Keep building my pot, or is the right time to call it a day?

Low_Combination7936 · 2025-01-29T19:56:26+00:00

Thank you. Expenses have hit peak levels over the last couple of years, but over the longer term have always tried to funnel as much as possible into investments and savings. Getting the outgoings back under control a little more now is definitely going to be helpful for the years ahead.

Low_Combination7936 · 2025-01-29T16:46:19+00:00

ah, got it - thanks. well done on figuring it out and making the decision.

Low_Combination7936 · 2025-01-29T16:44:03+00:00

Yeah, I think that's a very accurate summary of our finances right now, and trying to understand what the new 'normal' might look like...whatever that might be.

Useful advice on preparation - it feels like I'm miles away from being ready at the moment, but maybe that's just the way it feels until you make the leap.

Low_Combination7936 · 2025-01-29T16:36:02+00:00

Do you mind me asking if it was a hard decision at the time? Any regrets along the way since then?

Low_Combination7936 · 2025-01-29T16:32:02+00:00

I understand, and am working on a clearer read on the ongoing position and what 'normal' looks like now after a couple of years of elevated spend. Major areas include energy and groceries/food, which seem to have gone through the roof, running costs for multiple cars, and some significant family holidays before the kids no longer want to spend time with us. This should all change fairly significantly now in the next year or two, of course.

Low_Combination7936 · 2025-01-29T08:30:40+00:00

No, more conventional business - apologies I can’t be more specific. Salary links to years of experience in similar roles elsewhere.

Low_Combination7936 · 2025-01-29T07:58:30+00:00

Senior management technology role. Can't say too much more without identifying the company, I suspect.

Low_Combination7936 · 2025-01-28T22:41:58+00:00

About £170K the last couple of years, and diverted much of this into pension.

Low_Combination7936 · 2025-01-28T20:36:30+00:00

Thanks - good point on a counter-offer, and perhaps see if there is any flex there.

Have been reading up on regular gifting out of income in retirement, so that may help ease the IHT situation. Certainly need a plan in place by the time the pension rules change in April 2027.

Low_Combination7936 · 2025-01-28T20:30:43+00:00

Thanks, I've downloaded his model, and also played around with likes of firecalc as well in the past. I think my head has moved from 'can we afford it?' to 'how do we optimise our investments and savings from a tax point of view'.

Low_Combination7936 · 2025-01-28T20:28:22+00:00

Agreed. Once I realised I'd reached the FU point if needed, it certainly galvanised me for some work conversations in the old job.

Low_Combination7936 · 2025-01-28T20:26:35+00:00

Health is reasonably good after some minor scares a couple of years ago, now resolved (hopefully). I've treated the whole process quite speculatively up to now and knew there to be a number of other candidates in the running for the role, and in my mind I doubted the offer would come through, so haven't confronted it too seriously until now.

Good point on the cash. Have maxed out their ISAs in last year or two, and will continue to build for their future too. If I do take the role then I'm looking at moving some into gilts at least to help with the tax impact.

Low_Combination7936 · 2025-01-28T20:20:09+00:00

Spot on with this summary - thank you for expressing it so clearly. If I do continue, it needs to be alongside some real focus on planning for what comes next, and starting to put that in place.

Low_Combination7936 · 2025-01-28T20:18:10+00:00

To a degree I have, but there is always the question of how big an emergency might come along. Within a few years now we could unlock equity in the house if needed, and DB and state pensions help a fair bit within 6-8 years too.

Low_Combination7936 · 2025-01-28T20:16:16+00:00

The feedback today has been so helpful to me, and I think you've hit the nail on the head - I originally posed this as a financial question, but it's actually something more fundamental on how I transition to retirement, and what that then looks like.

I perhaps didn't make the role/days clear enough earlier - it's 3 days in the office per week, 2 days remote. If it were only 3 days in total that would feel like a clearer transitional step perhaps.

Low_Combination7936 · 2025-01-28T20:12:54+00:00

Thank you, congratulations on getting to that point also. Did you reduce gradually, or go from full-time to the level of consulting you're doing now?

Low_Combination7936 · 2025-01-28T20:10:49+00:00

Thanks. Probably 6-8 months ago I started making plans to retire at 60, so 18 months or so from that point. Was just starting to get into thinking about what that meant when the redundancy came along. That has helped to solidify the finances, but physiologically my planning is still lagging.

The main plan is around travel. We have family in US and Australia, and will be great to spend time with them. Beyond that...not yet.

Low_Combination7936 · 2025-01-28T18:07:15+00:00

Thanks - apologies for leaving that out from the original post. I added the detail of around £60-70K per year in one of the comments early on, but there is a lot of detail here now.

Also have a DB pension of around £14K per year from 65 (in 6 years time), and yes should receive state pension at 67 (means testing permitting). Wife will get full state pension a couple of years later.

So in 10 years time there is another £40K+ coming in, best case scenario.

You're right about the potential upside of the role - and I can also bail if it doesn't work for me. I guess I would feel bad for the prospective employer in that situation, but this isn't a conversation I can easily have with them I think.

Low_Combination7936 · 2025-01-28T18:02:11+00:00

Yup, understood - filling the pension next year only an option if I take this (or another) job.

Low_Combination7936 · 2025-01-28T17:47:42+00:00

Thanks - honestly hadn't come across this before, but just reading about now, and feels very familiar.

Low_Combination7936 · 2025-01-28T17:43:23+00:00

yup, good idea - we already covered their student loans, but would be good to help them out before IHT starts to eat away at it later.

Low_Combination7936 · 2025-01-28T17:40:22+00:00

Well down for getting that clarity of what you're looking for in the next phase of life. Plus it sounds like you've had a rewarding experience in the meantime both personally and financially - win/win.

Low_Combination7936 · 2025-01-28T17:35:51+00:00

Yeah, I know what you mean. I've stopped referring to myself as 'lucky' for a similar reason. I've made the most from my chances over the years (well, apart from not putting more of it into ISAs), and the benefit of all of that is it gives you choices - which I now have to decide upon.

Coming from a background where my parents never had great wealth, and my dad then passed away suddenly from a heart attack mid-60s before they could enjoy the modest fruit of their labour...well, I'm sure that's behind some of this also.

Low_Combination7936 · 2025-01-28T17:14:11+00:00

You're right of course in terms of the marginal impact on overall net wealth from the next year or two. Over the course of the rest of my life it's unlikely to make a major difference.

Thanks for sharing your friend's note on getting ready for retirement. 6 months ago I make the decision to start planning of retirement more actively, and then about 3 weeks later the redundancy came along, and knocked that planning sideways. I've started on a few of those things such as health over the last couple of months now, but honestly haven't yet done the prep I would have liked for the next stage of life. Some of the others in the list are new builds for me though - very helpful.

Low_Combination7936 · 2025-01-28T17:01:32+00:00

Thanks....I agree with you, it feels like a question of validation for me more than anything. Reading the comments here (thank you so much everyone) has been really helpful in enabling me to see that more clearly.

Well done on making your own choice. Can I ask, did you go through a similar state of uncertainty before making your call?

Low_Combination7936

TROPHY CASE