Hello,

I’m 25M from Scotland. Looking to get some ideas/life advice on what you’d do in my situation:

I run an online business generating around £150k/year in profit. I’ve been running it for 2-3 years.

I have £110k invested. About 50/50 split between ISA and pension.

My company account has around £100k in it, of which some will be taxed.

My work is not very intensive. I work under 10 hours/week fully remote. I’ve recently moved to Vancouver , Canada. Because of the time difference, my work is essentially finished before 10am local time.

I dont find the work particularly fulfilling. I don’t think there’s much of a future in the industry although who really knows. Also, I don’t think my current work necessarily transfers well into a “real” PAYE job, although again who knows.

I have a degree in Geography.

This all seems great and I’m generally extremely happy. However, I can’t help but feel as if I’m not making the most use of my time/life. I get up at 6AM and finish work by 10AM every day, so have the whole day free. My current routine is to generally make breakfast, go to the gym, go to a cafe, practice Japanese/cook/read/journal/play video games/netflix/clean/etc and then fall sleep. Sometimes I’ll spend the whole day hiking or exploring a new part of the city. It’s tough making new friends here, but I’m confident I can over time.

I have a long distance girlfriend who studies in San Diego. I visit her regularly and we travelled Europe and Asia together this summer.

Honestly my life is really great and I’m very happy day to day.

However, I can’t help but feel like I’m being unproductive. All my friends are working back home, everyone around me is working. Meanwhile, every day feels like a weekend to me. I have an overall pessimistic view of climate change and believe the wealth gap will only get larger. I think being financially free is key to a happy life. I can’t help but feel like I could make more money if I started a new business with all my free time and capital, or follow a “real” career path to feel more fulfilled but have lower earning potential. Although I could always chuck the money in the stock market and let compound interest do the rest.

My industry is also quite volatile and I feel as if my income could stop overnight. Now that I’ve experienced (almost) endless freedom, I don’t want to become trapped again. I feel that if it stopped tomorrow, I’d be miserable earning £40k for the rest of my life. However these jobs may be more fulfilling to me than owning a business.

I don’t know where I want to settle down yet. I love Vancouver but it’s so expensive and raising a family here would be tough. My gf would like to spend some time in the States at least.

Vancouver is great, but it’s so expensive and I could save soooo much more money if I moved to Japan.

TLDR: Ultimately, I don’t feel as if I’m gaining “real world” skills right now, that are setting me up for lucrative future earnings. I need At the same time, I’m generally happy, manage to save substantially, earn good money, travel regularly and live well.

Basically - if you were me, how would you spend your time/what would you do/go/see/experience/work? Hopefully someone here can relate.

Sorry for the ramble and poor structure.

Hi all,

I was having a read through a post talking about net worth and the age people are hoping to get to it by.

There must be some of us on here who have pensions that are DB based.

How are you determining an equivalent net worth? Ie how do I know how much is enough for an annual DB pension?

Any thoughts? Thanks in advance

Anyone with experience of pivoting to self-employment at FI. What was your experience? Any learnings? How did you transition - I.e. just one day switch off the FT job and start the self-employed journey or did you run semi parallel where possible?

I'm still in corporate consulting world. On track for FI at 45 (I'm 4 years out). My plan is to then start as a self employed consultant. Main drivers;

• Something I know I would really enjoy
• No pressure to earn from it
• Envisaged as very much a p/time commitment as I transition to RE at 50-55 probably (but I do think if I nail it and get the balance of c2/3 day per week commitment / nice rates I could potentially just keep it going indefinitely)
• It will provide some buffer for any FI pot wobbles, but really my expectation is anything I earn from this is spent on fun stuff with the family (2 young kids)

Any others with advice on this front or plans to do with other things I should perhaps consider?

Please feel free to use this space to discuss anything on your mind related to FIRE - newbie questions, small bits of advice, or anything else that you feel doesn't belong in a separate thread.

Ok, I hope someone can help me with this. 59 years old, married, no debts, no mortgage, house owned, both of us will receive full state pensions at 67. I have £120k private pension, £150k in an S+S ISA, £30k in the bank and some property I can sell that should net me approx another £200k. We live fairly well, nothing too extravagant, £25k a year should be enough. My intention is to retire next year when I reach 60, is this crazy or not? I could continue to run my present business on a semi retired /very low effort basis and generate another £12k a year if needed.

Im worried i am paying more into pension that i will need at retirement

At present i (m33) have 2k in S&S ISA, 10.5k in LISA and 65k in pension

Currenly pay 15% of £51.5k salary with employer paying 10% into my pension, £200pm to LISA and £200pm to S&S ISA. S&S ISA purely targeting retirement at 55 have cash savings for other with regular £300pm into this

Im a little worried im going to have too much money tied up until im 60 and not enough to gap me between 55 and 60. Should i reduce pension to 10% and use the extra take home pay into my S&S ISA or stop paying into LISA and pay it all into S&S ISA

Edit: Reside in Scotland so pay higher rate tax earlier

Hi all, I posted this a couple weeks back but without much context so I’ve tried to plug any bits of info I missed. I also posted this on ukpersonalfinance but had no replies , in hindsight I kind of want to fire? If I’m able to so maybe it’s best placed here again.

I've followed the flowchart on this wiki but still unsure about a couple of things. (Q's at bottom)

32M earning £40k /w bonus. Partner 31F earning 25k.

Company pension is maxed out to employers contributions and going into global index funds (I pay in 7.5%, they double it so 15%). Pot currently sat at £38k.

£200 p/m going into S&S Isa (started last month).

£465 p/m going in company sharesave (20% discount) spread over 3 seperate schemes maturing yearly.

Mortgage 220k remaining (33 years).

My outgoings based on percentages is (55% - mandatory , 25% - discrepancy , 20% investing)

I have 12K sat in a monzo account 3.85%. My EF for my share of the outgoings for 3 months is £3.5k but £7k if the worse happened and I had to pay for everything. Fortuntely I'm in a secure job in the public sector.

My theory / goal (appreciate if I'm living in dreamland) is to retire by 55ish and use the S&S ISA to bridge the gap between that and getting access to my workplace pension - probably 59+ by the time I get round.

1 - Unsure how to play the EF (3.5k or 7k?) and what to do with the remaining money - do I put the rest in my S&S ISA? I am comfortable with sticking to the 3 months.

2 - We will be looking to move house in the next 5-10 years but for now, hypothetically speaking if we stayed in our current home and made no overpayments I would be 65-66 by the time it's paid off. I really don't know how to play getting this down - do I overpay now or do I stick to the ISA?

3 - I really like the yearly maturity of my companys sharesave schemes but realising I'm actually putting alot of my money into this - would I be better off lowering or putting into just 1 scheme for 5 years?

4 - Am I missing anything obvious here ie opening a LISA? Open to honest feedback.

46 yo. Married with kids. Planned ER @ 57. Higher rate tax payer. Currently paying in all excess income (~£30k pa) into a SIPP (all at 40% relief). SIPP pot currently sits at ~£400k. I expect this to hit ~£1mill on retirement (about £750K in today's money)with a DB pension of ~£15pa as well (in today's money). So plan is to not be a higher rate tax payer in retirement. Only about £10K in an ISA to date.

The only reasons I can see to shift some of this elsewhere (e.g. an ISA) are:

i) Mitigate the risk of the government increasing the age I can access the SIPP.

ii) I may decide to retire earlier than 57 or need funds unexpectedly

These risks don't seem material enough to forgo the 40% relief on a SIPP.

Am I missing something?

Hey everyone,

I’ve been searching for a flat for over a year, and this is the only property I’ve found that isn’t in post-war condition. It’s in an 8-storey luxury building that currently doesn’t have an EWS1 certificate/form. However, there is a letter of comfort from the development company stating they’re working on it, and they’ve completed the necessary safety improvements. The EWS1 form is pending as they await results.

My lawyer advised me that it’s risky and that I might want to consider another flat as it is hard to mortgage it. On the other hand, my broker told me they checked with the lender, and the building’s cladding is on their approved list, so I was able to secure a mortgage.

Has anyone been in a similar situation or has experience with this? What risks am I taking by going ahead with this flat without the EWS1? I’m worried about the resale value, insurance issues, or any unforeseen complications if the certification doesn’t come through. Thanks in advance for any insights!

What is a big life decision you’ve made this year set you up for future success?

I inherited a share of my late fathers DC pension in 2018 and put in in to a SIPP. Under the previous rules, I could draw down on the SIPP tax free at any time and any gains were not subject to capital gains tax.

Under the new rules, will I still be able to draw down tax free?

Also, is there a risk that the funds become locked in the pension wrapper until I reach retirement age? (I am currently 34)

Some background. I'm in the process of flicking the switch and retiring Summer '25 at 56 years. Done ok. Been a 40% tax payer for many years and have mortgage-free property + ISAs now worth enough to carry us to our (non public sector) DB pensions that kick in at 60+65 and (together with the state pension) do 100% of the retirement spend after then. It meant (until yesterday) that I hardly need to touch a now very substantial DC pension that I've been investing whilst living well within our means. Fortunate (but damn hard work) to be in this position where it's been slow and steady with a sharp focus on FIRE for 5-10 years and, yes, also lucky to have the security of the DB pensions - although they got stopped around 2010. Some small inheritances may also be on the cards but we never factor for those.

We love Spain (many friends, speak the language) and have another mortgage-free house there (same size as UK but cost 25% in comparison!). The plan WAS to spend up to 6 months in Spain as a non-resident but keep tax domicile in UK mainly for tax reasons. However, now the DC pension is in play for IHT, I'm pondering..... Andalucia (where we have the house) has recently changed laws so that "If you inherit from your spouse or parent and you are a resident of Andalucia or a non-resident of Spain living in any other country that inherits in Andalucía  then you will pay no tax if you receive less then €1,000,000 euro and almost nothing if you inherit more". (There appears to be a 99% exemption above €1m for inheritance).

I'm looking to take advice when next over there, but (as a start) was wondering if anyone on here is now considering Spain as a serious FIRE destination and becoming resident after inheritance tax changes yesterday (you don't have to sell me on weather, lifestyle, people, food etc.). They seem to be trying to position themselves as the Florida of Europe to maybe attract 'snowbirds' like us? You do pay a bit more tax on income but we've also calculated our living costs over there are so much lower than UK (e.g. council tax, energy, water, phone, insurance - all the basics come out at 30% of our UK living costs e.g. local/council tax in Spain is £300 v £3000 in UK). We're also only 2-3 hours away from family in UK with 20+ direct flights/day out of Malaga.

Anyone else considering Spain themselves now as a lower-tax early retirement option after Budget announcements?

I usually take accounts on first of the month, and today it looks like SP500 is down almost 2% so far, wiping out the 2% gain it had in the entire rest of the month

The pain of a 2% loss always feels so much worse than joy of a 2% gain

Turning 18 and looking to put money into long term investments

I am about to turn 18 and have saved up 2500 so far and am looking for advice on the steps to take to set up some sensible long term investments, I have learnt my lesson with crypto having around 500 currently in my account and things not going to plan.

With the money I have come to save what would be the steps to setting up a S&S ISA for example and would I be best to set up a vanguard account to purchase ETFs like VOO or and equivalent B-road market fund. What are the essential accounts that I should have going forward and what would be the best way to split the money or gain sign up bonuses from it?

What should I start setting up and where should I be moving the money, which etfs are best for a uk investor?

Edit: Time frame is around 10 years, will re-evaluate in my 30s and my saving goal is 5 figures or a first home downpayment

I’ve have £25k cash set aside for taxes due Jan 31. Where can I park it tax efficiently? I’m way past my interest allowance… ideally I’m looking for a low-ish risk ETF/fund that will be taxed at the 24% CGT when sold in 3 months rather than 40-45% income tax from interest if I park it in savings. Thanks!

Disclaimer I do live at home.

I would like some options on my investment and saving plans. I would like to be financially free in the future but not sure about retirement early. I have read the UKPF wiki

My current ‘savings’

S&S: £1.2k LISA: £800 Emergency fund: £1k

I earn about £2500 net after pensions(3%) and SFE (won’t start paying until April 2025)

This is my monthly investment plan

S&S: £800 LISA: £800 BTC: £300

All my money expenses:

House upkeep: £200 Contacts: £30 Food when in office: 80 Fun money: £200

I luckily dont pay for travel

Total amount: £2410

Any remaining goes to Emergency fund

When new tax year starts I plan to invest:

S&S: 1333.33 LISA: 333.33 BTC: £300 Emergency fund: £100 - £200

I get a 3k bonus in March/April and 3k in September so I will be using this to go on holiday etc (after tax ofc)

I don’t invest in single stocks, I am only invested in S&P 500, FTSE all world and NASDAQ 100.

I know some people don’t like BTC or crypto but i believe in BTC in the long term and ofc the rule - don’t invest what you’re not comfortable losing. I am comfortable with that

As I progress career wise I will increase my salary but my living expenses won’t increase until i eventually move out

Pls may I have some advice. Thanks.

Hey, business owners. What’s stopping you from reducing your hours and eventually leaving the business to run on its own?

Is it that you have tasks that no one else can do?

Is it that it’s your plan and you’re looking to automate tasks to increase efficiency and your time spent in the business?

Hi All,

I'm on track to hit 200k GBP ETF portfolio (of all-world and S&P mainly) soon at 30 (a few months away).

I have an issue with FIRE where I have no idea of what my number is. I have a partner and am set to tie the knot, want kids and to buy a house in the future and all these things like joint savings, costs of kids etc will turn my monthly costs on their heads.

My mantra up to now has been earn big, save big, and I've driven a pretty harsh line with aggressive career growth in Sales (where performance is also rewarded steeply). It seems like if I pull back my savings rate to 500-800 pounds a month, I will be set-up for a decent retirement in late 40s. This would make living a normal life relatively easy in terms of doing what everyone else does e.g. couple of holidays, going out, not too frugal etc...

I am struggling here as although I am not extremely frugal, I have the tendency to save a lot and probably don't say yes to every experience I possibly could, which is how I got to my current portfolio.

In my situation, would you drop your level of frugality and/or cut back to a more normal savings rate e.g. 20-50% savings rate Vs 40-70% savings rate I maintain at the moment?

I guess I'm looking for some social support here of others adjusting their savings rates to optimise quality of life and hearing about the benefits it brought. Appreciate any responses on this.

Conventional wisdom said use your pension last as it was free from IHT, but now thats changed is there any benefit in holding? With a £1m pot I would have thought getting the £268k tax free amount out as quickly as possible was a given just in case you die and then taking the rest as quickly as possible at 20% tax rate?

Im 53 and thinking as soon as I get to 55 get the tax free amount out.

Totally agree with the points Paul Johnson makes here and thought it worth posting: https://ifs.org.uk/articles/we-cant-have-any-more-budgets-where-speculation-running-wild and the particular line: "Uncertainty and speculation are costly in themselves"

Is it reasonable to assume that IHT will be liable at 40% if the DC pension pot, combined with other assets, exceeds available nil rate band / residential nil rate band / other exemptions (e.g. spousal) and then income tax would be payable on top by whoever inherits the pot?

Hi,

My employer offers salary sacrifice, going to use round numbers to explain the situation.

Say I earn 50k, and I pay 5% and my employer pays 5%, 10% total. 5k per year goes into my pension.

However, according to L&G calculator Here, This is classified as before salary sacrifice, theres "simple" and "smart" salary sacrifices too.

Simple is £5,345.00, an extra £345, but where's it come from? Why do I not have that? 🤔

Currently my contributions work out to be what's in column 1, but according to L&G this isn't actually salary sacrifice?

So naturally this has confused me a bit, and I don't fancy asking my HR/Finance dept because I'm worried they will confuse me further!

So am I doing salary sacrifice or not? have they cocked up the numbers? or are these other types optional? It seems 'SMART' is, but simple salary sacrifice seems the standard so not sure why my yearly contributions don't match those numbers.

Thank you kindly.

Given a salary of £32,570, is it more advantageous from a net worth perspective to:

Contribute £16,000 net into my SIPP (grossing up to £20,000 with tax relief) and take the remaining £12,570 as tax-free income, or

Contribute the entire salary (i.e., £26,056 net, grossing up to £32,570) into my SIPP, leaving no take-home income?

I’ve done some calculations and found the following:

tax Relief on SIPP Contributions**: By contributing £26,056 net to my SIPP, it grosses up to £32,570 with the 20% basic rate tax relief added by HMRC.

tax Paid vs. Tax Relief**: According to the salary calculator, I paid £4,037 in income tax at source. However, since my SIPP contribution reduces my taxable income significantly, I’m eligible to get £6,250 in tax relief (20% added on top of my net SIPP contribution of £26,056 to reach £32,570 gross).

Net Benefit**: This means that although I’ve only paid £4,037 in tax, I effectively get £6,250 in tax relief, leaving me with an extra £2,213 (£6,250 - £4,037). The key is that tax relief is calculated on the gross SIPP contribution, not just the tax paid at source.

it seems that by contributing the full salary to my SIPP, I’m effectively up by £2,213 due to the way tax relief is applied. Are there any other factors I should consider, or does this approach make the most sense from a net worth perspective?

I'm 27 years old and in a very fortunate position to be able to save a large portion of my income. However I want to maximise this even further, as recent events have told me I want out of the corporate rat race, as do many of us!!

I have been reading a few impressive posts here so well done to everyone, my numbers aren't as impressive but I'd like to make the most of it:

Here are the numbers:

Salary:60k

My monthly outgoings:

High interest savings account: £1000, 3.5% interest ( I know I could invest this and get better returns, but I'm looking to buy a house in the next 3 years so can't accept the risk of losing money)

Help to buy lisa: £333

Investments in vanguard: £650

My total assets so far are worth 85k. However I feel that for my salary and disposable income it should be moving a bit quicker...

My bills etc are very low as I live at home!

How do I optimise this? I want to retire by 50!

If you had circa £140k in cash ISAs, would you lump sum it in to S&S isa or DCA it in. Money isn't needed for another 10 years

If yes, how will it impact your FIRE strategy please?

I haven't got much but I assume this will be very disheartening for people who save all their life for the govt do to a U turn?

OK, so let's say you have a defined benefit pension scheme and a defined contribution pension pot. Further you own a £1M house which your spouse will inherit, and have two adult children.

You can take either £268K PCLS from the DB at 24:1 commutation rate, or take £268K TFLS from DC.

Taking PCLS from DB reduces annual pension from £45K to £33.5K, taking TFLS from DC post leaves £804K which 4% SWR suggests would provide £32.2K pa drawdown income. Additionally, the DB pension provides for a widows pension of £45K.

Assuming you access the pensions in April 2025 and then die after April 2027, has the balance now swung away from taking DB PCLS towards taking DC TFLS to reduce future IHT liability ?

So the £45K DB pension would die with spouse, but if they survive another thirty year's after my death on 6th April 2026, then they'll have received £1.35M. If inheriting and drawing £804K DC pot, then they could take £36K pa and die with zero in pot.

Definitely seems to suggest draining DC pot and not DB scheme for TFLS is going to be favourable from now on.

Hi all,

About me: -21 -27k in VUAG -10k crypto -4k emergency Fund

I'm training to teach. My take home after training is about 2k p/m

I want to FIRE as fast as possible. Is my best move working in China as I've heard it has the highest potential savings rate for teachers.

Teachers career trajectory doesn't seem that fast nor that lucrative in terms of salary.

My main goal is to FIRE at fast as possible. I want to move out of my parents house, but I don't like the idea of only being able to save around £800 a month then living off £1200.

Thanks for your time

Any one read if the dividend tax rates got increased in the budget too? I could only find the cgt increases. 10->18% for Lower rate tax payers (corrected) 20->24% for high rate

This screws us in terms of fire.