Only freedom will do

elantan

smallholdingsister wrote: »

Elantan what about bra extenders?

oooooooo never thought about that ... thank you might give it a try

elantan

I'm having the same panic as yourself Ed regarding retirement, I dont want a lavish lifestyle but I really dont want to be eating beans on toast either.

Ive read the Number threads but like some have stated, I dont buy a daily latte, I dont spend much in travel, I intend on spending more on travel when I retire.

I'm trying to work on the 3.5% draw down ( going 3.5% as I feel it is safer than going the recommended 4%)

P.S just now I'm gonna be cash stacking to make a killing when the FTSE goes down, son and I called this latest "blip" well over a year ago, we said start 2016 its gonna bite and panic will set in ....the signs were there ..

so cash stacking to make a killing coming up

edinburgher

Secret_Saving_Squirrel wrote: »

I wouldn't be worrying too much about replacing salary with the equivalent value pension, Ed. for the first few years, maybe, but the reality is that my parents and their friends all say that they can't get through their pensions and it just builds up in the bank.

Thanks Squirrel, I have heard the same myself. I think that all the talking heads going on about replacing 75% of pre-retirement income are enough to cause anyone a bit of panic. Lots of variables at play and all I need to replace is a healthy chunk of net income. No plans to pay any more tax than I need to in retirement.

elantan wrote: »

I'm having the same panic as yourself Ed regarding retirement, I dont want a lavish lifestyle but I really dont want to be eating beans on toast either.

P.S just now I'm gonna be cash stacking to make a killing when the FTSE goes down, son and I called this latest "blip" well over a year ago, we said start 2016 its gonna bite and panic will set in ....the signs were there ..

so cash stacking to make a killing coming up

Alright Mum :rotfl:

I will probably buy some of the dips. Terribly naughty for an index investor, but I've got away with it so far...

elantan

good lad :rotfl::rotfl::rotfl::rotfl::D:D;)

patanne

You're talking about 'the number' which has a whole thread (or 2) of it's own. And you are doing the right thing by planning for it. But what you can't plan for are the things that change in YOU. Like the things you buy to help you forget that your holiday will finish tomorrow and the lets do whatever because it has been a sh**ty week at work.

You won't have to pay NI on unearned income. Your petrol will cost less because you are not stuck at the lights for ages.

Personally, I have never had so much disposable income and I do not have a DB pension.

ajmoney

edinburgher wrote: »

One of the most scenic HMs in Scotland opens for entries next week.... tempted. Assume it's easier to run when you lose weight?

Which hm are you looking at Ed?

edinburgher

Barrathon

edinburgher

After minor pension panic, I have dipped into the figures and it's hopefully not as bad as I think.

For arguments' sake, our DC pots are standing at £27,000 or so, I also have £2k/y preserved gummint pension and a tiny SIPP. To reduce the risk on the DC pots, we should probably be at 70/30 stocks to bonds. Correct me if I'm wrong, but that's roughly:

£27,000 / 70 *100 = £385.72 *100 = £38,572 - £27,000 = £11,572 bonds required. If we hold them within SIPPs, the amount we need to find would be £11,572 / 1.25 = £9,257.60?

It's a fair bit, but we like a challenge. Maybe that should be our 2016 goal over OPing.

Selling off some unsecured FC loans this morning at 12.2% to replace with secured loans at 12%. I think that's a reasonable trade for improved security.

Karmacat

Secret_Saving_Squirrel wrote: »

I wouldn't be worrying too much about replacing salary with the equivalent value pension, Ed. for the first few years, maybe, but the reality is that my parents and their friends all say that they can't get through their pensions and it just builds up in the bank.

I should have said that, thats my mum's situation as well. Another instance: my dad paid into a very small pension for about 10 years when the firm he worked for changed hands (he was a factory worker) and not only did he get a pension himself for 20 years, my mum got it for another 10 years after he died, and they've now given her a £5k lump sum to end their obligation to her. It all builds up.

elantan wrote: »

I'm having the same panic as yourself Ed regarding retirement, I dont want a lavish lifestyle but I really dont want to be eating beans on toast either.

I like beans on toast!


Ed, I don't really know what your post above means .. do you mean you need to find money that will provide you with income of £9, 257.60 per year?

edinburgher

Sorry, confusion reigns! No, it means to reduce our existing pension risk to an acceptable level for people of our age planning for FIRE, we need to add £9,257.60 of our own money to buy bonds in SIPPs. We then need to add £200/m and rising in bonds until we quit work. That would give us c. £300k in pensions. Would also need to find the money to bridge the gap between stopping work and drawing down pension money.