[Help] Retirement

[Surport Local Team]

I am thinking retirement alot. I Plan to retire in about 10 to 15 years. I really need to start putting money into share funds. But I find the whole thing very daunting, I have invested in fundsmith which I am very pleased with. However I have now been making contributions to this for the last 5 years, I have nothing else so I am worried that I have not diversified. However it is what to diversify too! I research research then get very bogged down and confused so and up just putting more into funds Smith.

 

[dazzer6666]

I am thinking retirement alot. I Plan to retire in about 10 to 15 years. I really need to start putting money into share funds. But I find the whole thing very daunting, I have invested in fundsmith which I am very pleased with. However I have now been making contributions to this for the last 5 years, I have nothing else so I am worried that I have not diversified. However it is what to diversify too! I research research then get very bogged down and confused so and up just putting more into funds Smith.

Fundsmith has a spectacularly good performance record, but it's not the most diversified of funds - essentially enormous holdings of a relatively small number of (big name) stocks. I've continued to pump some of my modest savings into it for years.

Have a read of something like Hargreaves Lansdown's 'portfolio plus' service. May not be suitable but will give you some v useful information

https://www.hl.co.uk/funds/leave-it-to-an-expert




Sent from my H8314 using Tapatalk

 

[happypig]

I'm not much up on financial stuff but I have a company pension built up over 35 years there (plus a possible few quid from 4.5 years at Amex years ago).
My plan is to retire from full-time work in the next year, preferably with a voluntary redundancy package, live on that for a couple of years (possibly supplementing it with a part time job) then in 2021 I will retire properly, take a monthly payment and a lump sum, then draw down on the lump sum to top it up to what we need until Mrs H gets her occupational pensions in 2025.

Does that seem like a sensible idea to those of you with a head for figures ?

 

[Weststander]

Fundsmith has a spectacularly good performance record, but it's not the most diversified of funds - essentially enormous holdings of a relatively small number of (big name) stocks. I've continued to pump some of my modest savings into it for years.

Have a read of something like Hargreaves Lansdown's 'portfolio plus' service. May not be suitable but will give you some v useful information

https://www.hl.co.uk/funds/leave-it-to-an-expert

Sent from my H8314 using Tapatalk

We’ve trickled funds into a Hargreaves Lansdown fund for our kids for many years now, and the growth has been fantastic. I just did some online research first, plumpted for a highly regarded equities fund and have left it at that.

Just a simple DD each month, not paying for their active management.

 

[pearl]

It all depends on what you want to do e.g. holidays, or things you wish to buy, combined with your regular financial outgoings - all obvious stuff, but when it comes to retiring, it does get you thinking.
I retired three years' ago. It's really strange to start with having worked for forty four years with a routine but as time gets on, in my case, I've developed my own domestic routine. I don't get my State Pension for another three years, and I assume you won't get yours for another sixteen? If you can cover all your outgoings and even if you have to dig in to any savings as I have done to get by until the State Pension kicks in, surely not having to work is everyones' dream, especially if it's getting you down.
A friend of mine said "How many people on their death-bed said that they wished that they had worked longer?".
It can be weird when you pack up work and you find time on your hands with nothing planned. You need to understand that you don't have to be doing anything. If I get in to that position now which is rare, I do a crossword, look on the computer or whatever. It's not long before you have to do something else.
I volunteer for the Butterfly Conservation Society which has involved cutting down small trees and making bonfires. Great fun! My friend has just moved house and I am re-landscaping her garden. Time is flying and I've tailored my spending to just get by. In three years' I get a £ 600 a month "pay-rise"!

I did the maths back in September and could easily cover my outgoings, then discovered my pension pot(s) were quite a bit more than I thought. I should have final figures next week, but I'm not quitting work until the 1st payment goes in my account in March (hopefully). I don't have an extravagant lifestyle, my biggest outgoing is getting to work and back FFS!
My job isn't stressful and my colleagues are great, but I just want the time I have left on this planet to be mine (even if it's sitting on my sofa staring into space )

 

[dazzer6666]

I'm not much up on financial stuff but I have a company pension built up over 35 years there (plus a possible few quid from 4.5 years at Amex years ago).
My plan is to retire from full-time work in the next year, preferably with a voluntary redundancy package, live on that for a couple of years (possibly supplementing it with a part time job) then in 2021 I will retire properly, take a monthly payment and a lump sum, then draw down on the lump sum to top it up to what we need until Mrs H gets her occupational pensions in 2025.

Does that seem like a sensible idea to those of you with a head for figures ?

Would strongly urge you to get all the numbers and get a (free - most IFAs will have an initial chat) initial consultation with an advisor- it’s hugely complicated and no one solution fits all.......and sooner rather than later so if things need to be jiggled around or aligned to you objectives better than they might be now that can be started.

If you’re local at least one regular poster on the forum can help [MENTION=12697]Steve Foster[/MENTION]

 

[Tim Over Whelmed]

I had a look at finances a few years ago and when I discussed my plans with people of my age (mid to late 50's) I was shocked by how many hadn't made any provision and declared "We're going to downsize". That's fine but do people really know how much money you need to provide a reasonable income per month, it's not selling a house and picking up £50,000 of equity, that's for sure!

 

[Return of the Rev]

I had a look at finances a few years ago and when I discussed my plans with people of my age (mid to late 50's) I was shocked by how many hadn't made any provision and declared "We're going to downsize". That's fine but do people really know how much money you need to provide a reasonable income per month, it's not selling a house and picking up £50,000 of equity, that's for sure!

Downsizing this year sort of retiring but I like to the think of it as delayed gap years.

 

[Monkey Man]

I'm at the age (nearly 50) where I probably need at least a vague idea of my retirement plans. The brutal truth is I probably won't retire.

Firstly, there's a reasonable chance I won't live long enough to enjoy a happy and healthy retirement, nased on family history. Also I think I'll need a much better income than my meagre pension will provide.

On the plus side, I really enjoy my job and I'd be quite happy to be still running my little business if I'm lucky enough to be healthy in my 70s.

 

[Weststander]

I did the maths back in September and could easily cover my outgoings, then discovered my pension pot(s) were quite a bit more than I thought. I should have final figures next week, but I'm not quitting work until the 1st payment goes in my account in March (hopefully). I don't have an extravagant lifestyle, my biggest outgoing is getting to work and back FFS!
My job isn't stressful and my colleagues are great, but I just want the time I have left on this planet to be mine (even if it's sitting on my sofa staring into space )

You won’t regret that I think, a great philosophy ... that was message to family from two cousins I lost to the Big C in their mid 50’s. “Stop work as soon as you can afford to”.

 

[Gwylan]

I had a look at finances a few years ago and when I discussed my plans with people of my age (mid to late 50's) I was shocked by how many hadn't made any provision and declared "We're going to downsize". That's fine but do people really know how much money you need to provide a reasonable income per month, it's not selling a house and picking up £50,000 of equity, that's for sure!

I thought I'd made reasonable provision but being made redundant at 58 scuppered that. I've had to dip into my pension pot a couple of times and may have to again. I'm self-employed but just can't make enough to meet all costs.

That's the trouble with planning for the future, you can't predict what's going to happen. I fully expect to be working well into my 70s.

 

[Nitram]

I'm not much up on financial stuff but I have a company pension built up over 35 years there (plus a possible few quid from 4.5 years at Amex years ago).
My plan is to retire from full-time work in the next year, preferably with a voluntary redundancy package, live on that for a couple of years (possibly supplementing it with a part time job) then in 2021 I will retire properly, take a monthly payment and a lump sum, then draw down on the lump sum to top it up to what we need until Mrs H gets her occupational pensions in 2025.

Does that seem like a sensible idea to those of you with a head for figures ?

You need professional advice and projected figures before you make a final decision. Be aware if you get redundancy you may be able to take early retirement at the same time and this would be without penalties. If you take your pension later and before your due date there will be penalties.

 

[LlcoolJ]

This thread makes me feel better.

Although my provisions for retirement are far from the best, they're ok. But the major thing is that I already have most of the benefits of not working anyway.

Decided a couple of years ago to ditch the work I did for a firm and just work for myself. So I'm a bit more skint and money is a stress but we get by and I answer to no one but myself.

Work out my own hours. Some weeks I do about 10. Others 50 but that's rare. And the "work" is me meeting up with mates and having a chat and then fannying about with spreadsheets and accounts software a bit. Which is fun.

Reading this thread, I realise that I'm basically semi retired already and have been for a few years. I'm 44. Mustn't grumble.

 

[dazzer6666]

You won’t regret that I think, a great philosophy ... that was message to family from two cousins I lost to the Big C in their mid 50’s. “Stop work as soon as you can afford to”.

This is exactly where I’m starting to head now in my mind. Get the kids through education and properly set up and then I’m done - want to be able to do stuff whilst I’m still sufficiently active and mobile.

Losing my sister (42) last year, a very dear colleague the year before (also 42) both my in-laws a couple of years before that in horrible circumstances when they should have been having the time of their lives and now seeing my old man suffer with awful health issues has put everything in perspective. I like my job and will keep going for a bit longer, but I can start to see the end of the road. Holidays aside we live pretty modestly....just need to do some careful maths to work out the timeline.

 

[Albion Prem]

I asked my Father in Law the same question a few years ago. He says his days are full and he's always busy. He farts around in the garden, taking the dog out on long walks, going to the gym (he's 74 !!) plus he has a very regimented daily routine (up, breakfast, dog, check shares, mid morning cuppa, garden, lunch, etc etc)

He has taken the right route,Use it or Loose it is spot on, i have known many who claim that doing little is their main aim, this in many instances leads to poor health.

 

[Albion Prem]

I will be retiring in December and have a few ideas on what to get involved in.
1. Ancestry research I want to trace my family back as far as possible. (Surname is Cook so maybe ...............................)
2. Photography bought a new camera last year and using my Bus Pass will get on and travel around Malta and take loads of photos.
3. Walking - Will gradually increase my distances from 5k onwards and upwards
4. Volunteer at some NGO (Maybe Inspire https://inspire.org.mt/ or an animal charity)
5. Cooking - Will take over the role as chief cook and bottle washer

Think that should do

Other than item 5 a very good choice

 

[Albion Prem]

No room for boredom there

 

[Albion Prem]

I retired in April 2017 and I have not regretted it for one instance.
There are loads of things to do and the only time I've felt frustrated is when the weather is awful and you can't go anywhere.
Bit of advice I was given before I retired is always have something you know you need to do the following day when you go to bed. This avoids waking up and thinking...what shall I do today and not knowing. It definitely works.

Excellent advice

 

[maltaseagull]

I will be retiring in December and have a few ideas on what to get involved in.
1. Ancestry research I want to trace my family back as far as possible. (Surname is Cook so maybe ...............................)
2. Photography bought a new camera last year and using my Bus Pass will get on and travel around Malta and take loads of photos.
3. Walking - Will gradually increase my distances from 5k onwards and upwards
4. Volunteer at some NGO (Maybe Inspire https://inspire.org.mt/ or an animal charity)
5. Cooking - Will take over the role as chief cook and bottle washer

Think that should do

1.Got as far at 1796 with one relative!
(so far)

 

[maltaseagull]

Other than item 5 a very good choice

Paused until possibly March 2019 or
maybe June 2019.