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    • fatbeetle
    • By fatbeetle 12th Sep 17, 6:24 AM
    • 372Posts
    • 679Thanks
    Living on savings
    • #1
    • 12th Sep 17, 6:24 AM
    Living on savings 12th Sep 17 at 6:24 AM
    In order to retire early, me and SWMBO will be living on a lump sum I am due.

    From Jan 2018 until sometime in 2024, we will live on a pot which currently stands at roughly £274,000

    Has anyone else lived on a savings pot for a period?

    Any tips or advice?

    This Forum tip was included in's weekly email!
    Last edited by MSE Andrea; 20-09-2017 at 9:20 AM.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
Page 5
    • point5clue
    • By point5clue 24th Sep 17, 9:02 AM
    • 43 Posts
    • 9 Thanks
    I'm planning on a similar situation to OP, but I have the luxury of needing to live off approx £200k for 5 years in 5 years time. As such I am prepared to take a little more risk.

    Half will be going into VG Global All cap - can afford to wait until 7.5 years to draw this down so reasonable chance of at least preserving capital I believe.

    I've put £40k in to his and hers P2P IFISAs (the main risk I worry about over longer term with P2P loans is liquidity and if taking an income this is not a problem)

    Another £40k I've put into a Secure Trust 2yr bond - basically punting it into the future at near inflation. I hope when it comes out of the TARDIS the bond market will have normalised ???

    Final £20k - LS20 as a proxy for a bond fund - I don't expect any returns from this, but I wanted something to rebalance the VG all cap against. Actually rebalancing against 50/50 ratio to the extent liquidity will allow.
    Last edited by point5clue; 24-09-2017 at 9:03 AM. Reason: Edited to correct £20 to £20k
    • fatbeetle
    • By fatbeetle 25th Sep 17, 10:41 PM
    • 372 Posts
    • 679 Thanks
    Oh thanks Martin!! Putting this out of Facebook has made me "hate of the day" for the envy brigade.....
    Last edited by fatbeetle; 25-09-2017 at 10:45 PM.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • jamesd
    I lived on savings for many years, until I ran out and had to leave my home. It's part of why I've been saving more than 60% of my income for many years, helped by living in an inexpensive home, no pets, don't smoke, don't drink much, seldom eat out, no children by choice. So I've accumulated enough so I can afford to retire fairly young if I want to.

    Easy for someone making more expensive spending choices to be jealous without seeing the life choices cause and effect and accepting the lower money and later ability to retire consequence. Also easy for a young person with little saving time but many earning years to be jealous without realising that they have those years of earning and can make their own life choices with the results that will flow from them.

    From the MSE annual census September 2017:

    23% retired, 48% employed full time, 12% part
    42% degree/PhD etc., 8% 4 or less O-levels/GCSE etc.
    Income per person:
    • 9% under £8164 (single tier state pension roughly)
    • 6% up to £11,500
    • 7% up to £15,000
    • 10% up to £20,000
    • 21% up to £30,000
    • 16% up to £40,000
    • 10% up to £50,000
    • 8% up to £70,000
    • 4% up to £100,000
    • 2% up to £200,000
    • 0% up to £500,000 (37 votes)
    • 0% over £500,000 (10 votes)

    More content for those planning retirement or retired and for those above median income will presumably follow. After all money saving can be a choice and an earlier and/or more financially provided for retirement can be one result.
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