Headache isn't it :)

Mr_Costcutter

prosaver wrote: »

Sometimes i think its a blessing to be skint..
i worry about buying a carrier bag lol

As my wife frequently comments (in respect of money) - ''it's a worry when you haven't any and a worry when you do''. She's right of course

Your comment made me smile - a good sense of humour is 'a valuable asset' and something money can't buy

YSRL

atush wrote: »

Do either of you have pensions? Did you ever take advantage of a company pension thru your business?

No, we don't and unfortunately I didn't (against the accountants advice)

kidmugsy

A quarter mill and one commercial property won't reliably provide enough to live off at 48. Probably you should work - self-employed if you can't bear having a boss. Apart from anything else you'd better aim at building up some State Pension rights. While you are at it, for heaven's sake contribute to pensions for each of you.

BucksLady

Mr_Costcutter wrote: »

As my wife frequently comments (in respect of money) - ''it's a worry when you haven't any and a worry when you do''. She's right of course

Your comment made me smile - a good sense of humour is 'a valuable asset' and something money can't buy

Some very wise words Mr Costcutter

darkidoe

I think your in a wonderful financial position to be in! I understand the headache of trying to make it all work though.

If I am right your assets stand at: £250K (Cash) + £15K (cash ISA) +£10K (Rate Setter) + estimated £250 K (Commercial property Equity) + £??? (Holiday Home Equity) +£??? (Home equity)

Now I am making some deductions from your original post here, but I am assuming you own a home AND a holiday home as well as well as 'having no debt (mortgage paid off)'. So that will take away any expenses for rent/mortgage which is a massive bonus! You have calculated your 'base income' from the rental property and will need to try to maximize whatever you can from the cash you have, firstly with High interest paying current accounts to build up a emergency fund and then considering S&S ISA for longer term investments. So your yearly income would be rental income (~18K) + returns from savings/investments.

I think what you need to calculate now is what is your estimated yearly expenses like? Outgoing from food, travel, utilities, property maintenance costs, leisure, other family expenses. Once you have got this figure, you will have a better idea of how feasible it is not being able to work again.

The general idea is if Yearly income >> Yearly expenditure, with the excess from the income being reinvested or saved up to contribute to producing a higher yearly income the next year and the following years, you will see a snowball effect where your assets keep growing even in retirement. Simple but amazing and powerful stuff! :T

Check this out:
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

enthusiasticsaver

I would keep a proportion of it in available funds in high interest current accounts, regular savers (5-6%) and invest a proportion in a globally diversified fund which measures your level of risk (I am using the Vanguard Lifestrategy 60) and a SIPP if you do not already have a pension you can overpay into. The proportions of what you put into what depends on your overall plans.

YSRL

darkidoe wrote: »

I think your in a wonderful financial position to be in! I understand the headache of trying to make it all work though.

If I am right your assets stand at: £250K (Cash) + £15K (cash ISA) +£10K (Rate Setter) + estimated £250 K (Commercial property Equity) + £??? (Holiday Home Equity) +£??? (Home equity)

Now I am making some deductions from your original post here, but I am assuming you own a home AND a holiday home as well as well as 'having no debt (mortgage paid off)'. So that will take away any expenses for rent/mortgage which is a massive bonus! You have calculated your 'base income' from the rental property and will need to try to maximize whatever you can from the cash you have, firstly with High interest paying current accounts to build up a emergency fund and then considering S&S ISA for longer term investments. So your yearly income would be rental income (~18K) + returns from savings/investments.

I think what you need to calculate now is what is your estimated yearly expenses like? Outgoing from food, travel, utilities, property maintenance costs, leisure, other family expenses. Once you have got this figure, you will have a better idea of how feasible it is not being able to work again.

The general idea is if Yearly income >> Yearly expenditure, with the excess from the income being reinvested or saved up to contribute to producing a higher yearly income the next year and the following years, you will see a snowball effect where your assets keep growing even in retirement. Simple but amazing and powerful stuff! :T

Check this out:

Thanks for the link darkidoe


To clarify the things you asked and after I've fully taken stock of everything, this would be a more accurate picture...


250K Cash
15K Cash ISA
10K RateSetter
50K Premium Bonds (sorry, I didn't even think of those before)
Commercial Property (Value 250K, rental income anticipated at 18K)
Own my own home (Value 150K)
Holiday Home (Value 75K - lodge type, but don't expect to sell or sublet)


No debts whatsoever, other than regular utilities/household bill etc.


I'll have to calculate yearly expenses, but maintenance and handling of the property isn't an issue because of my many years in construction, so that will keep those expenses down.


Thanks for your feedback

Newly_retired

Your need for more income will depend on your lifestyle. What are you wanting to do with your lives for the next twenty years, then the next 20-30 years after state pension kicks in? Travel and hobbies can use up either a little or a lot of money.

xylophone

Is your wife employed? If so, is there no company pension to which she can contribute?

YSRL

Newly_retired wrote: »

Your need for more income will depend on your lifestyle. What are you wanting to do with your lives for the next twenty years, then the next 20-30 years after state pension kicks in? Travel and hobbies can use up either a little or a lot of money.

Just aim to take it easy really and firstly make good use of the holiday home.


Maybe one holiday a year abroad (but, only a modest couple of weeks self catering).


Other than that, we don't have any major plans and no commitments.