Having a windfall of £100K - Best use for early retirement plans?

Thrugelmir

Secret2ndAccount said:

tuppleextra said:

- Aim for 35x required annual income (is that before or after tax @Secret2ndAccount?)

Follow up question on SIPP allowance, is the £40K limit also including amounts from the salary sacrifice at work?

There are 1000 algorithms for varying withdrawal according to growth / inflation / other so that you can withdraw more if things are going well.

The BOE uses highly sophisticated modelling tools and has some 1,000 staff. Yet it constantly changes it's economic forecasts. Likewise the IMF. A mere mortal investor has absolutely no chance of forecasting future stock market movements..............

tuppleextra

Again, many thanks for everyone's time and advice on this. This is my current plan:
- Move any pension pots that are in a low risk selection into ETFs or schemes that are have higher potential but more risk and volatility.
- Balance out my ISAs so that they aren't all in high risk ETFs and have the option to pull out money if need by.
- Have a rainy day fund that covers 6 months of expenses (£20K-£24K) for the household that will be in a mix of current and savings accounts.

Do I still need the rainy fund to be so higher if I have lower risk ETFs in an ISA I could use?

Dansmam

mark55man said:

sheslookinhot said:

mark55man said:

Make use of your tax which means pension - but pension can't be touched until 55 and possibly later as you are quite young.  58 is not really retiring early, therefore you will need some money in ISAs as well as SIPPs (different mechanisms for holding the same investments).  You will need a reasonably aggressive strategy, unless ASAP is in the next 5 years - so you need to choose a target date and work towards that.

Why is retiring at 58 “not really retiring early” ?

Surely any retirement before Normal Retirement Age is retiring early.

The reason I used the phrase "58 is not early" is that for a thread by someone in their 30s to be talking about retiring early, then I didn't think they meant a few years only.  I thought they meant seriously mid 40s early - which is early.

My personal target (and yes I do regard it as early retirement) is 60.  I didn't mean to understate the amount of work and forward planning required even to get to that milestone.  Anyone who has succeeded in retiring even a year before state or scheme retirement age deserves a huge pat on the back - even if in these pandemic times it needs to be self-applied   

Thank you! Made an instant decision to retire at 58. ISAs are holding out ok, does dog random ear licking count asa pat on the back? If so 5 am was a bit early 🙄