3,4 or 5 year journey to financial freedom

May12

frugal90 wrote: »

Good luck with June 2017 think our earliest target realistically is summer 2018 and like you will need savings to cover the gap. Our figure of £35k is gross figure we could prob manage on less and if work really starts to become intolerable the we will just stop and do that.

Thank you. £35k should be plenty. We spend about £2000 a month for the moment and live comfortably with our life style - we are never into extravagant live style but we got what we need. I always look out for bargains, cash backs and offers when I spend money - it is just a habit . So we will probably need less than £24k when we retire.

OldBeanz

May12 wrote: »

Yes, I did. Thanks for the advise. My husband pays 40% tax so it is still good to pay in his AVC. I will be putting more money into my private pension by the beginning of the next year. Is that correct that I can put 80% of my earning into pension?

Yes you can.

fcandmp

I may be a little closer, but at age 55 going through the same thinking processes. Lots of spreadsheets behind me and recently found clarity over DB scheme LTA values now and at NRD, lead me to think sooner than later. Guidance from this forum has helped clarify so much, yet still there seems much to position.

I plan to crystallise DC cash and seek LTA protection, with LTA projections £47k over £1.25m at NRD am just looking into the detail of whether any early crystallisation of DB funds before NRD would be tax efficient. Currently working 9 day fortnights, and seeking to ease the work stress by dropping to 3 day weeks in the next 6 months.

Have already moved a high percentage of DC funds to cash in preparation for 25% TFLS before April, and will reposition residual holdings once they are positioned into an appropriate drawdown SIPP.

I have just read Ernie Zelinski's book how to retire happy wild and free, and as someone with limited extra curricular activities outside the work environment now starting to use the additional free time to plan more of the next chapter without the daily commute. The book was thought provoking and helpful.

Whilst we don't need to be frugally minded for our next chapter there are certainly things I am starting to work on that will reduce unnecessary cost and waste, may a small moustache for the Mr MM contingent.

Other than that It will be a case of planning how to position the crystallised cash lump, and there have been some other excellent threads of late to assist us.

frugal90

portfolio starts the year at £293437 and has held up quite well in a turbulent year and 2016 will be interesting.

now on a 3 year countdown towards xmas 2018

targets for this year

pay off teachers pension years buyback -about £20 k needed -should be about May for this .

pay off last existing debt approx 7K- target Sept then increase cash reserve - aiming to get £60K in cash together by xmas 2018 so that we can live on that if need be for 3 years until I take teachers pension (if the stock market has dived)- if not start sipp drawdown .

good luck to all with your own targets this year.

chiefie

frugal90 wrote: »

portfolio starts the year at £293437 and has held up quite well in a turbulent year and 2016 will be interesting.

now on a 3 year countdown towards xmas 2018

targets for this year

pay off teachers pension years buyback -about £20 k needed -should be about May for this .

pay off last existing debt approx 7K- target Sept then increase cash reserve - aiming to get £60K in cash together by xmas 2018 so that we can live on that if need be for 3 years until I take teachers pension (if the stock market has dived)- if not start sipp drawdown .

good luck to all with your own targets this year.

You are looking good with that amount and the DB pension 😀

robin61

frugal90 wrote: »

portfolio starts the year at £293437 and has held up quite well in a turbulent year and 2016 will be interesting.

now on a 3 year countdown towards xmas 2018

targets for this year

pay off teachers pension years buyback -about £20 k needed -should be about May for this .

pay off last existing debt approx 7K- target Sept then increase cash reserve - aiming to get £60K in cash together by xmas 2018 so that we can live on that if need be for 3 years until I take teachers pension (if the stock market has dived)- if not start sipp drawdown .

good luck to all with your own targets this year.

Seems your plans are going well.

For me I am hoping that I will be able to target March 2017 or at the latest March 2018.

I am finding it difficult to set targets for 2016/17 due to the uncertainty Mr Osborne has created. However providing salary sacrifice lasts I am planning on piling as much as I can into my AVC in 2016/17 and then again in 2017/18 if still working. Hopefully I can get at least £45,k in per annum using some unused allowance from previous years.
If salary sacrifice doesn't last I will have to think again.

frugal90

let us hope you make your March 2017 target Robin.
I find that setting targets really helps my motivation.

will update at the end of June

good luck

frugal90

update as promised

portfolio taken a bit of a hammering in recent market turbulence and standing at 271K so fallen back quite a bit- not going to look at it until start of 2017.

have bought out the years buy back in our teachers pensions, this cost us 22K but now done so pleased with that. We have both bought back to age 20.
my wife will have 27/80ths and some years in the new career average and I should have just under 37/80ths. We won't take these actuarially reduced but will take in full at age 60.

Cash holding now at 13K and we'll keep adding to that over the next 2- 3 years. We'll first of all fill three santander 1,2,3 accounts then consider peer to peer isa.

We have decided that we want to hold enough in cash so that we are not forced to sell our holding in our sipps/isas at a loss- so we have a comfort target of 100K cash for "pack it in" day. Our ambitious target is Christmas 2018 with a fallback of April 2019- and we'll need to factor in changing the car as well.

We live in interesting political times but don't want to discuss that here.

Enjoy the summer

fatbeetle

We're aiming at Dec 2017, I'll be 59, my wife 54.

I hope to have £200,000 in redies by that point, held in the best savings accounts we can find, from which we will "draw down" £25,000 pa, as living expenses.

(Kids left home, no debt, mortgage paid off.)

I will also have a modest NHS pension I can take at 60 yrs, which will pay out £65 per week, (beer money and treats.)

When my wife hits 59, her super will kick in, and she will get circa £50,000 pa from that.

I will get a UK state pension when I hit 66.

At present, we're sitting pretty, but who knows where things will go from here on in?

chiram2015

fatbeetle wrote: »

We're aiming at Dec 2017, I'll be 59, my wife 54.

I hope to have £200,000 in redies by that point, held in the best savings accounts we can find, from which we will "draw down" £25,000 pa, as living expenses.

(Kids left home, no debt, mortgage paid off.)

I will also have a modest NHS pension I can take at 60 yrs, which will pay out £65 per week, (beer money and treats.)

When my wife hits 59, her super will kick in, and she will get circa £50,000 pa from that.

I will get a UK state pension when I hit 66.

At present, we're sitting pretty, but who knows where things will go from here on in?

Hi Fatbeetle

Have you tried plugging it all in to Retireeasy - it's a brilliant tool and quite a few boarders on here use it. No ads, spam etc.