Future Finances: Time vs Money

bugslet

Was Mr SAR so bored by the bored meeting that he just said yes to your proposals, so he could get back to doing more interesting things?:D


Well done on the planning.

Because my money is tied up in work ( too long, don't ask), I really only have a pension to consider and I leave that to an IFA. When I turned 50, he came along to have a review and see amongst other things, where I was on the risk averse scale. I had been not at all risk averse, reckless may be one way of putting it. I had thoughts of age mellowing me....no, I'm still in the aggressive pool:cool:

bigask

ShyAndRetiring wrote: »

:wave: Hello

I'm a long time user of MSE and used to have a diary on the MFW board (different user name). These boards are just such an incredible source of advice, information, support and inspiration that now we're moving into the next phase of our lives, I find myself returning more and more and really feel the urge to reconnect with a new diary to help keep us focused and clued up in what we're doing: looking towards early retirement.

I know there's a pensions and retirement board, but I do find the numbers on there to be quite intimidating. I'm not knocking anyone else's choices and lifestyle needs, each to their own, but do feel that the numbers I'm looking at are in a different league to those on the main pensions board (far less £ involved) and as we're risk averse and thinking more about money-saving rather than investment per-se, I feel more comfortable over here, if that's OK with everyone?

So, the background:
* OH is now 60. 2016-2017 was a horrible time for him, reaching an age where he was sidelined professionally (extremely common practice in his profession, so much so that the union advised him to take a 3 month settlement to leave as they'd "seen it all before and it's the best you can do, no point in fighting it").
'Fortunately' for us, the writing appearing on the wall coincided with the youngest dependent flying the nest, so we sold our house and downsized. It didn't leave much of a pot for us, but we did become mortgage-free ... something that wouldn't have been possible but for the support and focus on paying down the mortgage via the MFW boards on here. The 'pot' we did achieve was mostly used to get our new place and garden suited to our (existing and future) needs. It also kept us afloat once OH finished work, as he didn't want to claim any benefits but needed a period of not working so he could recover from a stress-related health issue which arose largely thanks to the awful politics of his work situation.
Turning 60 earlier this year means OH accessed his lump sum (£50k) and a pension of around £6.5 k a year. For the last 7 months, he's been working part-time in the warehouse for a local retailer, minimum wage, anti-social hours (very early morning) but he's happy to be earning and useful again.
As he lived and worked abroad for a long time before we knew each other, he does not have full NI contributions, so another reason for his part-time job is to help build up his contributions before SP age.

* I'm 52.
I had to give up my main professional, full-time role due to a long-term medical condition (auto-immune). I took up self-employment instead, working freelance for myself in order to manage my recovery and balance my health - this vastly impacted on my earning capacity and pension planning. I did have 'full' SP contributions but thanks to recent changes, now have to make another 5 years to get back to full contribution.
Last year one of my freelance clients asked me to work for him exclusively (and permanently) so I now work part time for his company, working remotely from home. I can access my Occupational Pension (from professional role) once I'm 60 and I currently use NEST pension for building up another pension pot as I earn approx £10,500 from my part-time work.

The plans / point of this diary:
* We'd really love to be in the position to retire together when OH reaches SP age - I'd be 58 then. So at the very least, this diary's likely to be my place for accountability for our actions (big or small) towards trying to achieve this.
* That said, if there's the chance to do this sooner, that would be so much the better! We didn't meet each other until a bit later on in life (it's a 2nd marriage for each of us) and with the slight age difference between us, we'd rather have time together than lots of money to spend. For us it's about living simply and wanting what we have, rather than spending money on 'wants'. I'm hopeful that this particular focus will help to get us to the finish line a bit sooner, so I'm sure some of this will creep into the diary too, especially as I'm about on the boards a bit more (I'm very at home on the frugal threads)!
* I spend lots of time on the spreadsheets and our numbers just about work for us retiring together when OH reaches SP age, but I can't make them work for doing it any earlier. However, we benefited so much from the focus our MFW diary gave us (to the point that we could become MF when the fan started up and poop started flying) that I can't help but think a little of that focus again would help us to position ourselves a bit better for the next phase in our lives.
* I also like setting myself cheeky goals and challenges, so having a diary's also a good way of recording my monthly goals and helping me stick to the actions needed to achieve them - especially as the mini goals would all be towards that main prize at the end - time together!

I'm sure I'll share more thoughts and numbers down the line, but I'll stop there for the moment. Thanks for letting me settle into this new spot and if anyone would like to stop by from time to time, it would be lovely to meet you.

What a big job. Fortunately that "cut and copy" exists:p
Good Luck !:T

ShyAndRetiring

Hi there ...

bugslet wrote: »

Was Mr SAR so bored by the bored meeting that he just said yes to your proposals, so he could get back to doing more interesting things?:D

Oh indeedy Bugslet, although he did look at some of the proposed accounts online and read a bit of the MSE savings stuff this time around! But there was no 'any other business' on the 'agenda', or even an 'any funny business' section (although I'm thinking of introducing that for next time)

Well done on the planning.
Thank you, we're getting there, to be honest having this focus thread really does help to focus!

Because my money is tied up in work ( too long, don't ask), I really only have a pension to consider and I leave that to an IFA. When I turned 50, he came along to have a review and see amongst other things, where I was on the risk averse scale. I had been not at all risk averse, reckless may be one way of putting it. I had thoughts of age mellowing me....no, I'm still in the aggressive pool:cool:

Reckless? Would be boring if we were all risk averse! Plenty of place in this world for a fearless and go-get-'em Bugslet! Speaking of which, have managed to get that final client sorted yet?

bigask wrote: »

What a big job. Fortunately that "cut and copy" exists:p
Good Luck !:T
Thanks Bigask ... I know what you mean, I copy some of my goals etc over so I don't have to type it out each time too! Appreciate you stopping by and the good wishes

ShyAndRetiring

:wave: Goodness what a hot couple of days! Hope everyone's OK.

Been plodding along and trying to enjoy the sunshine without getting overheated!

* Spending:
NSD yesterday and only spends today were budgeted (OH went to veg market on way home) so total 8/10 should see us right for end of month as tomorrow and weekend may involve spending.

Market spends were good - around £20 spent on enough produce to feed us for the week (have meal planned it ... helps that we're mainly vegetarian, just a bit of fish every now and then for protein)! There's enough red peppers to do something extra with to put by, I'm thinking of roasting them all and making half into quiches for freezer and adding other half to home made pasta sauce with the extra tomatoes bought today. Will think on that once I finish work tomorrow!

* Savings:
Paperwork and emails re: new savings accounts coming through already so all good there.

After having mentioned about our fruit trees not doing much this year, we've discovered that the Greengage tree and Mirabelle tree both have some fruits. There won't be enough from the Greengage to do anything apart from pick and eat, but the Mirabelle could produce enough for some preserve and crumble fillings, so a little saving on fruit in the offing!

* Sorting:
Short quest to sort extra growing space for cost-cutting produce has led to three planters at the end of the garden being reclaimed from weeds and far-gone flowers. Squashes planted on into two of them and OH is preparing the soil in the other to hopefully get some leeks or garlic into. It's a bit late in the season to be planting up the squashes really, but given this fine weather we're hopeful they'll come along quite quickly.

Simple pleasures:

* Walking to the beach after work and throwing ourselves and the dogs into the water (well, me and boy pooch up to our knees, OH and fearless girl pooch heading off towards France each time)! Have to say that today was so hot I'm going to look out my ancient swimming cossie tomorrow and maybe even join in the doggy paddle!
* The moon is looking quite fabulous already this week, can't wait to see tomorrow's 'Blood Moon'!
* Half day tomorrow. Very glad because the room I work in has two computers in daily use, no fan and direct sun until noon. Phew, will be glad to be outta there!

Hope everyone get's a good night's sleep, SaR x

thriftytracey

Hi Shy and Retiring


I am enjoying your diary and it has certainly given me food for thought. Hubby is retiring next month from part retirement (63) and I intend to retire next May aged 59 from full time employment. (Unless BREXIT causes prolonged Crash what great timing) This is earlier than I planned but I am really fed up at work which is becoming more and more stressful and tiring. I have seen friends and colleagues hang on and then when they do eventually retire develop health problems that stop them enjoying their retirement. My drawdown pension will run out at aged 86 and if widowed will only get 50% of hubby's DB pension. But honestly I don't care. Will probably downsize house and hubby has life limiting disease (diabetes) and I want us to enjoy the rest of our lives together after a combined total of 86 years in the workplace! In any case who knows who will go first? I am sure you agree.


I now mentally catalog simple pleasures - a lovely idea. Not so many during the working week but lots at the weekend. I asked hubby yesterday and he "got it" straight away. Our dogs give us a lot of pleasure and the garden. It's amazing how many simple pleasures that are FOC. I am also trying to do something every day that helps someone even if it is just driving courtesy. More difficult at work HA HA.


As my name suggests I enjoy saving money and your "Spending" diary is a good incentive. Since we got the dogs we have saved money by not going to shopping centres as dogs not allowed. Even town centres, as shops don't allow dogs Taking turns to stand outside a shop with dogs is a bit off putting! Do appreciate dog friendly cafes though. Also not spending visiting attractions as dogs not allowed Grrrr. Doggy expenses are of course substantial but they wrap themselves around your heart so much it is worth it.... Another maxim for spending STOP - is it useful, do we really need it, will it give you pleasure?


We plan to try and get DIY projects in the house in the next 9 months and replace old appliances (this just hurt slightly as another maxim is never replace until broken) but worth doing I think. Dishwasher 22 years old still going strong - microwave at least 15 years and SAVE, SAVE, SAVE. We recently splurged a bit on a decent 2nd hand luxury caravan but that will be our final caravan now - cheap holidays especially in France - last holiday only 11 Euros a night sight fees.


Declutter - trying to do every weekend even if just one cupboard at a time.




Well that's all from me. Thanks again.

ShyAndRetiring

Hi ThriftyTracey, thanks for stopping by and for your thoughtful comments ...

thriftytracey wrote: »

Hi Shy and Retiring

I am enjoying your diary and it has certainly given me food for thought. Hubby is retiring next month from part retirement (63) and I intend to retire next May aged 59 from full time employment. (Unless BREXIT causes prolonged Crash what great timing) This is earlier than I planned but I am really fed up at work which is becoming more and more stressful and tiring. I have seen friends and colleagues hang on and then when they do eventually retire develop health problems that stop them enjoying their retirement.
This is such a key point. I think it's absolutely right to weigh up the 'cost' of hanging on to the bitter end with work and then falling apart once it all stops.

My drawdown pension will run out at aged 86 and if widowed will only get 50% of hubby's DB pension. But honestly I don't care. Will probably downsize house and hubby has life limiting disease (diabetes) and I want us to enjoy the rest of our lives together after a combined total of 86 years in the workplace! In any case who knows who will go first? I am sure you agree.

Yes, I absolutely agree. The thought of the pot running out is a scary one but none of us know when we're going to be checking out and it could turn out to have been absolutely enough. Something else to consider, which I'm sure you've read is what Bugslet very wisely mentioned in comment, that equally you don't know that something good won't crop up, which is a really good point. Sometimes we're so busily caught up in planning for the negative what-ifs that we forget there may always be positive ones out there too. Who knows, something cheerful, easy and part-time down the road could come up that's perfect for boosting retirement income?

Especially as you mention OH's diabetes ... it makes sense to stop working in a job you're not enjoying, so you can spend time with your OH. And if it means pennies are a bit tight at times? Well it sounds like you have just the name and attitude to deal with it

I now mentally catalog simple pleasures - a lovely idea. Not so many during the working week but lots at the weekend. I asked hubby yesterday and he "got it" straight away. Our dogs give us a lot of pleasure and the garden. It's amazing how many simple pleasures that are FOC.

Are you sure you're not us? This is so true for us too and great that it's something that you 'get' together ... very fraught if you both have very different outlooks / preferences when it comes to living simply.

I am also trying to do something every day that helps someone even if it is just driving courtesy. More difficult at work HA HA.

Lovely idea, my son and I exchange texts about random acts of kindness - sharing something we've done each day. However small, these things really do count to someone, even if they don't realise it at the time. Understand it's more difficult at work, ahhh that gritted teeth smile!

As my name suggests I enjoy saving money and your "Spending" diary is a good incentive. Since we got the dogs we have saved money by not going to shopping centres as dogs not allowed. Even town centres, as shops don't allow dogs Taking turns to stand outside a shop with dogs is a bit off putting! Do appreciate dog friendly cafes though. Also not spending visiting attractions as dogs not allowed Grrrr. Doggy expenses are of course substantial but they wrap themselves around your heart so much it is worth it.
Yes, hard to consider having the dogs on a purely cost:benefit ratio. True, they're costly overall but my goodness, I couldn't say what it's worth to us to have them (and really wouldn't want to imagine life without them. We're finding more and more places which are dog-friendly because they're realising there's a whole extra swathe of visitors / buyers who'd come into their pubs / restaurants / galleries / places of interest / gardens if they welcome the pooches too.


Another maxim for spending STOP - is it useful, do we really need it, will it give you pleasure?

Agreed ... we always ask ourselves about need rather than want!

We plan to try and get DIY projects in the house in the next 9 months and replace old appliances (this just hurt slightly as another maxim is never replace until broken) but worth doing I think. Dishwasher 22 years old still going strong - microwave at least 15 years and SAVE, SAVE, SAVE. We recently splurged a bit on a decent 2nd hand luxury caravan but that will be our final caravan now - cheap holidays especially in France - last holiday only 11 Euros a night sight fees.

:T Sounds like you're on top of what needs to be done - it'll also make the time between now and next May go far quicker if you've got lots of projects between now and then.

Declutter - trying to do every weekend even if just one cupboard at a time.

Oh yes, this ^^^ has been ongoing since forever! Trying to practise the one-in, one-out rule!

Well that's all from me. Thanks again.

Thanks to you ThriftyTracey, lovely to 'meet' you! SaR x

ShyAndRetiring

:wave:

Well, the rain's finally here! Hope everyone's OK.

So, today ...

* Spending:
Not sure how but we managed a NSD today! OH offered to take me out to lunch when I finished work but I was so hot and bothered, plus the fridge is full of things which needed to be used up or else would be wasted, so I gracefully declined his offer and suggested a casual lunch in the garden instead (before the rain set in, of course)! So we made a lovely main meal of it and managed not to spend (which he admitted he's grateful for as he thought it's nearer payday than it actually is)!
So NSDs 9/10.

* Savings:
Not going out for lunch was a saving I guess too, but I already counted that as a NSD!

Quick pot shuffle this evening, nothing major doing, just waiting for wages etc to come in at the end of the month then will look to see what to prioritise next month.

The comments and insights from thread visitors here are really helping me and I know I need to focus on the mid-term years next really.

* Sorting:
Didn't get to do a major cook up this afternoon as it was too hot and I was too after work to put the oven on. One thing I do need to sort quite urgently is my headspace in relation to work. Really not enjoying it at the moment and it's not because I'm counting the days down to being work-free, it's because it's all a bit poopy, really.

I did sort some paperwork, then off for an early evening walk so we could enjoy the beach before the storms set in. Oh and yes, I did sort out the drawers to locate the old cossie and wore that (with appropriate cover-up) so that I could support boy pooch in his swimming 'lessons' at the beach!

Simple pleasures:
- Lovely time at the beach ... if we all go in (OH, me, both dogs) then boy pooch doesn't try to get out of the water, he wants to stay with us all. Tide was bally miles out, so it was a long old walk to even get waist high, but by the time we did boy pooch was proper doggy paddling, excellent for his poorly sore hips and bones! Mad girl was shaking herself in the water, so lots of splashing so I was very grateful for being appropriately attired this time around!
- A lucky moment ... we found a random set of car keys on the way home and, miraculously, were able to return them to the rightful owner (no mean feat with the amount of holiday makers around here).
- Looking forward to seeing females in my family tomorrow.

Disappointed not to see the moon tonight though - there's a bit of a hooley going on outside and cloud cover's pretty dense so no Blood Moon a-rising!

TFI Friday everyone, SaR x

moneyistooshorttomention

Quick thought here for the poster with a revised State Pension Age of 64 years 10 months - don't budget in the winter fuel allowance this year in case it doesnt turn up.

When I reached my revised SPA I was expecting my £200 winter fuel allowance the first winter after that and didnt get it. Excuse = there is a technicality there re those born up to and including several days before I was born in the year I was born would get theirs - but I was excluded by 5 days. Had to wait until the 2nd winter after SPA before my winter fuel allowance started:(

luvchocolate

If I remember rightly the winter fuel allowance is paid to if you have reached S.P age mid to late September.
Sorry thats not really clear....if you reach SP age in August you will receive it but if Oct it will be the following year.

My father died beginning of October and when I informed D.W.P I was told it would still be paid as he was still eligible in September.

I donated this to our local hospice did not seem right to me.

mumf

I just found this thread.Only this morning my wife and I were discussing doing less hours at work.For me,by 60 at the latest.I am now 53.I have only just landed the best paying job I have ever had,and up until now only earned very average money.The trade off though is a lot of my time,and a lot of stress.I have set myself a goal of 5 years and no more at this current level.Nevertheless we own our house outright and we have modest pension provision.And no debt.

Like others here,I find the numbers on the retirement thread intimidating too. " I only have 1 million pounds invested and £900,000 in savings; can I afford to retire? " :rotfl:

So I shall follow the conversation,and perhaps I can add to it at times?