Future Finances: Time vs Money

moneyistooshorttomention

MrAPJI wrote: »

The importance of making a will was made really clear to me when my father died 'intestate'. Had my brother and I decided to take the money to which we were legally entitled, our poor mother would have really struggled financially. I dread to think what happens in some families when situations like that arise!

That was very honourable of you to "do the right thing" there:T and exactly what I would have done personally in those circumstances.

You are right that some people wouldn't have done so regardless. My jaw has dropped open even at those occasions where wealthy parents have (officially speaking) "given" a lot of their property to adult "children" some years in advance so to say and there are adult "children" that have then turned round and proclaimed that it's theirs - ie because it's officially "theirs" - even though they've known very well it isn't theirs yet in actual fact and that this was being done as a tax dodge basically (which I don't agree with either - but that's another story) and kicked their parents out of their own home:eek:

It takes some very "flexible" morals to act like that:cool:

moneyistooshorttomention

Shy & Retiring - Admits to thinking "My head hurts...." at the amount of possible contingencies you are having to think of. Whew! Wishing you luck at that planning.

Admits it was so much easier for me to only have the one thing to think of personally - ie retiring at my retirement age - rather than my revised State Pension Age meant I was having to be aware that some of my pension lump sum might get drawn on to subsidise my Civil Service pension until the rest kicked in.

That wasn't my idea of fun knowing "pension subsidy" money was coming out of my savings at the same time as I was having to spend money at a rate of knots on lots of work on the house I'd swopped to (yep...and emitting very hollow laugh at those figures I've seen before now of "Oh - one can modernise a house for around £15,000"). My comment about that figure by now coming under the phrase "Since when?:eek::rotfl:". It was certainly more than double that and I've not done much to the garden yet.....or the rest of my savings would have gone and then some.

**************

On the savings front - I do think it's necessary (though it certainly shouldn't be....) to allow for any expensive health care costs as one gets older. I've had a cheap form of private health insurance for years now just-in-case and believe it's been well worthwhile to do so. It should cover if, in years to come, anything like cataracts comes up. I've just watched a friend develop cataracts at quite a young age and she lives here in Wales too. Her wait for the first eye to be done was noticeably longer than the English NHS does even (too long...) and she's been told she's in for another long wait (rather than the standard 4-6 weeks the English NHS takes) for the second one. She tells me she is starting to wonder whether she should do what I'm advising - and "Just pay yourself - and get it done on time".

crv1963

Hi S&R,


#1- Thanks, I do think increasing earnings in current line of work/ overtime is the easiest option if it is open to you. No struggle/ getting used to doing something else/ hoping whatever is new will work out or pay what you hope. You know what it'll pay and when.
#2 Is paying additional NI contributions an option here to boost OH pension or is it a) not open to him or b) too expensive?
#3 Squirling away extra now for safety/ future sounds sensible, but so does making good use of time to look after yourself, relaxing is as important as working!
#4 Taking on a caring role is important to consider, but so is one's own health and well being. My mother lives about an hours drive from me, I do go weekly to take her for the heavy shopping- pet food/ cat litter/ veg (even though sister lives 1m from her and won't!! Grrr different story!!!). I do contribute/ pay for minor things she needs at times such as guttering being cleared/ decorating/ hedges cut when she is unwell. So there may be things you can do to help without having either of you stop work, an extra day or two work every now and then to pay for these things may be worth considering?
#5 Most major problems should be covered by House Ins, but up keep of property is important, you probably do it all the time but every now and then it is worth taking a really critical look at it. I walk round and look at it as if I were about to buy the house. What would I try to reduce the asking price by? That roof slate looks like it needs repair even if it's been like that for 10 years. that wall needs pointing up, that step needs repair, that ceiling needs repainting, that outdoor tap needs replacing rather than keep muddling along with it. Make a list and start prioritising the "minor repair" list too?


Just my thoughts- Good Luck


CRV

moneyistooshorttomention

On a practical "to do" front - that seems like a good idea to me re the "house maintenance checklist - as if one were a buyer".

However, I'd add in to that that it feels practical to me to think in terms of doing more house maintenance type work (if possible) and spring cleaning type work in the winter. The summer brings more work in the garden and any outside house maintenance work. With the winter being worse weather, by definition, then there's more time available for "inside" work - whereas one really begrudges time spent on that type of thing if the sun breaks out/one could be out somewhere for a walk or something.

EDIT; Re another thought - ie on the planning aspect of retirement. I've checked out a noticeable number of retirement blogs and many of them are imo "fluff" - but one that I read sometimes is:
https://satisfyingretirement.blogspot.com

It's an American one - but he's very practically-oriented and much of the thinking/planning is still applicable in a British context. Generally he strikes me as a helpful sort of guy in his attitude.

lessonlearned

S&R. Some excellent tips there from CRV.

I have a,ways ensured that my prooerties are well maintained. A bit if the old "stitch in time, saves nine" mentality. So routine maintenance. One thing i always do after a major storm is to check the roof for damage. It only takes a few minutes. A pair of binoculars to check outside and if possible poking your head in the loft to check for any water ingress. Blocked gutterings are usually self evident in a rain storm, same with drains.

Elderly parents...... A bit of forward planning here can really help, setting up contingency plans, knowing their neighbours phone numbers, are there any key holders, is their home safe, so they have enough food/supplies in for bad weather or if they are indisposed and cannot go shopping. Of course diplomacy might be needed here. :rotfl: but the goal is always to help them remain independent for as long as possible.

I know this sounds very harsh but think very carefully about giving up work to care for loved ones. I did. I cared for my husband for a total of 9 years. I did it out of love. Would I do it again. With hindsight I'm not so sure. It wrecked my finances, ruined my health and if truth be told he might have had better care if I had taken on a less hands in approach. I learned that, with the best will in the world, one person cannot provide 24/7 care. The truth is......if the State can opt out and foist the costs and responsibility onto someone else they will.

Your husbands state pension.....I would also look at whether or not your husband could make up the shortfall for his SP. have you contacted the pensions office at Newcastle for pension forecasts. I found them very helpful.

If you feel that £1k will be your base line, then it might be worth practising living on that now. Obviously after you have taken things like mortgages, debts, loans, work or business expenses, savings and pension contributions out of the equation.

But if you are working on an assumption of £1k per month as a net figure then why not give it a try and see how you go.

MrAPJI

ShyAndRetiring wrote: »

Mr APJ, lovely to 'see' you and thanks for sharing. It's true that it's those kind of situations which really show people's priorities and personalities in their true light.

So how are your house plans moving along, all going well I hope?

Thank you Shy


The house plans are ''on hold'' at the moment. Just arrived back from the USA having attended my late wife's uncle's funeral. He would have been 90 in October and so had enjoyed a very good innings. I will miss his wonderful sense of humour and listening to the many stories he had to tell - all extremely interesting. He was someone who lived life ''in the fast lane'' and quite a fascinating chap . He was extremely fortunate in having enjoyed good health right up until the end. Even at 89 he was able to enjoy a game of golf on a daily basis. Crikey, I would find that exhausting at my age - 60 lol.

missile

ShyAndRetiring wrote: »

Extra post here separately so I can copy / find it as needed later and so I can separate out my thoughts a bit.

I feel you are making this overly complicated. May I suggest:
2023 is a long way off and your priorities will change
Even a bad plan is better than none, but keep it simple
Will £1000 per month be enough?
How much is your current spending?
Factor in inflation.
Brexit will undoubtedly increase the cost of living

joansgirl

Love to hear more about the transition from full time to part time, to retirement at some stage if you have any insights there? It's definitely one of the scenarios we're looking at, although to be fair we're both in the part-time work phase as it is, but more by circumstance than deliberate transition to early retirement!

I don't think my story will be very helpful as it all happened suddenly, I didn't plan to retire.

In April 2016 I got fed up with my job, a "final straw event" occurred and I thought....sod this for a game of soldiers. So I looked at my finances to see if it was feasible for me to just stop working. I could of course have left and got another job but at that point I'd had work up to the back teeth. I decided to live on my savings until SRA but I knew that would make a massive dent in them. I did have vague thoughts about maybe having 6 months work free then if I was concerned about my finances I would get a part time job.

However, when I tried to leave, the boss was horrified, offered a substantial rise, bonus, reduced hours, lighter work load. So I went for it. It did give me more time at home but really all that did was fuel my enthusiasm for not working

I trundled on for another 12 months but the promised improvement in conditions and lighter work load just didn't happen, I was doing the same amount of work in a shorter time so was getting even more tired and spending my time off recuperating.

Then everything happened at once. An old work pension paid out on my 60th birthday (April 2017) which gave me a modest monthly pension but more importantly a lump sum to add to my "pot". I'd had a set sum I wanted to achieve before I stopped work and that lump sum pushed me over the top of my goal. Once that thought was in my head I couldn't get rid of it.

Fast forward 4 months to the August and 2 investments I'd had running for 6 years matured and the interest was considerable, increasing my pot yet again. And that was the turning point I think, I knew I could manage comfortably until SRA with the pot so I left work. Shortly after leaving I claimed another old work pension which paid a similar amount to the first plus another lump sum so I was financially as secure as I was ever going to be.

I left work last September and I haven't looked back.

I have slowed down physically, I'm not getting any younger and can't do what I used to do 10 years ago, but I have plenty to keep me occupied.

I still wake up every day and think....thank God I don't have to go to work. Sometimes random memories pop into my head about my old job but there's never been a time when any one of those memories makes me regret my decision.

One of the things I've noticed with some retirees is their jobs weren't just jobs, more vocations, and some of them have a tough time transitioning from being "useful" to being retired. That is NOT me! My job was just a job, no more, no less. But I do fully understand people who feel like that, and I sympathise.

Mental attitude is everything, allowing yourself to get bored and depressed is so easy to do, I have to work at not allowing complacency to get a grip. But I'm coping, I'm contented and comfortable. Life isn't perfect but nobody's life is, no matter what they say.

lessonlearned

I agree, maintaining positive mental attitude in retirement, as in life, is everthimg really.

Like you Joan I am a widow - just 4 years last Friday - so my retirement is not quite what I had hoped for.

Hey ho.

At the moment I do feel in limbo, living among boxes and crates, still waiting for confirmation of a legal completion date.

Hopefully once I have moved and get cracking then I will feel more settled and focussed.

New house, new life, new me......;)

[Deleted User]

Interesting post Joansgirl. I really get where you are coming from.
As I previously posted a while back, like you, I also retired last September - I wasa 62. I took my Local Government pension at 60 and did an extra 2 years to increase my pot through salary sacrifice in my last job. I am glad I did make the !!!8220;sacrifice!!!8221; - by that I mean, sacrificing my time so that my future self would reap the benefit. After 44 years working full time without a break - apart from 5 weeks annual leave every year - it was time to stop! I have never looked back. It was not the job per se - at times it could get pretty stressful - but for me it was a work/life balance. My partner is 15 years older and I wanted what he had. Now I have it and life is good. I went back to the old work place at the end of June for a retirement party for an ex colleague and it really made me realise how lucky I was that I was not part of the rat race any more. There were a few miserable faces!! I have enough to live on and I cannot honestly say that I need any more money. I guess what I am saying is that you might just not need as much money as you think - if you have the dream/goal to retire early then you can make it happen. S&R - you will achieve your goal. I am sure of that. You are so positive- you will make it happen.


LL - love your posts - you always seem to give good advice. I, like you, am a cautious investor. My FA pushed me out of my comfort zone to be a little bit more adventurous with my savings and persuaded me to invest in an ISA growth bond. It is not without an element of risk, but my monthly return has been far greater than I would have received in a normal bond, and of course, it is tax free. With regard to the previous posts about premium bonds, as I could only put 20k into the ISA last year, I put my other 20k I had to invest in premium bonds as a holding place. I won small amounts of £25 and £50 EVERY month in a year. That money has now been transferred into my growth bond to give me an extra monthly income, but I still have some premium bonds and plan to buy more when I get the chance - I love receiving the emails from NSI - good news from ERNIE!

S&R - love reading your updates - you are doing fine.
PS - I never answered your question about my loft conversion. Yes, we did go for an en-suite - it will certainly add value if we sell in the future. Not that we are using it as an extra bedroom though. My OH has lots (read too many) hobbies and it is his space. He now has his computer(s)/gadgets/radios/flat screen TV- you name it! It is his luxury man cave. We live in a small bungalow and like where we are but when I retired, we decided we definitely needed a bit more space. So he is up in the loft very happy with his own en-suite and I have my space (and little office - joy) downstairs. We do, however, get together on occasion though!
Keep posting!