Daddy Ireland
Registered User
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- 458
We have the money, their mother did that but has decided that she didn't want her children to have to ...........I find this enabled helplessness and cosseting of adult children slightly bizarre; let them pay for it themselves with a combination of part-time income and a loan ergo early retirement might be more realisable.
Freelance - If ever you and I are in the south of Spain at the same time . . . . you're welcome on our terrace at around 1.15pm any day and I'll supply the wine. I bet the conversation would be entertaining.
Congrats @Freelance on your enviable financial position
And well done for planning so well!
1)In relation to the the taking of the drawdown ( from fund growing Gross of tax ) up to 33k wondering what you used to decide better to do this rather than using the cash pile ( growing minus tax)
Asking as will be in similar position on this point
2) re taking the 300k @ 20% was there any (internal ) argument with yourself whether to take or not ( I probably won't be impacted as not much over 800k but here is hoping !)
3) did you disregard state pension or assume you will get full ?
Thanks
Taking a lump sum of €500k would suggest that you retired a pension pot of at least €2m. If that's correct, would imputed distributions not effectively force you to draw down more than €33k pa?
1 - Tax - I wanted to fully utilize my 20% annual allowance. It’s is likely that any income I don’t take now will be at 40% in the future.
2 - Not really, though one of the pension guys could not get his head around it and kept trying to talk me out of it. In my mind I didn’t ever regard it as a fundamental part of my pension plan. Rather it was a tax efficient savings scheme, and I had an investment opportunity lined up for it the day it landed.
3 - It was factored in from the start and I expect to receive it (in full) when I reach 67. That was another reason for taking the annual 33k now as the state pension is taxable and that plus any pensions I am drawing down will definitely go over the 20% threshold.
I hope that this all makes sense and answers your questions.
Ditto!Hated paying interest, fees, parking charges, etc
Some regrets, made lots of mistakes and wrong decisions along the way but recovered well.
I retired at 50. I am now 67.
I married early at 23. Owned my first house at 23 with mortgage. Sold that and bought larger house in better location at age 29 with mortgage. I had 3 children by age 30.
Moved house again at age 42. Bought larger detached house with mortgage in sought after area that increased rapidly in value. Teenagers and older at this stage all had own bedrooms.
Over the years I have always cleared my mortgages early by paying in additional funds from salary and bonuses etc. Always shopped around for "deals" in everything I did. Hated paying interest, fees, parking charges, etc
Both myself and my wife live simple enough lives. No big cars, bling, clothes labels, no cigarettes, light drinkers. no golf clubs, expensive hairdressers, nail bars etc. Make do and mend. Look after my own garden, clean my own windows, cars. But still enjoyed ourselves. Children all happy.
Our weakness was travel where we had lots of holidays. All D.I.Y.
We were lucky that there was free education when our children were growing up so University was effectively free with no fees, grants etc. All our children got jobs and were able to look after themselves.
Hated work. Jumped when given the chance on redundancy with deferred pension. My wife continued to work part time. So lots of time together.
Mortgage cleared within 3 years of finally leaving work. House very valuable. Always knew that I could downsize if needed and release large funds.
Inherited funds when parents died over 6 years ago. Still have this money, never really needed it but gives us great sense of security.
Now receiving deferred pension of €20k plus two by State pensions. Total income about €42k, plenty to live on. Plenty.
Looking back, moving house was a good decision. Paying down debt and not wasting money needlessly was a good decision. We were definitely lucky along the way.
Since retiring we have continued in this vain but we have increased the number of holidays, meals out (not fancy).
I suppose we live a simple life and always have done. Grateful for all we have. Some regrets, made lots of mistakes and wrong decisions along the way but recovered well.
Our future is more of the same and being able to help our grown up children financially, when they need it now gives great satisfaction.
odea retired at 50 and 17 years later he is just sharing how he was lucky, made much of his own luck. He and his wife have been thrifty. They did nothing dishonest and fair play succeeded in what they set out to do.
Allpartied, Most of us can't think 30 days ahead, never mind 30 years. You're only 20. Enjoy life and don't think about retiring for another 30 years.
@Laughahalla can i ask how did you calculate that, whats the formula? Forgive my ignorance.
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