How much to live on

luvchocolate

I was contacted by a company saying the same. 
They tracked me by NI no. 
I'd changed my name moved house 6 times and lived in Saudi Arabia for 8 years..amazing 

barnstar2077

luvchocolate said:

I was contacted by a company saying the same. 
They tracked me by NI no. 
I'd changed my name moved house 6 times and lived in Saudi Arabia for 8 years..amazing 

Are you on the run? :  )

luvchocolate

barnstar2077 said:

luvchocolate said:

I was contacted by a company saying the same. 
They tracked me by NI no. 
I'd changed my name moved house 6 times and lived in Saudi Arabia for 8 years..amazing 

Are you on the run? :  )

Ha haha brilliant 👏 no just love moving house 😄 

Organgrinder

Well my latest version of my spreadsheet factors in modest real terms growth of 3% pa on my investments with a 2% take.

I'm not sure if this is dangerous thinking. However it seems consistent with guiide for example and the good news there is my plan works even with a market crash or needing care at some point.

That said, I'm not relying on it.....it was more of a what if scenario.

bluenose1

Organgrinder said:

Well my latest version of my spreadsheet factors in modest real terms growth of 3% pa on my investments with a 2% take.

I'm not sure if this is dangerous thinking. However it seems consistent with guiide for example and the good news there is my plan works even with a market crash or needing care at some point.

That said, I'm not relying on it.....it was more of a what if scenario.

I love updating my spreadsheet and guiide is great as a check everything is correct.
I also have a tab on my spreadsheet for my monthly allowance and monthly spend as find it useful to keep a note of my ongoing expenditure, good to know I am within my budget and makes me more accountable. 

I have my DC pot in cash getting at just  over 5% interest, I know will need it over next couple of years before my main DB pension kicks in so want that security. Wish I had understood more about stocks and shares years ago but missed the boat. Tell my kids now to put it in and leave it there.

Organgrinder

bluenose1 said:

Organgrinder said:

Well my latest version of my spreadsheet factors in modest real terms growth of 3% pa on my investments with a 2% take.

I'm not sure if this is dangerous thinking. However it seems consistent with guiide for example and the good news there is my plan works even with a market crash or needing care at some point.

That said, I'm not relying on it.....it was more of a what if scenario.

I love updating my spreadsheet and guiide is great as a check everything is correct.
I also have a tab on my spreadsheet for my monthly allowance and monthly spend as find it useful to keep a note of my ongoing expenditure, good to know I am within my budget and makes me more accountable. 

I have my DC pot in cash getting at just  over 5% interest, I know will need it over next couple of years before my main DB pension kicks in so want that security. Wish I had understood more about stocks and shares years ago but missed the boat. Tell my kids now to put it in and leave it there.

I'm rather pleased how the figures align, and I think I've been pretty conservative with my growth estimates.

Every so often I review all my outgoings and look for ways of topping up my income or cutting bills in order to fund extra holidays or buy things not budgeted for. 

Obviously working 4 days a week and of course school holidays allows me some research time. Since going part time I've generated savings or income in ways I'd never have thought of.

Eg.

I took my non teaching pensions early and the max tax free lump sum. The intention was to pay off the mortgage. However with a fixed rate of 1.64% until Jan 2026 and savings rates going up, I locked it away at an average of 5.5% or thereabouts giving a net gain of approx £6k. This allowed me to change my car.

I've changed bank accounts several times for an extra £1k.

And as I need no loans I'm currently building up a stooze pot which admittedly is seeing my credit score go down, but I understand it's fairly meaningless anyway. So far this year I've put aside £5,500 from spending using interest free credit cards. Over 18 months I intend to max these out for a net benefit of almost £1,500. This is contributing hugely to a long haul holiday planned for next year.

Of course the current performance of my DC pot is helping with all the planning. A six month gain of over 12% is looking very promising. However, I've cut back on my plans to put more money into my pot as it's such a grey area with regard recycling rules. Technically it should be ok as ALL contributions are considered and teachers pension contributions in total amount to over 35% of gross salary.....so putting another 10% aside shouldn't be a problem.....but I'll stick to 5% for this financial year and next by which time I'll be clear of the recycling rule dates.

And to think, 15 months ago I thought I'd never be able to go part time nor retire at 61.

louby40

My house sale is about to go through and we are moving on the 28th May.

Downsizing has definitely been a process I've had to come to terms with over the last few months, with seemingly endless trips to the tip and charity shops. But it's certainly been cathartic getting rid of folders of work/teaching resources, birthday cards, my children's art work (they're 24 & 21) and so much absolute rubbish. 

The downsize releases some equity of which I plan to save in a high interest account plus my outgoings should drastically improve with no mortgage and lower council tax, water and energy bills.

I plan to save my mortgage payment that I would have normally paid which will mean an extra £10k a year saved until I decide to retire. 

It will be a nice feeling to be mortgage free at 55. 

blue.peter

louby40 said:

It will be a nice feeling to be mortgage free at 55. 

Yes, it is. That's exactly where I was ten years ago. You live with a mortgage for so long that you tend to forget about it. You aren't aware of what a millstone you have hanging round your neck. But the feeling of relief that you get when it's finally gone is enormous. And the knowledge that you've got somewhere to live for the rest of your life, whilst never having to pay anyone else for that ever again, is a good feeling that never goes away.

I hope that the move goes smoothly and that you're very happy in your new home.

barnstar2077

louby40 said:

My house sale is about to go through and we are moving on the 28th May.

Downsizing has definitely been a process I've had to come to terms with over the last few months, with seemingly endless trips to the tip and charity shops. But it's certainly been cathartic getting rid of folders of work/teaching resources, birthday cards, my children's art work (they're 24 & 21) and so much absolute rubbish. 

The downsize releases some equity of which I plan to save in a high interest account plus my outgoings should drastically improve with no mortgage and lower council tax, water and energy bills.

I plan to save my mortgage payment that I would have normally paid which will mean an extra £10k a year saved until I decide to retire. 

It will be a nice feeling to be mortgage free at 55. 

As far as children's pictures, and other sentimental objects goes, I have heard that taking a photo of the drawing or object and storing them on your phone or computer can help people to let go of the clutter.  As you can always look at the pictures for a trip down memory lane later.

Organgrinder

I keep wondering about downsizing. We've 4 bedrooms and 2 are never used. Going to a 2 bed bungalow makes a lot of sense and would free up £50k or so where we live.

However, I'm not sure I want to just yet and it may be that we'll stay put.

My retirement plan has for some time looked as if I won't need to touch my pension pot. Originally I was intending to use this to fund the gap between retiring and the state pension. The pot itself is doing extremely well, being 15% up in 6 months. 

It does however bring with it another dilemma, albeit a nice one. I don't expect the performance to continue at this level, but if it were to achieve 5% real term growth, retiring 1 year earlier now becomes a possibility.