Breaking Through, Travelling On

Karmacat

"The first thing to do is work out what sort of income you want in retirement, it's a good idea to pick an "absolute minimum" level, an "OK to retire on this" target and "that'd be nice to have" level."
Absolute min pension: £12k (living in a tent!)
Ok to retire: £18k
Thatd be nice: £24k
I'll get £113 a week state pension, call it £6k, when I'm 66.

What funds do I have to provide this?
100k pension fund: will provide £4k pa at safe withdrawal.
100k apartment in France: will provide £4k pa at safe withdrawal.
250k house in England (ie the one I live in).: rented out, will provide £10k gross pa after management fees.

If I can sell the apartment in the next few years (a big "if") the new fund provides £8k on these figures, assuming I can finance the next few years (doubts exist cos of illness).


This totals £18k gross income!

Previous plan was to sell the house, buy two flats, one to rent out, one to live in, but that gets me into capital gains tax etc eventually, and I'm not sure I fancy learning about that in my 70s (the French flat has been such a bad investment, I don't think I'll have enough capital gains to declare, though I'll check, of course).



New plan
Use pension funds, rent out the house, gross income poss £18k p.a. while travelling about slowly in van, renting a flat here and there (in the south of Spain, flats rent for E250-300 per month). Assume the best, that I don't get ill any more, and my online initiatives work: some passive income, some active income, from the cat designs, the writing and possibly proofreading. I'd have to take a course, and there's also online counselling (I'll use my CPD hours for this, and I'd rather not do it after August 2016, but the finances may compel me to).

My August 2016 retirement date looks like it might only be retirement from face to face counselling work. That would be okay, actually.

Issues:
1. some work needs doing on the house before I could rent it out – two new windows in the front, more repointing, asbestos removal to create a secure storage area for my stuff (brick shed).

2. buying and running a van costs money. Don't think I'd want to travel long term like this without my own transport tho

3. don't know how my mum will be by then, I might need to make some changes to all this, dependent on her health. And as anybody with a very elderly parent knows, you talk about their money and what they want to do with it – she wants to be able to leave us all her capital, let alone her house. Thats a sizeable chunk (not naming amounts, as its not my money, after all!).

4. I would need to get well

5. I'd have to sell the french apartment

6. *And* get the online businesses going

7. Re-learn driving (I took my test a looooong time ago, but at least I took it in London, where traffic was already very busy, so I was always competent at that level).

Phew!

Retirement for me doesn't mean sitting back and taking it easy – it means catching up on the things I missed out on in my 50s. I can't believe this has gone on for so long, but I have to lay this on the line. The amounts are tiny, but I have to make these changes, no point in all this otherwise.

Alchemilla

It sounds so exciting.

Do you know someone kind and pragmatic who would take you out driving?

Karmacat

Thats a good idea, Alchemilla - "yes", is the short answer my brother and sister probably both would, tho I'm not sure I'd accept my sister's offer, her car is too new. Might practice gear changes etc with hers in a big car park before I take my brother's out on the road :rotfl:

It *is* all exciting, you're right! I'm not quite sure its achievable, to be honest, but we'll see :beer:

Goldiegirl

I was pleased to read that you had a positive experience at the doctors. If you are on the same page as your GP, it makes things a lot less stressful. Hope you can jointly plan the way ahead to getting well.


Your retirement plans sound very exciting.


It's the financial independence thing - having the money to please yourself, and pleasing your self may or may not involve earning more money - it's whatever suits you at the time


We are all eager to share the journey with you:)

Cheery_Daff

Ooh, exciting plans there KC! :j :j

How many weeks are we on now? got to be down to 80 something soon surely!

edinburgher

You would appear to be house rich and pension poor (in relative terms) :eek:

• How much of a bath would you need to take to sell the French apartment reasonably quickly?
• Would the reduction in stress (one less thing to worry about) improve your mental wellbeing (and potentially your recovery and energy levels)?
• No interest whatsoever in downsizing to free up capital? Your home will provide a healthy income, but you will no longer have a base in the UK. Would a smaller flat and ££££££ in the bank be of no interest? Say you could free up £100k, that would get you to your floor of £12k and you'd still have a home (not a tent). Renting out your current home does sound quite persuasive...

Completely agree that retirement shouldn't be about sitting on your !!!!

beanielou

You could go out with a good driving instructer for a couple of refresher lessons.

ZTD

Karmacat wrote: »

"The first thing to do is work out what sort of income you want in retirement, it's a good idea to pick an "absolute minimum" level, an "OK to retire on this" target and "that'd be nice to have" level."
Absolute min pension: £12k (living in a tent!)
Ok to retire: £18k
Thatd be nice: £24k
I'll get £113 a week state pension, call it £6k, when I'm 66.

There is also something you need to think about - benefits. I had a conversation with Elantan quite some time ago about pensions. The general consensus was either have a pension which were the dog's dangly bits, or have none at all so it would not impede any access to benefits. Even a penny over an arbitrary limit has implications, and although this has got better rather than worse (in terms of precipices), it obvious got worse rather than better in the first place.

In appreciation of this, it *may* be better to has funds as "spends" (which will run out and thereby re-qualify you for benefits) rather than annuities (which last forever). Difficult calculations ahead.

Karmacat wrote: »

What funds do I have to provide this?
100k pension fund: will provide £4k pa at safe withdrawal.
100k apartment in France: will provide £4k pa at safe withdrawal.
250k house in England (ie the one I live in).: rented out, will provide £10k gross pa after management fees.

If I can sell the apartment in the next few years (a big "if") the new fund provides £8k on these figures, assuming I can finance the next few years (doubts exist cos of illness).

This totals £18k gross income!

Previous plan was to sell the house, buy two flats, one to rent out, one to live in, but that gets me into capital gains tax etc eventually, and I'm not sure I fancy learning about that in my 70s (the French flat has been such a bad investment, I don't think I'll have enough capital gains to declare, though I'll check, of course).

There is also the possibility of "equity release" on the flat you're renting out - but you'd need to check to see if the various firms would be willing to do that on a property you're not living in.

Karmacat wrote: »

New plan
Use pension funds, rent out the house, gross income poss £18k p.a. while travelling about slowly in van,

What kind of van?

Karmacat wrote: »

renting a flat here and there (in the south of Spain, flats rent for E250-300 per month). Assume the best, that I don't get ill any more,

The Victorians used to go to the Mediterranean to recover from illnesses, so it'll probably be better than England. Just be aware of medical insurance and Residence issues back here in England.

Karmacat wrote: »

and my online initiatives work: some passive income, some active income, from the cat designs, the writing and possibly proofreading. I'd have to take a course, and there's also online counselling (I'll use my CPD hours for this, and I'd rather not do it after August 2016, but the finances may compel me to).

My August 2016 retirement date looks like it might only be retirement from face to face counselling work. That would be okay, actually.

Issues:
1. some work needs doing on the house before I could rent it out – two new windows in the front, more repointing, asbestos removal to create a secure storage area for my stuff (brick shed).

2. buying and running a van costs money. Don't think I'd want to travel long term like this without my own transport tho

Depending on the size of van, it may also be worth considering a moped as well as.

Karmacat wrote: »

3. don't know how my mum will be by then, I might need to make some changes to all this, dependent on her health. And as anybody with a very elderly parent knows, you talk about their money and what they want to do with it – she wants to be able to leave us all her capital, let alone her house. Thats a sizeable chunk (not naming amounts, as its not my money, after all!).

4. I would need to get well

5. I'd have to sell the french apartment

6. *And* get the online businesses going

7. Re-learn driving (I took my test a looooong time ago, but at least I took it in London, where traffic was already very busy, so I was always competent at that level).

It's all about confidence. Unfortunately, there do seem to be a lot of bullies on the road these days who try to intimidate. In fact I had a couple tonight - good luck with that, I've been driving since I was 17...

Get an old vehicle that you're not bothered about to practice with. A damaged new car would probably upset you. An old car with a long scrape down the side can be explained away with "Bell-end with BMW" written on in magi-marker.

Karmacat wrote: »

Phew!

Retirement for me doesn't mean sitting back and taking it easy – it means catching up on the things I missed out on in my 50s. I can't believe this has gone on for so long, but I have to lay this on the line. The amounts are tiny, but I have to make these changes, no point in all this otherwise.

The best time to plant a tree is 20 years ago. The second best time is now.

Karmacat

What wonderful posts to come online to - thank you all for posting, I really appreciate the feedback and support. Can only answer three at a time, because of multiquote limits ...

Goldiegirl wrote: »

I was pleased to read that you had a positive experience at the doctors. If you are on the same page as your GP, it makes things a lot less stressful. Hope you can jointly plan the way ahead to getting well.

Your retirement plans sound very exciting.

It's the financial independence thing - having the money to please yourself, and pleasing your self may or may not involve earning more money - it's whatever suits you at the time

We are all eager to share the journey with you:)

Thank you Goldie! It seems really, really squeaky to me, but I can't carry on the way I am, its not sensible. The potential for excitement is limitless :j if terrifying :eek:

Cheery_Daff wrote: »

Ooh, exciting plans there KC! :j :j

How many weeks are we on now? got to be down to 80 something soon surely!

Thanks Cheery! I just went to check :rotfl: we're at the end of week 90, so into week 89 next week its good to keep my eye on the ball :j

edinburgher wrote: »

You would appear to be house rich and pension poor (in relative terms) :eek:

Thats a very apt way of putting it! Though as Cheery knows, my house is nothing special, truly - its ex-LA built in the 1930s.

• How much of a bath would you need to take to sell the French apartment reasonably quickly?
• Would the reduction in stress (one less thing to worry about) improve your mental wellbeing (and potentially your recovery and energy levels)?
• No interest whatsoever in downsizing to free up capital? Your home will provide a healthy income, but you will no longer have a base in the UK. Would a smaller flat and ££££££ in the bank be of no interest? Say you could free up £100k, that would get you to your floor of £12k and you'd still have a home (not a tent). Renting out your current home does sound quite persuasive...

Not sure how to put answers into a bullet list so:
- no idea of the bath I'd need to take. I suppose I've already taken it, in a way. On rightmove, the same sort of property (1 double bedroom, 1 cabine bedroom) in the same village is for sale at E170,000 - on the price of the actual apartment, thats technically a E70,000 profit, unbelievably. Fees and taxes take it to a breakeven, probably - I'd be thrilled with breakeven.
- the apartment stresses me when I have to do the accounts (in the next two months) and when I think about finances, otherwise I ignore it, while sending baleful looks over to the Alps. But yes, getting rid would help my energy levels.
- I've already downsized, 4 years ago. I'd be fine about downsizing again, this house is 3 bedrooms, after all, and I'm on my own, but if it was a flat, it would have to have a lot of guarantees written in about noise insulation, I'm bad enough with a party wall. But yes, a flat and money in the bank would also be a way forward. **Thinks**.

Completely agree that retirement shouldn't be about sitting on your !!!!

I do like to start the day slowly, and I'd probably be online after brekkie, and then the world is my oyster

Karmacat

beanielou wrote: »

You could go out with a good driving instructer for a couple of refresher lessons.

Absolutely, beanie, I think thats my preference if I can afford it. Or buy an old banger and re-learn in that.