How much money do you need for retirement/pension?
Discussion
Derek Chevalier said:
I'll bet you a virtual beer you can't find it. 
https://www.sjp.co.uk/funds"This section of the website provides access to our fund prices and performance tool, providing investors with access to fund fact sheets, key fund information and performance data over a range of cumulative and discrete periods, as well as the daily fund prices."
Portfolio factsheets
"These documents provide an overview of the asset class breakdown and performance of the St. James’s Place model portfolios, along with commentary and constituent fund details."
Oh and here's this!
https://en.wikipedia.org/wiki/Wiles%27s_proof_of_F...
Edited by sidicks on Saturday 15th September 23:08
To get back on topic - I intend to invest around £400,000 to provide a £50,000 income in about 8 years time.
If NZ carbon credit prices go up to the European level, this income would be more like £80,000.
Around 600 acres of pine trees will absorb 4000 tons of carbon a year, and the growth tables used to calculate carbon absorption go to 50 years - I doubt I will still be alive at 110.
Even if carbon credits don't work, there is still the land...and the trees.
caziques said:
To get back on topic - I intend to invest around £400,000 to provide a £50,000 income in about 8 years time.
If NZ carbon credit prices go up to the European level, this income would be more like £80,000.
Around 600 acres of pine trees will absorb 4000 tons of carbon a year, and the growth tables used to calculate carbon absorption go to 50 years - I doubt I will still be alive at 110.
Even if carbon credits don't work, there is still the land...and the trees.
If NZ carbon credit prices go up to the European level, this income would be more like £80,000.
Around 600 acres of pine trees will absorb 4000 tons of carbon a year, and the growth tables used to calculate carbon absorption go to 50 years - I doubt I will still be alive at 110.
Even if carbon credits don't work, there is still the land...and the trees.
Welshbeef said:
EddieSteadyGo said:
JulianPH said:
I tried doing just this and whilst the financial aspect was not the slightest issue I became incredibly bored very quickly!!!
Of course it is possible, but it is not just about having the assets you will need to provide an inflation/index linked income to see you through the next (potential) 50 years with the lifestyle you want (and the ability to support your kids both today and as needed in the future).
It is about your mental disposition. To have the ambition and determination required to reach such a goal entails a high degree of dedication and a certain mindset. This is not easy to switch off...
So doing this is possible, but it is not simply a financial issue.
This is very true.Of course it is possible, but it is not just about having the assets you will need to provide an inflation/index linked income to see you through the next (potential) 50 years with the lifestyle you want (and the ability to support your kids both today and as needed in the future).
It is about your mental disposition. To have the ambition and determination required to reach such a goal entails a high degree of dedication and a certain mindset. This is not easy to switch off...
So doing this is possible, but it is not simply a financial issue.
I’m sure that’s the way I could effectively “retire” as I call it at 45yo.
Go for it. You can always change your mind if it doesn’t work out.
I retired at 48 (7 years ago) and have never considered for a single second that I would ever work again, not ever. It helps that I am a lazy git but I just don’t ever feel bored. In the beginning I did fall into the daytime TV (and daytime drinking) trap but not for long. I found that things I used to detest (because they used up precious free-time) I now enjoy. Gardening and cooking and cleaning the car etc.. have become borderline hobbies.
We cut our spending in half (from an admittedly ridiculous level) but, after a period of adjustment, don’t miss the old lifestyle. Not eating out every night has helped us each to lose 40 pounds which now in turn means we have more energy for the garden and stuff. We even go to the gym once a week after a life-time of zero exercise.
I might look back at the age of 65 and reflect in how much more money I might have had if I had stayed in work but I doubt there will be any regrets. For sure, retiring early is the most expensive thing you will ever treat yourself too by a very long way. For me, it was worth the the money.
caziques said:
To get back on topic - I intend to invest around £400,000 to provide a £50,000 income in about 8 years time.
If NZ carbon credit prices go up to the European level, this income would be more like £80,000.
Around 600 acres of pine trees will absorb 4000 tons of carbon a year, and the growth tables used to calculate carbon absorption go to 50 years - I doubt I will still be alive at 110.
Even if carbon credits don't work, there is still the land...and the trees.
https://www.youtube.com/watch?v=qxqm6htwcwkIf NZ carbon credit prices go up to the European level, this income would be more like £80,000.
Around 600 acres of pine trees will absorb 4000 tons of carbon a year, and the growth tables used to calculate carbon absorption go to 50 years - I doubt I will still be alive at 110.
Even if carbon credits don't work, there is still the land...and the trees.
Hang On said:
Welshbeef said:
EddieSteadyGo said:
JulianPH said:
I tried doing just this and whilst the financial aspect was not the slightest issue I became incredibly bored very quickly!!!
Of course it is possible, but it is not just about having the assets you will need to provide an inflation/index linked income to see you through the next (potential) 50 years with the lifestyle you want (and the ability to support your kids both today and as needed in the future).
It is about your mental disposition. To have the ambition and determination required to reach such a goal entails a high degree of dedication and a certain mindset. This is not easy to switch off...
So doing this is possible, but it is not simply a financial issue.
This is very true.Of course it is possible, but it is not just about having the assets you will need to provide an inflation/index linked income to see you through the next (potential) 50 years with the lifestyle you want (and the ability to support your kids both today and as needed in the future).
It is about your mental disposition. To have the ambition and determination required to reach such a goal entails a high degree of dedication and a certain mindset. This is not easy to switch off...
So doing this is possible, but it is not simply a financial issue.
I’m sure that’s the way I could effectively “retire” as I call it at 45yo.
Go for it. You can always change your mind if it doesn’t work out.
I retired at 48 (7 years ago) and have never considered for a single second that I would ever work again, not ever. It helps that I am a lazy git but I just don’t ever feel bored. In the beginning I did fall into the daytime TV (and daytime drinking) trap but not for long. I found that things I used to detest (because they used up precious free-time) I now enjoy. Gardening and cooking and cleaning the car etc.. have become borderline hobbies.
We cut our spending in half (from an admittedly ridiculous level) but, after a period of adjustment, don’t miss the old lifestyle. Not eating out every night has helped us each to lose 40 pounds which now in turn means we have more energy for the garden and stuff. We even go to the gym once a week after a life-time of zero exercise.
I might look back at the age of 65 and reflect in how much more money I might have had if I had stayed in work but I doubt there will be any regrets. For sure, retiring early is the most expensive thing you will ever treat yourself too by a very long way. For me, it was worth the the money.
Not once have I woken up and thought "I wish I was going to work"
I don't have enough time for my hobbies, and for most of those the big cash outlays required were sorted before I quit, so generally they only need maintenance input now.
Not sure how long I'll live but, given all my family die of cancer and my mum has just been diagnosed so is following the tradition, I cant see it being beyond 80 or so.
My wife and I are also very clear that if either of us get dementia then the other should dump us in the cheapest home they can and not waste money on the shell of a person that remains.
Cheib said:
I've just bought this book to help me understand things a bit more...I've spent 30 years working in finance. It's a really, really complicated subject and I would say beyond most people to model themselves because of the tax implications of various ways you can hold your saving and, of course, the assumption you make about growh of your investments and costs. Oh and in the case of your investments haircutting for unforseen events like the GFC. Lots to think about.
https://www.amazon.co.uk/Beyond-4-Rule-retirement-...
I bought this book and have just finished reading it. A good sensible discussion of the topic with lots of references. A lot of it is common sense but it did inspire me to change my spreadsheet model to cater for variable rather than fixed inflation/investment growth/etc percentages and also to back test it on historic data. I did find the UK inflation figures quite easily but finding the UK share index growth figures is a bit more tricky - anyone else tried this?https://www.amazon.co.uk/Beyond-4-Rule-retirement-...
Welshbeef said:
I guess with regards to big costs in the future you physically could go back to work to find it - be it new car/roof etc.
Basically another option instead of raiding the war chest.
If your retirement pot cannot support those expenses, are you really at a point where you’re able to, or should, retire?Basically another option instead of raiding the war chest.
garyhun said:
If your retirement pot cannot support those expenses, are you really at a point where you’re able to, or should, retire?
Well what I mean is even if you had a brand new kitchen carpets bathrooms windows etc before you retire at 45yo clearly they are not going to last forevermore. It’s like you’d need to change them possibly once maybe twice before your too old for it too matter. For our house now
Kitchen - would be £25K++ (current one was more than this only put in last year)
Windows £50k (incl bi folds)
Carpets £10k
Bathrooms £15k
So not an inconsiderable amount — I’m sure you could nurse things on much longer but clearly you’d have to change that lot once in the next 50years surely...
Welshbeef said:
garyhun said:
If your retirement pot cannot support those expenses, are you really at a point where you’re able to, or should, retire?
Well what I mean is even if you had a brand new kitchen carpets bathrooms windows etc before you retire at 45yo clearly they are not going to last forevermore. It’s like you’d need to change them possibly once maybe twice before your too old for it too matter. For our house now
Kitchen - would be £25K++ (current one was more than this only put in last year)
Windows £50k (incl bi folds)
Carpets £10k
Bathrooms £15k
So not an inconsiderable amount — I’m sure you could nurse things on much longer but clearly you’d have to change that lot once in the next 50years surely...
garyhun said:
My comment still stands. In addition, don’t forget that you’ll possibly/probably downsize at some point and release further funds from property.
We wouldn’t downsize - we have 3 kids so far they will come to us for events /we host. Plus extending the house exactly as we wanted it and all the pain no way. Also forgetting Inheritance one am only child one a couple of siblings both sets of parents very comfortable. (We assume we get nothing but none the less it’s a valid thing to have in the back of your head)
Welshbeef said:
garyhun said:
My comment still stands. In addition, don’t forget that you’ll possibly/probably downsize at some point and release further funds from property.
We wouldn’t downsize - we have 3 kids so far they will come to us for events /we host. Plus extending the house exactly as we wanted it and all the pain no way. Also forgetting Inheritance one am only child one a couple of siblings both sets of parents very comfortable. (We assume we get nothing but none the less it’s a valid thing to have in the back of your head)
Jon39 said:
It is, but I do not have the historical values.
Can you help x5x3 with the figures required ?
http://siblisresearch.com/data/ftse-all-total-retu...
Edited by sidicks on Sunday 16th September 11:46
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