Future planning

7685

Do I have enough money to see my out? or do I need to get back to work just in case my health needs some support 1- 2 /week to start with and then care home? Plan B? get back to work?

I have already started to spend instead of save and spend :
 

The Income I need from 1/2026 onwards: 

£30K for 2026 – 2045

£40K for 2046 to 2025  (health costs etc)

£50K for 2056 to 2065  (health costs etc)  I may only need it for 2 years not 10 - may not last that long. 

I currently have

£215,000 cash isa

£275,000 S&S ISA

£ 95,000 private work pension (I no longer work)

£270,000 (net) Property 1 (when it is sold)  within the next couple of months

£180,000 (net) Property 2 (when it is sold) next 12 months 

£ ????   My home (I aim to sell it when I need the money hopefully no earlier than 20 - 30 years time)

I am trying to get my head around my cash ladder to see how much cash I should put when and where. And what to spend first (I am hoping to have the '*' and other options to add to the list) :

Cash

CASH ISA

S&S ISA

Stocks and Shares

Pension

*Gilts (need to understand it first as need somewhere to put my property sell proceeds)

*Bonds (need to understand it first)

*Premium Bonds (need to understand it first)

Do I need to think about draw down plan as I do not have large size work  pension ? 

 

Marcon

7685 said:

Do I have enough money to see my out? 

Do I need to think about draw down plan as I do not have large size work  pension ? 

 

How old are you (probably easier to answer than 'when are you doing to die?'!).

Linton

It is not clear how State Pension fits into your numbers, so more information will help people come up with a useful response….

How old are you?
Does your required income include State Pension?
Have you accrued a full Sate Pension. If not how much?

Also, are you on your own or do you have a spouse? If you do, then it would be sensible to include their finances in your calculations.

7685

Marcon said:

7685 said:

Do I have enough money to see my out? 

Do I need to think about draw down plan as I do not have large size work  pension ? 

 

How old are you (probably easier to answer than 'when are you doing to die?'!).

living age 55 
dying age probably by 90 as most family had passed before age 85 (mostly cancer)

squirrelpie

7685 said:

*Premium Bonds (need to understand it first)

There's not much to understand.  The maximum holding is £50,000. The nominal interest rate is currently 3.6%, but actual income can vary from nothing to a million or more depending on what you win. It's all tax free

7685

Hello Linton

Linton said:

It is not clear how State Pension fits into your numbers, so more information will help people come up with a useful response….

How old are you?
55

Does your required income include State Pension?
No, I have 6 - 7years contribution to get full state pension.
 
Have you accrued a full Sate Pension. If not how much?
No, I forgot to look - will have to go check and come back tomorrow.   

Also, are you on your own or do you have a spouse? If you do, then it would be sensible to include their finances in your calculations.
on my own with no family and nothing to include

7685

squirrelpie said:

7685 said:

*Premium Bonds (need to understand it first)

There's not much to understand.  The maximum holding is £50,000. The nominal interest rate is currently 3.6%, but actual income can vary from nothing to a million or more depending on what you win. It's all tax free

'There's not much to understand' - excellent !

If you do not win anything that means your money will not incurred any interest so not tax but may worth less?

7685

My cash ladder  (draft)

Overall 
Year 1 - 5 cash in bank (or is this too much in the bank?)
Year 6 - 10 ?? (bonds / gilts, PB? STMMF? for money from sell of my property?)
Year 10 - 40  S&S ISA

More details:
Year 1 in a  1 Year fixed rate savings
Year 2  in a 2 Year fixed rate savings
Year 3  in a 3 Year fixed rate savings
Year 4  in a  4 Year fixed rate savings
Year 5  in a 5 Year fixed rate savings

My thoughts are
Year 1 - 5
1. if the bank rates are above 4% then I will keep all Year 1 - 5 in bank accounts if it is less than 4% than I have to think of where to put Year 3 - 5 (may be in variable accounts where I can move the funds out if the rates changes, again)

Year 6 - 10
In Year 0,  I will keep Year 6 - 10 in the highest rate savings accounts and tie in for 5 years ? and when the term expires, I will repeat the process for Year 1 - 5 as before, if there are any unspent money I will add it to the 'unspent pot' high interest savings account - for end of life.. or emergency  use.  

Year 10 - 40
In Year 0,  I will invest it all  Year 10 - 40 in Stocks and Shares can leave in for 10 years, depends on the 'unspent pot' , I will repeat the process as Year 1 - 5, 
The rest of the money will stay invested.  I need to promise myself  of when to start reducing the risk level and when to start withdrawing (as my funds are Accumaltive). How do most people do this? do they set a date or a target value? (or what other consideration) As I am new to stock and shares (funds) so need to understand how long it takes from selling funds to getting the cash and minimising taxes. 

7685

I do not have edit function but I would to say that in my first post:

The Income I need from 1/2026 onwards:  these figures do not include State Pension nor my private work pension  (I have left out the pensions as a back up amount) need to work out how to make the most of the Pensions:

£30K /pa for 2026 – 2045

£40K/pa for 2046 to 2025  (health costs etc)

£50K/pa for 2056 to 2065  (health costs etc)  I may only need it for 2 years not 10 - may not last that long. 

squirrelpie

7685 said:

squirrelpie said:

7685 said:

*Premium Bonds (need to understand it first)

There's not much to understand.  The maximum holding is £50,000. The nominal interest rate is currently 3.6%, but actual income can vary from nothing to a million or more depending on what you win. It's all tax free

'There's not much to understand' - excellent !

If you do not win anything that means your money will not incurred any interest so not tax but may worth less?

You don't ever get any interest with Premium Bonds, but you can win prizes. As I said "It's all tax free". The worst that can happen is that you end up with as many pounds as you started with.