do 58 then haha.
Don't think I'll get that interest though. I just put it into a nutmeg general investment account. Maybe I will look to put it into something a little better in a couple of years when I have a decent pot built up.
Would you not be better investing in property if you hope to achieve £150k, save a deposit by a £100k house, rent it out but keep putting g your £500 away plus anything you make in the house, either let the client pay off your mortgage or go interest free, sell it in 25years and you would surely make money on it, maybe in 10 years buy another and do the same?That's interesting, thanks for that. Might even be able to do 58 then haha.
Don't think I'll get that interest though. I just put it into a nutmeg general investment account. Maybe I will look to put it into something a little better in a couple of years when I have a decent pot built up.
I don’t even want to tell you how much their export/import/flights are costing (they have to be sent on a cargo flight rather than in the hold). But it’s north of £8k.Is the dog looking forward to the move ?
Historically, no. But it’s not a bad option.Would you not be better investing in property if you hope to achieve £150k, save a deposit by a £100k house, rent it out but keep putting g your £500 away plus anything you make in the house, either let the client pay off your mortgage or go interest free, sell it in 25years and you would surely make money on it, maybe in 10 years buy another and do the same?
But don't forget to factor in inflation. 400K in 25 years time will buy a lot less than it does now. You could take inflation into account by assuming a conservative rate for today of 3% to give net return of 4%, which will give a figure much less than 400 K which could be more realistic. Very difficult to forecast over 25 years though.That's interesting, thanks for that. Might even be able to do 58 then haha.
Don't think I'll get that interest though. I just put it into a nutmeg general investment account. Maybe I will look to put it into something a little better in a couple of years when I have a decent pot built up.
4 weeks today I move to the Far East and semi-retirement (wife got a fancy teaching job and I’ll just look after my existing clients and mainly play golf). Will be two months before my 40th although I fancy maybe becoming a diving or sailing instructor in my spare time to keep my active and bring a few extra pennies in.
That's a lovely long and well written post to which I have a questionOk, bear with me here. I'm going to throw a lot of figures at you but I've bolded the key sections: Your annual spending is £19,200, but in five years you will receive the state pension. Let's presume you earn the average state pension (£153.36 per week) you can subtract that figure from your annual spend (£19,200 - £7,974.72) which gives you £11,225.28 per year, that you'll need to withdraw from pensions annually.
The universal rule with withdrawing from pensions is called 'the 4% rule'. There's lots of information about it online. It presumes: your pension will grow by an average of 7% pa and that inflation will rise by an average of 3% pa. Therefore you can withdraw 4% of the total value of your pension per year and it should last as long as you do.
So to find out what you need in your pension to retire (in the simplest form) is to multiply £11,225.28 by 25 which gives you £280,632. (280,632 x 0.04 = £11,225.28). Around £280k is the figure you need invested when you reach state pension age to retire on £19.2k pa.
Now if you want to retire or go part-time prior to state pension age, you should really make up the deficit so you don't risk financial insecurity in later life. If your part-time covered the state pension (around £8k pa) that would suffice. To fully retire you would need 25x your annual spending at state pension age + the equivalent of 5 years worth of state pension (£39,873.60) which is £320,505.60 invested sensibly today.
If your total pension contributions are £125k, when you reach state pension age you can withdraw £5k safely pa and your state pension of roughly £8k means you'll receive around £13k pa or just over £1k per month.
Once you've considered this, then you can really start to consider where you are with work and if going part-time or retiring is the right decision.
I'm sure you will enjoy what the future holds for you. You've worked hard to reach this stage, and you deserve whatever benefits lie ahead.4 weeks today I move to the Far East and semi-retirement (wife got a fancy teaching job and I’ll just look after my existing clients and mainly play golf). Will be two months before my 40th although I fancy maybe becoming a diving or sailing instructor in my spare time to keep my active and bring a few extra pennies in.
Cheers buddy. I’ll still be at the same company and still looking after my existing clients but my days of spending 20 hours a week in the back of a car driving to see new clients are over. And the good news is I’ll be able to spend more time on here!! ;-)I'm sure you will enjoy what the future holds for you. You've worked hard to reach this stage, and you deserve whatever benefits lie ahead.
I managed to build a nice little nest egg, and have been living off it for the last two years. I'll be forever grateful to you for recommending to me a safe place to invest. [emoji106]
Cheers buddy. I’ll still be at the same company and still looking after my existing clients but my days of spending 20 hours a week in the back of a car driving to see new clients are over. And the good news is I’ll be able to spend more time on here!! ;-)
Well get yourself a decent financial adviserThat's interesting, thanks for that. Might even be able to do 58 then haha.
Don't think I'll get that interest though. I just put it into a nutmeg general investment account. Maybe I will look to put it into something a little better in a couple of years when I have a decent pot built up.
Rent in Blackpool, obviously! :')So you live there for 90 days And where do you live for the next 90 days that you aren’t allowed in the EU since we left?
That's class, congratulations.4 weeks today I move to the Far East and semi-retirement (wife got a fancy teaching job and I’ll just look after my existing clients and mainly play golf). Will be two months before my 40th although I fancy maybe becoming a diving or sailing instructor in my spare time to keep my active and bring a few extra pennies in.
Yes, pretty much.That's a lovely long and well written post to which I have a question
Are you saying the £280k remains untouched forever and he's only living on the interest?
Would you not be better investing in property if you hope to achieve £150k, save a deposit by a £100k house, rent it out but keep putting g your £500 away plus anything you make in the house, either let the client pay off your mortgage or go interest free, sell it in 25years and you would surely make money on it, maybe in 10 years buy another and do the same?
That's interesting, thanks for that. Might even be able to do 58 then haha.
Don't think I'll get that interest though. I just put it into a nutmeg general investment account. Maybe I will look to put it into something a little better in a couple of years when I have a decent pot built up.
So if he did "drawdown" he would need far lessYes, pretty much.
The £280k should actually grow with inflation. But the value of what's left in the pot will remain the same.
I love vanguard.Property investment can be very rewarding, but the level of work involved simply doesn't justify the returns IMO.
Investing in index funds is simple, cheap, more tax-friendly and less stressful. It also, often has higher returns too.
Vanguard have opened in the UK and they're brilliant for this.
My neighbor lost money in vanguard though, there's no guaranteeI love vanguard.
Investing in what and for how long?My neighbor lost money in vanguard though, there's no guarantee