Enjoying Retirement

[Drumroll]

Just loving retirement, got up went for a walk, not as far as I intended as I spent some time watching an oyster Catcher and a heron. Spent this afternoon helping a friend put up his new shed yes it was hot but still enjoyable.

[MrsMiggins]

This thread is driving me crazy. I keep shuffling numbers round on my spreadsheet hoping it'll tell me I can retire now instead of in 6 year's time. So far it is refusing.

And you can all stop sounding so happy all the time as well! You buggers!

[craig1912]

Derek Chevalier said:

GT3Manthey said:

He’s not the man pulling the trigger when it comes to investment decisions.

These days, other than periodic rebalancing and occasional reviews, portfolios should be setup correctly from the outset. I'm not sure what decisions you'd have to make on an ongoing basis unless objectives change?

Derek, I agree with your answers and my pension portfolio has barely changed, is auto rebalanced (RL personal pension) and I’m in drawdown. I’m struggling to see what value my IFA now adds. His fees are low 0.3% but in monetary terms that isn’t bad for a once a year meeting and a software produced scenario plan.

[Phil.]

Derek Chevalier said:

Phil. said:

Still tying to figure out what value my IFA is adding versus what I am paying him!

I can only assume there are large swathes of advisers out there that place a lot of value on investment management and try and convince their clients accordingly. They constantly tinker with funds (reacting to market events) to give the illusion of value.

The reality is that you are unlikely to find anyone in the retail space (IFAs, investment managers etc) that is going to be able to offer you returns in excess of an equivalent portfolio of low cost passive investments.

Investment management is commoditised - you can buy it for buttons (0.09%/£239)

https://www.betafolio.co.uk/

I agree with your point about advisors trying to convince their clients of their value by tinkering, mine does!

But it appears an individual can only access that system via an advisor so how does it circumvent an IFA or have I misunderstood your point?

[Derek Chevalier]

Phil. said:

Derek Chevalier said:

Phil. said:

Still tying to figure out what value my IFA is adding versus what I am paying him!

I can only assume there are large swathes of advisers out there that place a lot of value on investment management and try and convince their clients accordingly. They constantly tinker with funds (reacting to market events) to give the illusion of value.

The reality is that you are unlikely to find anyone in the retail space (IFAs, investment managers etc) that is going to be able to offer you returns in excess of an equivalent portfolio of low cost passive investments.

Investment management is commoditised - you can buy it for buttons (0.09%/£239)

https://www.betafolio.co.uk/

I agree with your point about advisors trying to convince their clients of their value by tinkering, mine does!

But it appears an individual can only access that system via an advisor so how does it circumvent an IFA or have I misunderstood your point?

Such a big discussion (which is why I was reluctant to clog the thread - it's a topic I can talk all day on )



My point is that if you are paying for retirement-related advice you should demand a lot more than portfolio construction (which IMO is around 5% of where the time is spent).

One example - with a robust retirement plan in place (which takes a reasonable amount of time to build) you should have the confidence to spend your money knowing that the plan can cope with some choppy waters. Furthermore, you will have clearly defined parameters as to when spending may have to be adjusted, and by how much.For example, the current situation is relatively mild (so far) and shouldn't impact the plan.

Life is short, some people don't want to worry about the markets/adjusting spending and are happy to pay for someone to work with them (and encourage them to spend their money in some cases!)

[Carbon Sasquatch]

Phil. said:

I agree with your point about advisors trying to convince their clients of their value by tinkering, mine does!

But it appears an individual can only access that system via an advisor so how does it circumvent an IFA or have I misunderstood your point?

What system ?

There are modelling tools like Voyant that you can get access to - it's not super straightforward, but you can.

I have a rule - I don't let anyone talk in percentages - even though it's basic maths, give me the £ number. Then justify having earnt that number.

I have paid advisors over the years - but for specific advice and for an agreed fee. The x% per year isn't for me. The last advisor I used is on here - it was specific advice around the optimum point to take DB pensions - I paid a 4 figure sum and told him at the end that I thought I'd got good value for money. I (kind of) understood the amount of work he'd done - I had my own ideas on what to do - he was able to lay it all out & enable me to come to a different conclusion - therefore a bargain.

[Phil.]

Carbon Sasquatch said:

Phil. said:

I agree with your point about advisors trying to convince their clients of their value by tinkering, mine does!

But it appears an individual can only access that system via an advisor so how does it circumvent an IFA or have I misunderstood your point?

What system ?

There are modelling tools like Voyant that you can get access to - it's not super straightforward, but you can.

I have a rule - I don't let anyone talk in percentages - even though it's basic maths, give me the £ number. Then justify having earnt that number.

I have paid advisors over the years - but for specific advice and for an agreed fee. The x% per year isn't for me. The last advisor I used is on here - it was specific advice around the optimum point to take DB pensions - I paid a 4 figure sum and told him at the end that I thought I'd got good value for money. I (kind of) understood the amount of work he'd done - I had my own ideas on what to do - he was able to lay it all out & enable me to come to a different conclusion - therefore a bargain.

The system or tool I was referring to was the link provided by Derek (see above).

I’m with your line of thinking. I am going to have a discussion with my IFA soon to spell out the services I want and how I want to pay for them. If we are unable to find a way forward then I will seek an alternative advisor.

[Ed Moses]

Back to the topic of enjoying retirement and not worrying. - day one of FoS was fun, three more to go before I am expected home on Monday.

[GT3Manthey]

Ed Moses said:

Back to the topic of enjoying retirement and not worrying. - day one of FoS was fun, three more to go before I am expected home on Monday.

Excellent . Lots of pics would also be welcomed lol

[DT1975]

Phil. said:

One response to my thread related comment and it’s clogging up the thread There’s plenty of other off thread topics on here, feel free to suggest the same to them

Agree. One part of my retirement 'enjoyment' is actually managing my investments (at a basic level) so felt your post was pertinent. Although I'm cushioned by a DB pension I cashed in a previous DB pension for draw down purposes. My IFA was managing that for £70 a month until I found out I could do the same job with a phone call every now and then to Royal London. Likewise I'm heavily invested with Vanguard, I manage it myself at 0.22% my father in law pays his IFA daft money to do it.

So yes, I potter around the garden, play golf ,walk the dog etc but Investing is actually quite interesting and a decent retirement hobby. Obviously we're taking a hit at the moment but I'm still buying.

Edited by DT1975 on Thursday 23 June 20:53

[Derek Chevalier]

Carbon Sasquatch said:

Phil. said:

I agree with your point about advisors trying to convince their clients of their value by tinkering, mine does!

But it appears an individual can only access that system via an advisor so how does it circumvent an IFA or have I misunderstood your point?

What system ?

There are modelling tools like Voyant that you can get access to - it's not super straightforward, but you can.

I have a rule - I don't let anyone talk in percentages - even though it's basic maths, give me the £ number. Then justify having earnt that number.

I have paid advisors over the years - but for specific advice and for an agreed fee. The x% per year isn't for me. The last advisor I used is on here - it was specific advice around the optimum point to take DB pensions - I paid a 4 figure sum and told him at the end that I thought I'd got good value for money. I (kind of) understood the amount of work he'd done - I had my own ideas on what to do - he was able to lay it all out & enable me to come to a different conclusion - therefore a bargain.

Might be worth clarifying this a bit.

The investment management service I referenced to was just one example of a decent low-cost offering.

If I were to do this on a DIY basis I'd probably spend some time on sites such as Bogleheads and Monevator and read a few books (the usual suspects - Tim Hale, Lars Kroijer etc). It's not difficult - just requires an investment of time.

Voyant is a great cashflow planning tool that allows you to build a financial plan and easily allows you to evaluate "what-if" scenarios and optimise lifetime taxation (amongst other things).

Timeline (not sure if this is available to DIY investors) is a stress testing tool to create robust withdrawal strategies (more tricky to do with straight line modelling in Voyant)

https://www.timelineapp.co/

Not having a dig, and it's not the first time I've seen sequencing risk mentioned on the forum, but given the relatively modest market falls and inflation to date, surely a plan would've incorporated this (and worse?)

Carbon Sasquatch said:

Do you already have a proper plan in place ?

Carbon Sasquatch said:

Sequence of return risk is the concern right now

[GT3Manthey]

Just thinking one of the best parts I’m looking forward to is not praying for the weekend to come & instead wondering what day it is while busy enjoying retirement!

Tomorrows plan or example is an early bike ride followed by a sea swim at high tide mid morning then golf in tune afternoon.


Apart from the golf club subs the rest is free exercise!

[Jon39]

GT3Manthey said:

Have told the missus food bills & general top ups, we need to try and economise on .

That made me laugh.
Does ' the missus' react calmly, when receiving orders ? -

Fortunately I have been helped in Enjoying Retirement, by getting into the investment 'game' quite a long time ago.
Income during retirement is more and has grown faster, than when employed.
Makes life a little easier.

I suppose there might be a lesson there for us. Start as early as is possible.

[GT3Manthey]

Jon39 said:

That made me laugh.
Does ' the missus' react calmly, when receiving orders ? -

Fortunately I have been helped in Enjoying Retirement, by getting into the investment 'game' quite a long time ago.
Income during retirement is more and has grown faster, than when employed.
Makes life a little easier.

I suppose there might be a lesson there for us. Start as early as is possible.

To be fair she understands and is receptive.

Food waste is my pet hate so it works that we think a little more about what we are buying/using .

That said I’m sure she blows any extra cash on her hair cuts so it’s a small win followed by a lose !

Glad you’re enjoying your retirement

[Seventyseven7]

Anyone here retired relatively young, as in late 30’s to early 40’s? What’s your experience been like, how have you filled the time without working?

[superlightr]

Derek Chevalier said:

[
Timeline (not sure if this is available to DIY investors) is a stress testing tool to create robust withdrawal strategies (more tricky to do with straight line modelling in Voyant)

https://www.timelineapp.co/

Not having a dig, and it's not the first time I've seen sequencing risk mentioned on the forum, but given the relatively modest market falls and inflation to date, surely a plan would've incorporated this (and worse?)

Im confused - could you elaborate please- relatively modest market falls? YTD they are what 20% down? S & P 500 FTSE250 etc

If someone had put in their life savings say in December for trackers etc or even fed in over the last 12 mths from selling a business then this is a clearly a big sequencing issue/problem is it not?

Sure if you have been feeding in over the last 20 years then the YTD is a blip/drop but should not be a disaster. It would be if you had put a large sum in though last year. Yes we should have x years of cash in case of a poor/bad sequence of returns especially at the start but it not a good situation for sure and one that is hoped does not happen within a short time window of the investment.

Edited by superlightr on Friday 24th June 11:20

Edited by superlightr on Friday 24th June 11:21

Edited by superlightr on Friday 24th June 11:21

Edited by superlightr on Friday 24th June 11:22

[Jon39]

GT3Manthey said:

Jon39 said:

That made me laugh.
Does ' the missus' react calmly, when receiving orders ? -

Fortunately I have been helped in Enjoying Retirement, by getting into the investment 'game' quite a long time ago.
Income during retirement is more and has grown faster, than when employed.
Makes life a little easier.

I suppose there might be a lesson there for us. Start as early as is possible.

To be fair she understands and is receptive.

Food waste is my pet hate so it works that we think a little more about what we are buying/using .

That said I’m sure she blows any extra cash on her hair cuts so it’s a small win followed by a lose !

Glad you’re enjoying your retirement

You mean she goes to the barbers ladies high class coiffurist and hair stylist, and spends your money ! -

Yes I knew you would have a wonderful relationship and be able to provide 'helpful suggestions', which are well received. I get nagged sometimes, but ignoring it works just fine!

I see in your username a Porsche reference. I am into AMs, so know little about Ps, but have a friend who has always hillclimbed Porsches, including a Manthey version. Think he is using a GT2 at present.

Edited by Jon39 on Friday 24th June 11:43

[GT3Manthey]

Jon39 said:

You mean she goes to the barbers ladies high class coiffurist and hair stylist, and spends your money ! -

Yes I knew you would have a wonderful relationship and be able to provide 'helpful suggestions', which are well received. I get nagged sometimes, but ignoring it works just fine!

I see in your username a Porsche reference. I am into AMs, so know little about Ps, but have a friend who has always hillclimbed Porsches, including a Manthey version. Think he is using a GT2 at present.

Edited by Jon39 on Friday 24th June 11:43

The Manthey has gone now replaced with a couple of 996’s .
No idea why I bought two but there you go !

One will go next year, if not before, especially as retirement ( hopefully) looms .

Your mates clearly a lot braver than me especially in a mad GT2.

[RDMcG]

Jon39 said:

That made me laugh.
Does ' the missus' react calmly, when receiving orders ? -

Fortunately I have been helped in Enjoying Retirement, by getting into the investment 'game' quite a long time ago.
Income during retirement is more and has grown faster, than when employed.
Makes life a little easier.

I suppose there might be a lesson there for us. Start as early as is possible.

Also invested decades ago and last year was a banner year so , so major renovations on both houses, new Cayenne and a few other things. Covid restricted travel but it looks like no fun these days in any case.

I still do a fair bit of Board work and have been on five of them in last three years, usually to do restructuring / sale on behalf of investors. Personally need the mental stimulation/adrenalin so the work is also a hobby. Maybe 20 hours a week.

I suppose it will wind down at some point (am almost 74),
- have zero interest in massive organized holidays/cruises/resorts/TV/gardening/servicing my own car or any kind of home carpentry or the like,and not interested in golf clubs or any clubs.

Might fool around with the classic car world and will certainly continue my own version of holidays now and then…very long road trips/ offroading/race tracks though my next performance car will be my final addition in that space (992 GT3RS). At some stage will end up with some dumb self-driving electric appliance where I can tell it where to go and then settle in to read the paper.

Not yet though.

[The Leaper]

A downside day for being retired today....wife is dragging me to Bluewater for a shopping trip!

R.