Retiring

[abu13]

My neighbor lost money in vanguard though, there's no guarantee

Please tell me he didn't bail out early due to Covid.

I know a couple of people who lost a lot of money at the time only to see things turn around again after a few months.

 

[SilverFox2]

Can I suggest a few books/blogs to you?

The book that got me interested in personal finance and genuinely changed my outlook on money/life is Rich Dad, Poor Dad by Robert Kiyosaki.

A few years later I read The Simple Path to Wealth by J L Collins
He also has an incredible blog which was for his daughter about how she should invest her money: Stock Series | JLCollinsnh

Then, when I've really wanted to speed up my path to financial independence I started reading Your money or your life by Vicky Robin which lead me to this blog Mr. Money Mustache — Early Retirement through Badassity (mrmoneymustache.com)

Literally, anyone on this forum should be able to retire within 25 years if they put their mind to it. If you really wanted to you could retire earlier than 58.

Im afraid the opportunity to retire early eluded me so I have been living off state pension plus a combo of frozen pensions that purchased just annuities (I really am that old).
I shall look through your recommended reading and find out if I did it right or wrong.

 

[abu13]

I am at the mortgage free and feathering the nest stage of life, have another 15 years until I get the state pension and have recently started investing and increasing my pension contributions.
The one thing i didn't foresee though is while I have been worked hard to get in this situation I have now found the urge to feather the nest is being overtaken by the urge to pack in the job that I hate and get something I feel I would get more fullfilment from.

 

[Manchester33]

So if he did "drawdown" he would need far less
Obviously then the risk is that you could run out of cash (state pension apart)

I'm going to drawdown in three or four years at 61/62 years of age depending on growth of my fund
Draw £12500 (the tax fee allowance) topped up with my tax free lump sum until I reach state pension age, then the state pension adds 9k ish to my 12500 (although the 9k will be taxable)
All the online calculations say with a very moderate growth of 5% my pot should last until I'm at least 85
My Mum passed away at 60 and Dad at 72, so longevity in my family isn't hereditary
I own my property so my biggest necessary expenses will be council tax, car and any property repair/upkeep, and even there we'll probably downsize. Half the house isn't used as the eldest is living away and youngest at uni

Yes, drawing down would require less, but it does increase risk.

Being mortgage-free gives you the freedom to take that risk though. Worst case scenario, you run out of money and have to live on £9k pa (which is plenty if you aren't a cocaine addict). Also, yes, you should downsize, remember that it's literally costing you more to live in a house that's too big for you.

There are quite a few calculators online that can help with forecasting your numbers.

 

[Manchester33]

Im afraid the opportunity to retire early eluded me so I have been living off state pension plus a combo of frozen pensions that purchased just annuities (I really am that old).
I shall look through your recommended reading and find out if I did it right or wrong.

Well, you're retired which is something that millions of people won't achieve now! So you've definitely done something right.

 

[Manchester33]

I am at the mortgage free and feathering the nest stage of life, have another 15 years until I get the state pension and have recently started investing and increasing my pension contributions.
The one thing i didn't foresee though is while I have been worked hard to get in this situation I have now found the urge to feather the nest is being overtaken by the urge to pack in the job that I hate and get something I feel I would get more fullfilment from.

Life is incredibly short to continue doing something that you're unhappy with.

Also, there's a lot of social pressure to 'feather the nest' and unfortunately, that luxury comes at a cost. What I'm trying to say is that you'll probably look back on your life more fondly if you completed fulfilling work, rather than buying a new suite of garden furniture every 5 years.

 

[SWP's back]

My neighbor lost money in vanguard though, there's no guarantee

That’s like hearing someone say “I love cars” and replying “my neighbours car broke down though so no guarantee”.

In what fund? Over what time period? Did they encash whilst down? Did they leave it in and let it go back into profit? What risk rating are they?

 

[SWP's back]

Please tell me he didn't bail out early due to Covid.

I know a couple of people who lost a lot of money at the time only to see things turn around again after a few months.

They’d have had to wait all of 3-4 months!!

 

[stonerblue]

Town centre where my shop is is being flattened in 2 years time so that will be when I retire. No way am I working 2 metres away from a building site.
Developed a new business in lockdown and can earn without putting my pants on.

 

[VOOMER]

Yes, drawing down would require less, but it does increase risk.

Being mortgage-free gives you the freedom to take that risk though. Worst case scenario, you run out of money and have to live on £9k pa (which is plenty if you aren't a cocaine addict). Also, yes, you should downsize, remember that it's literally costing you more to live in a house that's too big for you.

There are quite a few calculators online that can help with forecasting your numbers.

Always the dreaded equity release option.

 

[Manchester33]

Town centre where my shop is is being flattened in 2 years time so that will be when I retire. No way am I working 2 metres away from a building site.
Developed a new business in lockdown and can earn without putting my pants on.

Come on mate, surely prostitution isn't the answer?

 

[stonerblue]

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.

Sweet mate. I remember you ummimg and arring about going Dubai. Worked out nice in the end.

 

[flook]

Reading this with interest and realise, although I have a financial plan in mind which should see me retire next year, about 10 years early, I probably need it validating by someone with more knowledge than me about finances. So, I'm looking for recommendations for Financial Adviser, preferably south manchester. Any suggestions?

 

[frothy]

Reading this with interest and realise, although I have a financial plan in mind which should see me retire next year, about 10 years early, I probably need it validating by someone with more knowledge than me about finances. So, I'm looking for recommendations for Financial Adviser, preferably south manchester. Any suggestions?

I will send you my Bank sort code, put into my account and i will look after it for you I promise

 

[sky tot]

I am nearly 61. One of my pension pots is 125k but only paying about 3k year !

I want to retire or go part time , do financial advisor cost alot because I havent a clue what to do .

Thanks

I had a zoom meeting last week with a FA . First meeting is free , and then if you use them he gonna charge 1.5% of my wife’s pension value .. She has 6 pensions accumulated through her working life . I’ve give him the plans to chase up valuations and gonna take it from there

 

[sky tot]

Haha,ya twat!

Happy for you mate,you clearly did your homework;-)

He went to school and listened. Fair play

 

[abu13]

They’d have had to wait all of 3-4 months!!

Not sure exactly how long they would have had to hold their nerve to try and ride it out.

 

[SWP's back]

Not sure exactly how long they would have had to hold their nerve to try and ride it out.

Last year it was 3-4 months from bottom to top.

 

[117 M34]

Can I suggest a few books/blogs to you?

The book that got me interested in personal finance and genuinely changed my outlook on money/life is Rich Dad, Poor Dad by Robert Kiyosaki.

A few years later I read The Simple Path to Wealth by J L Collins
He also has an incredible blog which was for his daughter about how she should invest her money: Stock Series | JLCollinsnh

Then, when I've really wanted to speed up my path to financial independence I started reading Your money or your life by Vicky Robin which lead me to this blog Mr. Money Mustache — Early Retirement through Badassity (mrmoneymustache.com)

Literally, anyone on this forum should be able to retire within 25 years if they put their mind to it. If you really wanted to you could retire earlier than 58.

Thank you I will have a look at these.
I've heard of rich dad poor dad and was going to get it a while back until I found out the story isn't true - though I suppose the learning from it shouldn't be affected by the stories being true or not.

 

[Manchester33]

Thank you I will have a look at these.
I've heard of rich dad poor dad and was going to get it a while back until I found out the story isn't true - though I suppose the learning from it shouldn't be affected by the stories being true or not.

To be honest I didn't realise the stories weren't true (I read it probably 10 years ago, so that revelation probably hadn't come to light yet). But yes, it's definitely worth reading regardless.