The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: NorthernMonkey on December 08, 2020, 06:22:34 AM
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This morning, I’ve just worked out that by using the 4% rule, I can now scrape LeanFI with £250 spare.
My current expenses are £1100 a month, and have been for quite a long time. Made a lot easier by owning my house and having paid of the mortgage 3 years ago, and the low running costs of using a Nissan Leaf and a bike as main forms of transport
In the UK, we cant touch any retirement funds until 58, and I’m now 41 (42 in June), My retirement funds are already 25x current expenses, so I’ve reduced contributions as much as possible for an employer match. (10% + a 10% employer match)
I’ve got 145k of post tax savings in index funds, and with a spend of £1000 a month, and a 4% growth per year, I worked out that I can withdraw against these, and they’ll draw down to loose change on my 58th Birthday. as my current expenses are £1100 a month, and I can easily trim £100 when i quit work (commuting costs) I guess I’m technically FI.
Although I'll probably not quit for a little while (these figures are too tight for just about anyone) It's a great Christmas present to myself knowing I can now RE if I want. Its the ultimate FU money.
I think I’ll celebrate this minor victory with a chocolate cake
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Congratulations!!! That is a v nice feeling to go into Christmas with. Enjoy the cake!
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Congratulations NorthernMonkey, that’s great. A lot of hard work has gone into getting into that position.
Great choice of cake too!
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Congratulations!
--Ram
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I love the celebration with a chocolate cake! I'll have to keep that in mind for when my time comes! Congrats!
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Brilliant! Great to see someone else of a similar age hitting that milestone in the UK. Plus your pension pot (I'm assuming it is defined contribution) should grow in the 16 or so years before you can access it, so you will probably find that it's significantly more than 25X expenses when you get it.
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Brilliant! Great to see someone else of a similar age hitting that milestone in the UK. Plus your pension pot (I'm assuming it is defined contribution) should grow in the 16 or so years before you can access it, so you will probably find that it's significantly more than 25X expenses when you get it.
Yes, DC pension. Not many DB pensions left any more except in the govt. If it grows at 4%, it'll be roughly double what I need in 16 years time
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Congratulations @NorthernMonkey - that is excellent news. I hope the cake tasted all the better because of the work that went into your achievement!
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I'm also sort of FI.
I figured I need to work at least 5 year more years to be properly FI. But I can't be bothered. I think I'll take it earlier and just get sometime gig there and there.
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no more having to have a job in order to live.
thats pretty f'in cool.
congrats!!
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Congrats NM.. lovely to see someone from this side of the pond hitting their numbers.
No reason not to continue working and building your wealth if you don't hate your current job, and I think that hitting FI is like a weight off your shoulders, and continuing to work in the knowledge that you have the freedom to quit any time you want actually makes working a more pleasant experience.
FAT-FI beckons!
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Congrats!!! Now you have options. If you do grow to hate your job you can leave and find something part time or gig work!
I personally always thought that I rather strait retire and not have to worry about gig work, But now that I am FI, and on the brink of quitting, I look back and kinda wish I did do the part time/gig work once 85% of the way to FI. Just because my job has become unbearable and 50 hours a week most weeks.
Good luck
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Being FI rocks!
CONGRATS - sounds like you are in a good position to hit Fat FI by the time your govt pension becomes accessible.
Relax and enjoy that chocolate cake:).