My Future.

RobM · Apr 17, 2008

Sorry to be deep and heavy but I'd like some thoughts.

I'm 52 and looking to retire at 55. I have my own home, no mortgage, rent or kids to pay for. I'm hoping to live with Angie when I retire, maybe to somewhere in France.

How much do you think I should aim to keep as "savings" in an ISA and building society account? I really can't decide.

Please - serious answers only.

MK Shrimper · Apr 17, 2008

A lot I'd imagine. Retiring at 55 means another 40+ years to live (with any luck)....thats a LOT of wonga.

RobM · Apr 17, 2008

I have a good company pension to look forward to (I hope!)

MK Shrimper · Apr 17, 2008

I'm only 36 mate, so I can't really help... Perhaps seek real assistance from a financial advisor? Must be one on here somewhere....

RobM · Apr 17, 2008

I'm not looking for serious financial advice, just thoughts. Thanks though!

bertiebigbanana · Apr 17, 2008

RobM said:
Sorry to be deep and heavy but I'd like some thoughts.

I'm 52 and looking to retire at 55. I have my own home, no mortgage, rent or kids to pay for. I'm hoping to live with Angie when I retire, maybe to somewhere in France.

How much do you think I should aim to keep as "savings" in an ISA and building society account? I really can't decide.

Please - serious answers only.

100 pounds 2 shillings and sixpence

steveo · Apr 17, 2008

How much do you think I should aim to keep as "savings" in an ISA and building society account?

As opposed to doing what with it?

Matt the Shrimp · Apr 17, 2008

You need to start doing a budget - work out how much you spend a month on various things you use to live on. Just set up an excel spreadsheet.

I was doing this at the beginning of the year when the missus and I were trying to work out how much we could save to spend on our building works. We came up with the following headings of expenditure:

Supermarket Food / Cleaning products etc.
Snacks (choc, chewie, fizzy)
Meals out
Pub / drinks
Taxis
Toiletries / Cosmetics
Clothes
Cards / Giftwrap / Post Office
Car (inc. fuel)
Holiday stuff
CDs / DVDs / iTunes
Flowers
Cinema / Theatre
Galleries / Museums / Concerts
House furnishings
Newspapers & magazines
Books & Stationery
Presents
Sports tickets / SZ.com
Non-commuting travel
Hairdressing
Shoe Repairs / Dry Cleaning
Mobile phone bills
Home Phone / Internet
Gas & Elec
Water
Mortgage
Council Tax
Charity / SUSCT
Home & contents insurance
TV Licence / Sky
Other house bills (e.g. security system)
Garden - plants, equipment, BBQ etc.

That's a pretty comprehensive list. Stick all that on a spreadsheet, and start working out how much you spend. Do it for about a quarter, and you should soon work out where your money goes.

Then, work out how long you're going to live - morbid sounding, I know, but important. How long have your rellies lived? Do you have congenital illnesses in the family - heart disease, Alzheimer's etc.? Have you smoked? How is your weight? All of those will play a part. You'll need to do the same for Angie. If you're retiring at 55, you could have anything from 15 years to 45 years to live - a massive spread of ages, I'm sure you'll agree.

You then need to make sure that you've got enough coming in to cover that expenditure - and make sure that, wherever you're keeping your money, it is performing at least as well as inflation is going.

Finally, don't retire to the Eurozone until the pound has recovered until at least 1.45-1.5. That won't be until next year at the earliest. Anyone who's thinking of taking sterling out to the Eurozone this year will be in a world of pain!

You've got some work to do. Enjoy!