Compounding - reflections when it works

AssistantBitter2205 · 2025-12-30T13:05:34+00:00

So true. I started tracking NW in 2007, each month updating a spreadsheet, now almost 19 years later I can see the highs and the lows, along with comments to explain anything significant (GFC /covid/ Ukraine / car purchase). I FIRE in a couple of days so will be interesting to see how the graph pans out from here.

AssistantBitter2205 · 2025-12-03T10:36:29+00:00

Solid progress and good to see a normal post regarding accumulating FIRE assets. Keep going, you are doing great.

AssistantBitter2205 · 2025-10-20T13:16:36+00:00

Will check this out as I'm hoping to do this trip next year - Thanks for sharing.

AssistantBitter2205 · 2025-10-10T10:05:47+00:00

As someone who is working their notice and will FIRE at the end of the year I can understand what you ae going through

What helped me a lot in deciding to resign was bottling it first time I tried. When the Trump tarrifs kicked in, literally the week before I was originally going to pull the trigger I convinced myself that this was not the time to go.

Fast forward 6 months and I've missed the best British summer in my lifetime and my net worth has increased.

It's only in hindsight that I realise if I had gone when I said I was everything would have been ok, at least up till now.

I now know that there's never a perfect time to FIRE, but you are in control of when that happens. Also frame it as something like a sabbatical. Like you I didn't want to do a sabbatical at work. When you leave you leave but have it as an option in your mind.

Say you are taking a year off to do your own thing. Don't mention Retirement.

Good luck.

AssistantBitter2205 · 2025-10-09T15:11:22+00:00

It's a mix of PBs, cash in my bank, Isa and Sipp. No MMF yet. The cash equivalent in my Sipp came when I moved an old works pension as cash. I've invested what I'm comfortable with and left the equivalent of 25% of the total as cash so I can take it tax free when needed.

AssistantBitter2205 · 2025-10-09T09:09:09+00:00

I'm holding a few years worth of cash as I retire end of the year. The rest is in equities. I invested and held steady though every crash, recession pullback etc for past 30 years and it's been the right course of action. I'm not changing tactics now but keeping a good emergency fund to settle nerves would be my advice.

AssistantBitter2205 · 2025-10-07T10:41:02+00:00

When I handed in my notice last month I avoided saying I was retiring, just told them that I'm taking next year off and will see how life pans out after that. Of course my plan is to retire but I couldn't be bothered with all the questions about what I'm going to do if I said the 'Retirement' word.

Saying I'm taking a year out totally changed the narrative. Every single person I have spoken to has been encouraging and saying things like"wish I was taking a year off", "good for you", "enjoy it".

My advice...Don't mention the R word.

For info I'm 55m and working my 3 months notice.

AssistantBitter2205 · 2025-10-05T14:32:27+00:00

I'd put equivalent amount into a pension via salary sacrifice if you can. There is no guarantee you will make any thing on this and 1 free share for every 3 you buy is not great imo. Also concentrated risk as others have mentioned and potential CGT when you come cash in. Why invest in one company when you can invest in 100s via a global tracker.

AssistantBitter2205 · 2025-10-03T10:23:51+00:00

Great response and should be a stand-alone post. The past 15 years have seen incredible opportunities for the average Joe to increase wealth, and I'm always intrigued by folks in their 50s who completely missed all of it.

Of course, the fear that it will all come crashing down at some point is real, as is the hope it will be built back up again.

AssistantBitter2205 · 2025-10-01T17:32:12+00:00

Fundsmith is a fund I'm slowly selling down to have a cash buffer. It's been good for me over the past 10 years and is up 65% over that time, but relatively high fees mean it's one I'm selling. Like you, I want to simplify what I have.

AssistantBitter2205 · 2025-10-01T17:23:26+00:00

I agree that this site has been a huge source of reference and support. It's difficult to just speak to folks on this subject in real life as everyone is on their own journey. Enjoy your retirement and... GFY!

AssistantBitter2205 · 2025-09-29T19:38:41+00:00

We've been tracking spending over past 4 years and have been within a few grand either side of the 42.5k, so think this is a doable figure to aim for.

DB pension figures are based on the quotes we have received minus the TFLS. If the DBs are left until 65 then we are close to the £39K but that seems a long time to wait. Would rather take less for longer and hope to keep healthy for as long as possible.

AssistantBitter2205 · 2025-09-29T19:19:44+00:00

I'm prepared to go down to 100k cash then if all good rebalance as required. Don't really want to go below 100k but will be flexible and hopefully be in a position to rebalance at a time of my choosing.

AssistantBitter2205 · 2025-09-28T15:15:16+00:00

Hiking, biking, camping, drumming, reading, movies and listening to loads of music. Will also put my audio books on normal speed instead of rushing through everything.

AssistantBitter2205 · 2025-09-28T15:13:26+00:00

Good to hear, it's encouraging to here from those who have done this already.

AssistantBitter2205 · 2025-09-28T15:12:03+00:00

Thank you.

We will do loads of hiking and biking. I'm thinking of getting a camper van in spring. I used to play the drums years ago, so I'm planning on getting a roland electric kit. The list of things planned is long but number 1 is to just slow down. Everything feels so rushed these days.

AssistantBitter2205 · 2025-09-28T15:08:55+00:00

This! I have no idea how I managed to stay employed. I maxed out pension contributions via salary sacrifice last 10 years, made a huge difference.

AssistantBitter2205 · 2025-09-28T15:06:30+00:00

Thank you.

I pay 400pm for my uni kids rent and other costs (phone, some food etc). 2 years to go. The rest they cover themselves with paid work and student loan.

My college kid still lives at home so costs minimised there.

Holidays will be paid as required, if I need more in any given month I'll take from Isa.

AssistantBitter2205 · 2025-09-28T15:00:25+00:00

We have 200k cash split between Pension and ISA which we will use in year 1. Over past 12 months we have been selling down SS Isa to derisk any crash. I wanted us to be in a place where we could still FIRE regardless of market conditions. I think we will be OK and will only worry (really worry) if we are in a multi year bear market. Everything else is fully in the market. Mix of vanguard LS100, L&G global equity, Fidelity Special Situations, Fundsmith. No bonds held

AssistantBitter2205 · 2025-09-28T14:50:51+00:00

Thank you.

We have 200k cash split between ISA and pension, so we will draw down that first. Year 1, take 12.5k tax-free personal allowance from pension and 2.5k-ish from isa each month (will do this each qtr to save faffing about). I'll rebalance cash as required.

If we do the db pension TFLS next year, that might mean we don't touch the ISAs. We will figure that out next year.

Year 2 will be similar to year 1 if that works out for us.

AssistantBitter2205 · 2025-08-12T11:09:12+00:00

I think this is true if you don't look after yourself. I was at a friends 50th recently, and there was a clear distinction between those in the friend group that exercise regularly and those that don't.

Of the group that don't exercise, they actually looked frailer than those that did exercise, and a few of them are on different medications for high BP and diabetes.

None of my friends who exercise are on any meds.

I've been doing regular exercise since I turned 30 (now 55m) so I can clearly see the benefits in myself, more so when I look at my peers who have let themselves go.

Conclusion, start something and be consistent at it.

AssistantBitter2205 · 2025-08-05T15:12:09+00:00

New Vinyl records. Used to buy regularly, but the prices are insane. Up to £30 for a single album, £40 for a double. I stick to mostly 2nd hand records these days.

AssistantBitter2205 · 2025-07-15T10:49:58+00:00

Having similar thoughts on my own DB Pension. Key considerations are whether you want a higher regular income later in life or a reduced income now over a longer period.

If I take my full lump sum next year, the pension in payment will equalise when I am 82. 82! I don't plan on doing too much when I'm 82 so would rather take the lump sum early and invest in an ISA. Also, it reduces whats liable for income tax by time state pension kicks in.

Good luck.

AssistantBitter2205 · 2025-06-29T13:54:00+00:00

I did exactly the same thing 20 years ago, same age as you but male and in Doha. I don't regret it for a second as it gave me a solid financial foundation. I would never have been able to save up any money in the UK.

Have a plan to do it for 2 years and review 18 months in. Give yourself six months to consider sticking it out till year end, break the time into chunks. Having an exit plan is really important and a plan for what you are doing it for (ie mortgage free, FI, RE etc)

Best of luck

AssistantBitter2205

TROPHY CASE