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

Anonymous101

Great news. The whole point in the F.I.R.E. pot of money for me is that you can choose when work is no longer fulfilling for you and you'd rather not bother.


Well done on making the effort and getting there at a relatively young age. I'll be hoping to follow in your footsteps.

Sea_Shell

Yes, it's gonna be time to start digging up those squirreled nuts!!!

(might have to change my signature to that!!:rotfl:)

Suffolk_lass

Ooh congratulations on that decision - one more thing about stopping before winter - it removes so many other people's winter germs from your daily life!

My DH is finishing on 31st August, although as a teacher, the last few weeks are holidays - it seemed rude not to be paid a salary for this period!

I trust you will tag a link to your new thread on here when you start it!

Anonymous101

Sea_Shell wrote: »

Yes, it's gonna be time to start digging up those squirreled nuts!!!

(might have to change my signature to that!!:rotfl:)

What are your thoughts on the shift between accumulation and drawdown?


I've been discussing this with my OH recently and I think most people fall into one of two camps. The naturally frugal that save as a result of naturally low spending and the natural spenders which chose to buy their freedom rather than other stuff. Mrs. Anon is the former whilst I'm the latter. I think the more frugal will find it easier to switch to drawdown than the natural spenders but both will have their own challenges.

justme111

You meant it other way round - the more frugal will find it more difficult to adjust to drawdown

Silvertabby

Sea Shell - don't forget to factor in the cost of those new hobbies you will finally have time for in retirement!

Sea_Shell

Anonymous101 wrote: »

What are your thoughts on the shift between accumulation and drawdown?


I've been discussing this with my OH recently and I think most people fall into one of two camps. The naturally frugal that save as a result of naturally low spending and the natural spenders which chose to buy their freedom rather than other stuff. Mrs. Anon is the former whilst I'm the latter. I think the more frugal will find it easier to switch to drawdown than the natural spenders but both will have their own challenges.

Oh the great drawdown conundrum!!! Yes, it will be a complete change of mindset from seeing the figures going up and up, to seeing them drop!!!!

However, if all goes to plan and we get the growth we need to stay still, then we'll tread water without eating into capital. But at the end of the day the capital is for spending too, within reason, as that's what it's been saved for!!!

We've been spending fairly consistently over the past 30 months....so we have factored in extra spending to our projections, which equates a 20% increase in spends if needs be!!

Sea_Shell

Silvertabby wrote: »

Sea Shell - don't forget to factor in the cost of those new hobbies you will finally have time for in retirement!

I've got a few hobbies already that are cheap, if not free, to do (might have to buy some new kit every now and again), mainly outdoors stuff. I'll keep a gym/swim membership going too.

I've got a pile of colouring books for the real winter months, and some donated jigsaw puzzles to see me though.

I can't see us taking up any expensive hobbies, that need expensive kit (cycling, golf, classic cars, pilots licence!!!), but I have a few things left on my bucket list. Not bothered about extensive travelling (abroad) TBH, it's such s PITA with airports etc. but we have a list of UK places we want to visit, even if just a short 1 or 2 night break. My own bed is FAR to comfortable to stay away from home for too long!!!

Anonymous101

justme111 wrote: »

You meant it other way round - the more frugal will find it more difficult to adjust to drawdown

No I didn't... Perhaps this highlights how personal this whole issue is. I think I (the spender) will find it more difficult than my OH (the frugalist).


This might sound counter intuitive but my reasoning is that as a spender psychologically I'm still spending all my pay cheque each month. Only during accumulation I'm "buying" something completely different to the usual stuff people buy, my freedom. Mentally I think I still treat it very similarly. I'm very goal driven and if anything put more pressure on myself now to save than I ever did when I was accumulating other stuff.


My OH on the other hand isn't quite so diven with it all and is happy to spend frugally and invest whatever remains at the end of the month.


When it comes to drawdown I don't think mind set will need to change but mine most certainly will.

crv1963

justme111 wrote: »

You meant it other way round - the more frugal will find it more difficult to adjust to drawdown

I think it depends on how you plan the work free income aka pension income. We are buying future income pot in a SIPP that will be drawn down to zero by SP age at a rate equal to Mrs CRV SP, so approx 8k pa. That's how I have to view it as we save or I'll be grumpy watching it go down as I am watching it slowly grow now.

So plan is me DB pension, Mrs CRV DC pension 4k pa, SIPP drawdown 8k pa for 10 years to zero then replaced by SP so level-ish income, DC pot hopefully remains around the same level - except when there is a crash then - draw against other savings while the inevitable recovery works its' magic!