It’s time to get serious, I’m serial
Like many in their late 20’s or early 30’s I’ve started a few times to look at retirement planning, creating multiple spreadsheets each more complicated and mind blowing than the last, but it always came to the same false crescendo… I would stop looking at it after a couple of weeks, and then when I did return my time would be best spent building another projection work book. Interesting but hardly addressing the point.
So… I’ve never properly looked into how I’m saving, whether or not it’s efficient and whether it’s enough to retire comfortably. It is one of these exceedingly dry things we all have to consider, never properly look at and to a certain extent, from constantly being told we are all doomed in retirement, something we are sick of.
My assumption was I was doing grand as I am paying a mortgage and paying into a pension like a good lad. Appears that really I’m just shambling along.
Doing a quick Net Worth calculation the other day my mind was blown to find that my wealth was >£100k. That’s awesome! Or is it? Nearly all of it is locked into my current residential property and one pension scheme… net worth can be a good tool, but also dangerous one leading us into a false sense of security. More on my thoughts on this later perhaps.
Why the blog
Hopefully having something accountable will make me consider and review my position more frequently.
The blog hopefully should prove a useful tool in tracking my progress, learning from my mistakes, hopefully getting some input from others and then ultimately let me howl at the moon when I achieve my goals.
I’ve always been deeply suspicious of blogs (what’s really in it for the writers) but looking at the personal finance blogs about there’s more to it that people suggesting you re-use teabags or sit indoors all week trying to achieve a “no spending week”…like these;
Well, now is excessive. It would be awesome to be in a position where my passive income meant that I could stop working if I so desired. I’m not saying that if I reach this by 45 I will put my feet up and get involved in watching daytime TV or walk about shouting at traffic, but it would be good to have the option.
To review my current position
To decide on how much I need in retirement/financial independence
Decide on a proper investment plan
Update my position and periodically review
NO IDEA, but it’s got to consider;
- A strategy that’s not going to require constant attention, so a much more passive approach to investing than an active one.
- It should be diversified enough (a nice vague statement) whilst still taking on enough risk (again, nice and vague) to beat inflation… easy right? We shall see.
- Attract low costs and as little taxation as possible.
- Have a set goal, e.g. passive income of £20k by the time I’m 50 or a net worth of £1m+
It will just have develop as we stumble along.
In future posts I’ll look to cover the above.
Now, to re-use that teabag.