3,4 or 5 year journey to financial freedom

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  • robin61
    robin61 Posts: 677 Forumite
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    jim8888 wrote: »
    It's great to plan financially for retirement, but I think it's just as important to make plans for the time you'll have.

    I enjoyed this book I bought from Amazon. It's American but as it doesn't concentrate on the financial aspects of retirement most of it is relevant.

    'How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won't Get from Your Financial Advisor Paperback – 16 Sep 2009
    by Ernie J Zelinski (Author)'

    http://www.amazon.co.uk/gp/product/096941949X?psc=1&redirect=true&ref_=oh_aui_detailpage_o07_s00
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    frugal90 wrote: »
    Just spent an hour doing my monthly check in towards target and it has been a reasonable month portfolio up to £288K so progressing nicely.

    How's your portfolio standing up to the more volatile market conditions?
  • frugal90
    frugal90 Posts: 360 Forumite
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    chieftie- what have you done to de-risk the portfolio?
    I would be interested.
    Early retired in summer 2018 and loving it
  • frugal90
    frugal90 Posts: 360 Forumite
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    Thrugelmir wrote: »
    How's your portfolio standing up to the more volatile market conditions?

    folio stands at £274 664 as of saturday past.

    we have been putting money in during the downturn and will continue to do so for the next while - if there is a recovery then we will start the de-risk process. Thinking about some peer to peer next April when that comes on line and possibly some retail bonds.

    we are in a position that we could actually take my pension at stop date and we will get 3x lump sum with that. We plan also to build a cash buffer of 40-50 K so that we are not forced into selling when the market is low. I have read a number of your posts Thrugelmir and you talk a lot of sense - have you any suggestions?

    regards

    frugal
    Early retired in summer 2018 and loving it
  • chiefie
    chiefie Posts: 406 Forumite
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    Just moving to cash, a bird in the hand etc at this stage. Not very scientific I know !
  • Playing_with_Fire_2
    Playing_with_Fire_2 Posts: 204 Forumite
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    Thanks for the book recommendation Robin61, that looks great.

    I'm trying to do a similar thing, but on a slightly longer timescale as I'm younger so will need to have chunk of my savings held outside of a pension (so no tax relief) and have concerns about what age I'll actually get access to any of my pensions.

    I also have multiple spreadsheets for potential retirement/stop working dates. I run one using a SWR of 4% and another calculating drawdown and allowing for a reduced drawdown from the pot as I get access to pensions at various ages (mostly guesses).

    One thing I'd like to check is what you are basing your living costs after stopping work on? I start with what I spent in the past twelve months, and then subtract expenses related to work or that are genuine one-offs (such as when we renovated our house). I add on new costs (holidays!!) and then have a multiplier for older age in case I have health problems. And have a big guess about what tax will be doing.
  • frugal90
    frugal90 Posts: 360 Forumite
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    Yes that book looks good so thanks for that
    Early retired in summer 2018 and loving it
  • chiram2015
    chiram2015 Posts: 27 Forumite
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    Just a couple of other tips that may help.

    I use an online planner called LifePlan from retireeasy.co.uk which is free and you can plug in different rates of growth and change all sorts of things, not just pensions to see how long your money lasts.

    Also, I know it has been mentioned above but the Vanguard Life Strategy funds are low cost and I have been happy with their results. There are a number of funds where you can select the amount invested in equities and they have great fact sheets too.

    Happy investing!
  • robin61
    robin61 Posts: 677 Forumite
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    Yep that retire east lifeplan is great. Very easy to use and to keep tweaking it.
  • frugal90
    frugal90 Posts: 360 Forumite
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    just done a portfolio update - sitting at £271 374
    how is everyone else doing ?


    have continued to stick£2000 per month away and will continue to do so split as follows £500 city of london IT, £500 Finsbury Growth and Inc IT £500 Acorn Income IT and £500 Woodford Income UT.

    My Biotech Growth Trust has taken a hammering but still in profit since I bought by about 10%. Was thinking about selling out about a week ago but decided to sell nothing and keep feeding in. Hope it works out -plan is to keep putting £2000 in for the next 12 month then drop to £1000 and increase amount held in cash then move all to cash for last year or so . My plan is to have 50/60K cash on retirement (age 56.5/57.5 or 58.5)to tide me over to taking my teachers pension either 2018/19 or 20. If stockmarket recovers then I will drawdown from my Sipp which is sitting at £63500 at the moment. If not then use the cash. My wife is 6 years younger and we will both stop at the same time - she will drawdown on her sipp age 55 or take teachers pension if stocks poor.

    Just got to stick to the plan and keep moving forward.
    Early retired in summer 2018 and loving it
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