FIREside Chats

QueenJess

hugheskevi said:

QueenJess said:

It also assumes you would take an annuity which are really low at the moment.  Lots of people leave their investments in situ and just withdraw at a "sustainable" rate.

I was puzzled by the table at the bottom, and the headings:

"Cost of annuity if retiring at 67 and living until local life expectancy"
"Cost of annuity if retiring at 67 and living until 100"

Surely the cost of the annuity is the same, regardless of when you live to...mortality pooling is the whole point of an annuity.

The figures also don't seem to take any account of State Pension.

To be honest I gave up when it didn't site any assumptions.  I like to check figures myself!

edinburgher

Month end summary:

NW: £650,394.08 (+£8,035.03) / Target: £1,036,035 (+£98,580)    62.78% there

I think something has gone with my target sum this month, I really should write down what's meant to be included in my YNAB spending report, as it resets itself every time I use it!

No significant one time expenses, Council Christmas (two four weekly pay days in the same month) and pension seems to be on a bit of a tear. On the other hand, Sc0tt1sh W1dows messed up and Mrs E has had no pension contribution this month (although her employer sent it over). Still, mustn't grumble about the monthly increase

ElmoR

@edinburgher why has your target leapt up from last month? Is it a moving target?

edinburgher

@ElmoR - it's based on actual spends - restraining the budget as important as growing NW 

QueenJess

There's so many ways of doing it. I've decided on a total needed for retirement but my percentage of completion is based on the amount I would need today to stop working later - ie it considers an average growth rate.

Kind of makes sense as I hope to get most the way there and then potentially stop working and be a single income household.

Suffolk_lass

I just checked our investments and plenty of dividends and capital growth this month!

LadyGnome

I've been thinking (dangerous I know) about the number and various sources of income.  I am getting increasingly comfortable that I could stop work around the age of 62 if I wanted.  My basic number for the 2 of us was around £25k pa which I then indexed at 2% so I think the number would be around £32k pa allowing for inflation by the time we are both retired.  This would give quite a comfortable retirement (not champagne and caviar) but money for holidays and days out.  I have a small defined benefit pension I can take from 60.  Mr Gnome qualifies for his SP at 67 and is 4.5 years older than me.  We also have income from our rental properties.  This would take us close enough to our number that I could bridge any gap from savings until my main work pension kicks in when I am 65.  If I wait until I am 62 then my DB pension will be slightly higher as I will have deferred for 2 years.
I am 52 next month so I have just over 10 years to pay off the mortgage and set the children up for the future.

ElmoR

Small milestone achieved target-wise this month (I have 5% increments highlighted on the spreadsheet to keep me motivated) - 65% of the bridge fund (aka the FU fund) now sorted

The tax relief arriving 8 weeks plus after making a SIPP contribution really messes with the spreadsheet

Hope everyone else is ticking along nicely

jennystarpepper

ElmoR said:

Small milestone achieved target-wise this month (I have 5% increments highlighted on the spreadsheet to keep me motivated) - 65% of the bridge fund (aka the FU fund) now sorted

The tax relief arriving 8 weeks plus after making a SIPP contribution really messes with the spreadsheet

Hope everyone else is ticking along nicely

Congratulations.  

I will hit the 65k's at the end of the month...roll on the 59'ks lol. 

rara32

That must be a great feeling Elmor  I shall play with my spreadsheet now to see if I can set myself up something similar to help keep me going

Just back from a short break near the Somerset/Dorset border - having a longer break from work was just what I needed to refresh and get back to our FIRE plans. Finally got DH to set up his Vanguard SIPP today. As he is on a career break at the moment we just made a single payment of 2880 to get the max tax relief and I enjoyed updating my spreadsheet with the figures Also, added £500 to my PBs and just waiting for the mortgage payment to go out so I can decide on what OP to make this month. I am hoping with all the recent good weather to have a healthy Solar payment in a few weeks to hopefully help me with the 1% op challenge as I am not yet at 50% so it needs a bit of a push.

Now all I need to do is try and hold on to this holiday feeling and motivation when I return to work on Tuesday...