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Author Topic: Making a retirement plan  (Read 1544 times)

LotusFlower

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Making a retirement plan
« on: 01 September 2023, 06:46:15 pm »
Hi all,

I'm working towards retirement and wondering what sort of considerations I should make?

To be able to walk away completely, I need to have paid off debts (that damn bounce back loan was so appealing at the time!), do any "big cash" stuff and have a bit in the bank. After that, I'm happy to leave and live with a regular income from my other business. It will never pay what I make now, but it makes me very happy.

But I don't know how to plan that and how to plan the exit strategy.

I've left before and came back. When I leave this time, I leave for good.

Any advice would help!

amy

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Re: Making a retirement plan
« Reply #1 on: 01 September 2023, 08:44:50 pm »
Do you have an idea of timescales? I don't mean anything cast in stone, but it always helps me focus if I have a target in mind :)

If you have another source of income which you can pay the bills and keep ticking over with, I think that's half the battle (or at least a big positive step). I'm concentrating on trying to build some savings back up after losing the lot thanks to covid, but them I'm probably twice your age and I have no plans to stop working yet.

As far as not coming back goes, I think you likely have to be ruthless - sell/give/throw your work stuff away, dump.your ads and make a list of reasons to remind yourself why you quit?

Aries_season

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Re: Making a retirement plan
« Reply #2 on: 01 September 2023, 09:26:14 pm »
I thought you're asking for pension investment tips   ;D
I can only say I always do very detailed pros and cons list that I write down long before I plan to do something, so I have a lot of time to think. If it's a big, big decision I give it a year or even more and add things to the list that I maybe didn't consider before. I don't know how long you thought about it seriously already, but I definitely wouldn't jump into something so huge too quick, becouse then something may come up that you  were not prepared for and you might panic and back out of your plan, do best thing is give it time.
And stare at your pros and cons list often to encourage your brain to think about all the possibilities that can come up  :)

LotusFlower

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Re: Making a retirement plan
« Reply #3 on: 01 September 2023, 09:49:33 pm »
Thanks for getting back, Amy. That's really helpful!

I want to finish by Jan 2025 at the latest. I want to step away knowing I achieved what I set out to do at the beginning and not leave with little more than valuable life experience and the beginnings of another business.

I was very wasteful and disrespectful to the income for many years. Then I sharpened up, saved, did responsible things with the cash - then covid came along, teamed with some not so smart decisions, and literally wiped everything out, and more. So financially, I am where I was 5 years ago. Albeit, much happier and with other goals on the horizon!

So perhaps if I calculated a financial figure that will cover everything I want to have paid off / bought / saved, then divide that by the amount of maximum weeks I want to give this? That will give me some sort of financial target to hit on a week by week basis.

I certainly don't hate the job, I quite like it now that I have found my niche and perfected my way of working. But my heart belongs to my other business and that's where I want to be.

I could be inclined to keep a few regulars on for extra pocket money, but certainly, I want to get to a point where I am not relying on this as my income.

amy

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Re: Making a retirement plan
« Reply #4 on: 02 September 2023, 07:25:41 am »
I could be inclined to keep a few regulars on for extra pocket money, but certainly, I want to get to a point where I am not relying on this as my income.

I think this would make it harder to stop, but if you do I would get a new SIM and just give the number to those regulars so you can still dump the old one and you won't have randoms finding it on some obscure ad somewhere.

Depending on the debts and without going too off topic, Money Saving Expert is good for planning. If you can get everything onto  0% interest (and bounceback loans already are IIRC; I was lucky and paid mine straight back) then that definitely helps :)

LotusFlower

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Re: Making a retirement plan
« Reply #5 on: 07 September 2023, 08:49:40 am »
Thank you, that definitely helps!

anna-alex

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Re: Making a retirement plan
« Reply #6 on: 12 September 2023, 09:23:15 am »
A Part of my retirement plan was to get a qualification and start working part-time in that field. I completed my qualification this year (took me 4 years) and now work part-time online which is a bonus!
I put away 6 months mortgage and bills money into a bond account at 5% its not beating the inflation but better than nothing.
Still have to pay off my credit cards and BBL, which feels never ending.
Planning my budget every month and setting up savings targets works very well for me.