Only freedom will do

Alchemilla

So Ed/Cal, do the same rules apply to only 80k being covered if Vanguard goes bust?

Not that I anticipate that problem any time soon.

edinburgher

It's only £50k for investments. Shouldn't be a big issue, even if Vanguard went bust, I believe all the investments are held in nominee accounts/don't belong to them anyway. After all, they're investing in shares etc., which must belong to the funds themselves held for the owners of the fund units? Still, nothing to stop a massive fraud I suppose (cheerful Sunday topic :eek:)

Alchemilla

So no risk if you have more than 50k?

Actually I realise I do know our spending. Its about 37k.

edinburgher

So no risk if you have more than 50k?

Not no risk, but for them to go bust and somehow lose all of their investments would be one of the biggest financial scams of all time...

£37k? Ouch! You spend nearly as much as we earn after tax.

Alchemilla

Thats before tax actually so a bit less. You are rather less fettered than us.

eta 26k in actual money after tax.

edinburgher

You are not allowing for my £400/mth bacon roll habit :rotfl:

Alchemilla

Thats a lot of pig!!

edinburgher

£26k = £650k pot needed.

You get a teacher's pension, it's worth a decent chunk, right? Does Mr Al get a similar pension?

in_need_of_direction

Does that take account of state pension?

edinburgher

Nope, by today's money, state pension = c. £11,440 for a couple, so Al only needs to find £364k. But that's only from state pension age. Cos we're all aspirational here on MFW, I doubt Al plans to work until state pension age?