Have we got our sums right?? Appraise our plan.

Sea_Shell

I don't plan on drawing enough p.a. to pay tax. Will move into ISA for future tax free use from 55.

cloud_dog

Sea_Shell wrote: »

I don't plan on drawing enough p.a. to pay tax. Will move into ISA for future tax free use from 55.

Well said. Sometimes I don't think people understand how you can manage your SIPP to minimise tax.

Sea_Shell

Yes, we both plan to do this, withdraw 133% of PA from SIPP, and anything we don't need to live on gets put into ISA. Should take approx 10 years to move it out, keeping a similar investment fund from whence it came, whilst maintaining a cash buffer.

Sea_Shell

We also plan on the same thing for the money going into SIPP, from ISA. As it's not really crystallising losses on ISA, if you then buy cheap units in your SIPP, whilst also getting tax relief.

Sea_Shell

Found out this week that we have lots of changes happening within my department at work upcoming...

Our £500k of FIRE pot is starting to look VERY tempting!!! We keep crunching the numbers and it keeps telling us that it's plenty and we'll be fine. Still, it's daunting to actually "press the button", especially when your not even 50 yet!!!

Maybe i'll wait and see how things all shake down over the next 2-3 months, and then take a view.

Suffolk_lass

Might the "lots of changes" include any sort of redundancy offers? - it would be worth hanging around for that possibility. Especially hanging on in the knowledge that you can leave if you don't like it. How liberating!

I might have missed it (just went back to posts 1 and 157) but have you done an up to date State Pension check and worked out what you would need to do to make any extra years you might need?

You also have the option to do something completely different (Christmas post worker was always my favourite) to top up your pots and make some NI Contributions. On the subject (of NI Conts) I was checking Class 2 recently and there is a list of things you can do that allow you to pay the <£3 rate. My Teacher DH is stopping this summer and marking exams and invigilating are two of the options for him.

I retired a month ago and it is weird so far (still feels as though I am on holiday). More for heating and food, less for commuting and NI (and tax). I will need to top up my NI as much of my time was opted out of SERPS so although I have the years, they are at the Basic Pension rate.

Sea_Shell

Sadly not Suffolk Lass!!! No, they are expanding!! Which no doubt means I'm going to have to start training new recruits, and may also lose some of the more interesting elements of my role to other team members in the re-shuffle.

jamesrobins

As a 36 yo hoping to be in a similar position at your age this has been an interesting thread so I will subscribe.

Hope you enjoy your retirement and your planning all works out.

Sea_Shell

First Quarter of 2019 and the updated figures are in...(figures are joint)

DC pension pots = £288,450
S&S ISA's = £109,819
Fixed Term bonds (cash) = £66,797
Available cash = £49,078 (boosted by £6000 from the sale of a Car)

So a new Grand Total of £514,144 (March 2018 = £483,000) Approx £12,000 of that increase has been my salary. So really it should be £496,144 being compared with last years figures.

The £6000 from the car will go into our ISA's on the 8th April once our N'Wide Reg Savers mature (which handily is for the same amount). Plus in June we'll add the £12,000 currently in Tesco CA's when the rate drops, unless an amazing savings rate is launched by someone. That'll take our available cash down to £31,000, with our main Bond then maturing in 2 years time.

I've been tracking our monthly outgoings now for a fair few months, and on average we are spending £1032 per month (Sept 16 to March 19). So if we continue to base our starting amount (before inflation) at £15,000 pa, that should give us plenty to play with.

I'm playing work by ear one month at a time, and if it gets too much hassle or stressful (or i run out of holiday entitlement!!), i'll throw the towel in, but at the moment there's no need.

Also, I've just realised its been 2 years!!!! since my opening post. Wow, that's flown past!!!

Sea_Shell

It's been a busy couple of "Bean Management" days here at SS Towers!!!.

We had earmarked our 4 Tesco accounts money to move to ISA's once the rate dropped in June (£12k), but on finding out about the Santander Recommend a Friend offer, we are initiating the switch of these 4 accounts early (which should net us £400 in Amazon vouchers). We've removed most of the money these accounts out early (along with Virgin RS10 maturity money) and made the ISA investments today.

We were also lucky (by being very quick) to be able to open 2 of the Monmouthshire RS's @ 3% (before they pulled on line applications), so also sent off £600 to them.

Phew...i now need a lie down in a darkened room...after updating my Excel spreadsheets!!!!

In other news, our FIRE pot (ex DC/State pensions) is bubbling along nicely at £520,000