Author Topic: Please can you check my maths  (Read 399 times)

twistedfirestarter

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Please can you check my maths
« on: October 30, 2017, 11:14:48 AM »
Hi All,

I found MMM in March this year and it has been a revelation, I always knew I'd retire early but had no idea how, now I know :-)

I've been putting as much as possible into a S&S ISA currently with HL in Lifestrategy100 but after some time playing with 7 circles 4 pot solution to retiring early in the UK http://the7circles.uk/savings-rate-four-pot-solution/ I think I need to pay much more into my SIPP and less into the ISA to allow me to FIRE.

If you get a moment please can you check my speadsheet and let me know what you think

https://docs.google.com/spreadsheets/d/1AowNR3cu3Q7z-MLhtxvtXLst_ED5kAzxyA_ScMtM9BE/edit?usp=sharing

I was concerned about bridging the gap between FIRE and 58 when my SIPP will be accessible but I think this may have it sorted.

Couldn't believe how much more efficient it is to increase salary sacrifice pension, reduces tax, national insurance and student loan, take home reduced by less than £9000 but over £14000 extra into pension.


Thanks in advance,
Twisted
« Last Edit: October 30, 2017, 08:20:30 PM by twistedfirestarter »

dreams_and_discoveries

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Re: Please can you check my maths
« Reply #1 on: October 30, 2017, 01:13:30 PM »
In summary, it works as long as all your assumptions hold out; a steady 3% return each year after inflation and that in those 20+ years the government doesn't change the private pension access age, which they have already indicated a desire to raise in line with state pension age.

In reality,  I'd say it depends on your risk tolerance and willingness to work again on the future; would you rather do another year or two and never have to work again, or FIRE  knowing you may have to bring in some income in the future.

twistedfirestarter

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Re: Please can you check my maths
« Reply #2 on: October 30, 2017, 08:25:45 PM »
In summary, it works as long as all your assumptions hold out; a steady 3% return each year after inflation and that in those 20+ years the government doesn't change the private pension access age, which they have already indicated a desire to raise in line with state pension age.

In reality,  I'd say it depends on your risk tolerance and willingness to work again on the future; would you rather do another year or two and never have to work again, or FIRE  knowing you may have to bring in some income in the future.

Thanks for the reply, I assume that I’ll end up making some money after retirement as a byproduct of some hobbies but it would be nice not to feel like I have too.