I was updating the new ‘2015 Goals’ tab to the blog and I happened to flick over to my ‘Ultimate Goal’ tab.
There, I spotted a big fat error regarding my Future Fund and my Ultimate Goal!
I can’t believe it has been staring at me in the face since I started this blog but I didn’t notice!
Error
I could have just covered it up, quietly made amendments and hoped that no one would have noticed, that you would have been none the wiser.
But I would know and I’d only be cheating myself!
On my Ultimate Goal Page, I talk about saving “a minimum of £250k in 15 years“.
I then justify this amount by saying that I would:
” Live off £250k + rental income + stakeholder pension + money from any part-time jobs I fancy doing for seven five* years.“
However, I have been incorrectly including my stakeholder (private) pension in my Future Fund totals – DOH!
So after deducting the figure, my Future Fund at the end of 2014 is actually only £32,864.80 and not £43,001.78 as reported!
I’m just glad I spotted this now rather than later as it means I can amend my 2015 Future Fund goal now before any real damage has been done.
I’m going to have to reduce one of my goals, as otherwise, it would be a pretty impossible target.
So, Future Fund Goal 2015 – £60,000 £50,000, which will be 20% of my Ultimate Goal, still a good number to aim for.
Fairly certain I haven’t made any other boo-boos but I will double-check my figures at the weekend.
Good thing that you spotted the error and corrected it already. 🙂
Hi Tawcan, I know! Imagine if I hadn't spotted it until later in the year!!!
I can only echo what Tawcan said.
And that it's better to have an error (that's now been spotted 🙂 but be aiming for FREEDOM rather than having our heads in the sand and nothing to aim for!
It's oh so easy to do.
I scooted along merrily planning for months without registering that if I only worked to 58, I wouldn't have built up the same pension I would have had I worked to 66 – Doh!
Hi Weenie,
Good spot. I say that for you not for us lot. I made little errors in dividends and other figures I reported last year and it bugged the hell out of me as I prided myself on the accuracy of my reporting. At least you've found it and dealt with it now. £50,000 is a nice round number to shoot for too! (not to mention – snap!)
Huw
Yep, a plan (with some error) to aim is better than no plan whatsoever!
Hi Huw
Thanks. The error really bugged me and I needed to correct it asap, I too pride myself on the accuracy of my reporting, otherwise I think, why bother doing it at all!?
Yes, as I was changing the goal, I realised that it's the same as yours for this year – best pull my socks up then and try to keep up with you! 🙂
Isn't it just!
I did the same as you in my original calculation when I was trying to find out what my Future Fund needed to be, I hadn't factored in not working and not contributing towards my DB pension.
At the moment, it's guesswork but as I get closer, I should have a more accurate number.
At least you spotted it! £50k is still a GREAT number to be aiming for 🙂
Hi Laura, yes, I'm sooooo glad I spotted in now rather than later. £50k is a great number to go for and will be a real challenge!
Another good reason to have started your blog, I wonder how long it would have taken to notice that if it was just in a spreadsheet hidden away somewhere on your computer?
Glad you noticed sooner rather than later.
Quick question, how does the stakeholder pension work exactly? Is the ~£10000 you were adding on the final yearly payout you will receive or literally what you have in there in terms of capital right now (i.e. will be 10K * 0.04 = £400 yearly income from that using 4% rule) and you are adding to this as you go along as well?
Hi TFS, had my numbers just been hidden away on my computer, I may have discovered the error at some point but not so soon, so phew!
My stakeholder pension is just a private pension where I don't get to choose where my money is invested in – this was before I discovered (and had the confidence) to invest in a SIPP but I decided to continue paying into it. The £10k is what my fund is worth right now and will be subject to the current pension rules, ie take out 25% tax free from when I'm 55 if I wish. If I want to buy an annuity, the estimate at the moment is £550 a year, rubbish if that's just all that I will have to live on but something extra when I include my Future Fund savings. I only realised recently that I think I made a typo when I applied as I have this pension to pay out at age 56 (think I meant 65?). Options then when it ends sooner than expected!
I think you probably wouldn't have spotted this error without the blog. All hail the blog!
At least you found it in good time anyway, now you can work around the ramifications.
Cheers
Hi M, yes, I think you're right!
Weenie,
Good thing that you spotted that error because it could have had severe consequences much later on!
Too bad your freedom fund is now lower, but I'm sure you'll get to £250,000 anyway, so not a big deal in the long-run.
Keep it up,
NMW
Hi NMW, yes my fund is lower than I thought it was but it's a bigger challenge to go for now so need to ensure I hit those goals! Thanks for stopping by and for your support!
Good thing you spotted that right away, Weenie. Although it's lower, I'm sure you'll be up on your target this year. Good luck!
Thanks for the vote of confidence and for stopping by, FinanceQA!