Originally posted by d000hg
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Retirement at 50 - how much would you need in your warchest?
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Behold the warranty -- the bold print giveth and the fine print taketh away. -
I worked out that I would need 330k. but thats assuming I live frugally and do a bit of work now and then, before the pension kicks in(\__/)
(>'.'<)
("")("") Born to Drink. Forced to WorkComment
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Originally posted by KaiserWilly View PostAssuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:
Food 300 GBP
Utilities 50 GBP
Gasoline 25 GBP
Internet 15 GBP
Prostitutes 100 GBPOriginally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
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Originally posted by SimonMac View PostTo be honest if you are choosing prostitutes that charge that little your life expectancy isn't your biggest problemOriginally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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There is a recently-launched Vanguard tracker fund that invests in the half of the world index that pays the highest dividends, the dividend yield was 4% at the end of March. Taking that as a rough benchmark, and assuming 12K would probably be a minimum needed to pay the bills, then 12K/4% = 300K is the minimum you need.
In practice you need to allow for dividends to temporarily halve if there were a global recession, so aim for 600K and have 12K surplus/disposable income during normal/good times.
On average over the very long-term you income should keep up with inflation, but you do need to vary spending with fluctuations in the economy.
I estimated the smoothed earnings yield on that Vanguard fund at slightly over 5%, so on the basis that you're not spending all the underlying returns, in fact your income should grow by a little more than inflation, on average over the very long term.
Note that I haven't assumed spending capital, so this plan will work for any length of retirement, including forever if a vaccination against death were to become available. (For reasons it would take too long to explain, for retirements longer than 30 years I don't believe you could safely take more income at the start, by using a plan that involved running down capital.)Last edited by IR35 Avoider; 30 July 2013, 18:32.Comment
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Originally posted by IR35 Avoider View PostThere is a recently-launched Vanguard tracker fund that invests in the half of the world index that pays the highest dividends, the dividend yield was 4% at the end of March. Taking that as a rough benchmark, and assuming 12K would probably be a minimum needed to pay the bills, then 12K/4% = 300K is the minimum you need.
In practice you need to allow for dividends to temporarily halve if there were a global recession, so aim for 600K and have 12K surplus/disposable income during normal/good times.
On average over the very long-term you income should keep up with inflation, but you do need to vary spending with fluctuations in the economy.
I estimated the smoothed earnings yield on that Vanguard fund at slightly over 5%, so on the basis that you're not spending all the underlying returns, in fact your income should grow by a little more than inflation, on average over the very long term.
Note that I haven't assumed spending capital, so this plan will work for any length of retirement, including forever if a vaccination against death were to become available. (For reasons it would take too long to explain, for retirements longer than 30 years I don't believe you could safely take more income at the start, by using a plan that involved running down capital.)Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
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Originally posted by SimonMac View PostAgain you are missing the whole inflation factor, what will £12k a year be worth in 10 or 15 years?Comment
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Originally posted by KaiserWilly View PostAssuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:
Food 300 GBP - Really, for one person? I reckon £200 tops, especially an elderly person
Utilities 20 GBP - see below
Bus pass is free.
Internet Probably be canned with line by then.
Turkeys piss easy to rear and kill. Cheap too. £18 should net you a big bastard, which would do many, many meals.
Chickens pay for themselves.
2 acres of willow woodland will keep a home in firewood and cooking wood in perpetuity
Solar and PV will pay for 25 years.
Ground source heat pumps will pay for 25 years.
A combination of the above will see you neutral on energy bills.
State pension is currently £144 a week, or say £650 a month.
You could save money, to be frank. My parents are pensioners, and with tiny bills, and hardly any outgoings, they save money, lots of it.Comment
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Originally posted by Old Hack View PostI reckon, if you plan your garden, you can grow pretty much 50% of what you need. More so if you don't mind what you eat.
Turkeys piss easy to rear and kill. Cheap too. £18 should net you a big bastard, which would do many, many meals.
Chickens pay for themselves.
2 acres of willow woodland will keep a home in firewood and cooking wood in perpetuity
Solar and PV will pay for 25 years.
Ground source heat pumps will pay for 25 years.
A combination of the above will see you neutral on energy bills.
State pension is currently £144 a week, or say £650 a month.
You could save money, to be frank. My parents are pensioners, and with tiny bills, and hardly any outgoings, they save money, lots of it.Comment
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Originally posted by Old Greg View PostBut who wants to live on turkey piss?
We ate turkey for 6 days, that's 5 people. I even froze some and then threw it away. Cheap as chips as far as food goes.Comment
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