Retirement Conversations

Just a random post to share a few recent conversations I’ve had about retirement:

Conversation #1

I had a routine medical appointment the other day and was attended by the same nurse I’ve been seeing for a while.

When I saw her, I made a comment about her not wearing her usual glasses.

She proceeded to tell me how she had finally gotten round to having a minor operation on her eyes, which meant that she no longer needed her glasses.

The reason why she was able to have the time to have the operation and recover from it? She’d dropped to part-time hours, or as she revealed in our ensuing conversation, she’d gone into semi-retirement (Is there a difference? I don’t know, I’m just repeating what she said).

I realised then that she didn’t look different just because she wasn’t wearing her glasses, it was because she looked a lot happier and relaxed!

She told me that after a 30-year career with the NHS, she still wasn’t mentally ready for full retirement but that at age 55, she was drawing on part of her pension and that this, coupled with her part-time wages was enough for her to live on and pay for her holidays and hobbies.

Conversation #2

One of my neighbours semi-retired a year ago when she was 53.

The last time we spoke, she was working part-time for a non-profit organisation.

I hadn’t seen her in a while so when I spotted her unpacking some shopping from her car the other day, I stopped for a chat and asked her how things were going.

“Oh I’ve jacked in my part-time hours,” she told me.

“Why’s that?” I asked.

“I’m too busy to work! Too much to do, too many places to visit!” she replied.

Work/Semi-Retire/Early Retire

So that’s just two examples of people who are very happy with the decision they’d made as regards retirement/semi-retirement, and although not extremely early retirement, still early in that state pension won’t be available til they are 65.

However, I wonder how easy it was for them to make that decision? Unfortunately, I didn’t feel that it was something I could ask either of them!

Which brings me to all the kerfuffle going on about early retirees changing their minds (nicely put in this excellent post by Monevator).

Who really knows what they will do when the time comes (unless you absolutely hate your job, in which case it’s clear what you will do!) and you reach your financial goals?

Jim from SMHD tried the early retirement thing and decided to go back to work.

Early retirement is not for everyone,  even for those planning for it!

There’s every chance that instead of going for early retirement when I reach my FI number, that I may choose to work reduced hours. However, like my neighbour, I may find that even part-time hours will get in the way of me enjoying my new found freedom properly!

Or I may actually go for full retirement, which sounds very appealing when I’ve had a tough week at work and wish every weekend was a bank holiday weekend.

Or I might continue working (one more year?), which is how I feel when I’ve had a good day at work, had a great laugh and felt like I’ve achieved and contributed loads. (Yes really, I do have good days!).

I have no idea how I will feel when the time comes to pull that retirement trigger but the most important thing is that I will get to choose what I want to do.

There was a third conversation I had:

Conversation #3

Bumped into an ex-colleague at the gym. She’s still at the company which made me redundant and things seem to be going well for her.

While we were chatting, she revealed that her husband had retired some months earlier.

“When will you be retiring?” I asked her, knowing that she was in her mid-50s.

“I’m not,” she replied, “It would do my head in sitting at home with him all day! I go to work to get away from him, the weekends are enough!”

She was joking…I think!

And Another Thing

The nurse and my neighbour? Both single (one divorced) which cements in my mind that I’m fine going it alone, since it appears that most people aiming for FI are married or with significant others, helping them build their FI pot, sharing expenses.

Not that I’m intentionally staying single (or plan to stay single for long…ooooh!) but if things don’t work out on that front, I’ll be just fine! 😉

And on that note, have a great weekend all!

Where you’ll probably find me at some point on Saturday night…

March 2018 Savings, plus other updates

Sorry, you’re probably getting fed up seeing this image again but I’m not! 🙂 Another premium bond win of £25 means three wins in a row (a ‘Turkey‘, if I was ten pin bowling!), a record for me!  Can I make it a four-bagger!?

At work, it was decided that despite the company not hitting their global year-end target, we would still be paid a bonus. That bonus was a whopping 1% but hey, I’m not complaining as that’s still more than zero. Anyway, with nothing better to do with it, I’ve invested the full bonus amount.

So, how did that affect my savings this month?

I saved 56.6%! My average savings rate has now gone up to 53%.  I however still haven’t gotten round to booking my holiday, plus I have a super-busy social calendar in April so the high rate may provide me with a bit of a cushion when my rate drops over the next month or so!

The above savings was topped up with my £25 Premium Bonds win, £62.81 affiliate income from OddsMonkey (thanks to all who signed up via my links!), £300 matched betting profits and £50 rent received.

As I don’t earn enough to max out my ISA (the max being £20k in a tax year), this past week has been spent shaking down piggy banks and scrabbling behind the sofa to find anything to top it up before the end of the tax year, due to the ‘use it or lose it’ factor.

I managed to find a bunch of old £1 coins so these have been banked – every pound counts and they went towards helping me pay £15k into my ISA. Last year, I managed this amount with the help of some of my redundancy pay (when the max for an ISA was £15k) so I’m really chuffed with this achievement.

I’m sure some of you might be wondering why I’m also paying into my Emergency Fund instead of concentrating on my ISA – well, I took a chunk out for ’emergencies’ last year so need to top it back up. Once I get it back up to >3 month’s worth of expenses again, I can chuck more into my ISA.

Shares and Investment Trusts

I started investing in HICL Infrastructure Company Ltd this month. Think that’s it for new investments for a while, I’ll just top up existing ones for the rest of the year.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

Wobbly markets again apparently. As before, I didn’t follow the daily ups and downs, just got the month-end figure for my update. My Future Fund stands at £130,574 – it’s down 1% from last month, but whatever, I’ll just continue investing as normal.

Dividends and Other Income

Dividends received this month: Continue reading

My Mum Retired at 42

Actually, the above title isn’t quite true, since my Mum came out of retirement a year later (due to boredom as all her friends were still working) to work another 5 years before she and my Dad (who is 9 years older) finally called it a day. So, she retired for good at 47.

Retiring at such an early age was (and is still) a massive achievement by most people’s standards.

Forgetting Valuable Lessons

Despite my parents’ achievement, it never occurred to me that early retirement was something I could even remotely consider. That realisation only dawned on me when I came across the FIRE community in 2014. Before then, I didn’t think someone like me would be able to retire early unless I won the lottery.

I don’t know why but I forgot some valuable lessons.  How my parents were really good at saving money and how they made use of TESSAs (Tax-Exempt Special Savings Accounts) and PEPs (Personal Equity Plans), the 90s and 00s versions of today’s S&S ISAs.

My parents didn’t win the lottery or benefit from any inheritance –  they ran their own business and grafted to make it successful, made ends meet whilst bringing up the family. They did have some luck during the boom years in the late ’80s/early ’90s, investing in and making money from a couple of properties.

My Dad bought the car of his dreams – a late 1980s C-Class Mercedes, which he purchased second hand and owned for nearly 25 years. It was the last car he ever bought as he no longer drives. How did I forget that?

My folks actively encouraged us kids to save from an early age and I loved putting my pocket money in my piggy bank. It was when I started working and earning my own money that I stopped being a good saver, fell off the rails and became a bad spender!

I forgot that my parents did not get into debt (aside from their mortgage).  I have no idea now what possessed me to enjoy spending squander my cash in my 20s and 30s and be embroiled in credit card debt for years but I’m just glad I came to my senses in the end.

I look back on those days now as ‘dark days‘, yet at the time, I wasn’t actually unhappy as I thought struggling with debt and a massive overdraft was just ‘normal’! I assumed that everyone was the same, not that I actually knew, since credit card debts were not something you chat about with your friends or colleagues. My family? They didn’t have a clue.

Perhaps the spending on holidays and new cars was me trying to live up to family expectations but of course it’s not their fault, it was all down to me. I enjoyed the life I led, paid for by my credit cards but it was unsustainable.

As I had followed a different path in my job and career, I mistakenly believed that early retirement wasn’t available for someone like me, when actually it was, if only I’d thought about it and remembered what my parents did.

My Definition of Retirement

I’m not going to get into a discussion of what ‘retirement’ means since within the FIRE community, the word means very different things to different people. The above definition however is the closest to what I think it means to me.

I’ll consider myself retired when I do no work for pay whatsoever. That’s not to say I’ll just be sitting at home, watching day-time tv and letting my brain go to mush (although sitting at home and playing video games all day has a certain appeal to my ‘gamer’ nature). I have a long hobby to-do/to-learn list so I’ll be filling my time doing and learning stuff.

If I end up doing any kind of activity for which someone is paying me, then I’ll consider myself semi-retired. If this activity is a full-time activity, then I’d no longer be retired.

Anyway, my point is that my parents retired over 20 years ago and have done absolutely no work whatsoever since they laid down their tools of trade. All their living expenses have been and continue to be covered by passive income from investments and property.

In the early days, there were numerous trips/cruises around the world as they made up for holidays they never had while they were working. These days, they continue to enjoy a happy retired life, living very comfortably and enjoying a great social life within their local community, have hobbies and still go on short holidays and trips, with the occasional longer trip to the UK.

That’s the sort of retirement I would love to have when I stop working and one of the reasons why I continue to be motivated to save and invest hard. My finances are likely to be tighter than my parents’ (less trips around the world for me, haha!) but I can see me having a relatively comfortable retirement if I continue to focus on my saving and investing.

It is a shame that I didn’t recognise and take heed of their (what would now be considered) FIRE lessons earlier but I have no regrets.

I lived a good life in the past, am living a good life now and will continue to save hard to ensure I live a good life in the future!

February 2018 Savings, plus other updates

Perhaps it was just as well that I had a frugal January, which was quiet and without incident, seeing as February was almost the opposite, though it was a mix of good and not-so-good.

Good Stuff

Several social outings with friends did the world of good to banish away some January blues!

Work has been manic but manageable –  the leadership team were over from the US, and my colleague and I were described as a ‘Dream Team’ – hope they remember that when they’re dishing out the pay rises, haha!

I received a surprise letter from a building society regarding a ‘failed’ PPI claim I’d made last year, which advised me that following the FCA’s updated regulations, I was actually entitled to payout so I received £74.40 – thanks very much!

Then, it was another month, another premium bond win, with £25 going into the pot with the other winnings!

Also, I kicked off my home brewing again as I had a ‘window of opportunity’ before work on my kitchen is finally completed. I’d forgotten how much effort it all takes but it was an enjoyable kind of effort and my kitchen smells like brewers hops now! A full update once I have a (hopefully) nice IPA to sample!

Chinese New Year came and went with its usual associated family expenses which were (mostly) budgeted for. May the Year of the Dog be a happy, prosperous and lucky one for all!

Not-So-Good Stuff

That first cold snap we had in the month, my boiler broke down so I was without heating and only intermittent hot water for 3 days. Fortunately, I still had the use of a gas fire, made the most of the shower facilities in my gym, plus the call out and subsequent repair was covered by my boiler plan.

Next, my PC of 8 years decided to break down. I spent 3 days trying to fix it myself (via youtube vids) but as I didn’t want to make the problem any worse, I had to call in an expert. The repair and replacement hardware took a chunk out of my emergency fund but it’s all running like new again so here’s to another 8 years.

Savings Stuff

So, how did I get on with my savings this month?

Ok, I saved 43% – not as bad as I thought it was going to be if I’m honest. My average savings rate now drops to 51.2%.  As I’ll be booking my holiday in the next month or so (which may turn into a ‘holiday within a holiday’), I’ll just need to keep a cap on some other spending over the next couple of months so my average doesn’t drop too much, though I won’t go full-out frugal again like last month (too soon!).

The above savings was topped up with my £25 Premium Bonds win, £74.40 from the PPI claim and £85.73 affiliate income from OddsMonkey (thanks to all who signed up via my links!)

Shares and Investment Trusts

I started investing in Scottish Investment Trust this month, for more diversification.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

The news in February was all about the crisis – I’m talking stock market, not KFC chicken, haha – which I pretty much ignored at the time.

What I do know is that at the end of the month, my Future Fund stands at £132,249 – yes, it’s gone down a bit from last month, but in line with my long-term plan, I’ll just continue investing as normal.

Dividends and Other Income

Dividends received this month: Continue reading