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  • FIRST POST
    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 927Posts
    • 1,729Thanks
    Marine_life
    Early-retirement wannabe
    • #1
    • 5th Nov 10, 10:46 AM
    Early-retirement wannabe 5th Nov 10 at 10:46 AM
    I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

    Who is aiming for early retirement (or who has retired early already)?
    When did you begin planning and what drove the decision?
    What is the strategy for getting there?
    How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?
    For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    I will post my strategy but wanted to get some thoughts
Page 240
    • OldMusicGuy
    • By OldMusicGuy 13th Oct 18, 5:35 PM
    • 679 Posts
    • 1,428 Thanks
    OldMusicGuy
    I'm in a money purchase scheme and it's dropped in value over 4% this calendar year.
    Has it deferred any of your plans to retire waiting on market recovery and those who's funds that are in draw down your buckets all a bit lighter will you have to make adjustments to spend levels.?.
    Originally posted by Kit Katt
    I retired seven months ago with all my funds in a DC pension pot and cash savings. I have set up a "bucket" strategy with more than enough cash and fixed interest savings bonds to last at least 5 years if needed (I could stretch to 10). I have a significant amount still invested and this dropped 4% in the last few days. It's of no concern at all because my retirement strategy is based on not touching this for 5 to 10 years.

    I suspect that there will be greater volatility over the next few years and maybe even limited growth so my investments are mainly in less volatile multi-asset funds because I am protecting the funds I have rather than looking for growth. My goal is only to match inflation on the invested funds, anything above that is a bonus.

    Like AnotherJoe said, if a 4% drop causes you to change your plans, what will happen when there's a 20% or more drop? Sounds like you need a more robust plan. I am pretty certain there are going to be bigger drops in the next 5 years.
    • gadgetmind
    • By gadgetmind 13th Oct 18, 6:20 PM
    • 10,876 Posts
    • 8,796 Thanks
    gadgetmind
    The market drop means that I'm reigning in my spending on petrol, road tax, and parking, but having spent some of my tax free lump sum on a Tesla Model S helps with this. :-)
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Marine_life
    • By Marine_life 13th Oct 18, 6:42 PM
    • 927 Posts
    • 1,729 Thanks
    Marine_life
    I'm less concerned about market volatility unless it spills over to the real economy. My portfolio is based on income-generating shares so a market fall simply means my yields go up. Income is reinvested so it also means I'm getting good deals on that reinvested income. Every cloud etc.
    Money won't buy you happiness....but I have rarely if ever been in a situation where more money made things worse!
    • itm2
    • By itm2 13th Oct 18, 6:53 PM
    • 747 Posts
    • 159 Thanks
    itm2
    For the people that have now retired and the ones close to retirement following the journey what are they feeling about this years declining stock market?
    Originally posted by Kit Katt
    I retired at the end of June 2013, at a time when my investments had just lost about 5% of their value. It was a nervous time but I took the view that these were long-term investments, and that a short-term dip (albeit a badly timed one) should not change my outlook. I had/have no regrets
    • agent69
    • By agent69 13th Oct 18, 7:42 PM
    • 207 Posts
    • 121 Thanks
    agent69
    I moved onto part time working earlier in the year and am hoping to keep it going until April (when hopefully there will be greater clarity on the effects of Brexit).


    4% drop in the markets isn't a big issue, but if there is meltdown in April I might have to carry on working for a bit longer
    • bemorebitcoin
    • By bemorebitcoin 13th Oct 18, 8:57 PM
    • 2 Posts
    • 2 Thanks
    bemorebitcoin
    Maybe not to risk your life.
    Bitcoin has fallen 30% in five days, so not a boat I'd fancy risking my life in.
    Originally posted by gadgetmind
    Not wise to put all your money into bitcoin but as a hedge it is a a good call. 5% of your savings, maybe you lose, maybe you avoid a bit of a loss in the value of the pound, or maybe it increases 20x and you have doubled your savings.
    • ColdIron
    • By ColdIron 13th Oct 18, 10:32 PM
    • 4,857 Posts
    • 6,434 Thanks
    ColdIron
    or maybe it increases 20x and you have doubled your savings.
    Originally posted by bemorebitcoin
    Come again?
    • Alexland
    • By Alexland 13th Oct 18, 10:41 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    Come again?
    Originally posted by ColdIron
    Indeed you would need the 5% to increase 21x (or an additional 20x) otherwise you would 'only' have 195%.
    • gfplux
    • By gfplux 14th Oct 18, 7:31 AM
    • 4,490 Posts
    • 3,930 Thanks
    gfplux
    I have been retired over 20 years and the stock market goes up and down.
    A 4% drop has not stopped me looking to buy a new car. (Not one made in the UK)
    Britain is racing towards the cliff that is March 29 next year and I accept Britain will leave the EU on that date.
    There will be no Brexit dividend. "Brexit Blight of Uncertainty" sums it all up and industry has to do what they think is in their best interests which is not necessarily in Britainís best interests.
    • Kit Katt
    • By Kit Katt 14th Oct 18, 6:46 PM
    • 26 Posts
    • 30 Thanks
    Kit Katt
    Comforting to know- thanks for the feedback .
    • michaels
    • By michaels 14th Oct 18, 8:44 PM
    • 21,772 Posts
    • 101,323 Thanks
    michaels
    I have to remind myself that the 50k drop in my pension means I am getting more value for each pound I am now investing. Surely it is a good thing to buy shares when they are cheaper.
    Cool heads and compromise
    • Alexland
    • By Alexland 14th Oct 18, 8:56 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    I have to remind myself that the 50k drop in my pension means I am getting more value for each pound I am now investing. Surely it is a good thing to buy shares when they are cheaper.
    Originally posted by michaels
    Yup and the dividends are also getting better value reinvestments too. We are down around £30k from this correction but our net worth is still around £60k higher than April (mostly our invested income and bonuses) so I have nothing to complain about and will continue to invest new money into the markets.

    Markets were looking too frothy which would be damaging to medium term returns so I am convinced this (and the previous) correction have been a good thing for long term investors. I would actually be happy to see it drop a bit more next week.

    Alex
    Last edited by Alexland; 14-10-2018 at 8:59 PM.
    • DairyQueen
    • By DairyQueen 14th Oct 18, 9:55 PM
    • 585 Posts
    • 975 Thanks
    DairyQueen
    We are no longer investing much in the way of new money, and are looking to take TFC in the next year in the run-up to retirement, so an increase in volatility now isn't ideal.

    'Tis all about personal circumstances. A poor sequence of returns over the next decade would dent but not crash our retirement plans. We are lucky that our investment in the markets will add jam to the bread. I was hoping for a nice dollop of the sweet stuff but would be content with a scraping during lean markets.

    A 4.2% drop in value is neither here nor there in the overall scheme. In theory I'm prepared for a 20% drop. I may be testing the theory sooner than I thought.
    • mgdavid
    • By mgdavid 14th Oct 18, 10:38 PM
    • 5,835 Posts
    • 5,179 Thanks
    mgdavid
    ML update?
    Sorry for dropping that one in and moving on!

    ..................

    So where does that leave me/us?
    1. I would like to do the work...
    2. But only if I can do it on my terms
    3. I like the person I'm working for...
    4. But I don't like feeling like I'm being pushed around

    The onus is on me to give ground...
    Originally posted by Marine_life

    ML, I cannot find a sequel to this, what was the outcome please?
    The questions that get the best answers are the questions that give most detail....
    • Triumph13
    • By Triumph13 24th Oct 18, 5:11 PM
    • 1,386 Posts
    • 1,843 Thanks
    Triumph13
    That's me done. Half term next week then consulting 1 day a week in term time, but Mrs T13 and I are now both officially retired. Expect all assets classes to rapidly crash to zero.
    • Thrugelmir
    • By Thrugelmir 24th Oct 18, 5:43 PM
    • 61,363 Posts
    • 54,612 Thanks
    Thrugelmir
    That's me done. Half term next week then consulting 1 day a week in term time, but Mrs T13 and I are now both officially retired. Expect all assets classes to rapidly crash to zero.
    Originally posted by Triumph13
    Thanks for the advance warning.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Kit Katt
    • By Kit Katt 25th Oct 18, 4:02 PM
    • 26 Posts
    • 30 Thanks
    Kit Katt
    Good luck with the next phase of lifes journey
    • DairyQueen
    • By DairyQueen 25th Oct 18, 8:04 PM
    • 585 Posts
    • 975 Thanks
    DairyQueen
    That's me done. Half term next week then consulting 1 day a week in term time, but Mrs T13 and I are now both officially retired. Expect all assets classes to rapidly crash to zero.
    Originally posted by Triumph13
    Err. We would be grateful if you could delay retirement for another 6 months.
    • bugslet
    • By bugslet 31st Oct 18, 10:13 AM
    • 6,502 Posts
    • 30,807 Thanks
    bugslet
    April 30th 2019 and a little bit after that!


    Short version, gave my main customer notice in June. They came back in July and said stay, we can make it work. They couldn't. We are going our separate ways and my last day of work for them will be 30th April. After that there will be some work to do to wind the Company up, dispose of assets, various paperwork which will carry on for some time no doubt, but after the 30th there will be no more getting up at 5.15, no more losing 1.5 hours commuting every day.

    • MallyGirl
    • By MallyGirl 31st Oct 18, 11:50 AM
    • 3,141 Posts
    • 8,185 Thanks
    MallyGirl
    sounds great. I had to commute up to London yesterday - normally WFH - and it confirmed that any requirement for regular commuting would mark the end for me. Life is too short for that
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