Early-retirement wannabe

gadgetmind

Marine_life wrote: »

Good job mine is a company pension then

Yup, lots of lucky breaks with these old style pensions.

Nowadays it's a case if digging deep, investing wisely, and having to put up with HMG changing the sodding rules every verse end. Still, at least it does have an honesty about it, a feeling of it all being down to your own hard work rather than relying on future generations to support you.

BeatTheSystem

gadgetmind wrote: »

That split is going to hinder retiring before 55 and the GAD limits on drawdown could make even 55 difficult. It's better to have some assets outside of pensions that you can "overdraw" before state pension age to give flexibility.

However, well done on getting such a healthy retirement pot by your mid 40s.



I recommend you read "The Millionaire Next Door". The chapter on passing wealth on to children certainly changed my perspective on the subject.

Yes that split is making it impossible I would say, I overdid it on the pensions and under did it on the ISA's. Oh well. I could not resist the tax relief. Anyway due to the LTA I cannot contribute a penny more now so that will cure me of the the tax relief fetish. AT least whatever happens in the next 10 years, even if I am in abject poverty from year 55 we should be OK.

975K in 10 years at 7% is about 1900K that will be more than satisfactory at a drawdown rate of 3% to give my wife and I a very comfortable retirement. I consider myself very fortunate but it has not been without sacrifice and going without for several years on the trot. The house is falling down (not literally) and the car is a rot box!

I have ordered the book you recommend. I also have started to read the Smater Investing book, you or somone else mentioned on here. A bit late but all stuff I have done more or less apart from the looking at the portfoloio thing which I do far too much and the occasional chasing of the market- in a small capacity.

BeatTheSystem

Marine_life wrote: »

150k each seems like a hell of a lot!

I was thinking about c. 20-25k which I think is more than generous having paid the thich end of 80k over four years for uni.

They will get what'S left when you pop your clogs anyway!

Yes you are probably right, maybe that is too much. I kind of want to be a alive and young enough for them to benefit from my money. I come from a working class background and I know how ####ing miserable not having money is.

Not appreciating it would be worse though.

jamesd

BeatTheSystem wrote: »

I am going to have to work in order to heavily subsidise them such that they are not drowning in debt. So I have at least 5 years of severe financial pain. ... Moreover i have to plan to at least get them on the property ladder which is say 150K each, so there is 450K gone. Some people incluing an IFA friend caution against making it too easy for the offspring

Please read the book The Millionaire Next Door and what various parts of it say about how millionaires like you (but in Dollars, so you're worth more) think about children and economic life support and how it can affect the development of independence of children. Self-made millionaires like you are covered, along with the mistakes they make. Good to see that you've ordered it you should find it interesting.

No need to shield them from the costs of an education. Better for them to experience what it takes and it's not so hard to pay off UK student loans, compared to US. A bigger deal is helping them with a deposit on their first home. Harder to get that deposit together, so you could tell them that x amount is available for property deposit use provided they can afford the repayments without trouble and perhaps set a cap on three times income for the borrowing. Else they might rely on you to help them pay, which is bad for their self-esteem and harms their ability to learn to look after themselves.

cyclonebri1

BeatTheSystem wrote: »

The last few postings resonate with my situation.

I am 45 and have 975K in pensions and about 100K in ISA's. I would like to retire (or have the choice too) as soon as possible, but with three kids who are going to go to university one after each other starting next year I am going to have to work in order to heavily subsidise them such that they are not drowning in debt. So I have at least 5 years of severe financial pain. I dont think I will be able to save any further monies over the next few years.

If it were not for the kids I would now be taking my foot of the gas a little.

Moreover i have to plan to at least get them on the property ladder which is say 150K each, so there is 450K gone. Some people incluing an IFA friend caution against making it too easy for the offspring, but I cant see them being too pleased if my Wife and I are spending every other week on a sun soaked carribean island whilst the offspring are living in poverty.

And with that this thread has just moved into the realms of fantasy for 95% of the population.

Sorry BTS, it's great that you have yourself in that position at your time in life, and it's yet another post showing the extremes of both views and personal situations.:T:T

Good for you, but you are near the top of the pile and it's a pyramid of course.

gadgetmind

BeatTheSystem wrote: »

Anyway due to the LTA I cannot contribute a penny more now so that will cure me of the the tax relief fetish.

After pensions, you need to look at VCT and EIS, but they are a little daunting!

I have ordered the book you recommend. I also have started to read the Smater Investing book, you or somone else mentioned on here.

Both good books and I intend to reread them. Millionaire Next Door is drier, older, US-centric, and not to everyone's tastes, but I took a lot away from it. I also bought it 2nd hand on the cheap.

gadgetmind

cyclonebri1 wrote: »

And with that this thread has just moved into the realms of fantasy for 95% of the population.

Perhaps, but everyone can have their own version of this that's tuned to their own means and needs.

cyclonebri1

gadgetmind wrote: »

Perhaps, but everyone can have their own version of this that's tuned to their own means and needs.

Which is why I added "And it's yet another post showing the extremes of both views and personal situations." at last you agree with me,:rotfl::rotfl:

ermine

I cant see them being too pleased if my Wife and I are spending every other week on a sun soaked carribean island whilst the offspring are living in poverty.

Blimey. I absolutely respect your right to do with your cash as you wish, but observation of the world indicates that the spine is built with the aid of at least a teeny bit of adversity acting as resistance to overcome. It teaches the value of deferred gratfication, strategic planning and making tradeoffs between one desirable and another.

Leaving uni sans debt, admirable. Freebie pad without realising that one has to work for what for many people is their largest capital asset, well, it makes me wonder how they will learn to handle the slings and arrows of adversity that life tends to throw at them.

Good luck to you and them, hope it all works out well

peterg1965

I would love to be in a position to assist my children onto the property ladder at some point in the future. By assist, I mean providing a sum of money for the deposit, or at least a substantial portion of it. I think the ease of getting onto the property ladder will be the stark difference between my generation and that of my children. However, I also agree in ensuring that my kids are not hand fed all the way, and that they learn the value of money and the benefits of saving.