I set myself a target to have £50k in my Future Fund
by the end of the year.
A combination of wobbly markets and not saving enough has meant that this goal had became unattainable – my September update showed a value of £42.3k, and unless the markets see-sawed massively in my favour, there was no real way to make up the big gap to my goal.
However, looking at my numbers today, my Future Fund stands at £56,335.87!
Celebrations all round!?
I mentioned recently that I often suffer from procrastination and one of the things I’d been putting off for months was the transfer of my stakeholder pension into one of my SIPPs.
I read some recent posts on procrastination, realised what I was doing (or not doing!) so I just went ahead and finally did it.
The whole transfer process from requesting a quote from my provider (Scottish Widows) to submitting the transfer form and seeing the funds in my SIPP has taken just under two weeks – pretty painless and I can’t believe I dragged my feet so long over it!
One of the reasons I’d wanted to transfer was fees – the management fee for the stakeholder pension was 0.8% – not a huge amount but it all adds up in the long run and neither of my current SIPP providers charge this much.
Another reason was that I wanted more control in how my money is invested.
Previously, my stakeholder pension, whilst included in my net worth, was not part of my Future Fund as I had planned to take a small annuity (a few hundred pounds) from it upon retirement age. This plan was obviously made before the recent changes to pensions.
It’s now all lumped in with the rest of my Future Fund, so there’s no change overall to my net worth but a big boost to my Future Fund total.
I however won’t count this as reaching my annual goal – it feels like cheating to me as I had aimed to get to £50k without the help of this pension transfer.
My Future Fund is now however over the half-way mark to my first big milestone of £100k – got to keep at it!
The money has been transferred to my AJBell YouInvest SIPP – I will buy a bunch of ETFs and build these up in accordance with my Portfolio For All Seasons
, reinvesting the dividends.
Yes, this should hopefully bump up my dividend income by quite a bit! Happy days!