FIREside Chats

D123456789

@hugheskevi wow Thankyou so much for your time to give such a detailed reply I really appreciate it.

I think it makes me realise how little I understand….. I thought I was in a final salary pension …. I do now vaguely recollect a time limit being placed on my buying extra years and I didn’t do anything about it in the time frame.

I will look into the nhs additional pension, but I have also listened to your advice that diversity may be key.

i need to look at what my money requirements might be in order to retire, and also I have no clue what my nhs pension is worth so need to look into that.

Mortgage borrowing has been inexpensive for many years but I am aware I need to pay it off at some point.

@edinburgher Thankyou - I have a lot of homework to do 😂

@earthgirl2. We can learn together 😊 although I think your mortgage freedom puts you ahead! Well done 

edinburgher

@earthgirl2 - what is your target for equities? Because it's pretty normal for someone who wants (for example) 70 to go for half LS80 and half LS60 so as to invest in a manner that matches their goals and attitude to risk. There has to be a target, you don't just buy a bit of everything for fun 

savingholmes

Thanks all for your explanations. They do help.

earthgirl2

@edinburgher I don't have a target other than I'd like a 4 percent return and was hoping to achieve that and reinvest the returns.

Im going to get organised for opening the vanguard target retirement fund for age 55-60 and also the isa for a little more flexibility between age 50-55. I'm just waiting to see what happens around the world at the moment.

Thanks so much, every sentence of advice I get on here I go off and research- thank you! 

Suffolk_lass

For those of you looking at what to buy in your ISA don't forget the difference between an accumulating fund and an income fund. We have swapped a number of accumulation funds to income since we stopped work (so the dividends accumulate in a cash total within the ISA) it is noticeable how much more slowly the total grows now when the stock market is growing. 

@D123456789 if I were in your position I would also look at a state pension forecast (on GOV.UK) and consider paying up any incomplete years in the last 6.

Also, although many say that paying down your mortgage only saves you the interest, it does also give you that sinking fund (the monthly payment) back when it is done, giving you more disposable income.  Or making good the reduction when you stop work (together with NI Contributions, any commuting and work expenses (clothes, lunches, whip-rounds, socialising with people because it is expected etc).

D123456789

Thankyou @Suffolk_lass I had a quick look and it says I have 3 incomplete years, and need 10 more years for full state pension. 

Suffolk_lass

D123456789 said:

Thankyou @Suffolk_lass I had a quick look and it says I have 3 incomplete years, and need 10 more years for full state pension. 

So what you must remain vigilant about is whether this government change the rules again, as they have for me, twice since 2010.

becky_rtw

Hello all! Nice to see new members

Quick update from us, we've had our business valued and have the building surveyor coming this weekend. We anticipate 4 weeks from then before 'going on the market'. This is not a simple job, so although we expect the sale to be agreed fairly shortly after that the legals can take up to a year. We're busily doing DIY to tidy the living bits up. 

We also viewed some houses in a new location at the weekend. We definitely love the area we've chosen, but not the right place for us just yet. We're happy to go into rented if needed so no massive rush. We'll probably look at a weekend there again in early April when we'll hopefully be proceedable to estate agents so it gets easier to look at places. There also a small group of new builds in progress, but the no motorhome rule slightly puts me off 

In the meantime I liquidated an investment to pay off most of my remaining student loan as interest rates are much higher than my ISA was doing. That means it should be fully paid off this year, rather than in 5 years time. 

I need to re-calculate how many years extra I'll need to pay on my state pension, but this will partly depend on whether work gives me sign off to go fully remote when we do move. If they dont I'll probably retire completely, if they do I'll likely do another couple of years. I'll turn 40 in a few months so plenty of time to travel later on once we are settled in the new area. Partly the need to continue will depend on values/tax/new house costs.

'Eyes on the prize' has become our new couple saying as we are both finding it hard to stay focused on work at the moment. 

earthgirl2

SL thanks for that, I love, love, love your description of the benefits of overpaying. I know I might have a very different, much higher figure in the bank if I'd invested the money, but probably I wouldn't have this life.

try_harder

Thats very true suffolk lass ,we have an ISA each , mine has always invested in growth funds and my husbands in income funds , i am investing much more in to  the dividend paying funds looking towards when we retire ad taking an income from that one and several of the funds have also grown as well as paid out which is even better