• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Retirement at 50 - how much would you need in your warchest?"

Collapse

  • Old Hack
    replied
    Originally posted by Old Greg View Post
    Experienced but ageing toilet trader

    Leave a comment:


  • Old Greg
    replied
    Originally posted by Old Hack View Post
    Should that not be the assguru scale?
    I'm afraid that hints as to the reality of Sas's retirement can be found here. Urban Dictionary: assguru

    Leave a comment:


  • Old Hack
    replied
    Originally posted by DimPrawn View Post
    Bootiful.



    I prefer a retirement on the Bliar scale. You know, super yachts, private islands, that sort of thing. All the World's hyper crims are retiring in this manner.....
    Should that not be the assguru scale?

    Leave a comment:


  • rambaugh
    replied
    As an early retirement strategy has anyone mentioned retiring abroad in a country where you will have greater spending power.

    I recall a former colleague who retired in Thailand and he was 50 or thereabouts. I suppose you'd get lots of sun, sea, cheap massages, food, etc

    Leave a comment:


  • DimPrawn
    replied
    Originally posted by Old Hack View Post
    I rear turkeys every year. I did 10 last year, gave 3 to family, kept one myself, and sold the other 6. They cost me £200 and some tooing and fromming to feed and clean. I sold the six for £420.

    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.
    Bootiful.



    I prefer a retirement on the Bliar scale. You know, super yachts, private islands, that sort of thing. All the World's hyper crims are retiring in this manner.....

    Leave a comment:


  • Old Hack
    replied
    Originally posted by Old Greg View Post
    But who wants to live on turkey piss?
    I rear turkeys every year. I did 10 last year, gave 3 to family, kept one myself, and sold the other 6. They cost me £200 and some tooing and fromming to feed and clean. I sold the six for £420.

    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.

    Leave a comment:


  • Old Greg
    replied
    Originally posted by Old Hack View Post
    I 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.
    But who wants to live on turkey piss?

    Leave a comment:


  • Old Hack
    replied
    Originally posted by KaiserWilly View Post
    Assuming 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.
    I 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.

    Leave a comment:


  • ctdctd
    replied
    Originally posted by SimonMac View Post
    Again you are missing the whole inflation factor, what will £12k a year be worth in 10 or 15 years?
    No he's not - he is assuming the capital will keep pace with inflation with the dividend providing the income.

    Leave a comment:


  • SimonMac
    replied
    Originally posted by IR35 Avoider View Post
    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.)
    Again you are missing the whole inflation factor, what will £12k a year be worth in 10 or 15 years?

    Leave a comment:


  • IR35 Avoider
    replied
    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.

    Leave a comment:


  • d000hg
    replied
    Originally posted by SimonMac View Post
    To be honest if you are choosing prostitutes that charge that little your life expectancy isn't your biggest problem
    You don't know how often they are visiting - £100/month could be the amortised monthly budget for one who visits once every 3 months, conversely he might see a real skank once a week.

    Leave a comment:


  • SimonMac
    replied
    Originally posted by KaiserWilly View Post
    Assuming 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 GBP
    To be honest if you are choosing prostitutes that charge that little your life expectancy isn't your biggest problem

    Leave a comment:


  • EternalOptimist
    replied
    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

    Leave a comment:


  • Sysman
    replied
    Originally posted by d000hg View Post
    Interesting point someone made about getting solar to reduce further your actual expenditure. Saving £50/month now might not seem much but when you are living off your savings, it might be a big deal.

    Of course for that you need a house you plan to stay in forever and that's a big assumption.
    Watch out for some future government scheme to steal your house from you.

    Leave a comment:

Working...
X