Can I retire in a years time at 57??

Audaxer

yksi wrote: »

FIRE devotees (financially independent early retirees) have what's called a 4% & 7% rule. That is, if your money is suitably invested in index funds, you can average a 7% return, and you can safely take out 4% of your capital every year and never use up your capital.

I would like to think that from now on we could average a 7% return after costs from a portfolio of index funds, or active funds, but going forward I would doubt that will be possible after such a long bull run and with the concerns about negative yields on bonds. However I agree the OP should still be able to meet more than his income needs with a medium risk portfolio, or probably even with a fairly low risk portfolio.

dave_hendy

To show I have been listening I have started to ask friends and neighbours about any IFA’s they have used. Thought this might be the best place to start before I pick a local company. I have gone back over 70 pages of posts looking for ones on IFA’s as well. Plus before I go back to work I will start putting together questions to ask!

Merry Christmas to everyone ������

Audaxer

dave_hendy wrote: »

To show I have been listening I have started to ask friends and neighbours about any IFA’s they have used. Thought this might be the best place to start before I pick a local company. I have gone back over 70 pages of posts looking for ones on IFA’s as well. Plus before I go back to work I will start putting together questions to ask!

Merry Christmas to everyone ������

Even if a friend or neighbour says they have a great IFA, by all means see them for an initial interview, but be sure to get full details of their proposed charges and compare their charges and service against other IFAs you see before going with them. I'd be interested to find out how you get on. Good luck.

Merry Xmas

cns06

Sounds like you have OMY syndrome.

If I were you I would move ISA into a low cost whole market ETF like VT. Thats it. Thats all I would do for now.

IFA would be bottom of my to do list.

If you can do simple maths, run excel, can keep track of things and most critical you can resist the urge to sell if there is any kind of wobble then you are good to go. I would start to create budgets and I would also start living off my desired retirement income as a simulation to verify your budget.

If that all sounds like hard work then get an IFA on board but duedil the s**t out of them for the love of god.

HTH!

dave_hendy

Audaxer wrote: »

Even if a friend or neighbour says they have a great IFA, by all means see them for an initial interview, but be sure to get full details of their proposed charges and compare their charges and service against other IFAs you see before going with them. I'd be interested to find out how you get on. Good luck.

Merry Xmas

I thought getting a recommendation for a IFA was a good place to start.


I have booked a Pension wise appointment for next Tuesday as a first step as well.

atush

it is a good place to start- IF they are true IFAs. Many arent. Steer well clear of places like St James Place.

WillowCat

Have you considered also what is best for tax planning? It could be wise to put as much into your wife's pension as possible while she is still working. Then when she isn't she can make full use of her tax allowance before her other pensions kick in.

For yourself, a similar concept - in the tax year after you stop work, don't take 25% tax free, draw down enough pension (taxed and untaxed) to use up your personal allowance.

dave_hendy

atush wrote: »

it is a good place to start- IF they are true IFAs. Many arent. Steer well clear of places like St James Place.

I will probably go with small local firms or individuals

dave_hendy

WillowCat wrote: »

Have you considered also what is best for tax planning? It could be wise to put as much into your wife's pension as possible while she is still working. Then when she isn't she can make full use of her tax allowance before her other pensions kick in.

For yourself, a similar concept - in the tax year after you stop work, don't take 25% tax free, draw down enough pension (taxed and untaxed) to use up your personal allowance.

I thought it was better to take the 25% and not touch the pension for as long as possible probably 65 in 7 years?


No I have not thought about tax yet, apart from my wife taking her small pension pots out over a few years keeping below her personal limit and me not taking too much of my pension in anyone year but to use savings instead (although this might not be the right approach).


Problems arise from my wife being 5 years younger, so I will get my SP first as well as I am the one with the private pension pot. So apart from taking part of her tax allowance, it will probably mean I will end up paying some tax as there isn't anyway round it?

dave_hendy

cns06 wrote: »

Sounds like you have OMY syndrome.

If I were you I would move ISA into a low cost whole market ETF like VT. Thats it. Thats all I would do for now.

If I go down the s&s ISA route in April (already done this years allowance) is this a good time to be opening one with the full £20K? How do I know?