750k Drawdown at 58

BritishInvestor

GSP said:

Thanks for your replies and thoughts.
Albermarle - It’s invested 5 out of 10 on a risk appetite scale. We understand the need to be cautious, but to allow the chance for growth as well.
dunstonh - In this case, the question is how much would you withdraw to enjoy life without running out of this pot amount too early.
michaels - my state pension should hopefully be at the max come the day, but I can see what you are saying. I am sure we can do more now than we can in ten years time. Maybe those later years are the ones to put money away for the kids if there is an excess we are not using.

"Albermarle - It’s invested 5 out of 10 on a risk appetite scale. We understand the need to be cautious, but to allow the chance for growth as well."
Without going through the expenditure exercise it's really difficult to select an appropriate portfolio. As dunstonh says, how much do you need? I'm not sure how you can approach the exercise any other way.

BritishInvestor

Albermarle said:

At age 58 , you should live on average another 28 years . If your partner is a similar age then one of you has a 25% chance of reaching 95 . 
If then there is £50K left for each of your children then due to inflation each £50K will only be worth round £20K in todays money 

For a couple aged 60 there is (approx) a 1 in 10 chance of one of them making 100 and a prudent assumption might be to go with this. Leaving an inflation-adjusted legacy is something that a retirement planning tool should easily be able to cater for.

GSP

BritishInvestor said:

Without going through the expenditure exercise it's really difficult to select an appropriate portfolio. As dunstonh says, how much do you need? I'm not sure how you can approach the exercise any other way.

Without sounding greedy how much money I need, as much as I can get really to enjoy as much as we can!

Thrugelmir

GSP said:

BritishInvestor said:

Without going through the expenditure exercise it's really difficult to select an appropriate portfolio. As dunstonh says, how much do you need? I'm not sure how you can approach the exercise any other way.

Without sounding greedy how much money I need, as much as I can get really to enjoy as much as we can!

If that's what rocks your boat. Are you prepared to up your risk appetite and take the chance that you'll end up with less in the longer term? 

BritishInvestor

GSP said:

BritishInvestor said:

Without going through the expenditure exercise it's really difficult to select an appropriate portfolio. As dunstonh says, how much do you need? I'm not sure how you can approach the exercise any other way.

Without sounding greedy how much money I need, as much as I can get really to enjoy as much as we can!

Makes perfect sense.
It might make be worth thinking about how you see your spending plans changing - for example the first decade or two might be more costly as you do all the things you've never had the chance to do while the later years may have a reduced cost. Also worth thinking about big-ticket/lumpy items that might not fall under regular expenditure, and also what core expenditure might be (food, heating etc) and whether you might want to secure this income, especially in later life. 
Of course, plans might change, but the time spent at this part of the journey is worthwhile, in my experience, and if the desired expenditure is not achievable, you can always reiterate. 

Linton

GSP said:

BritishInvestor said:

Without going through the expenditure exercise it's really difficult to select an appropriate portfolio. As dunstonh says, how much do you need? I'm not sure how you can approach the exercise any other way.

Without sounding greedy how much money I need, as much as I can get really to enjoy as much as we can!

The problem is more complex than that.  For example would your requirements really be satisfied by spending it all in a  wild excess during the first year?  How many years of penury at the end of your life would negate all the pleasure you got in previous years, assuming you could actually remember it?  In order to plan you do need to specify as a reasonable and matthematically consistent guess of how much you intend to spend and when given you dont know when you are going to die.
This sounds pretty impossible but it isnt if you take into account that reality wont match your plan anyway and you will need to review and possibly change your plan regularly during retirement.  In most cases not all the disasters you have planned to mitigate will actually happen and perhaps 5 or 10 years into retirement you could be considerably richer than planned.

Brynsam

How much have you got in the pot? What is your current standard of living now? Can you trim your costs or will they increase in retirement? 

billy2shots

The time of death may not be known but what is pretty much baked in is that 90-100 years of age won't see the cash needs as 58 so the spending tails off. 

It seems everyone is basing figures off of a flat trajectory. If £38k is good enough now I'm sure as fire that number (adjusted for inflation) will not be required for 90 onwards. 
Add in your state pension and you my friend are golden if invested sensibly. 

Your question should be 'i want X amount per year is this doable?'

At £30k a year then I think the majority will scream yes ( again, if invested sensibly). At £45k a year the answers may lean towards 'no'

What do you need.......

GSP

Again, thanks for replies and thoughts.
I suppose everyone’s life is a journey, with no two the same.
billy2shots - quite true at 90 I suspect life if still around will be very different to the time spent now. Just getting up and surviving doing basic things will be the ‘excitement’ and limit of things then.
In coincidence, my FA has in the last few minutes suggested £36k p.a. is too much and I should reign in a bit on that.

In less than two years, my wife can access her fund to drawdown which is currently £170k. As people say do plans, but these are also often altered because of the unknown and different journey’s occurring. On inheritance, which I know you shouldn’t include, we should get something around £750k in three of these, and with state pensions coming onboard as well.
I suppose you should plan with the minimum, but over than that anything received is a bonus. Trouble is, there is that nagging doubt with being too cautious now when you can enjoy things more, and then not being able to enjoy it as you become too old.

Thrugelmir

GSP said:

 As people say do plans, but these are also often altered because of the unknown and different journey’s occurring. 

If there's particular things that you would like to do. Cost them fully.  Put the allocated money aside. £750k sounds a lot but easy to spend very quickly.