Do you find these types of examples useful? Are there any other situations you would like me to cover?

@neilb8822

Ай бұрын

Very much so as many of us are the first generations not to have a final salary pension and working this all out ourselves is stressful. New scenario would be waiting for redundancy vs leaving of own volition and working out financial implications.

@ianwhittaker3041

Ай бұрын

Hi James. We are a working south east based couple (ages 56 & 54 with 2 older kids) with various pensions (DB & Sipp DC), ISA's, and BTLs, and looking to spend £60k pa in retirement and travel the world. We'd like to know if we can achieve that in 2 years time when we're 58 & 56. Would you consider us for a case study? Thanks

@themiddleagedmillenial4380

Ай бұрын

One with public servicea defined benefit schemes both legacy and new

@igorpuskarskis1592

Ай бұрын

Mind blowing how much difference can 5k make in expenditure. Love how detailed and informative your vids are

@simonunion4657

Ай бұрын

I am 55 and retiring with 550k so interesting for me no children, don`t drive own house so out goings low see what the future holds yourself, pensioncraft and a few others like Chris Bourne all good channels 👍

James your videos are very generous spirited. You're a professional in the industry but while many hold their cards close to their chests you appear to genuinely care about helping others. Good on you.

@JamesShack

Ай бұрын

Thank you for saying so!

If I could offer a single piece of advice if you have ageing parents - make sure you set up Power of Attorney over their health and wealth. My mum contracted Dementia and quickly lost her ability to make sound decisions and look after herself. We realised quite quickly that we needed to step in but without Power of Attorney the ability to do the simplest of things (like speaking to her bank) was nigh on impossible. We then realised it can take up to 6 months for POA to be set up. I recommend setting this up whilst they are well. Indeed if you are reaching into your 60s, I would recommend organising this for yourself so you dont place that burden on your children

@andyj2106

28 күн бұрын

Not just for parents. Do reciprocal POAs with your spouse as well and make other relatives, e.g. sister, brother, joint attorneys as well. As Paul says, you won't regret it because it's an absolute nightmare without.

@Banthah

12 күн бұрын

Sound advice. LPAs for both health and finance will make your life so much easier during these difficult times.

@alanhaynes9672

8 күн бұрын

Easier said than done. Most people of sound mind will not relinquish control over their assets like that, even to their children.

@jablot5054

3 күн бұрын

​@@alanhaynes9672it only kicks in when you are not of sound mind and can't make best interest decisions for yourself.

Had to put my dad in a care home a few years back. Cost me £75,000 over two years but he was very happy there and great care so wiped me out a bit but still the best decision for both of us !

@jablot5054

3 күн бұрын

Why did you end up paying? Didn't he have any assets?

James you have to be the best finance communicator. I'm of a similar age in the UK and having a large and slightly sobering view of the importance of my pension which I had overlooked massively. I am also grateful that I went to so many festivals and travelling in my twenties though. I work in Retrofit and I really think this couple and any couple should consider those astronomical energy costs. Payback on certain measures alone like loft insulation, cavity wall (though I suspect they live in a tradiation building with those bills) or even solid wall insulation could be just a few years. Solar PV now is an absolute no brainer if anyone has capital and wants to stay in their current home for at least 7 years. Especially effective if combined with heat pumps, EVs and battery storage . Thanks for your work !

I completed my bucket list when i was young. I paid my mortgage off by aged 40, ive never had a job that paid the average UK wage. I semi retired at 53 then fully at 59. I live a good life on £1k a month doing exactly what i want and have money left over. When the state pension kicks in at 67 im going to have £1k a month spare ! You dont need alot to have a GREAT live.

Any chance of a video on partial retirement/flexible retirement? It seems like the ability to "retire", but still have the option to pick up part time work here and there would make a big difference to mitigating a lot of the risk. I'm 33. Talking with friends, it seems like many people my age aren't looking at a traditional "work until x, then retire" plan. Especially as we see the state pension age increasing over our lifetimes (if we even get a state pension). Many people my age are looking at building their own financial independence and having to do a lot of the sort of calculations and risk analysis that you talk about. We often look at best/worst case scenarios in terms of portfolio returns and inflation rates, but we don't often talk about active measures people can take to mitigate those scenarios at the time. Personally, I'd be happy for many of those years to jump in and out of contract/part-time/self employed work to help balance the books while still having many of the benefits of retirement. For example, if I'm looking at a 3% drawdown rate, could I maybe push that to a 3.5% if I was happy to take a work a couple of days a week when the markets were bad/inflation rates were high? Maybe I don't mind working a few days a week over winter while the weather's bad, but I want to spend my summers with lots of free time enjoying the outdoors, etc? I'd be interested to know how we might assess/analyse these sorts of options. Sorry, I know there's a lot of variables in there. It just seems like all the content I find on retirement is based on an all-or-nothing scenario, which I'm worried many of us won't have the luxury of unless we want to retire at 80.

I'm no longer confident in my investment strategy due to the impending recession. I aim to reallocate my $250K portfolio. What's the most effective strategy to invest right now?

@_EduardoAzevedo

23 күн бұрын

I stopped listening and taking financial advise from these KZreadrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice to take advantage and make profits.

@WyattSmith-v

23 күн бұрын

It comes down to technique; a downtrend gives you room to focus on the market and grow significantly in the short or long term. While it is easier to make money when the market is rising, a downtrend can still yield high returns if you have the necessary knowledge and skills. For this reason, I have been scaling up during this difficult period by working with an investment advisor; this has been the only way I have raised up to $150K in the last six months.

@DeannaMurray-zv

23 күн бұрын

I do not really know a lot about the market, but based on what little understanding I do have of supply and demand in the economy, now is the best time to enter the market. The only thing preventing me, however, are the steady price fluctuations, which shouldn't be a problem. However, I really need an advisor, can yours help?

@andypayne2743

21 күн бұрын

⁠@@DanielFerreira596”she seems proficient considering her resume” 🤣🤣🤣🤣🤣 even the scam is telling you it’s a scam

@Loft817

20 күн бұрын

There will always be an impending recession, and an impending golden market, such is the market....no one...NO ONE has a crystal ball to give you the correct answer.

Loved this video - very relatable example & numbers. 🙂 It's good to remember that there will always be warning signs before you run out of money, and to be willing to adapt.

James, please do a video talking about DB pensions, their pros and cons etc. I love your videos but as I work for the nhs I don't know how to apply them to my retirement plans. there are millions of us in the uk with DB pensions, i cant be the only one who would find this very helpful.

@JamesShack

Ай бұрын

There certainly are millions of people with DB pensions. The main problem with creating content about DB schemes is that they all have different rules. I could do a video discussing them at a high level, that may be the way to go. Or create a guide or do a newsletter on them in more detail.

@themiddleagedmillenial4380

Ай бұрын

I'll take a stab that the nhs or local government schemes are by far the largest

@janeknight3597

Ай бұрын

I agree. Is our DB pension going to be enough bothers all of us. I wish I had opened a SIPP to run alongside.

@davidpearson243

Ай бұрын

Your NHS pension is gold plated My wife has one she took hers 2 years ago on £17,000 per year indexed linked She has gone back part time and earns more than she was full time She was on a top of a grade 6 if that helps

@ianwall9152

Ай бұрын

How about a high level video about both dB and DC ? Which should you take tax free cash from or should you take it from both ? Does the order matter ? Thx

Another great video. My father is 92 and has recently gone into a care home; it costs £1000 per week (and this is actually at the lower end of the cost of care homes). His very modest Church of England pension plus his state pension covers just half of this; the rest he has to find from his savings. We are very glad he has the money to pay but it won't last long... Definitely more focused on planning for care costs in our old age now - thank you for highlighting this James.

@JamesShack

Ай бұрын

Thank you for sharing this Sarah. I wish you and your father all the best.

@tancreddehauteville764

Ай бұрын

Is there not an £86k limit now?

@FirstMM

Ай бұрын

@@tancreddehauteville764 No, it was announced in 2021 that it would come into effect last year, but the Tories have have pushed it back by 2 years to the end of 2025. Since they are currently emptying the public purse to sabotage the next government, I doubt it will happen then either.

@K4rgo

Ай бұрын

Greetings from Denmark where care homes are free.

@ScottishJazzman

Ай бұрын

@@tancreddehauteville764Planned for England only, I believe. And not yet implemented.

This is another excellent example of a financial planning service that I'd dearly love to buy. I'm 55 and been retired for five years. I have my own home-made spreadsheets that address some of these issues, but not the stress testing with historical data. The only thing I'm not prepared to do is hand over x% of my portfolio in fees for the next few years to get the advice today. The amount of work in providing a plan like this looks fixed .... Yes it might vary by a few hours, but it should be possible to price up a service that i can buy with cash up front.

My parents spent 3 and 7 years respecively in an expensive care home. Fees around £7k a month. They had good pensions and savings. Over that period I also had an elder sister in care but that's another story. One relative was cared for at home by her children with carers visiting. My parents had to pay for one of their parents' care when they had started a family and money was tight - this impacted on their attitude to finance. My parents rarely talked about money. I acted as power of attorney and ended up executing their Will. We avoided inheritance tax. My parents had a very happy life and enjoyed being in the care home. I never want to have to manage someone else's finances again. I need to pay an IFA to advise me now but even if I part with the £2k+ needed am unsure if I will act upon what they say. I'm 60 and have always worked. It's a good video and gets the message across. The biggest impact to someone's finances, if they are married, is divorce and this can happenat any age. If you factor in divorce all the planning goes out of the window. Divorce rate is 42%. Worth factoring that in.

@MrEdrftgyuji

Ай бұрын

I do find it interesting that we have to have giant warnings on investment products, stating that you can lose money, but no such warnings on getting married - when the financial consequences of divorce can be far more devastating.

@stephenk0nig252

Ай бұрын

@@MrEdrftgyuji Correct. I have always been single but I know many men whom have been financially ruined by a failed marriage(s).

@montyspearo

Ай бұрын

Friend is divorcing at 63 and definitely thrown spanner in retirement plans. The retirement saving + house for 2 people now turns into 2 houses and 2 cars.

This was useful preparation for my R06 financial planning exam tomorrow. Thanks James 🙏

James - this is one of the best videos you've made (again) and should be required viewing for everyone thinking about when to retire. The importance of giving real thought to the questions you raise is essential, as is facing a few uncomfortable truths, like 'when am I likely to die?'. Also, accepting what we cannot change and accepting the future is uncertain but having the confidence in yourself to adapt is what will help people get 'over the line' and retire before it's too late. An excellent video that addresses all these important points.

James, 3 years ago I had to help mum put my dad into a nursing home. Poor old boy had and still has vascular dementia. The 12 months leading to that was so hard and thinking about finance was the last thing we could do. Dad’s share of the family nest egg was soon eaten away by fees, luckily in the uk once below a level the local authorities kick in, but we are still contributing over £1700 a month to his care. He has been in there for 3 years now. Mum is now starting to falter as well so potentially she could need more care soon. It is never too early to think about the care challenges, but what I would add is seeing my dad deteriorate so quickly was a smack of mortality for me, meaning I have taken the plunge and retired just last week age 54. Unless you have been through it I would suggest people can go blind into the challenges so I would recommend have the difficult discussions early and often, rather than be forced into action.

@JamesShack

Ай бұрын

Thank you very much for sharing Mikey. Great point around having the difficult conversations early and often. I wish your parents the best and hope you have a great retirement !

@Sackbutsam

Ай бұрын

All the best @Mikey_NoCap

I enjoy your in depth analyses, and the fact that you make them freely available. This particular case study is not disimilar to my situation. I have done a lot of modelling on Excel. As you say, we don''t know the future, we can only input our best guesses into the modelling and take a calculated gamble. Like yours, my modelling shows that just 1% difference in returns and/or inflation can make a big difference by the time you get to late 80s. One thing I would say, and what is in my plans, is that if my funds run short in later life, is that I would have a house to sell to pay for residential care. If that becomes exhausted then I would finally expect the state to step in, having never troubled it previously for the best part of a century, unlike many people.

I can't imagine what they are spending all that money on! My partner and I have been retired for some years. We don't travel much, having been there, done that in our younger years, but we have a comfortable life, own a detached house, heated to our preferred temperature, have one car, do whatever we want to do, eat well, etc ... we put £300 a month each into a joint account, from which all household and communal expenses are paid. We just took £2500 out of this account because it was getting too big. Personal expenses (clothing, individual activities and hobbies, gifts etc) are paid separately by each of us. If we spend £1000 a month between us, I'd be surprised. I'm even able to put money into my SIPP & ISA from my State Pension/investment income each year. They need to review their bills - I bet everything except council tax (the only thing of ours which was higher, but it's not something you can negotiate) could be drastically reduced, by changing supplier, or just getting a better deal with the current one.

@richardlong526

Ай бұрын

It is amazing that you can live on that amount. £300 from each of us wouldn't even cover our utilities and council tax.

@davem.4003

Ай бұрын

This really demonstrates the range of circumstances that different families are used to. You have no doubt lived a frugal lifestyle for most of your life and you are, by your own admission, beyond the point of enjoying the early years of your retirement, during which time you no doubt had significantly greater discretionary expenditure than you need today.

@tlangdon12

Ай бұрын

I too was a bit surprised at their level of expenditure, but they follow that rule that "If you have it, you spend it". One of the best pieces of advice I was given was to save first and spend what was left. This kept my expenses under control and made the transition to retirement much easier as my lifestyle got better as I could stop saving for retirement.

Brilliant video James. One of the most informative and relevant retirement videos I've ever seen. Some of their expenses do seem steep to me but understand its very personal. Car insurance and food bill particularly. I intend to live now and enjoy sensibly and as you say adjust if needed. Having no commitments ie Mortgage & debt changes everything. Thanks for this. Much appreciated. 👍

Absolutely outstanding 👍🏻 Thank you James - this so closely mirrors my own situation it’s a little weird! So, so useful 🙏🏻

If you want to get your head around why and how to plan your later-life finances, then this is the one-stop video to watch! This really invites you to think about what you want to do and why after full time work. It offers ideas about spending and saving adjustments that can be made and the information available to support informed and comfortable choices to avoid running out of money. It silently but powerfully underlines the fact that these decisions are most often ones to be jointly navigated by life partners and family together. It emphasises intentionality and forethought - and the need to not kick the can down the road for fear of what you might learn. It shows how combining predictions about how long the money might last, and statistics about how long it is likely you will live, gives measured reassurance about the risks of money running out at life-end. Oh, and it makes the point - think about long term care now. Don't wait. Brilliant James! Thanks.

I like rhis vid. Good insight and good information on this case study to make some plans ..thank you

Thanks James - another excellent video

Great video and helpful information as ever 🙂 Could you share the version of the budget planner that has the before and once retired costs separated out ?

Thanks James, another great video! What are your thoughts (generally speaking) on AVCs for tax efficiency vs stocks & shares ISA for flexibility?

I live in Canada but still find these videos very helpful. 🇨🇦

These are such generous videos. Thank you.

My grandfather is 97 and is in a care home. He was a doctor in the NHS until retiring at 65, and so has a DB pension linked to inflation of around £3.7k/month. He receives around £700 a month from the government for spending on care (I think...). One of his biggest regrets was that he didn't do anything "fancy" with his money to increase his wealth whilst her worked and was retired. Luckily, the sale of his fully paid-off home and the death of his wife/my grandmother meant that he was ok going into care, but he only went into care when he 94. He was extremely lucky. He was able to sell his home for a very decent amount, and he has only needed to spend money on care for the past 3 years or so. Most people are not this lucky. Save for your retirement.....to the point where your assets don't run out by the time you die, leaving your children with nothing. Save hard.

@tancreddehauteville764

Ай бұрын

Your grandfather was lucky - pension is huge.

@porschecarreras992cabriole8

Ай бұрын

@@tancreddehauteville764all NHS consultants earning about 120k per year and save in NHS pension almost 40% so it grows a lot!

@tancreddehauteville764

Ай бұрын

@@porschecarreras992cabriole8 And the taxpayer has to fund their wealthy retirement!

HI James - I very much like your retirement planner, which works very well for me. Will you be updating to version 3.0? Many thanks in advance!

I work in Income Max (basically doing the finances of putting people in care homes) and it’s shockingly expensive. A few years in a care home will wipe out a 6-figure sum

Jack and Jess's approach to refining their retirement planning with a focus on sustainability and risk management provides a valuable blueprint for others. It's a stark reminder of the importance of balancing realistic financial expectations with the desire to maintain a certain lifestyle. 💼

What a brilliant video. Thanks for this.

Make sure you spend as much money and enjoy yourself instead of holding back money for care. They will strip you of all your remaining money (up to £23k) but those who have not worked or saved will get exactly the same level of care. Completely unfair but that's how the system works.

@alanmiskimmon7851

Ай бұрын

Spent some time in several Care Homes making observations. 2 groups of people those who have insufficient savings to be charged fees were generally happy and care free. Those who had saved diligently cried as their life long savings were eaten away. Spend your money, enjoy life while you are healthy!

@lawrencer8673

Ай бұрын

If you pay for your care home or if its paid for by the tax payer you will be treated the same in the care home. Spend your money while your able-bodied.

Excellent video James. The recent news around 1st time buyers being in the most difficult position for 70 years is a situation many early retirees with children may need to consider in terms of helping children get on the housing ladder. Most will need to remove a lump sum quite early in retirement to help fund this. Would be useful to see scenarios where for example a 30K/50K lump sum is removed from the portfolio at different points to see the impact this has on long term projection and any options/choices to make this smoother.

I like these real world case studies, thanks for sharing. They spend too much money based on their pension values but you identifies that in the withdrawal rate. Appears to be a recurring theme where people can’t calculate the withdraw rate.

This might be your best video sir. Nice job thank you!🙏

@JamesShack

Ай бұрын

Glad you think so!

Amazing analysis. Thank you

Useful video. I'd be interested to know what an annuity could have guaranteed them, versus taking the risk & reward associated with keeping their pension fund invested.

Great video as always James. I’ve seen a lot of content to reaching your retirement financial goals and expenditure analysis following retirement. What I’d like to see is what I do with that retirement pot e.g. SIPP or draw down and best funds to use. Thanks again

@JamesShack

Ай бұрын

Will do something on that soon.

I hit most of these considerations. Was thinking about retiring as similar aged colleagues were being cut down around me (late 50s). Decided to give retirement a try from 55 and diagnosed with cancer and then a heart condition within a year. Doing exactly as suggested and tweaking drawdown as we go but hopeful we have a reasonable plan to ENJOY. Spend is similar to the example as are resources. Making it work so far. I would recommend anyone to seriously think, if they have that kind of pot, whether another few years of work to add to it are really that important. If you love your work and it is fulfilling then go for it but if you love one another and want to spend more time together doing things you are more passionate about then run the numbers and try and make earlier retirement work for you. If I need to top up say £10k a year then I can probably find a low wage/low impact job that would give me that.

@richardshaw4336

Ай бұрын

Spot on Micheal. I took a very low stress part time job at 57. Now 60 and really enjoy the sociable side of working. I love my free time though.

@lawrencer8673

Ай бұрын

​@@richardshaw4336what low stress job did you get?

@richardshaw4336

Ай бұрын

​@lawrencer8673 I work 3 days a week doing accompanied viewings for an Estate Agent. I've been an agent for 40 years next year but this is very easy and has little stress. It's really good fun and sociable. Anyone can do it if you can put up with people, like driving and an interest in adding value to the business. Gives an additional income as well. Good luck. 👍

@lawrencer8673

Ай бұрын

@@richardshaw4336 thanks for sharing, I appreciate you taking the time to reply.

Thanks for this James. Very relatable and very helpful as this example is very similar to our situation. One question I’ve had for a while watching your videos, could you do a video on the retirement software you use to do those graphs showing the drawdown during retirement. That’s the bit I’m struggling to work out.

@JamesShack

Ай бұрын

The software I use is specifically designed for advisers. www.timeline.co/ and planwithvoyant.com/uk/home . There are lots of free tools available, although they are mainly US-focused.

Amazing content James,we have learnt so much watching your channel,keep up the great content.

@JamesShack

Ай бұрын

I will do! Thank you for the comment!

I love your videos, James, and frequently share them with friends and family. I appreciate your acknowledgement that the majority of the population are not loaded and simply want to make the best of what money they have managed to save. Keep them coming.

Thanks for the video James. With regards to protecting yourself, or more to the point your family, it is worth considering a care annuity aka Immediate Needs Annuity. It can be a gamble as with any policy however it means you should never chew through your savings as the annuity will cover your care costs for life. There is of course the cost benefit analysis of whether the annuity costs as much as you have in savings but it is a surprisingly unknown product which could save a lot of heartache.

Thank you James, very interesting. I retired at 59 having planned to retire before 60 and am now 67. The main thing I would add and strongly recommend is for people to look after their health. Not long after retiring I was diagnosed as pre diabetic although I walked a lot and felt pretty fit. I changed my diet and work out every day either climbing mountains, resistance work or walking. I am now the same weight I was at 23 when I left the Royal Navy and feel fantastic. I want to enjoy the years I have left as healthy as possible and will work out till I drop. The other thing as mentioned in another comment is I gave my eldest daughter an LPA in case of the unexpected.

Very good video, as always. I follow your videos closely, and i love the actual example calculations you do. It's all very factual. Thank you. My only criticism is that i would like more videos released more often. 😂

Thanks James. Is there any retirement planning tool that you would ecommend for the lay person? I see financial planners recommending NewRetirement and others but they seem to be more US focused? I see the value in doing this in order to have better, more focused conversations with a paid financial advisor

just superb and so informative

Hi ,whats the best easy to use software to help plan theses scenarios

Another excellent video James. Would you consider making a review video of vanguard’s lifestrategy funds in 2024? Thanks.

Hi James, could you do a video for 18-23 year olds. How you would plan everything from the start with all the knowledge you have now. Like a step by step, best things to do financially. Great video!

@JamesShack

Ай бұрын

Hopefully this is what you're looking for: kzread.info/dash/bejne/Y2ShpZiRiKbOiqw.htmlsi=PatYwmZomotUS7y9

@MrKlawUK

Ай бұрын

can that apply as a ‘parents guide’ when trying to get the message across to kids out of uni so they start saving early?

@benjaminbushell

Ай бұрын

Live below your means cars party holidays watches etc. Invest in property and isas all that but most importantly invest in your education or in business that adds value and income and grows. Take advice from successful friends.

@maxflight777

Ай бұрын

Buy property. Invest in your career. Take risks

Thanks for a really good, accessible and insightful video. My first post. Your videos have helped me to address so many questions and concerns around my own partial retirement. Your values driven and evidence based approach connect so well. Well done, thank you and please keep doing what you do. It has encouraged me to seek professional (CFP) advice not too far from you (Joe C), and experience to date has been really great. Wish I'd seen your videos decades ago. Too bad! Never too old to learn 'new tricks'.

@JamesShack

Ай бұрын

I'm glad you're finding the content useful, and that's great feedback for Joe! 👍

I’m actually surprised at this positive outcome (relatively, maybe with some adjustments and flexibility in drawdown). I’m hopeful of a similar amount, plus a small old DB income to help so this is a small reassurance. MIght be in touch when we’re a little closer

Great video James, we had to put my mother-in law into a home & the expensive was massive, she had the money & was very ill so it was worth it but I realised this would be huge cost that would eat her entire estate quite quickly, unfortunately she didn’t live that long so it was worth every penny , she was lucky as A she had planned well for retirement & B had assets to cover it. Unlike her I am not fortunate to have a large pension, & while we have some assets & cash, we’d not be able to afford the same level of care. It makes me so worried about our future & as I’m 62 I feel time is running out. I also fear financial advisors after having been burnt a few times early in life with a worthless pension & an endowment. How much does something like your plan cost? I’m trying to work it on our own & just thinking we’ve managed so far with our money well keep,doing the same.

Thanks for this. There never seems to be any use of insurance? Seen a broker Castleacre that offers a life policy that pays out if you go to long term care and a pay out on death to cover inheritance tax. Should you be looking at this as part of the advice? Thanks T

Got so much from this video - thank you!! 🙏

Well done James. Thanks. 👍

@JamesShack

Ай бұрын

Glad you enjoyed it

Excellent example James

Great information well presented.

@JamesShack

Ай бұрын

Glad it was helpful!

A video on how fund allocation to UK/EU/US/ROTW would be interesting both on the risk and historical rewards. For instance S&P500 vs FTSE100. Risk vs reward on putting money into non UK shares/schemes and the best way to diversify risk by spreading it around the world.

Thank you for highlighting the care issue. Father in law went into home recently. Plans and savings decimated. An awful eye opener!!

@tlangdon12

Ай бұрын

But better to have money to be able to chose a care home, rather than hope that what the state will pay for will be any good. I would want to use my savings to give me a good quality of care in my final years.

@jablot5054

3 күн бұрын

Surly that's why you save, to pay for your care?

Going down to one car is certainly feasible and was a change that we made when we retired. As retired persons, we have so much flexibility that there is rarely ever a time we both want the car at the same time. I'm also happy doing basic car maintenance, which is why we've only spent about £1,000 on maintenance over the last four years. Our car insurance also went down because no longer needed cover for commuting.

I work in care - the people who are happiest in a care home are ALWAYS the ones who planned ahead, went into a home on their own terms and aren't worrying about the burden on their kids. And it is a burden, at least initially. Kids often feel like they aren't doing enough, worry that they haven't found the right, safe, place and that their parents are going to be wiped out financially. Imagine believing that your parent might run out of money & thinking that they could be thrown out of their home! It's an unfounded worry, any home worth its salt will work with families in advance to find solutions that work for everyone. You'll worry about it too though when it happens. We all will, because we care about our parents and want the best for them.

Very useful thank you

@JamesShack

Ай бұрын

Glad it was helpful!

Very useful indeed, thanks James. Your clients are in a similar position to my partner and I so easy to make a comparison. On the topic of ideas for future content I'd like more information on the transition from SIPP to Flexi drawdown. I hold my SIPP and S&S ISA with Vanguard and intend using them both in retirement to help with the tax burden, but have no idea really of how to set this up? A video on this would be a great help to me and many others I'm sure. Thanks again Paul

@JamesShack

Ай бұрын

I will do something on this shortly .

@RealStAndrews

Ай бұрын

@@JamesShack that would be great. Thank you

Great video James, always so well explained. I recently experienced the situation with a family member. We had to put our grandmother in a full time care facility costing more than 30K euros per year (we live in France). For now, it is managable, but we are realising it is not sustainable over the next years. So we are focusing on getting a recurring revenue through real estate to support these fees. I wish it was planned before, causing less stress on my family to find quickly a long-term solution to finance it. I promised myself I will not make the same mistake with ny parents and plan my financial future accordingly. Thank you again for your advice, it helps tremendously to achieve this goal.

@JamesShack

Ай бұрын

Thank you very much for sharing, I hope others can learn from this example. All the best to you and your family.

This is excellent James, and I believe very relevant to a lot of people. My situation is identical - about 60 with 500-600K in pension and savings, months away from paying off the house and grown-up children flown the coop etc. Also many of my colleagues, friends and family are of the same age, financial situation and all of us have agreed we need to carry on working for quite a while longer.. So it’s great to see a strategy where we can retire now with what we have - real food for thought!

@JamesShack

Ай бұрын

I'm glad to hear you found this useful!

@AG-so4gl

Ай бұрын

Go where your money works hardest for you. And its not the UK 😊

@jablot5054

3 күн бұрын

I gave up work recently aged 59, been semi-retired from 53. I live on about £1k a month but don't pay rent or mortgage. I have a great life doing all the things I want to. I'm not sure where people get these expenditure figures from.

How to plan for health and care cost in retirement considering the state of the NHS?

Great to have this type of analysis and financial planning. Too many IFAs expect you to live like paupers and retain you initial capital for inheritance/care. Such a waste. Well done

I retired at 60 and did a calculation spread sheet with no value increases except 1 % and just made the assumption that pensions from known sources were increasing at about inflation rate so all values right up to at least 85 were shown at 60 year levels except investments with a 1 % annual increase. I could then back calculate to give me an annual salary as at 60. Even calculating tax to pay. I did a reduction on expenditure when works ceased and saw the reduced figure matched the annual value so i retired - why work? "Loose cash" was invested and beat inflation by more than 1% . That happened 15 years ago and i am very pleased with myself and calcs.

Great thanks James. I assume the state pension was factored in as well when they became eligible?

@JamesShack

Ай бұрын

Yes, both will quality for the full state pension.

Aha.. this one is actually quite close to what I have in your retirement planner spreadsheet. I'm 40 and hoping to retire at 59 when the mortgage is paid off. Regarding retirement expenditure, a 25% reduction at 75 seems like a big cliff edge to me. I think I've been influenced by seeing my own mid-70s parents show no signs of slowing down. Currently we have pencilled in £37k from 59-85 and then £32k from 86 plus... to me it feels like 85 would be a more accurate prediction for when physical limitations are likely to affect ability to travel, etc. But who knows!

I think you are awesome. Thankyou for all your education.

@JamesShack

Ай бұрын

You are so welcome

Hi James, fantastic video as always 👍. I'm 54 this year and plan to retire asap for the very reasons you mentioned here and in previous videos (family, friends illness/death & that length of time doing things you love with the people you love etc). I use all your spreadsheets as a guide for our retirement and spending, they are fab. I noticed in this one the budget planner for Jack & jess also has columns for spend now and post retirement, is that version available so you can see what you spend now and what you could decrease once retired? Keep the videos coming they really help people make better decisions or at least think about the future more.. Thanks BoB

@jocar-1735

Ай бұрын

All good reasons to retire early, and there is another reason to retire early if you can afford to do so and that reason is that if you don't need the money from work, why continue to work and deny somebody else that salary who might be in need of that money ? If someone has enough funds to retire but wants for whatever reason to carry on working, why not work for no money ? I retired at age 55 and this enabled 2 engineers to move up the career ladder and for a new graduate engineer to be recruited, so 3 persons benefited from my retirement as well as myself. I worked alongside people in their 70's with multi million pound pension pots and I consider their continued working with a salary to be outright selfish.

@jablot5054

3 күн бұрын

​@@jocar-1735that is very thoughtful of you. Everyone should be forced to retire at 60 to give the younger ones a chance. Stay on one day a week as a mentor or trainer.

My parents recently needed to go together into a wonderful care home which was costing them jointly 10k a month. We paid using their savings until we were able to purchase each of them an immediate needs care annuity using their pension pots. This will pay their care home fees for the rest of their lives, they have their state pensions for expenses and the family home is untouched. They are very fortunate to have built up this pension pot through spending far less in their later retirement years than they had imagined, so it just sat there growing. It was very important to them to provide and plan for their own care costs. The financial side of this care home move has been incredibly stressful to organise, but I am so grateful for their planning and power of attorney well in advance.

@tlangdon12

Ай бұрын

I think your point about them spending far less in their later retirement years is important as many of us over-estimate the number of active years we have left. Once health conditions start to limit what we can do, a lot of discretionary spending falls away. The power of compounding means that money that is not drawn out can, if the investment portfolio is setup correctly, increase quite rapidly. This certaily helps with future care costs. I'm pleased that your parents have managed to find a wonderful care home where they can be looked after.

Thank you James, another excellent video.

@JamesShack

Ай бұрын

Glad you enjoyed it

@mattlongman

Ай бұрын

@@JamesShack Just used the budget planner and the numbers come out very similiar to the example. It would be helpful if the sheet could be updated to allow a second or third scenario. I'd like to compare Now, retirement in 60s versus post 70.

@JamesShack

Ай бұрын

@@mattlongman I normally ask clients to duplicate the first tab, and then do another version for a future time period. Would that work?

@mattlongman

Ай бұрын

@JamesShack yes I'm happy to duplicate. I just thought it was worth mentioning. 😀

I love your videos, have leant so much from all those advises. Thank you ! I wonder if you could you make a video about how to protect your asset and your company after the dead of sole director shareholder, who would be in charge and running the company, what happens to those investments in that company and what to do now to avoid the disaster whicj will end up of loosing everything ? Thank you . I’m 25 single sole director shareholder of the tiny company .😊

What about multiple mini retirements? Like 2-3 months of time off work to do bucket list And see how they would spend time and money when off work?

My parent both went into care funded by the State. The managed on State Pensions , Benefits and were awarded CHC to fund private care. Both Council run homes and private care homes were similar. From this I learnt that I will go into an assisted home environment when I reach the age of say 77. In the meantime I need to use as much of my assets as I am able leaving enough to buy an apartment in a retirement complex and also having enough income to live in the complex. Once the money has gone then the State will pay. Having said that my FA looks each year at cashflow modelling and so all is good for me.

@GordonHarrison-vi7id

Ай бұрын

@JamesShack-HELPLINE the reply makes no sense at all.

According to my calc, someone would need around £240k (so £480k for a couple )in todays money, to buy an RPI linked annuity (not enhanced ) that would deliver the same income as full state pension, on today's rates. May be useful in quantifying its worth relative to your pension pot/other investment pots. Unlikely that the RPI link will be dropped in my view. Its future taxation post crystallization/state pension age thats the big unknown..

Where is the template to complete the budget - how do I access?

high quality, once again

@JamesShack

Ай бұрын

Glad you found it useful!

Thanks for posting. At almost 60 this is very pertinent. Ironically I was hoping to be included in a round of redundancies at work which would have kick started early retirement with a very nice sum but no such luck so will have to be brave enough to jump myself at some point as I think (and an IFA confirms) I have enough to meet my needs. There's always a worry re the stock market and a huge tendency to work one or two more years though.

@JamesShack

Ай бұрын

Good lucky taking that next step! You'll never look back.

@michaeljohnston6811

Ай бұрын

Leaving on your own terms is so much healthier for your mindset than waiting around to be pushed. If you can afford to: jump and don't look back (I retired at 55, currently 58).

@tlangdon12

Ай бұрын

@@michaeljohnston6811 I was about to hand my notice in when I got the whiff of a reorganisation so I didn't resign, and was made redundant two months earlier than I would have been happy to leave anyway (I was going to give my employer six months notice). I remember the conversation with my boss being very odd as everyone else she had had to tell that they were being made redundant was upset. I was delighted as they paid me to retire early!

As someone in their early 30s who is saving with the intent of building a sufficient initial pension size to leave the rat race for a lower income living, I’d be very much interested in an analysis of what someone should be doing in this scenario and how they can assess the opportunities vs risk with such a larger horizon to retirement.

@pistopit7142

Ай бұрын

Save and invest that is the most important really. The rest you will worry later when you are closer to your "sufficient initial pension size to leave the rat race". But did you ever wonder what number this needs to be for you so you can call it ""sufficient initial pension size"? For me that number is when the folowing condition is met: I am able to still cover all my mandatory annual expenses, using just 4% of my entire portfolio current value, when that portfolio is 50% down (for example due to recession in stock market). Which brings me to another advise you did not ask me: track you spendings. Not just how much you spend but also what kind of spending this is. There are two main kinds of spending in my financial dictionary: mandatory (food/mortgage/rent/bills) and not mandatory (new HiFi speakers, latest GPU, new car or in fact any car). Good luck.

@tlangdon12

Ай бұрын

@@pistopit7142 I agree. The most important thing is to invest! Don't be put off by it seeming to be difficult. Invest in one or two large, well-regarded and low cost funds to get started. Then use those funds to learn more about what you might invest in and how to judge whether the investment is a good one. (This should not involve looking at returns for quite a few years). Few people realise how important costs are when investing. They think that paying 1% in charges per year isn't alot, but if your return on the investment is 7% per year, you are giving away nearly 15% of your return in charges!

I honestly dont understand how someone earns £4k a month and spends £3.8k of it having paid a mortgage off. I mean, surely thats the issue more than anything?

@aacmove

Ай бұрын

I'm with you, although living with another person who has no limit to their spending could encourage you to spend more. I paid my mortgage off two years ago and since then I divert at least 1/3 of my net to savings and pensions. I don't waste money on fashion, but still get to eat out once or twice a month and still have a generally good life. Maybe I missed it but I didn't see in his budget the 1800 or thereabouts income from their government pensions. Because that would mean a drawdown of only 20 to 25k per year from their pensions.

@thenoodlebuddy

Ай бұрын

Agreed. Just under half of my income goes of mortgage, so if I didn't have that to pay I think I'd struggle to spend so much money

@aacmove

Ай бұрын

@@thenoodlebuddy I also failed to understand how their food bill is so high when they eat out all the time. People who are profligate rarely know where the money goes, but also confused how they got 500k with such frivolous spending habits.

Insightful article as always James. I suspect the reality is that Jack, having taken a knee-jerk response to a friend suddenly passing (we’ve all experienced that sadly) will probably find going from work to full retirement a very challenging adjustment. Another scenario to be considered is perhaps one of a glide path to retirement. Maybe a drop down to 2 days a week (doesn’t have to be the current job he’s in) and a career change may be very beneficial plus of course it alters the financial landscape taking the pressure off his pension in the early years?

@richardshaw4336

22 күн бұрын

Very good point. Exactly what I did and its worked well for me so far.

TV licence £50 per year (cheap streaming subscription?)…sign me up!! Great video! Exactly what prevents my friend in the US retiring, the inability to embrace uncertainty. Makes me cringe when people say they are expecting an inheritance. Parents may need that money for their own care.

Am 68 and retired at 65 due to Covid . I have worked on a spreadsheet every year and budget for the 12 months . I own my house . I get state pension . I have shares which I drawn one a year to cover my yearly expenses . I know what I need put in to a separate bank account for bills via direct debit only I put the full amount for the year. I know what my energy cost is every month and compare this year against last year +/- . I never panic about any bill coming it and have a small reserve for emergency. The only debt I have is a £200 pm for PCP .

A great video. Back in 2020 as the covid pandemic hit my dad was diagnosed with dementia. He had my mum there to look after him. Unfortunately my mum caught Covid in December 202 and died from it. This left me and my wife, I am an only child, to try and work and look after my dad. Once my mum had died dad went down hill rapidly and within 6 months we had no option other than to move him into a home at a cost of £1550 per week. This was a huge shock for us in that in under a year we had gone from having healthy happy parents to having to deal with the huge burden of managing health and finances. It came out of the blue. The stress of it all nearly finished me off and my health suffered badly over it. Don’t put off considering the future and what could be round the corner for your children or family members to deal with and don’t underestimate the financial . I would not wish what we went through on anyone and especially not my children. This has made me reassess my life and take the decision to retire now, at 60. I am doing everything in my power though to ensure I do not leave my children with the huge emotional and financial worry we had with my parents.

very nice

There is still option of going back to work even if part time in early years if finances aren't working out.

Hi James ,, can you tell us which cash flow modelling software you use please ,,

@JamesShack

Ай бұрын

We use a version on Voyant and Timeline app.

Great video. In my sixties I don't drink coffee anymore and don't eat breakfast anymore. Considering that these activities were always in Cafes it saves a lot of money. We don't actually know how long someone born today will live, but I am sure that was just a slip of the tongue.

Dad’s care fees are roughly £60k/yr - 40 year teacher’s pension plus state pension pays him £2100/pm, council pays the standard non-means-tested amount of around £380/wk… there’s a delta of around £1500/pm which we need to fund by selling his house and that will give us less than 3 years before it’s all gone. Planning for future is important.

@GordonHarrison-vi7id

Ай бұрын

Have you heard of CHC. If your Dad is that bad then he should be eligible. If he isn't that bad then I would ask why he can't get care at home ?

@ScottishJazzman

Ай бұрын

@@GordonHarrison-vi7id Not applicable in NHS Scotland, unfortunately. They have a different system, and a full financial assessment has led to the position we are in currently. Thanks though :)

Very interesting. To what extent have Hunt’s changes affected your long term projections ? Almost anyone with savings who receives the full state pension is now a tax payer and the tax free allowances on interest and CGT have been cut dramatically. Many in retirement will get a lower return in future than they might reasonably have expected to generate.

Random query: if I paid for my parents retirement in cash and left there pension growing, when they sadly pass does it get passed to me and if so is that a shrewd move for compounding long term? Not planning on doing it but it just crossed my mind?

Another helpful video. Thanks. But I think your 'Download Budget Planner Template' is not working. I cant enter my email address on that page.

@JamesShack

Ай бұрын

Thanks for letter me know. I've made an update. Does it work now?

@thestoicsteve

Ай бұрын

@@JamesShack yes working fine now thanks.

My parents planned carefully for their financial future, including the possibility of care. This allowed my father to die peacefully at home, and, now that my mum is 96 and has had a bad fall landing her in hospital, I cannot say how much weight it takes off my mind to know that we can afford the best care for the mummy we love so much. (She’s recovering well though!)

I am trying to download the Budget Planner, but the link just goes to your website with an image of the planner. Is there an Excel download link?

@JamesShack

Ай бұрын

Scroll down a bit. You need to sign up for my newsletter and then you can download it.

Hi James, I find these videos brilliant and really useful, so firstly thank you for posting them. Just a point when you talk about running out of money at a certain age, if you qualify for the state pension (hopefully full state pension) then you’ll never actually fully run out of money, or am I missing something? Thanks, Dave

@JamesShack

22 күн бұрын

You're welcome. That is true, you would still have the SP coming in. You would have depleted your liquid assets however.