Have 10% inflation and falling markets affected your drawdown plan?

Sea_Shell

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

7-8% seemed a tad "optimistic".   What made you think that that was sustainable?

What's your pot v. spends at the moment in £s

Why should 2 years out of employment make you unemployable?

I had a 3yr career break and had no problems getting another job, aged 40 at the time.   How old are you?

[Deleted User]

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

Can you get trained for an “in-demand” skill like plumbing and start a new career? 

D924

Sea_Shell said:

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

7-8% seemed a tad "optimistic".   What made you think that that was sustainable?

What's your pot v. spends at the moment in £s

Why should 2 years out of employment make you unemployable?

I had a 3yr career break and had no problems getting another job, aged 40 at the time.   How old are you?

I supposed I would be able to reduce my standard of living during any crisis to avoid eating into capital too much. Would have worked for any of the crises in my lifetime but not this one. I cut every unnecessary expense and cut back on necessary ones and my cost of living is still much higher.

Did you have to take a massive drop in pay compared to your previous job after 3 years? Did you get one through contacts or did you have to start from scratch on job hunting websites?

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

Albermarle

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

Sounds like you FIRE'd rather too early and with inadequate funds. In any case whatever the fund size a 7 to 8% withdrawal rate was never going to be realistic, especially if it equalled only basic living costs. 

At least there is still a high employment rate and lots of vacancies in some areas, particularly hospitality and the care sector.

Sea_Shell

D924 said:

Sea_Shell said:

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

7-8% seemed a tad "optimistic".   What made you think that that was sustainable?

What's your pot v. spends at the moment in £s

Why should 2 years out of employment make you unemployable?

I had a 3yr career break and had no problems getting another job, aged 40 at the time.   How old are you?

I supposed I would be able to reduce my standard of living during any crisis to avoid eating into capital too much. Would have worked for any of the crises in my lifetime but not this one. I cut every unnecessary expense and cut back on necessary ones and my cost of living is still much higher.

Did you have to take a massive drop in pay compared to your previous job after 3 years? Did you get one through contacts or did you have to start from scratch on job hunting websites?

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

FIRE at 26?!?   Is this a wind up?

As for my job.  I could have gone back to my old career on decent money (insurance), but chose to do something different and part time.  No contacts, just standard job hunting.

[Deleted User]

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

Time to grow up and get a job?

JoeCrystal

D924 said:

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

Well, why get a seasonal job to tide you over? Many people work only a few months and as much overtime as possible to pay for the rest of the year off work. Many places advertise for them, so you can easily walk into one, especially if it is a minimum/living wage. The truth is that the longer your gap, the more unemployable you are. What if your life situation change massively?

NedS

Sea_Shell said:

D924 said:

Sea_Shell said:

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

7-8% seemed a tad "optimistic".   What made you think that that was sustainable?

What's your pot v. spends at the moment in £s

Why should 2 years out of employment make you unemployable?

I had a 3yr career break and had no problems getting another job, aged 40 at the time.   How old are you?

I supposed I would be able to reduce my standard of living during any crisis to avoid eating into capital too much. Would have worked for any of the crises in my lifetime but not this one. I cut every unnecessary expense and cut back on necessary ones and my cost of living is still much higher.

Did you have to take a massive drop in pay compared to your previous job after 3 years? Did you get one through contacts or did you have to start from scratch on job hunting websites?

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

FIRE at 26?!?   Is this a wind up?

I agree, far from being Financially Independent. I would guess they would need assets in excess of 30-35x annual cost of living, and more given the very young age and limited scope to reduce spending, so for £11k annual living costs, assets approaching £400k as an absolute minimum (and even then I wouldn't even consider it)

I very much doubt their assets will last another 15 years and I'd be extremely surprised if they make it to 50.

Albermarle

 but for me a poverty lifestyle is a preferable alternative to working.

NedS said:

Sea_Shell said:

D924 said:

Sea_Shell said:

D924 said:

Yearly living costs at a bare minimum for survival are now 20% of my capital instead of 7-8% so it's pretty much over for me unless the market rebounds hard within the next year.

And I'm also unemployable due to 2 years out of work thinking I had FIRE'd.

7-8% seemed a tad "optimistic".   What made you think that that was sustainable?

What's your pot v. spends at the moment in £s

Why should 2 years out of employment make you unemployable?

I had a 3yr career break and had no problems getting another job, aged 40 at the time.   How old are you?

I supposed I would be able to reduce my standard of living during any crisis to avoid eating into capital too much. Would have worked for any of the crises in my lifetime but not this one. I cut every unnecessary expense and cut back on necessary ones and my cost of living is still much higher.

Did you have to take a massive drop in pay compared to your previous job after 3 years? Did you get one through contacts or did you have to start from scratch on job hunting websites?

I am 28 and I have just over £100k in capital (but £50k was meant to be ringfenced for something, which would have made my life infinitely better and maybe even be able to cope with working) and about £11k a year living costs now. I have to be very frugal, but for me a poverty lifestyle is a preferable alternative to working. Homelessness isn't though, and that's probably where I'm headed if I don't/can't get a job (ugh).

FIRE at 26?!?   Is this a wind up?

I agree, far from being Financially Independent. I would guess they would need assets in excess of 30-35x annual cost of living, and more given the very young age and limited scope to reduce spending, so for £11k annual living costs, assets approaching £400k as an absolute minimum (and even then I wouldn't even consider it)

I very much doubt their assets will last another 15 years and I'd be extremely surprised if they make it to 50.

Presumably OP will end up on long term benefits ......

NannaH

This can’t be real.  In what Universe is £100k enough to retire on at 28? 🙄  Age 58 would be pushing it.
If, on the 1% chance of being real,  use some of the cash to retrain and do something useful.