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

Anonymous101

Sea_Shell said:

Prompted by another thread, I'd just add that overall we're at 64% Equities, 27% Other (bonds etc) and 9% cash.

I don't know why but I always had it in my mind that you held a lower proportion of equities. Out of interest how many years expenses does the 9% cash represent?

Sea_Shell

9% is approx £51k*

Projected annual spends £16.5k

So about 3 years.


*This includes the cash element of our investment funds.  So not available in isolation IYSWIM.

Actual cash is nearer £45k

Anonymous101

Sea_Shell said:

9% is approx £51k*

Projected annual spends £16.5k

So about 3 years.


*This includes the cash element of our investment funds.  So not available in isolation IYSWIM.

Actual cash is nearer £45k

So a reasonably long runway on the face of it.

My first thought was that you may be fairly risk averse and I expected to see that reflected in your assets allocation. I didn't, then I went the other way and though that your spending habits don't leave a lot of wiggle room to reduce spending should there be some kind of inflationary bust. I'd be interested to hear if you've considered this especially recently with inflation taking hold and recession looming. 

Sea_Shell

There's plenty of room for belt tightening if we really HAD to!! 😉

Kim1965

Sea_Shell said:

There's plenty of room for belt tightening if we really HAD to!! 😉

How?
 Your annual spend for a couple is 15 k approx. That already puts you below the last "which" findings for a basic life style.
 What sort of things could you cut back on? 

Albermarle

Kim1965 said:

Sea_Shell said:

There's plenty of room for belt tightening if we really HAD to!! 😉

How?
 Your annual spend for a couple is 15 k approx. That already puts you below the last "which" findings for a basic life style.
 What sort of things could you cut back on? 

I had the same thought. In my mind a couple living off two state pensions ( £20K) would be a rock bottom minimum, unless you had no choice but to live on less.

Sea_Shell

Well that really depends on you mean by cut backs?

If you're talking 💩 hitting the fan enforced cutbacks, then lots.😉

If you're talking of keeping our current retirement going, then not as much. 

But I don't foresee us having to go that far.

zagfles

Albermarle said:

Kim1965 said:

Sea_Shell said:

There's plenty of room for belt tightening if we really HAD to!! 😉

How?
 Your annual spend for a couple is 15 k approx. That already puts you below the last "which" findings for a basic life style.
 What sort of things could you cut back on? 

I had the same thought. In my mind a couple living off two state pensions ( £20K) would be a rock bottom minimum, unless you had no choice but to live on less.

The pandemic year was a good test - when spending was restricted in loads of ways for obvious reasons. We spent £21k in the 2020/21 tax year (ex mortgage), and that was for a couple with 2 (partailly) dependant kids, they were at uni but lived with us about half the year. And there was loads we could have cut back on had we had to, eg we had loads of takeaways, we went on a foreign holiday and a couple of UK ones, we got a new greenhouse, furniture etc.

Audaxer

Sea_Shell said:

Well that really depends on you mean by cut backs?

If you're talking 💩 hitting the fan enforced cutbacks, then lots.😉

If you're talking of keeping our current retirement going, then not as much. 

But I don't foresee us having to go that far.

I also can't see you having to go that far. Once your DB and two SPs come into play, you will have way more income than your current spending level. As your pot is already growing I don't think you have anything to worry about. 

NedS

Albermarle said:

Kim1965 said:

Sea_Shell said:

There's plenty of room for belt tightening if we really HAD to!! 😉

How?
 Your annual spend for a couple is 15 k approx. That already puts you below the last "which" findings for a basic life style.
 What sort of things could you cut back on? 

I had the same thought. In my mind a couple living off two state pensions ( £20K) would be a rock bottom minimum, unless you had no choice but to live on less.

Our expenditure is currently around £20k per year (no holidays since Covid), and we have a hungry teenager and an old inefficient house with large bills, and although my wallet may not see the light of day regularly, I do not consider myself in the same league as @Sea_Shell when it comes to MSE expertise, so I see no reason why a retired couple in an appropriately efficient property could not manage on two SPs.

If we ditched the teenager and lived in a small efficient property, we may be able to get close to, but not equal, @Sea_Shell