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Hitting the million
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- 2 Lemon pips
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Hitting the million
I have just done the sums and, right now I've made it
Total NW: 2.25m
Cash or equivalent : 130K
Shares: 220K
Funds: 670K
Total: 1.02m
All held in a mixture of SIPP, ISA and free held.
DB Pension (HMRC Value): 410K
Real Estate: 825K
I am 54 and feel that I have achieved FIRE. I will echo previous poster's comments that the main reason is living within your means and hard work. This is made much easier with an (overpaid) job, (despite my lack of qualifications blown A levels in my case)
The next task is to plan for the dream. I am happy to quit work, but on my terms and with as much of a payoff as I can negotiate.
Having my own house built, I know which house. I just need to sort out where and get it done, aided by a 14 years-to-maturity offset mortgage facility (currently fully offset with a mixture of Cash ISA and cash).
Elderly relatives, kids and friends and local community ties are all considerations but we know what we want.
Regards
Pheid
(by "I" - I mean "we", Mrs Pheid and me)
Total NW: 2.25m
Cash or equivalent : 130K
Shares: 220K
Funds: 670K
Total: 1.02m
All held in a mixture of SIPP, ISA and free held.
DB Pension (HMRC Value): 410K
Real Estate: 825K
I am 54 and feel that I have achieved FIRE. I will echo previous poster's comments that the main reason is living within your means and hard work. This is made much easier with an (overpaid) job, (despite my lack of qualifications blown A levels in my case)
The next task is to plan for the dream. I am happy to quit work, but on my terms and with as much of a payoff as I can negotiate.
Having my own house built, I know which house. I just need to sort out where and get it done, aided by a 14 years-to-maturity offset mortgage facility (currently fully offset with a mixture of Cash ISA and cash).
Elderly relatives, kids and friends and local community ties are all considerations but we know what we want.
Regards
Pheid
(by "I" - I mean "we", Mrs Pheid and me)
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- Lemon Slice
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Re: Hitting the million
Well done.
curious to know a bit more about the DB valuation. what income will it provide you with and when? Also, why no equivalent valuation for the state pension?
Personally, I prefer to account for my income promises (DB and state pensions) separately from my wealth. They have the effect of reducing the amount of income I need my invested assets to provide.
curious to know a bit more about the DB valuation. what income will it provide you with and when? Also, why no equivalent valuation for the state pension?
Personally, I prefer to account for my income promises (DB and state pensions) separately from my wealth. They have the effect of reducing the amount of income I need my invested assets to provide.
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- 2 Lemon pips
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Re: Hitting the million
WRT DB - I am happy to share my numbers:
Me:54 Jan-20
Mrs Pheid: Mar-19
Thus p.a.:
Jan-25 - 8,816 (DB Pheid, age 60)
Mar-29 - 11,800 (DB Mrs Pheid, age 65)
Mar-31 - 5,945 (SP Mrs Pheid, age 67)
Jan-32 - 10,033 (SP Pheid, age 67)
Monthly:
Jan-25 - 735
Mar-29 - 836
Mar-31 - 495
Jan-32 - 835
Thus the agg. DB is ~412K (20 x 8.8 + 20 x 11.8)
Total LTA = ~91%
I hope my numbers are good...
Regards
Pheid
Me:54 Jan-20
Mrs Pheid: Mar-19
Thus p.a.:
Jan-25 - 8,816 (DB Pheid, age 60)
Mar-29 - 11,800 (DB Mrs Pheid, age 65)
Mar-31 - 5,945 (SP Mrs Pheid, age 67)
Jan-32 - 10,033 (SP Pheid, age 67)
Monthly:
Jan-25 - 735
Mar-29 - 836
Mar-31 - 495
Jan-32 - 835
Thus the agg. DB is ~412K (20 x 8.8 + 20 x 11.8)
Total LTA = ~91%
I hope my numbers are good...
Regards
Pheid
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- Lemon Slice
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Re: Hitting the million
Pheidippides wrote:
Total LTA = ~91%
Not clear how that figure came about, even if SP included (erroneously).
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- Lemon Slice
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Re: Hitting the million
Re LTA - I don’t think the OP gave enough information to work out LTA - we don’t know how much is in SIPP(s) and what is held by him vs MrsP.
Thanks for the DB breakdown. As I’m sure you know, the tax free cash also counts towards the DB valuation (if you are taking any). It’s a nonsense valuation though isn’t it? (I understand you’ve done it according to LTA rules) It uses the same valuation calculation regardless of when benefits start (clearly a start point of 60 is more valuable than 65 or state pension age) and if it were based on market annuity rates the factor would be more like 30x (depending on the age and other features of the pension).
So I’m not sure what it adds to a net worth valuation other than as a theoretical exercise.
Thanks for the DB breakdown. As I’m sure you know, the tax free cash also counts towards the DB valuation (if you are taking any). It’s a nonsense valuation though isn’t it? (I understand you’ve done it according to LTA rules) It uses the same valuation calculation regardless of when benefits start (clearly a start point of 60 is more valuable than 65 or state pension age) and if it were based on market annuity rates the factor would be more like 30x (depending on the age and other features of the pension).
So I’m not sure what it adds to a net worth valuation other than as a theoretical exercise.
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Re: Hitting the million
Pheidippides wrote:I have just done the sums and, right now I've made it
Total NW: 2.25m
Cash or equivalent : 130K
Shares: 220K
Funds: 670K
Total: 1.02m
All held in a mixture of SIPP, ISA and free held.
DB Pension (HMRC Value): 410K
Real Estate: 825K
I am 54 and feel that I have achieved FIRE. I will echo previous poster's comments that the main reason is living within your means and hard work. This is made much easier with an (overpaid) job, (despite my lack of qualifications blown A levels in my case)
The next task is to plan for the dream. I am happy to quit work, but on my terms and with as much of a payoff as I can negotiate.
Having my own house built, I know which house. I just need to sort out where and get it done, aided by a 14 years-to-maturity offset mortgage facility (currently fully offset with a mixture of Cash ISA and cash).
Elderly relatives, kids and friends and local community ties are all considerations but we know what we want.
Regards
Pheid
(by "I" - I mean "we", Mrs Pheid and me)
Well done.
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Re: Hitting the million
Thank you for the summary! I think it`s great to summon your main achievements this way, I hope I will be able to do the same in a couple of years after I become a more professional investor.
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- Lemon Pip
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Re: Hitting the million
> Mar-31 - 5,945 (SP Mrs Pheid, age 67)
My wife has been self employed for many years and shows about £100 on her tax return for this. They are then happy for her to pay about £140 pa in Class 2 NI to qualify for another year of state pension. She's worked for about five years total in her life and will qualify for a full state pension. Under the new rules this is about 40% more than before as S2P has gone.
My wife has been self employed for many years and shows about £100 on her tax return for this. They are then happy for her to pay about £140 pa in Class 2 NI to qualify for another year of state pension. She's worked for about five years total in her life and will qualify for a full state pension. Under the new rules this is about 40% more than before as S2P has gone.
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- Lemon Slice
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Re: Hitting the million
I agree it would be cost effective to improve Mrs Ps state pension. Even if you just pay the voluntary NICs, without claiming self employment, it’s highly likely to be worthwhile.
With your DB pensions it’s likely you would then each have enough bullet proof income to keep you into your dotage - in 30 years time you might be very glad of the simplicity.
When’s the retirement party
With your DB pensions it’s likely you would then each have enough bullet proof income to keep you into your dotage - in 30 years time you might be very glad of the simplicity.
When’s the retirement party
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