Investments, stocks, shares

[Tommy G]

2 minutes ago, Izzy said:

I’m 50 in a few weeks and plan to retire at 57 

 

I’m lumping as much as I can each year into my SIPP (while also paying off what’s left of the mortgage plus two expensive teenagers!)

 

Hope to have about £600k in there by 2030 which should hopefully last me until I’m 75 (I’ve no intention of living longer than that tbh)

Plenty especially if you don't have a mortgage. 

[Tommy G]

On 09/03/2023 at 14:06, weller54 said:

I do diversify..

LGEN are a part of my portfolio, but they're a good solid, high dividend paying Company.... Share price today 264p... which I believe is undervalued...

A great place to put savings IMO.

Down at 228p today 

[Izzy]

Just now, Tommy G said:

Plenty especially if you don't have a mortgage. 

Hope so, and worst case it all goes to the wife/kids if I pop my cloggs early 

[weller54]

1 minute ago, Tommy G said:

Down at 228p today 

Screaming BUY !! 

[Paninistickers]

41 minutes ago, Izzy said:

I’m 50 in a few weeks and plan to retire at 57 

 

I’m lumping as much as I can each year into my SIPP (while also paying off what’s left of the mortgage plus two expensive teenagers!)

 

Hope to have about £600k in there by 2030 which should hopefully last me until I’m 75 (I’ve no intention of living longer than that tbh)

Off on a tangent, but I'm undecided on how retirement will suit me

 

Right now, work forms a huge part of my life. I don't mean I'm a workaholic hard worker (I'm not, I'm lazy af) but a large chunk of my social life, travels and even occasionally dating life is based around work. The work bit I could take or leave. 

[Izzy]

18 minutes ago, Paninistickers said:

Off on a tangent, but I'm undecided on how retirement will suit me

 

Right now, work forms a huge part of my life. I don't mean I'm a workaholic hard worker (I'm not, I'm lazy af) but a large chunk of my social life, travels and even occasionally dating life is based around work. The work bit I could take or leave. 

I think retirement is a very personal choice and everyone’s circumstances are different. For me, I started full time work aged 16 so I’ll have done 41 years by 57 and that feels enough for me.

 

Also, my health isn’t good so I probably wouldn’t have the energy to work past 57 even if I wanted to.

 

I know people who absolutely love retirement but others who’ve lost their identity and are bored shitless.

 

It’s a big decision to make.

 

Edited 2 August 2023 by Izzy

[Lako42]

AIM having a nice little recovery recently. 

[FoyleFox]

3 hours ago, Tommy G said:

Plus don't forget if you decide to do a drawdown on a pot of money whether a pension or an ISA or whatever form, the residual doesnt stop growing. If you have a 100K for arguments sake and drawn £10K a year for 10 years, it will probably last 11 years because of the continued growth on the undrawn amount. 

Exactly this, if @Paninistickerstook £100k from the share of the house and banked it, split between high interest F/R savings, IA savings and ISA'S, the interest pa mounts up and extends the life of the pot.

 

Having liquidated an asset recently, I've been doing similar planning. Initially, I was allocating things like £15k every 4 years for a car and £15k pa for holidays, to see when the pot ran out, I completely forgot to add back in the £Xk in interest. Which, based on current rates isn't insignificnt. Obviously, people are hopeful of interest rates coming down, but you can only use the current rates for now.

[Babylon]

4 hours ago, weller54 said:

Big difference between budgeting for a basic (mere survival) living pension and one that gives you at least a bit of comfort in your old age!.... 

Need to factor in whether you have grandkids, a pet, some interests when you retire (eg play Golf), have a weeks holiday etc ... Yes, you can 'survive' on £1200-1500 a month, but realistically it's a lot more than that and I'm speaking from experience. 

I don't think I spend half of that now. 

[Lako42]

32 minutes ago, FoyleFox said:

Exactly this, if @Paninistickerstook £100k from the share of the house and banked it, split between high interest F/R savings, IA savings and ISA'S, the interest pa mounts up and extends the life of the pot.

 

Having liquidated an asset recently, I've been doing similar planning. Initially, I was allocating things like £15k every 4 years for a car and £15k pa for holidays, to see when the pot ran out, I completely forgot to add back in the £Xk in interest. Which, based on current rates isn't insignificnt. Obviously, people are hopeful of interest rates coming down, but you can only use the current rates for now.

 

If you spend £15k a year on holidays then the interest isn't going to be doing much before long

[weller54]

33 minutes ago, Babylon said:

I don't think I spend half of that now. 

Ooooo you tight bas*ard! 😂

[Babylon]

Just now, weller54 said:

Ooooo you tight bas*ard! 😂

Ha ha I prefer the term frugal. 

 

I'm probably exaggerating. Household stuff £500 a month, Car £60, Lunch £80 Takeaway £40, Meal out £50. Few bits and pieces... can't be much over £1000 a month though (that's just me, not the Mrs part).

[Babylon]

I'd just transferred my S&S ISA to a Cash ISA, a couple of sluggish years growth and I've just decided to fix it and take the guaranteed interest for a while and enjoy the money. 

 

Not a particularly long term view, but I've always been a good saver and I've reached that point where I don't need to save any more (pension aside). So I'm just going to splash the cash for a bit I reckon. 

[Tommy G]

43 minutes ago, FoyleFox said:

Exactly this, if @Paninistickerstook £100k from the share of the house and banked it, split between high interest F/R savings, IA savings and ISA'S, the interest pa mounts up and extends the life of the pot.

 

Having liquidated an asset recently, I've been doing similar planning. Initially, I was allocating things like £15k every 4 years for a car and £15k pa for holidays, to see when the pot ran out, I completely forgot to add back in the £Xk in interest. Which, based on current rates isn't insignificnt. Obviously, people are hopeful of interest rates coming down, but you can only use the current rates for now.

On the flip side you are battling with inflation headwind - which also recently hasn't been insignificant.... £100 today will be worth between £90-£95 in 12 months etc. That's always been there and something to also consider.

[Tommy G]

Just now, Babylon said:

I'd just transferred my S&S ISA to a Cash ISA, a couple of sluggish years growth and I've just decided to fix it and take the guaranteed interest for a while and enjoy the money. 

 

Not a particularly long term view, but I've always been a good saver and I've reached that point where I don't need to save any more (pension aside). So I'm just going to splash the cash for a bit I reckon. 

Thats the point at a certain age isn't it? To enjoy it. With the security knowing if it all went wrong you have a cushion. Why people who still ''save'' at 60 odd because ita the right thing to do, it's bulls*it and such an odd way of looking at life. At that age your assets and cash should be getting smaller, either by spending or handing it down to kids, charity etc. You can't spend it when you've pegged it.

[weller54]

6 minutes ago, Babylon said:

Ha ha I prefer the term frugal. 

 

I'm probably exaggerating. Household stuff £500 a month, Car £60, Lunch £80 Takeaway £40, Meal out £50. Few bits and pieces... can't be much over £1000 a month though (that's just me, not the Mrs part).

The missus must be running at circa £3k then? 😂

[weller54]

2 minutes ago, Tommy G said:

Thats the point at a certain age isn't it? To enjoy it. With the security knowing if it all went wrong you have a cushion. Why people who still ''save'' at 60 odd because ita the right thing to do, it's bulls*it and such an odd way of looking at life. At that age your assets and cash should be getting smaller, either by spending or handing it down to kids, charity etc. You can't spend it when you've pegged it.

... What happens if you spend it all by 65 and live to a 100?

[Tommy G]

Just now, weller54 said:

... What happens if you spend it all by 65 and live to a 100?

Theres a balance - most people will have a state pension they can fall back on, in reality when you are 75+ you don't have many outgoings, eat less, go out less, drive less, holiday less. I've seen it happen to both sets of my grandparents, swimming in cash and assets but lived like it was WW2. It's a generational thing, but (as a finance professional!!) I'd say enjoy it before 75ish.

[Babylon]

5 minutes ago, Tommy G said:

Thats the point at a certain age isn't it? To enjoy it. With the security knowing if it all went wrong you have a cushion. Why people who still ''save'' at 60 odd because ita the right thing to do, it's bulls*it and such an odd way of looking at life. At that age your assets and cash should be getting smaller, either by spending or handing it down to kids, charity etc. You can't spend it when you've pegged it.

I'm 44, not got one foot in the grave 

 

I'll still be saving in different forms (pension), in terms of cash assets, without sounding too much of a dic*head... I don't need any more for my lifestyle right now!

[Tommy G]

Just now, Babylon said:

I'm 44, not got one foot in the grave 

 

I'll still be saving in different forms (pension), in terms of cash assets, without sounding too much of a dic*head... I don't need any more for my lifestyle right now!

No I get that and aim to be in that position 10 years from now myself tbh. 

[Babylon]

8 minutes ago, weller54 said:

The missus must be running at circa £3k then? 😂

Ha ha She'd like to... I'd imagine it's less than mine as she's a stay at home mum!

[Babylon]

5 minutes ago, weller54 said:

... What happens if you spend it all by 65 and live to a 100?

As Tommy said, balance. Whilst I might not be seeking investment returns right now after a few average years. Hundreds of pounds of month in guaranteed interest is quite appealing, enjoy it for a while (yeah inflation is battering the cash I know that). But I just fancy enjoying it for a while. 

 

Thankfully even when I "retire" in my line of work I can still earn cash here and there. I think my retirement will just be running down my client base to a few easy going clients that are easy to manage. Just to tick things over, get a bit of spare cash doing a couple of hours work a day. 

[stretch1965]

I didnt start paying into a pension properly til around 12 years ago. As I'm nearly 58 and would like to clock out at 65 I'm chucking as much as I can into my works pension through salary sacrifice. My last two pay rises have gone directly into this.our works accountant says it is a good way go top it up. Anyone else have any thoughts on this?

[Tommy G]

2 minutes ago, stretch1965 said:

I didnt start paying into a pension properly til around 12 years ago. As I'm nearly 58 and would like to clock out at 65 I'm chucking as much as I can into my works pension through salary sacrifice. My last two pay rises have gone directly into this.our works accountant says it is a good way go top it up. Anyone else have any thoughts on this?

Salary sacrifice is the most tax efficient as you dont pay national insurance on the salary you are sacrificing (the employer doesn't either) You can also make a lump sum payment into your pot should you need to (if you got inheritance, lump sum, extra cash floating about etc etc) Given you are 58 depending on the type of pension you can draw it now anyway so access isn't a problem. From a tax break point of view I'd chuck as much as you can in there given your age , you can contribute up to £60K a year now including ers.   

[weller54]

43 minutes ago, Babylon said:

Ha ha She'd like to... I'd imagine it's less than mine as she's a stay at home mum!

What about hair care costs though??... 

The amount women spend on their barnets is fvcking insane!!! 🤬