DC Pot is 'big enough' but can't see how to lock in the value in real terms?

Ibrahim5

I was earning about £100K a year. When I retired early I thought I would do paid work rather than voluntary work as I wanted to have a way of supplementing my pension if the investments didn't perform as expected. So I thought £5K would be dead easy. I pay basic rate tax because of my DB pension. So minimum wage is £7.13 an hour. You basically have to work 2 days a week to make £5K.

SouthCoastBoy

I thought the minimum wage was £8.91 if you are over 23?

bostonerimus

Ibrahim5 said:

DT2001

If you combined this approach with a willingness to take p/t work in say the 1st 5 years it would cover most bases.

People following the FIRE route typically have a very well paid job and save a lot of it. When I retired I planned to do part time work. After a couple of years retired the thought of waking up to an alarm clock every day fills you with dread. Also I couldn't go back to my well paid job after years out. Working for minimum wage after a good salary is just awful. I think if you are well paid you should really make sure you are well provided for before finishing. I know you can get into the 'one more year' trap but I personally feel going back to work after 4-5 of years of 'freedom' would be really hard.

The “well paid, save a lot” model was my route to FIRE. But it was a 20 year journey where I bought a rental property, took a job with a good DB plan and paid off the mortgage before retiring at age 53. Because I have no mortgage my spending is quite low and rent and the DB cover my outgoing. After 4 years I did take a part time job with a colleagues small company and while the money is nice it’s really just going to increase what my heirs will get when I die. I’ll probably be stopping that job soon as the company is growing and I don’t want to deal with managing people.

as far as the OP is concerned I think most people have to take on the risk of equities to generate sufficient income, but over longer time periods maybe that risk isn’t as much as we think. Cash and close control of your spending is a pretty good fixed income strategy for now given the probability of interest rates staying low or going up soon.

Ibrahim5

SouthCoastBoy said:

I thought the minimum wage was £8.91 if you are over 23?

That's after basic rate tax that I have to pay because my DB pension is over the personal allowance.

Thrugelmir

bostonerimus said:

Ibrahim5 said:

DT2001

If you combined this approach with a willingness to take p/t work in say the 1st 5 years it would cover most bases.

People following the FIRE route typically have a very well paid job and save a lot of it. When I retired I planned to do part time work. After a couple of years retired the thought of waking up to an alarm clock every day fills you with dread. Also I couldn't go back to my well paid job after years out. Working for minimum wage after a good salary is just awful. I think if you are well paid you should really make sure you are well provided for before finishing. I know you can get into the 'one more year' trap but I personally feel going back to work after 4-5 of years of 'freedom' would be really hard.

as far as the OP is concerned I think most people have to take on the risk of equities to generate sufficient income, but over longer time periods maybe that risk isn’t as much as we think. Cash and close control of your spending is a pretty good fixed income strategy for now given the probability of interest rates staying low or going up soon.

The majority of people are facing an uncertain future as don't have the benefit of secure income streams. The world is addicted to QE and low interest rates as if it was heroin. In the same way that Gordon Brown claimed to have abolished boom and bust. Gut instinct says that QE and current fiscal policies are no long term panacea. The ability of Company's to generate distributable profits is limited. 

Ibrahim5

I also decided I could make money doing internet surveys. OMG. I spent an evening and that was more than enough. I didn't actually make a penny. Whoever has the patience to make money from them deserves a medal.

JoeCrystal

Ibrahim5 said:

I also decided I could make money doing internet surveys. OMG. I spent an evening and that was more than enough. I didn't actually make a penny. Whoever has the patience to make money from them deserves a medal.

I do survey sites every day (Some earlier in the morning, afternoon and evening every day), I found Panelbase, Proflic and Qmee to be the best-paying sites personally although I do Crowdology, Yougov, Opinium and Populuslive as well. Shoppix for taking receipts and Consumer Pulse for entering what you buy certain items.

Since the start of the tax year, I have managed to earn £492.75. It is not easy and takes a lot of time but I need the money but hey oh (and I really do not want get a second job as well)

bostonerimus

Thrugelmir said:

bostonerimus said:

Ibrahim5 said:

DT2001

If you combined this approach with a willingness to take p/t work in say the 1st 5 years it would cover most bases.

People following the FIRE route typically have a very well paid job and save a lot of it. When I retired I planned to do part time work. After a couple of years retired the thought of waking up to an alarm clock every day fills you with dread. Also I couldn't go back to my well paid job after years out. Working for minimum wage after a good salary is just awful. I think if you are well paid you should really make sure you are well provided for before finishing. I know you can get into the 'one more year' trap but I personally feel going back to work after 4-5 of years of 'freedom' would be really hard.

as far as the OP is concerned I think most people have to take on the risk of equities to generate sufficient income, but over longer time periods maybe that risk isn’t as much as we think. Cash and close control of your spending is a pretty good fixed income strategy for now given the probability of interest rates staying low or going up soon.

The majority of people are facing an uncertain future as don't have the benefit of secure income streams. The world is addicted to QE and low interest rates as if it was heroin. In the same way that Gordon Brown claimed to have abolished boom and bust. Gut instinct says that QE and current fiscal policies are no long term panacea. The ability of Company's to generate distributable profits is limited. 

I agree that the future might be tough, but people don't have many options with base rates at 0.1%.  If you can afford to keep some cash and short term bonds I'd do that and maybe look into dividend stocks, but I emphasize frugality and understanding your spending as those are things you can definitely control. Part of my retirement strategy was to go into it mortgage free to take the income generation pressure off my portfolio.

Sea_Shell

Ibrahim5 said:

I also decided I could make money doing internet surveys. OMG. I spent an evening and that was more than enough. I didn't actually make a penny. Whoever has the patience to make money from them deserves a medal.

I've earned £58 so far this year doing these.    Do I get a medal?    I usually only do 1 hr stints, when i've got nothing better to do, or i'd otherwise just be aimlessly surfing around here!!! 


As for the going back to work, if needs be, question...I'd have to be facing real financial problems to tempt me back...I'd be cutting back on all non-essential spending first, and if that was still not enough then I guess I'd have too.

But then if our investments were performing so badly for that to happen, then would there actually be any jobs to apply for?

Nebulous2

Ibrahim5 said:

I was earning about £100K a year. When I retired early I thought I would do paid work rather than voluntary work as I wanted to have a way of supplementing my pension if the investments didn't perform as expected. So I thought £5K would be dead easy. I pay basic rate tax because of my DB pension. So minimum wage is £7.13 an hour. You basically have to work 2 days a week to make £5K.

I've never earned half of that, having spent all my life working in care. However with a nursing qualification I'm unlikely to need to work at minimum wage. Starting point for a qualified post is over £13. 

Two long days (11  hour shifts) would translate to about £18k.