It's time to start digging up those Squirrelled Nuts!!!!

Audaxer

jamesd said:

If your state pension will be 9k, you'll need 7 times 9k to draw on between now and your state pension starting. 7 times 9k is 63k. If your pot is 400k you deduct that 63k to get to a 333k lifetime pot. 3.2% of 333k is 10.7k and 5% is 16.7k. So you'd start paying yourself 9k + 10.7k or 9k + 16.7k from your pot. Once you start your state pension you switch to your stat pension plus the 10.7k or 16.k.

So in that example, I assume that you (or shinytop) would convert the £63k to cash if not already in cash, to pay yourself 7 years SP equivalent?

jamesd

Audaxer said:

So in that example, I assume that you (or shinytop) would convert the £63k to cash if not already in cash, to pay yourself 7 years SP equivalent?

Cash for at least some years. Might be excessive for a 55 year old for 12 years. Up to individual risk tolerance and capacity for loss.

shinytop

Audaxer said:

jamesd said:

If your state pension will be 9k, you'll need 7 times 9k to draw on between now and your state pension starting. 7 times 9k is 63k. If your pot is 400k you deduct that 63k to get to a 333k lifetime pot. 3.2% of 333k is 10.7k and 5% is 16.7k. So you'd start paying yourself 9k + 10.7k or 9k + 16.7k from your pot. Once you start your state pension you switch to your stat pension plus the 10.7k or 16.k.

So in that example, I assume that you (or shinytop) would convert the £63k to cash if not already in cash, to pay yourself 7 years SP equivalent?

I've got (and will continue with) about 3 years cash; some big one-offs plus regular top ups.   

Sea_Shell

Happy Boxing Day everyone.

Well folks, we now enter that limbo period between Christmas and New Year, where nothing seems to happen (even more so this year) and you end up kicking your heels waiting for the New Year, when you resolve to "do things", whilst eating up all the left over Christmas food, along with the extra foodie gifts you may have received.    More biscuits anyone!!!

I'm just waiting until the end of next week to do my financial round up of the year, with my spreadsheets, graphs and charts.

Hopefully the resolution of the "B" word, may give the markets one last little lift next week.

Stubod

As there are only a few days to go until EOY, and not a lot else to do we have almost completed our annual review.

As expected for this year a rather massive underspend and an "over income" meaning we have a surplus for the year against a budgeted loss. So more to carry over to next year when I hope we all get the chance to spend it?

cfw1994

Sea_Shell said:

Happy Boxing Day everyone.

Well folks, we now enter that limbo period between Christmas and New Year, where nothing seems to happen (even more so this year) and you end up kicking your heels waiting for the New Year, when you resolve to "do things", whilst eating up all the left over Christmas food, along with the extra foodie gifts you may have received.    More biscuits anyone!!!
I'm just waiting until the end of next week to do my financial round up of the year, with my spreadsheets, graphs and charts.
Hopefully the resolution of the "B" word, may give the markets one last little lift next week.

Do you (& @Stubod) do another review come tax year time?
Think I asked it elsewhere....& I can see it is nice to have a calendar year round-up...but the tax man will want a return to 5th April - is that not a more logical time to do the summary?!

Stubod

cfw1994 said:

Do you (& @Stubod) do another review come tax year time?
Think I asked it elsewhere....& I can see it is nice to have a calendar year round-up...but the tax man will want a return to 5th April - is that not a more logical time to do the summary?!

..for me no. I have always done my budget planning based on calendar years. I don't currently pay any tax due to having virtually no income, and that wont change for a while.

Sea_Shell

cfw1994 said:

Sea_Shell said:

Happy Boxing Day everyone.

Well folks, we now enter that limbo period between Christmas and New Year, where nothing seems to happen (even more so this year) and you end up kicking your heels waiting for the New Year, when you resolve to "do things", whilst eating up all the left over Christmas food, along with the extra foodie gifts you may have received.    More biscuits anyone!!!
I'm just waiting until the end of next week to do my financial round up of the year, with my spreadsheets, graphs and charts.
Hopefully the resolution of the "B" word, may give the markets one last little lift next week.

Do you (& @Stubod) do another review come tax year time?
Think I asked it elsewhere....& I can see it is nice to have a calendar year round-up...but the tax man will want a return to 5th April - is that not a more logical time to do the summary?!

Not in respect of tax, no not at present, but we do have one eye on the end of the tax year, as we want to put as much of our "spare" cash into our ISA by the end of the tax year, so as to not lose that allowance.    We currently have £24,000 of cash, which needs to last until (and including) September 2021, so 9 months.    (We have a savings bond maturing then)

We have 3 options...
Base our 9 month spending requirements on annual figures of £15,000 (budget), £13,000 (mid range), or £11,300 (actual 2020 spends), plus my pension contributions £240pm.
So we can put away either £10,400, £11,900, or £13,200, or any other figure within that range.

We might go the whole hog and put the full £13,200 away, as we can always get it out again if we've miscalculated, but its looking like 2021 isn't going to be a big spend year, if we can't get back to "normal" any time soon!!

Most of that cash is currently sitting in 2% regular savers that mature over the next 2-3 months anyway, so we'd hope that once invested they do better than that (fingers crossed, but yes, anything can happen).   Which fund is then another question, cautious, balanced or 100% equities?

Thoughts...?

Sea_Shell

Good Morning everyone.

Following our last foray to Aldi yesterday, we've now closed off the "spends" for the year.    A grand sum of £11,337 !!    Which was actually £250 more than last year!!!

For those of you who may be interested, this is broken down as follows:
Bills - £3709 (CT, G&E, Sky, Water)
Holidays/Entertainment - £1292  (just 11 nights UK self-catering)
Car Expenses - £856 (includes a big service, and skewed by half a year of insurance DDs in this year, plus in full payment for 20-21)
Groceries - £2666
Household - £1437  (includes some new armchairs and bedding, and a new patio door lock mechanism)
Health/Beauty - £499 (running gear, haircuts and some gym/swimming)
Clothes/Shoes - £76 (no need for anything much)
Petrol - £220
Gifts - £185 
Bank/ISA fees - £372
Phones/Calls - £20

Our average spends over the last 4 years = £12,140.

We'll close off the investments and pension figures later in the week, but it's all looking pretty positive at the moment!

Stubod

....very impressive...well done, ours is about double that!!