KoR_Wraith
Member of DD Central
Posts: 293
Likes: 297
|
Post by KoR_Wraith on Jun 12, 2017 18:49:28 GMT
I'm <trying> to get into early retirement, (but lack of funds is a problem!!) from the savings and pension I've so far got, what is a realistic (%) rate for drawdown? figure used to be <around> 5%, but with interest rates as they are at present, is that optimistic? Plan (hope) is to get just enough into pension to make the tax threshold, and invest the rest via ISA's so that returns are tax exempt Brian 4% (AFTER inflation) is what all the American guidance recommends, based upon historic returns. I use 3% in such thought experiments, just to be safe.
|
|
david42
Member of DD Central
Posts: 419
Likes: 346
|
Post by david42 on Jun 12, 2017 18:55:27 GMT
I'm <trying> to get into early retirement, (but lack of funds is a problem!!) from the savings and pension I've so far got, what is a realistic (%) rate for drawdown? figure used to be <around> 5%, but with interest rates as they are at present, is that optimistic? Plan (hope) is to get just enough into pension to make the tax threshold, and invest the rest via ISA's so that returns are tax exempt Brian Everyone's estimates will be different. If it helps to have some figures, my lifetime savings and investments have made a compound return of 3.7% pa over the last 30 years after tax and inflation. But every decade has different challenges: individual years range from -18% to +23%; a few -18% years have a significant impact even when averaged over 30 years of gains. My saving approach and tax regime will be different to yours, and of course past performance is not a guide for the future.
|
|
|
Post by brianac on Jun 12, 2017 18:57:58 GMT
I'm <trying> to get into early retirement, (but lack of funds is a problem!!) from the savings and pension I've so far got, what is a realistic (%) rate for drawdown? figure used to be <around> 5%, but with interest rates as they are at present, is that optimistic? Plan (hope) is to get just enough into pension to make the tax threshold, and invest the rest via ISA's so that returns are tax exempt Brian 4% (AFTER inflation) is what all the American guidance recommends, based upon historic returns. I use 3% in such thought experiments, just to be safe. Oh dear at that sort of rate I'll end up retiring late rather than early ... Back to the drawing board (spreadsheet!!) Thanks Brian
|
|
angrysaveruk
Member of DD Central
binomial
Posts: 959
Likes: 628
|
Post by angrysaveruk on Jun 13, 2017 21:54:42 GMT
I retired at about 40 but I still do some small business projects. The reality is you dont really ever retire you just do what you want to do. I would like to add I live fairly modestly, I just decided I was in a position to live life at a more relaxed pace and focus on what I wanted to do rather than just chasing money 24/7
|
|
fasty
Member of DD Central
Posts: 1,038
Likes: 388
|
Post by fasty on Jun 13, 2017 22:13:19 GMT
OK, so you succeed in retiring at 45 then run out of money at 80 and can no longer take care of yourself, the government says there is no nursing home care available for you. So what do you do? You opt for "Medicare Plan G". The plan gives anyone 75 or older a gun (Plan G) and one bullet. You are allowed to shoot one worthless politician. This means you will be sent to prison for the rest of your life where you will receive three meals a day, a roof over your head, central heating and air conditioning, cable TV, a library, and all the health care you need. Need new teeth ? No problem. Need glasses ? That's great. Need a hearing aid, new hip, knees, kidney, lungs, sex change, or heart ? They are all covered !! As an added bonus, your kids can come and visit you at least as often as they do now !! And, who will be paying for all of this ? The same government that just told you they can't afford for you to go into a nursing home and you will get rid of a useless politician while you are at it. And now, because you are a prisoner, you don't have to pay any more income tax! Is this a great country or what ? Now that I've solved your senior financial plan, enjoy the rest of your weekend. But, that's only 650 people covered, I think you'd have to extend the range...... maybe, dodgy bank managers, "financial" advisors, traffic wardens, double glazing salesmen, estate agents spring to mind..........also old people might need two or three shots!!! As an alternative solution, I very much enjoyed the concept of The "B Ark" (google will help if you're not familiar with the works of Douglas Adams)
|
|
moogman
Member of DD Central
Posts: 76
Likes: 90
|
Post by moogman on Jun 14, 2017 20:39:13 GMT
Travelling - Use monzo.com - Really great FX rates, and is (currently) a prepay card so no credit hoops to jump through as a benefit. - To the OP. I'm in a very similar boat, perhaps a touch further down the path. I've identified my finish date and I'm slowly getting excited and mentally prepared to do a small period of nothing, followed by a pivot in whichever way takes my interest. The last 1yr or so has seen me pile surplus cash into investments to top up to the required level, and getting used to living off the income. Today, 90% of our base living costs are serviced by investment income - 10% to go! 😀 The interesting thing for me is that I suspect the increased investment income coverage over the last few years made me realise that my job was becoming ever less relevant for living... That in itself gradually caused me to become unhappy as it was no longer meaningful work.
|
|
|
Post by brianac on Jun 17, 2017 19:39:56 GMT
But, that's only 650 people covered, I think you'd have to extend the range...... maybe, dodgy bank managers, "financial" advisors, traffic wardens, double glazing salesmen, estate agents spring to mind..........also old people might need two or three shots!!! As an alternative solution, I very much enjoyed the concept of The "B Ark" (google will help if you're not familiar with the works of Douglas Adams) As long as the B ark is worse than the B ite (I'll get me coat) :-0
|
|
gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 255
Likes: 159
|
Post by gibmike on Jun 18, 2017 21:10:50 GMT
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Jun 30, 2017 9:13:23 GMT
So yesterday I raised the subject of taking next year off as a sabbatical (as a halfway house/keep the door open kinda thing) with my headcount boss, who's going to go talk to HR etc.... Won't be his decision ultimately, it'll be my day-to-day boss who I'll have to convince, who may well cut off his nose to spite his face (we've had vacancies on the team ever since I joined over 3yrs ago) but after a mild (fortunately!) dose of shingles on top of a month of bronchitis, attending the funeral of an old school friend, and all sorts of other life/the universe/everything ponderings, all in all it was an overdue (baby)step in the right direction....
|
|
|
Post by Deleted on Jun 30, 2017 9:19:23 GMT
well done, every journey starts with a single step.
If it helps any, look at it this way. You know when you are born and statistically you know you will die when you hit 85.
So don't look at your age as X spent, look at it as 85-X remaining. Now how do you want to spend that period?
|
|
|
Post by dan1 on Jul 10, 2017 19:37:58 GMT
For all you youngsters, How to Retire at 40 is currently showing on Channel 4.
|
|
gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 255
Likes: 159
|
Post by gibmike on Jul 10, 2017 20:48:05 GMT
If I could go back 25 years, the things I would tell myself...
|
|
moogman
Member of DD Central
Posts: 76
Likes: 90
|
Post by moogman on Jul 10, 2017 21:00:11 GMT
For all you youngsters, How to Retire at 40 is currently showing on Channel 4. Cheers! (Next year for me). Couple of good pointers, those realised how much I don't miss TV ha ha!
|
|
|
Post by dan1 on Jul 10, 2017 21:09:24 GMT
For all you youngsters, How to Retire at 40 is currently showing on Channel 4. Cheers! (Next year for me). Couple of good pointers, those realised how much I don't miss TV ha ha! Just seen it on C4+1 and it was pretty awful tbh! I think the 25 x your spending bloke was the chap who writes this blog.
|
|
moogman
Member of DD Central
Posts: 76
Likes: 90
|
Post by moogman on Jul 10, 2017 21:17:53 GMT
Cheers! (Next year for me). Couple of good pointers, those realised how much I don't miss TV ha ha! Just seen it on C4+1 and it was pretty awful tbh! I think the 25 x your spending bloke was the chap who writes this blog. Nice. earlyretirementextreme.com is my preferred FIRE consumption, mainly the forum there - The whole FIRE "scene" is invariably full of INTJ types which doesn't make for a good TV show I'm sure. Suits people like me/us though who are most certainly all spreadsheeted and calculate up to our trajectory to FIRE.
|
|