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wish I could afford one

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Everything posted by wish I could afford one

  1. Yes, I've done that. Will still get pro-rata UK pension based on years of contributions but it will never be uprated by any part of the triple lock so will eventually be inflated away. Here in Australia the State Pension is based on residency not years of contributions and it's also means tested looking at capital and income. With a fair wind I'll never need or get any of it but what I like is that if the SHTF and I lose all my capital I'm backstopped so I shouldn't end up under a railway arch. On the £800k topic, I'm really glad I made my last final Private Pension contribution way back in early 2018 although at current run-rate I'll breach £800k by a mile by 55. Should be under current LTA, even if it stays frozen until I'm 55, so fingers crossed they pay for the Covid waste from somebody elses dime. Making full use of the Australia private pension system called Superannuation though. It looks like it'll be a nice way to keep tax payments down while I move my wealth gradually from the UK over a number of years. Only problem is it's not accessible until age 60. So under current rules I'll have UK pension at 55 (which I'll sacrifice part of to Superannuation to reduce LTA risk), Aus superannuation at 60, UK state pension at 67 which will go to nothing and then finally an Aus State Pension if it all goes pear shaped. Life's good...
  2. Agree with the slog comment - in the past I've called it determination and definitely called it out in my book as a key factor. It really does take some determination to run against the herd for 10 or so years but I can 100% confirm it's worth it once you're on the other side. How much longer do you think you have to hit your number?
  3. A lot of really good things happening right now leaving not much time for blogging. Probably early July for a half year update. Will only be good things, with no mistakes, this time though so might be a bit boring compared to a lot of my more recent posts. It really is all coming together in a great way and I have FIRE to thank for it all. It's not easy but it is great.
  4. Sounds like 2 requirements that are in direct conflict with each other financially. Good luck with making the right decisions.
  5. My view is you need to be asking yourself the question - which of these options will bring MY FAMILY AND I the most value. You also need to balance between value now and value later. We're all different and have different needs on this crazy FIRE journey.
  6. Absolutely. For me I think some essential traits to make it worth are: a willingness to start (this is tough as it's counter intuitive to what is rammed down our throats daily), determination (circa 10 years is a long time to run against the herd, it can be a lonely path), never become a victim (blaming others won't get you there), don't be afraid to make mistakes (I made plenty that cost me a lot of money but I still made it and now have an education that will be useful for the rest of my life), recognise the power of AND (the game is not just one thing, it's many things in parallel both big and small) track progress (it's essential to hold yourself accountable but it also helps with some of the other traits above, particularly determination) What's interesting is that none of those are which stock or crypto currency should I buy. Success or failure is within the person on a journey like I've just been on.
  7. Unfortunately I don't have a crystal ball about Mr Market but what I can say is: that between 2007 and today 47% of my wealth came from saving while 53% came from investing. Number 1 priority is to figure out how to grow savings quickly. big bear markets happen and I've been through 2 of them already. If we have another great depression or another late 60's inflationary period it's going to be more difficult (ie take longer) of course but also the phasing of when that occurs makes a big difference. A big 'crash' early on in the journey could be beneficial as assets will be bought on 'sale'. A big 'crash' the year before FIRE'ing will of course likely move things out. With everything in between. the person who figures out how to save 70% of their net income (since 2013 I manage a little over 75%) is always going to be better off than the person who saves -10% of their net income. There's no downside to being on the journey, only potential upsides, provided you're honest with yourself. But it's big savings rates, not 10% type rates, that give the best chance of success and that means you have to figure out what's important for you and your family rather than just blindly wandering through life consuming. I don't think it has anything to do with luck if you educate yourself into how this game works. I became FI in 9 years and took FIRE after 11 years. Assuming history replays in similar forms I can't see why somebody following in my foot steps won't get to FIRE quickly. It might be faster or slower but they'll get there and be far better off than most financially. When you no longer have any financial worries stress levels really do fall away.
  8. We were in Paphos region. This was the story http://www.retirementinvestingtoday.com/2019/06/back-to-powerful-fi.html In 2021 hindsight I think we didn't give ourselves long enough to settle which was our fault and not that of Cyprus. We talked about giving it 12 months then deciding for the long term and in the end we gave it closer to 6 months which wasn't enough time to build new strong friendships. I think we also forced everything to happen too quickly - give up work, leave home, leave UK, set-up new permanent life... I should have first given up the 'career', let that get out of my system and then moved or maybe if I could have had more courage/trust it would have been a very different story because I have now left that 'career' behind and life is better for it. That said sometimes life is what happens when you're busy making plans and I'd say our long term future in Australia is looking better than the Cyprus side of things.
  9. Don't really frequent HPC much anymore as I think my life has moved past most of what is discussed here now but in case it helps I'm happy to share. Came to HPC in 2007 as I just wanted to buy a house but when I started searching discovered that even with a good job what I could afford was just terrible (thus my HPC name). HPC helped me see what was going on. While I waited out for the HPC I also started a Plan B which required me to increase earnings while in parallel figure out what I truly valued so I could just spend on that. That created a fire hose of savings which became larger every year that passed. I then also learnt everything I could about investing, including how to keep more for myself instead of giving to government and the financial services industry, which allowed me put those savings to work. Meanwhile house prices continued to go stupid so I just stuck at Plan B. In 2016 that Plan B had turned into £1,000,000 which opened up the world and not just some overpriced part of the UK. In late 2018 moved to Cyprus. Enjoyed the adventure but also realised it wasn't for us as a forever home and so returned to the UK to clarify a few things. All written about both here and on my much neglected blog. In late 2020 moved to Australia and this time I think we've found our forever home. We're absolutely loving it and I'd say it's unlikely we'll ever return to the UK. I have a great work-life balance here as I only work 4 days per week, 100% from home, in a low stress job job where they could fire me tomorrow and I wouldn't care as I've engineered my own financial independence rather than living with the sword of damocles hanging over me (mortgage debt that has to be serviced). Meanwhile we live in paradise (it's amazing what's out there when you don't have to locate yourself so you can work for the man on his terms) with sandy beaches and wildlife filled forests on our doorstep with all the life adventure that's available in an environment like that. Meanwhile those investments have continued to grow and now exceed £1,500,000. So I'm now actually thankful for all the HPI. Instead of Plan A which would still likely see me paying for a South East England house while working for the man I've instead built a life where the world is my oyster and I'm grabbing it with both arms.
  10. All we have on here is data and our experiences. I also know I and a few of my friends are more than ok. I also know the news is about shocking or nobody would be interested. I guess I'm just very sensitive today. Maybe it's just the onset of winter...
  11. Gradually remove all government props, gradually reintroduce sensible lending multiples, residential mortgages to be repayment mortgages so that in 25/30 years you actually own rather than having been a renter, limit the number of residential homes somebody can own and require somebody to be a UK citizen/permanent resident before they can buy. I'd predict that would help with the so called housing crisis.
  12. The mental health issue is concerning. I now know both IRL and on some other forums I frequent of people with fairly serious mental health issues. What I don't know is if the percentage affected is increasing, I'm just getting to an age where those around me are more likely to be affected or whether it's just becoming more ok to talk about it. I hope it's the last two and not the first. The going it alone point is also interesting. In Cyprus the spirit of family and community for the locals was far stronger than what I experience in the UK. As an immigrant it would however have taken a long time to integrate into the Cypriot community but I have no doubt it would have been possible with time and language improvement.
  13. You might be right. The question is would 20 years ago that couple - 2 incomes - have been able to pull a deposit together for a home say 1 hour commute for London in quick time. I'd suggest yes. Great that somebody is getting a good NHS service. I haven't needed to see a GP for years but recently did need a visit. Waiting time = 4 weeks. I could have been dead if it was serious.
  14. Do you work for the government or the BoE? Median earnings in London are currently £38,298. Measured against that are you telling me that £250k is cheap? What about all those people out there who don't have rich parents to help? Should they just rot in squalor... It's not supply and demand. It's an affordability problem. If you provide 'help' props and drop interest rates to the floor prices increase as people will always borrow the maximum. If indeed he is an immigrant (you've jumped to a conclusion) what has that got to do with it? It looks to me that both of them are working, paying their taxes and trying to get on in life. That's good enough for me. IMHO you might just be part of what is wrong with this country these days...
  15. Rant on. An enjoyable life does not have to be complicated nor should it be expensive. To help steer me for some time now I've used Maslow's Hierachy of Needs as a guide: Before we can truly move up the pyramid we need to secure warmth, rest, security and safety. Those that have been complicit (yes I'm looking at you BoE and Government plus BTL landlords who made hay while the sun shone) in making this more and more difficult should hang their heads in shame. We now have this type of rot going on https://www.bbc.co.uk/news/business-50306994 . So intimate relationships now have to be sacrificed to enable somebody to buy a sh*t terrace which they'll be paying off for the rest of their lives. Wonder if they'll ever be able to have kids as I'm sure 2 salaries will be used to 'afford' the mortgage... This country is so very broken and I look forward to again leaving it in the not too distant future. Rant over.
  16. At the moment 46% of my spending goes on my rent with a further 5% on council tax. I'd happily spend some of that in the productive economy if rents weren't so high.
  17. I honestly don't know the answers. I generally agree with your hypothesis and certainly agree that it is about more than economics but I see it also create real negatives in practice. For example I quite like it that I can stand in a Tesco queue knowing that the person next to me is very likely to not be carrying a firearm, I quite like it that a person can hurt themselves and not be ruined for life and I quite like that alternate energy sources are being developed because it's right rather than the lowest short term cost.
  18. Oh, I agree with that. I'm not for one second saying we have to become "Spanish" or "Italian". IMHO having spent a lot of time both across the EU and US we are far closer to the EU values than those of the US. It's likely I'll soon be again leaving the UK but if we start aligning with the US that likely will quickly become definitely.
  19. Don't know how much non-direct military involvement they've had TBH but I agree they have not been overt with guns. Doesn't mean they are not aligned with a 'bloc' though.
  20. When we boil it down to values I wonder if we really do. I've seen how easy it is for a person to have their life destroyed in the US via something as simple as an injury. I believe there should be safety net. I've seen the job expectations espoused by US corporations. Life should be about more than selling your soul to a corporation. I believe we have a climate emergency so can't support the US model of just consume it all without thinking of alternatives. Of course our current approach causes other problems which I'm not supporting or hiding from. I'm just saying if I was asked to go with the EU or US model with what i know today I'd pick the EU every time.
  21. I think that makes 6 of us on board now. ? Only a few million to go... We could have started with that and seen how we got on. With time we could have gone in either direction. I believe Switzerland did something similar. They started out in EEA/EFTA (may have even been founding members) but through a referendum left the EEA.
  22. Switzerland has aligned with the EU. They're part of EFTA. They have freedom of movement with the EU.
  23. My recollection is that the LibDems didn't have anything at all to do with starting this. Happy to be proved wrong though... Sure they have gained from it but that's just come out in the process.
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