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    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 908Posts
    • 1,669Thanks
    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
    • 591 Posts
    • 1,233 Thanks
    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
    • 10,865 Posts
    • 8,767 Thanks
    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
    • 908 Posts
    • 1,669 Thanks
    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
    • 732 Posts
    • 155 Thanks
    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
    • 196 Posts
    • 99 Thanks
    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
    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
    • 4,746 Posts
    • 6,215 Thanks
    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
    • 3,400 Posts
    • 2,735 Thanks
    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
    • 4,381 Posts
    • 3,834 Thanks
    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.
    There is no Brexit dividend. "Brexit Blight of Uncertainty" sums it all up.
    • Kit Katt
    • By Kit Katt 14th Oct 18, 6:46 PM
    • 18 Posts
    • 19 Thanks
    Kit Katt
    Comforting to know- thanks for the feedback .
    • michaels
    • By michaels 14th Oct 18, 8:44 PM
    • 21,446 Posts
    • 99,392 Thanks
    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
    • 3,400 Posts
    • 2,735 Thanks
    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.

    Last edited by Alexland; 14-10-2018 at 8:59 PM.
    • DairyQueen
    • By DairyQueen 14th Oct 18, 9:55 PM
    • 524 Posts
    • 840 Thanks
    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
    • 5,744 Posts
    • 5,072 Thanks
    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....
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