George, thanks for another useful video iam still a couple of years off of retirement, partly due to a lifestyle DC scheme heavily biased to Gilts, but lots of sensible advice. Have quite a few friends in their late sixties and seventies and their expenditure has not dropped. Long haul trips replaced with a few cruises etc. Cash modelling forecasting and having a realistic grip and understanding on your expenditure are clearly the key
And something I've done all my life: the *_margin benefit:cost ratio_* of what you're spending on. Nice a bottle of Freixinet on offer from Tesco costs me £7. An bottle of middle of the road champagne would cost me £20. So I stock up on the former and always ignore the latter (and can I really taste the difference between a nice cava and an ordinary champagne, anyway?). The extra £13 would be shockingly poor 'value'. Ok - maybe not the best 'real world' example: but it does illustrate the principle. I do the same for holidays, vehicles, food shopping, appliances etc. I'm always willing to pay more for value: an expensive eco washing machine that really lasts is actually better value than a cheaper one that uses more energy and conks out after 5 years. And a (possibly expensive) holiday of a lifetime that will continue to produce happy memories (for me, Japan in 2018 - best hols ever) can be worth it. But what drives my buying is value for money.
4:20 I see what you did there: we should all be invested in REIT's? That would have been a great place for retirement money in the last 10 or even 20 years. Not so sure going forward.... [Edit: only kidding. I do know those were typos....]
😂 😂So strange... i didn't even see that!! Thanks for flagging. I need to get better at cross referencing little bits like that, it happens quite a bit. One day I may have an editor who can check these things. Or I could just pay more attention to the text instead of fancy editing and REITIRE them 🙃 Cheers for watching 🙌
Meant to add, I totally agree with your comment about expenditure pre and post retirement. When I read, as I often do (admittedly in the Investors Chronicle) that someone needs at least £50k per year in retirement, I wonder how am I able to live quite comfortably on half of this. The answer is that I live a relatively simple lifestyle and anticpate that this will continue into my retirement.
Exactly! It's so individual and depends entirely on your lifestyle. I've sat with clients who spend £1,200 pm and clients who spend £5,000 pm and both describe themselves as 'not extravagant.' It's entirely about your lifestyle. Thanks for watching and commenting, means a lot! 🙏
If you're doing flexi access and can be expected to have a 20-30-year retirement, there's no point in 'going safe' as you approach retirement. To me, a 20-30-year retirement counts as a long-term investment horizon and you need to be invested in things that have real returns even if that comes with 'risk'. To me, there's nothing more risky than putting hard-earned income into cash or bonds with really low returns for a quarter of a century.
I couldn't agree more. (Opinion and not specific advice to anyone, which I'm required to make clear.) Risk is not just volatility. The risk of low returns is just as much of an issue for many as the risk of market downturns. Both need to be managed well in a retirement plan. Thanks for watching 👍
Great content with clear explanation. Thanks for another quality video.
Thank you very much! Appreciate your kind words and giving it a watch!! 🙌
George, thanks for another useful video iam still a couple of years off of retirement, partly due to a lifestyle DC scheme heavily biased to Gilts, but lots of sensible advice. Have quite a few friends in their late sixties and seventies and their expenditure has not dropped. Long haul trips replaced with a few cruises etc. Cash modelling forecasting and having a realistic grip and understanding on your expenditure are clearly the key
Thanks for watching Lee! Agree on your points. Absolutely, expenditure is one of the bedrocks of it all 👍
And something I've done all my life: the *_margin benefit:cost ratio_* of what you're spending on. Nice a bottle of Freixinet on offer from Tesco costs me £7. An bottle of middle of the road champagne would cost me £20. So I stock up on the former and always ignore the latter (and can I really taste the difference between a nice cava and an ordinary champagne, anyway?). The extra £13 would be shockingly poor 'value'. Ok - maybe not the best 'real world' example: but it does illustrate the principle. I do the same for holidays, vehicles, food shopping, appliances etc. I'm always willing to pay more for value: an expensive eco washing machine that really lasts is actually better value than a cheaper one that uses more energy and conks out after 5 years. And a (possibly expensive) holiday of a lifetime that will continue to produce happy memories (for me, Japan in 2018 - best hols ever) can be worth it. But what drives my buying is value for money.
Some great advice in this video. Many thanks and will take a look at your other videos.
Thank you! Appreciate you watching 🙌
4:20 I see what you did there: we should all be invested in REIT's? That would have been a great place for retirement money in the last 10 or even 20 years. Not so sure going forward....
[Edit: only kidding. I do know those were typos....]
😂 😂So strange... i didn't even see that!! Thanks for flagging.
I need to get better at cross referencing little bits like that, it happens quite a bit. One day I may have an editor who can check these things. Or I could just pay more attention to the text instead of fancy editing and REITIRE them 🙃
Cheers for watching 🙌
Meant to add, I totally agree with your comment about expenditure pre and post retirement. When I read, as I often do (admittedly in the Investors Chronicle) that someone needs at least £50k per year in retirement, I wonder how am I able to live quite comfortably on half of this. The answer is that I live a relatively simple lifestyle and anticpate that this will continue into my retirement.
Exactly! It's so individual and depends entirely on your lifestyle. I've sat with clients who spend £1,200 pm and clients who spend £5,000 pm and both describe themselves as 'not extravagant.' It's entirely about your lifestyle. Thanks for watching and commenting, means a lot! 🙏
The lifestyle design is also to ensure minimal impact from volatility at end of growth period?
If you're doing flexi access and can be expected to have a 20-30-year retirement, there's no point in 'going safe' as you approach retirement. To me, a 20-30-year retirement counts as a long-term investment horizon and you need to be invested in things that have real returns even if that comes with 'risk'. To me, there's nothing more risky than putting hard-earned income into cash or bonds with really low returns for a quarter of a century.
I couldn't agree more. (Opinion and not specific advice to anyone, which I'm required to make clear.)
Risk is not just volatility. The risk of low returns is just as much of an issue for many as the risk of market downturns.
Both need to be managed well in a retirement plan. Thanks for watching 👍
Should we transfer all pensions into our defined benefit if we have one?
Hi, thanks for watching. Most DB pensions won't allow transfers in. NHS and Teacher's sometimes do for other public sector under the 'transfer club.'
So 3 stages of retirement “Go gettin, Slow gettin, No gettin…
😂 pretty much!
Great video!! How do I get in contact with you ?
Thank you! Just drop me an email at: info@principlespersonalfinance.co.uk 🙌