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To commute or not to commute?
Comments
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Such a tongue in cheek comment may have been rib tickling but is wholly misleading to the people giving you advice, negating most of what has been posted here. Ho Ho Ho very funny - Not.
Two things to consider
1 what age do your blood relatives live to? That's a far better predictor of your life expectancy than generic tables.
2 is £44k an amount that will provide you a comfortable retirement? It is a decent amount to live on, you might better it with drawdown or you might not, and the risk of not bettering it has a cost.
Oh and a 3rd thing, do you wish to leave any money to children etc, or not. If not, why take the risk. If it's because you want say £60k a year for the first few years, then plug your requirements into cfiresim or firecalc and look at how often you run out of money and decide if the risk is worth it amd how you'd feel if you end up living on £25k a year at age 75 onwards to eke out what's left from a poorly performing pension. . Is that a risk you are willing to take? Only you can make these decisions.
Look at something like cfiresim, plug in a million pounds and experiment with drawdown rates. Chances are you'll find that in most cases if you extend the drawdown to say age 90 then this will mean the DB is by far the best option, but ultimately it's also about risk and your attitude to risk.0 -
Not particularly unhealthy. My pessimistic comment was a little tongue in cheek and based on life expectancy figures that suggest about a 50% chance of my surviving to age 83.
I'm 60 now.
You may be underestimating your life expectancy as those with good pensions tend to live longer. My fund assumes that life expectancy for a current 65 year old is 87 for men and 89 for women on average.0 -
AnotherJoe wrote: »Such a tongue in cheek comment may have been rib tickling but is wholly misleading to the people giving you advice, negating most of what has been posted here. Ho Ho Ho very funny - Not.
It was just a guess based on life expectancy figures, and a comparison of the 22 X txfr out rate - think you're being a bit harsh.AnotherJoe wrote: »1 what age do your blood relatives live to? That's a far better predictor of your life expectancy than generic tables.
88 and 94.AnotherJoe wrote: »2 is £44k an amount that will provide you a comfortable retirement? It is a decent amount to live on, you might better it with drawdown or you might not, and the risk of not bettering it has a cost.
£44k would be a very comfortable amount now - I am also bearing in mind that our state pension will add £15k pa to this in 7 to 8 years' time
Yes. The house is probably worth £850k, and we've got £250k in S&S and cash ISAs (funnily enough that was nearer £300k a week ago!). So we will need some expert legal and IFA advice on possibly setting up a trust to maximise what we can pass on to our offspring.AnotherJoe wrote: »Oh and a 3rd thing, do you wish to leave any money to children etc,Optimists see a glass half full
Pessimists see a glass half empty
Engineers just see a glass twice the size it needed to be
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Sounds like you need some investment advice if your funds dropped 20% last week, most people with balanced portfolios have increased as the drop in sterling has exceeded the fall in equities in most foreign markets.0
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Sounds like you need some investment advice if your funds dropped 20% last week, most people with balanced portfolios have increased as the drop in sterling has exceeded the fall in equities in most foreign markets.
Spot on, especially as some of that was held in cash (our portfolio moved up slightly). I would suggest you need a full financial review with a good IFA.0 -
The house is probably worth £850k, and we've got £250k in S&S and cash ISAs ... we will need some expert legal and IFA advice on possibly setting up a trust to maximise what we can pass on to our offspring.
Trusts don't have magic anti-IHT properties. Unless you want to try to take advantage of BPR and APR basically you need to make gifts and then survive for seven years.Free the dunston one next time too.0 -
Assuming the OP or his wife survive the next few years to take advantage of the additional property nil rate band they will have £1M they can leave tax free, so there are easier options to cover the relatively small amount of their estate which would be subject to IHT.
Personally I would be looking to gift some of that now, and cover the risk over the next 7 years with a low cost 2nd death insurance policy.
The nice thing about gifting is that you get to see it put to good use.0 -
Sounds like you need some investment advice if your funds dropped 20% last week, most people with balanced portfolios have increased as the drop in sterling has exceeded the fall in equities in most foreign markets.
in any event the FTSE closed today back where it was pre-referendum, just above 6300. Storm in a teacup?The questions that get the best answers are the questions that give most detail....0 -
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