What's your next milestone on the savings journey?

DanJ90

I'm currently 31 and only really starting taking investing seriously just as the Covid market crash happened last March. 

I am able to put £2100 a month into my pension going forward long term (currently at ~£46K), and ~£250 a month into the S&S ISA (currently £21K, but have £20K lined up for April 2022).

Currently invested in VWRP as my main investment vehicle in both Pension and ISA.

Targets:
- Hoping to hit 100K by the time I turn 33 in a couple of years in my SIPP (able to partially transfer pension periodically thankfully so able to utilize II to keep long term costs down). Long term £1M by the time I hit 60 with current contribution levels as a minimum.

- ISA, no short term target as aim is to supplement pension. Long term target maybe £250-300K depending on how life goes along the way!

Workerdrone

jimi_man said:

Workerdrone said:

ex-pat_scot said:

Workerdrone said:

Just logged in this morning and pleased to see my funds have just tipped £240k. For me £250k is the first big milestone to £1m with around 15 years to go (Sounds ambitious I know). Anyone else care to share

 

I hit £250,000 in Jan 2015. It's the start of my current tracking spreadsheet, when I consolidated my old pensions and really started focusing.
I'm now  6.75 years on, and have hit £925,000
Obviously your experience will have different inputs and economic conditions, but 15 years doesn't sound too ambitious!

Now this is really interesting. Can I enquire how much of that is growth.

I assume you must be in a position to put away a reasonable amount. If I ran that through a compound interest calculator on growth alone its about 19.5% growth year on year over the 6.75 years!

With my current monthly contributions of £14687.28, I'd need to be seeing 16.85% year on year to hit £925k in 6.75 years!

That's a lot per month!!! About £176k per year!

Dammit. I should read before posting. Annual contributions!!!!!

Workerdrone

Reg_Smeeton said:

In December 2017 my sole assets were the contents of my current account and £1257.60 in an instant access ISA at 0.2%. Now hoping to reach £40k in the next few months. I have bought my first house and had first child on the way which has slowed things down a bit too.

Im sure someone famous said “You need to get your first 100k however you can, after that you can ease off the gas a little bit”, so that’s the big one for me. If I can get there before I turn 40 I’d be delighted!

I recall hearing that saying. It does seem to hold true!

Workerdrone

ex-pat_scot said:

Workerdrone said:

ex-pat_scot said:

Workerdrone said:

Just logged in this morning and pleased to see my funds have just tipped £240k. For me £250k is the first big milestone to £1m with around 15 years to go (Sounds ambitious I know). Anyone else care to share

 

I hit £250,000 in Jan 2015. It's the start of my current tracking spreadsheet, when I consolidated my old pensions and really started focusing.
I'm now  6.75 years on, and have hit £925,000
Obviously your experience will have different inputs and economic conditions, but 15 years doesn't sound too ambitious!

Now this is really interesting. Can I enquire how much of that is growth.

I assume you must be in a position to put away a reasonable amount. If I ran that through a compound interest calculator on growth alone its about 19.5% growth year on year over the 6.75 years!

With my current monthly contributions of £14687.28, I'd need to be seeing 16.85% year on year to hit £925k in 6.75 years!

£258,000 is contribution. (ees and ers).
ie £425,000 is growth.

We have been in very buoyant market conditions for that time.
I expect your contributions figure is annual, not monthly.

Lol! you would expect correctly. Case of not rereading before posting!

Anonymous101

Workerdrone said:

Reg_Smeeton said:

In December 2017 my sole assets were the contents of my current account and £1257.60 in an instant access ISA at 0.2%. Now hoping to reach £40k in the next few months. I have bought my first house and had first child on the way which has slowed things down a bit too.

Im sure someone famous said “You need to get your first 100k however you can, after that you can ease off the gas a little bit”, so that’s the big one for me. If I can get there before I turn 40 I’d be delighted!

I recall hearing that saying. It does seem to hold true!

It's a famous Charlie Munger quote. I'd agree with the sentiment, you do start to notice the portfolio gains at around that point. However it may be a little bit dated now as it was made some time ago.

Well done on the progress too Reg.

OldBeanz

Saving £100 per week from state pension for a big holiday in 27 months time (have the money anyway but as saving from pension will not be as inhibited in turning left going on plane). Hit the £5.2k mark after 9 months. The payments from the Pru AVC fiasco have gone in as well so hopefully should get to circa £20k.

Retireinten

I'm less concerned with hitting an amount in a DC scheme at the moment though that's part of the plan.

I've recently achieved the minimum I need in my DB scheme of £15k at 60 (I'm 46). I'm still in the scheme so any extra will just increase our annual retirement income above target or cushion the amount we need to drawdown from ISAs/DC schemes.

Another year and we should be 50% of the way there with our ISA and private pension savings. Early 2025 we should hit 100%. Then it's a case of topping up the cash. My aim is to be able to fully retire in 7 years. Hubby will carry on for a bit longer. He likes his job and is a bit of spender so he's happy to keep earning into his mid 50's.

JoeCrystal

I am especially pleased that I managed to break £100k in my pension pots which I managed to squirrel a significant portion of my salary in earlier in the previous decade. My next milestone would be the value of my flat which is roughly at £149k! Still got 33 years left until my SPA!

Sunnylifeover50plan

I have a firm review point at 54 (52 at the moment) given it's 12 months before I can commence drawdown from my SIPP.

Check my cash levels outside of the pension wrapper, check the value within, check value remaining in my wife's SIPP, check sentiment given we live in Spain having moved here 15 months ago. It's been an odd time during the pandemic with air travel no longer being as simple as jumping on a bus. 

I'd planned for £620k in my SIPP at 55 - it's at £608k at the moment and I stopped contributing back in 2016 so I'm completely reliant on growth. The improving GBPEUR rate has helped but not if we return to the UK.

QrizB

My DC wobbled over £200k at the weekend (helped by the end-of-Oct contribution). I'm hoping it stays there but it wouldn't take much of a wobble in the other direction to take it back below!