Early retirement sense check

PipPip

caronoel wrote: »

Have you looked at VCTs to provide tax free income and a healthy tax rebate?

I am likely to substantially exceed the lifetime cap, so am looking into this to mitigate some of the punitive taxes for exceeding the cap.

I haven’t. I’m aware of them and sort of know how the tax works as I did look into them years ago (along with EIS’s). At that time liquidity/finding willing buyers was a concern if I recall but I bet the VCT market has moved on a lot. Thanks for the suggestion. Will look into it.

caronoel

PipPip wrote: »

I haven’t. I’m aware of them and sort of know how the tax works as I did look into them years ago (along with EIS’s). At that time liquidity/finding willing buyers was a concern if I recall but I bet the VCT market has moved on a lot. Thanks for the suggestion. Will look into it.

I found this a good place to start in researching VCTs:
https://www.wealthclub.co.uk/venture-capital-trusts/

atush

PipPip wrote: »

It’s an apartment. Currently we rent it out for part of the ski season and use it for other weeks. It’s mostly rented to people we know. This brings in about €5,000 per season which is used on French property taxes, apartment management fees, maintenance, French accountants fees and a bit left for our holiday spending money when we are there. We do plan to spend the majority of the ski season there, in the early years of retirement at least.
When I’m 55 my kids will be 16 and 18 so just at the start if those costly uni years, hence my nervousness about whether I will really be able to stop work at 55.

I wouldnt (and didnt) retire with my kids in Uni. Unless you w ant them to graduate with 60K in debt. It could make sense to work just a little longer.

Good so you rent it out now at least, and it is covering the costs. I have a gite in Brittany tht I dont rent out, but my taxes and running costs are super low. I'd have to hire a gardener to rent it out, and that would probably triple if not mroe my running costs.

I think I’ll chip away at it with any pay rises over the next 7 years and will have a think nearer the time.

I'd piut pay rises into the pension and s&s Isas. Then revisit once rates go up. Theey will do eventually lol

ams25

My situation numbers wise is (now) not a million miles away from your forward view...but at 53 I quit work already with two primary school age kids (now) who are likely be heading to uni after I hit 60. My numbers are helped a bit by a DB at 60 but I have the same concerns about uni costs etc. However I think I can make it work. I am figuring on putting some funds aside for uni but not necessarily paying all tuition fees. Suspect things will be different in 5-10 years anyway but paying 100% tuition is not necessarily the best approach today I believe. I would not let it derail your plans which seem reasonable but maybe put some money aside to support future uni costs.

Your savings rate is impressive so that says it will work to me...you're not going to change spending habits after you quit. We're spending a little more than when working (no ni, no pension savings, little tax etc) so no hit to lifestyle despite the big hit at gross income level. Good luck.

PipPip

Thank you, great to hear from someone in a similar position. The only other potential positive for us is that my wife has just started making hand made curtains and blinds from home, including for an interior designer to London clients who has a lot of opportunities . It’s only early days but she is extremely skilled, about as good is it gets in this market really, and early indications are that she could easily bring in £10k pa doing this part time 2-3 days a week. She already has way more demand than she expected and has decided her initial view of what to charge can be increased. Just depends on whether she wants to do it long term as it’s labour intensive and will require a fair bit of storage space for materials.

ams25

PipPip wrote: »

Thank you, great to hear from someone in a similar position. The only other potential positive for us is that my wife has just started making hand made curtains and blinds from home, including for an interior designer to London clients who has a lot of opportunities . It’s only early days but she is extremely skilled, about as good is it gets in this market really, and early indications are that she could easily bring in £10k pa doing this part time 2-3 days a week. She already has way more demand than she expected and has decided her initial view of what to charge can be increased. Just depends on whether she wants to do it long term as it’s labour intensive and will require a fair bit of storage space for materials.

that's perfect. Small /part time ways of earning doing something you enjoy (?) has to be the ideal way of supplementing your income if you go down an FI / early retirement route. On my mind once the kids are more independent.

kidmugsy

PipPip wrote: »

My SIPP is with HL and invested in big name funds. I find it very hard to believe that fraud risk at one of the UKs biggest institutions is worth the hassle and cost of spreading it across multiple platforms.

Then you are an !!!, and a pompous one at that.

PipPip

kidmugsy wrote: »

Then you are an !!!, and a pompous one at that.

Seriously? A factual explanation of why I need to worry about this would be helpful if you think I’m deluded. Maybe I don’t understand the risks properly. I had in mind that HL has to comply with client money rules and is heavily regulated having to segregate client money, no liabilities allowed in the nominee company, daily client money reconciliations etc. . I don’t invest in any HL funds, just use their platform to invest in third party funds so thought that my risk is more with these asset managers than with HL, i.e. not investing over the £50k FSCS compensation with any one of them if I am worried about risk of loss? If HL goes under and my investments are with third parties, even if via HL nominees, surely my money is safe? If these assumptions make me a pompous !!! then, well, whatever.

Thrugelmir

BLB53 wrote: »

Your investment will continue to grow at 6% each year

The level of complancy is at times quite worrying.

LULULU1

Where about can I find the whats your number thread please.

Thanks