tag:blogger.com,1999:blog-2875915890415125655.post7638212088269316664..comments2023-05-18T10:37:34.608+01:00Comments on <a href="http://www.retirementinvestingtoday.com">Retirement Investing Today</a>: A Sobering Income Drawdown Demonstration One Year OnRetirementInvestingTodayhttp://www.blogger.com/profile/03088383743670046657noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-2875915890415125655.post-69945526255164315272014-07-07T12:25:57.729+01:002014-07-07T12:25:57.729+01:00Further to my previous comment - I did not make cl...Further to my previous comment - I did not make clear the point I was trying to make about deferred State Pension rights.<br /><br />Any increased amount of your pension that has been achieved by you deferring your<br />pension is transferable to your surviving spouse on your death.<br /><br />So if you end up having increased your pension ( by deferral) by - say - £20 / week - <br />then this £stringvestnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-65089931632898767392014-07-07T11:36:08.822+01:002014-07-07T11:36:08.822+01:00Do you think you might be over analysing this prob...Do you think you might be over analysing this problem? Revising your SWR down might be due to subconcious fear rather than objective analysis, especially as all this research will almost certainly bear no resemblance to how things actually play out for you.<br /><br />I would recommend focussing on a staggered withdrawl from the world of work to ease your transition and give you a lifeline in Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-41415272515472808072014-07-06T14:49:12.538+01:002014-07-06T14:49:12.538+01:00Brodes,
Your plan illustrates the nonsense behind...Brodes,<br /><br />Your plan illustrates the nonsense behind the whole 4% idea as a worthwhile rule-of-thumb. You imply you have room to cut back if things get tight. In that case your plan is the best. Go big (100% equities and cut back if you have to), if things go well step it up some too, why stop at 4%.<br /><br />The problem arises with those people whose pot is too small to cut back. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-5508682471697028142014-07-05T23:02:15.269+01:002014-07-05T23:02:15.269+01:00Is this whole post based on being 100% in UK stock...Is this whole post based on being 100% in UK stocks and bonds? This might seem an overly simplistic question, but who actually does that?<br /><br />Personally I'm internationally very diversified and I would imagine that most investors who care enough to have (or be aiming for) £1m in invested assets would be the same.<br /><br />So surely looking at pure UK stock market results is a bit Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-69664010757176098552014-07-05T16:00:24.362+01:002014-07-05T16:00:24.362+01:00Deferring your State Pension can be very efficient...Deferring your State Pension can be very efficient for IHT, because you are converting capital (the stuff you spent to compensate for the pension forgone) to income (the extra pension you eventually get).deariemenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-39998740507484628102014-07-03T21:25:07.778+01:002014-07-03T21:25:07.778+01:00If you are thinking of deferring your state pensio...If you are thinking of deferring your state pension don't forget that, if you die before the age that you have chosen to defer until you personally will have lost all of the<br />value of the pension that you could have drawn if you have not chosen to defer.<br /><br />Well - that much must be obvious to everyone .<br /><br />However - what may not be widely understood is that the deferred stringvestnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-24512994891124246512014-07-03T19:35:10.531+01:002014-07-03T19:35:10.531+01:00The wonderful terms for deferral won't apply t...The wonderful terms for deferral won't apply to you, mind; too expensive for us taxpayers to subsidise!deariemenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-42447375604219253642014-07-03T18:00:26.236+01:002014-07-03T18:00:26.236+01:00Just stumbled across this about Gibraltar going th...Just stumbled across this about Gibraltar going the opposite way. Highest ever surplus and GDP up 10% last year, debt to GDP only 25% - all that means they are slashing taxes.<br />http://www.lowtax.net/news/Gibraltar-Lowers-Tax-Rates-In-2014-Budget-65140.htmlLowCostnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-34492918696156561522014-07-03T15:04:27.428+01:002014-07-03T15:04:27.428+01:00Agree with that. They've already made a start...Agree with that. They've already made a start with a new wealth tax on financial assets held abroad by Italian tax resident individuals (imposta <br />sul valore delle attività finanziarie detenute all’estero or IVAFE) which took effect from 2012. The current tax rate is 0.15% from 2013 onwards. That of course is a bonus extra which comes on top of the tax on dividends/interest.<br /><br />RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-75047984941829918122014-07-03T14:18:58.706+01:002014-07-03T14:18:58.706+01:00RIT,
OK.
I'd better go read up about Puglia ...RIT,<br /><br />OK.<br /><br />I'd better go read up about Puglia now. Though being in Italy and them having such huge debt, first thought is that it might not be very tax efficient going forward. They will be determined to squeeze every penny out of people who own a few.LowCostnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-30576751709721898042014-07-03T12:51:46.329+01:002014-07-03T12:51:46.329+01:00Hi LC
When I started on this journey some 7 years...Hi LC<br /><br />When I started on this journey some 7 years ago I thought of the UK as home and buying a home for my family was a priority. As time has gone on I seem to drift further and further from that ideal.<br /><br />My aim is to live intentionally and simply with focus on family and good friends. Based on my learnings so far (including spending some time there) I'm leaning towards RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-53495511126604830452014-07-03T12:09:41.216+01:002014-07-03T12:09:41.216+01:00RIT,
What is your plan re housing? Rent is your la...RIT,<br />What is your plan re housing? Rent is your largest living cost?<br /><br />Do you see a time when you might buy a house in the UK or do you still have plans to move abroad, if so, where?LowCostnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-52961278287111948652014-07-03T09:42:09.185+01:002014-07-03T09:42:09.185+01:00Great to hear from you SG. It's been a while....Great to hear from you SG. It's been a while... It really does sound like you are in a very sound place financially.<br />Cheers<br />RIT <br /><br />RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-31461292750295453132014-07-03T09:40:49.210+01:002014-07-03T09:40:49.210+01:00Hi dearieme
Great point on the pension deferral. ...Hi dearieme<br /><br />Great point on the pension deferral. All of my financial modelling assumes that the State Pension will not exist for me (either pushed out to a very high age or means tested). If I ever do become eligible at a point in time where I still have many years to live I'm thinking of deferring for many years as a portfolio depletion insurance. The deferral literature does RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-10322589846378215852014-07-03T09:35:08.032+01:002014-07-03T09:35:08.032+01:00Thanks John most interesting. Crunching the 2 set...Thanks John most interesting. Crunching the 2 sets of numbers shows that a punter investing £1 at the end of 2007 into the RIT portfolio would today have £1.57 and into the DIYI(UK) portfolio would today have £1.43. Shift it forward 1 year and the RIT portfolio has £1.86 and the DIY(UK) has £2.01. Would be interesting to watch this going forwards?<br /><br />Very good point on capital gains RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-44641184492904436852014-07-02T22:02:47.684+01:002014-07-02T22:02:47.684+01:00Although I think the SWR analysis is good for gett...Although I think the SWR analysis is good for getting a handle on the numbers, I'm not sure it describes what actually happens in practice. Needs vary over time and a fixed drawdown rate is not likely to be necessary or desirable.<br /><br />I took early retirement in 2011 on a FS pension, but not one that is large enough to cover all expenditure. My partner is still working, but I am also SGnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-1743846191472168382014-07-02T20:03:19.039+01:002014-07-02T20:03:19.039+01:00I retired in 2007. Good investments have included...I retired in 2007. Good investments have included Cash ISAs at fixed rates above the RPI inflation rate, ns&i Index-Linked Savings Certificates, and a Physical Silver ETF. But best of all has been suspending ("deferring") State Retirement Pensions - 10.4% p.a. index-linked annuity-like returns. I didn't buy equities in 2007 because I thought the world was drunk on debt and deariemenoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-90259211924648813662014-07-02T19:16:42.226+01:002014-07-02T19:16:42.226+01:00Thanks for the figures RIT - I think they stack up...Thanks for the figures RIT - I think they stack up pretty well. My returns over the same period are:<br /><br />2008 -29%<br />2009 35.7%<br />2010 12.8%<br />2011 - 3.1%<br />2012 15.5%<br />2013 13.3%<br />2014 3.9% (YTD)<br /><br />For me however, investing for my pension income which I rely upon to pay the bills and put food on the table, the important consideration is not so Getting to Net Zerohttps://www.blogger.com/profile/05649975918886866788noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-79220823639455477432014-07-02T18:05:57.170+01:002014-07-02T18:05:57.170+01:00Hi John
As always really value your thoughts. Ou...Hi John<br /><br />As always really value your thoughts. Our strategies are quite different but at the same time a little similar:<br />- We both have a "high" risk side. I go for direct shares for my HYP and you also buy direct shares. Additionally I buy OEIC's/ETF's where you prefer Trusts.<br />- We both have a "low" risk side. I buy predominantly index linked RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-73761968974237131852014-07-02T17:40:47.061+01:002014-07-02T17:40:47.061+01:00As ever, interesting post.
I think the point has ...As ever, interesting post.<br /><br />I think the point has to be made that as we all know, we are all living longer and it could easily turn out that the average pensioner retiring at 65 will be drawing a pension for the next 30 yrs.<br /><br />The average return on equities far exceeds the return on bonds so I would question any sizeable allocation to gilts for a long term income drawdown plan.Getting to Net Zerohttps://www.blogger.com/profile/05649975918886866788noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-53534887836810363052014-07-02T16:39:06.002+01:002014-07-02T16:39:06.002+01:00Hi weenie
Exactly my thoughts when I stated "...Hi weenie<br /><br />Exactly my thoughts when I stated "with us now more than 5 years into an equities bull market..."<br /><br />Cheers<br />RITRetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-42345322633569608132014-07-02T16:37:23.148+01:002014-07-02T16:37:23.148+01:00Hi Anon
It is my understanding that it is the ave...Hi Anon<br /><br />It is my understanding that it is the average earnings for individuals in employment. So it's individual and you have to be in employment to be counted.<br /><br />"I wonder what will be the social consequences of this, are we going to end up working into our 70s stacking supermarket shelves like old people in South Korea and Singapore?" In the modern Defined RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-16354166539842961732014-07-02T16:28:40.602+01:002014-07-02T16:28:40.602+01:00Hi HAM
Thanks for this. A worthwhile read even i...Hi HAM<br /><br />Thanks for this. A worthwhile read even if a bit US and age 65 retirement focused. Some initial thoughts...<br /><br />Part 1 supposedly challenges Modern Portfolio Theory (MPT). For this they model "the old investment advisor adage that stock weight should be about 110 minus a person’s age". This is exactly the starting point for my own portfolio. They then RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-82030721599415576862014-07-02T15:52:51.486+01:002014-07-02T15:52:51.486+01:00Hi Brodes
Thanks for your thoughts. My immediate...Hi Brodes<br /><br />Thanks for your thoughts. My immediate reply would be what modelling or reading have you done to arrive at that strategy as it sounds very high risk to me? <br /><br />It was published in 2001 and has a US bias but if you have undertaken limited reading/research to date might I suggest a good start would be the Bernstein book The Intelligent Asset Allocator (more details by RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-17344061289678260112014-07-02T15:49:40.015+01:002014-07-02T15:49:40.015+01:00You make a great point about people 'blindly f...You make a great point about people 'blindly following' the 4% SWR without doing their own research. What's scary is that 'experts' are predicting an end to the equities bull market so how will your graphs look when the bear markets take over? Of real interest is "the two positive portfolios are both Index Linked Gilts based", which I hadn't considered adding to weeniehttps://www.blogger.com/profile/01602950445306813601noreply@blogger.com