Starting to plan for retirement? The 3 Tasks I Would Do Today (including 3 free tools)

I wish you would do a similar one on having retired how to assess if one is being sensible.

I have hammered down my monthly / annual budget £ spend back end of 2023 and into 2024. Took action on the following costs to save money: 1. Buildings & Contents Insurance - moved insurer and added with my car insurance - got another £50 off car insurance premium as a result. Further reduced car insurance premiums on two cars we run by adding a named driver, calling insurer to ask if they could do better on the annual requote - they did. Hammered down my Sky subscription. Dropped the window cleaner completely whom was monthly visits. Droped the garden grass maintenance company - monthly cost. Can do both windows and garden myself. Gas & electricity took out a fixed rate deal for one year. Took out a new mobile contract last year - not upgrading my mobile as waste of money to do so. Maybe small things but we can all do them to prevent 'costs creeping - up' as I term it!

Jamie theakston 😂😂😂

Go look at your pensions and where they're invested (if they're not SIPPs). I discovered one of mine had been following a predefined plan and quietly shifting units to a commercial property fund - which has performed like dog***t.

Needless to say I'm ni the proces of transferring out!

Family sports club (the Roehampton club in SW London) is one of our best expenditures. Don’t regret it a bit - even if the bill hurts!

Can you make a video on Investing in Gold, Gold ETFs and the pros and cons. Gold ETFs Vs s&p 500 Vs Nasdaq 100?
Thanks

Problem, as ever, is the unknowns. Those plans from four years ago look great, but the effect of COVID, war and inflation has put a lot of bills up, especially gas and electric that retired people will generally use more of. And whilst we can look back on historical average returns, they're just that, historical.

So you increase the expected spending, lower the expected returns, put as much of the below inflation pay rise into your pension as you can and wait for the government to find a new way to tax it, whilst wondering why everyone else has new cars, full Sky packages and expensive holidays. Welcome to the UK

Thanks James. If you carry out a Monte Carlo simulation, what sort of percentage success would you recommend to aim for? Always enjoy your videos

Hi James, on the how much do i need to save tool is the figure including tax relief i.e. as a BR tax payer using a SIPP + LISA if it says £1000 should i be transfering £800 or £1000 from my current account?

Great video, thanks James

Thanks

What happens if you reach the cap on pensions prior to retirement (assuming the government introduce a cap again), even if you are not actively investing further income into it, so the growth in the markets takes it over the cap - does this increase get taxed or would it be only any income added from your salary?

Hi James thanks for the free tools, would be great to see something about how to map out swapping some DB pension for a larger PCLS ...ttied this with excel but its not easy

Why i always put a 👍 even before watching the video because james video are top free investing learning behaviour

I'm retired and have a healthy work pension with investments mostly made up of investment ISA's. My financial advisor and I have had a difference of opinion as he also wants me to complete a list of my monthly expenditure.
I see it as a pointless exercise as my expenditure varies wildly but is always clearly visible to me. Over the last 5 years we have upgraded the bathroom, kitchen, lounge and garden along with some extended trips abroad. I see little point in counting the cost of how many bananas I buy when I am spending tens of thousands elsewhere.
If I haven't got it to spend I don't spend it and when I have, I do.
My instruction to my advisor was let me be an adult and let me decide how much I want to spend and you ensure my investments perform at their peak. He says that's not how it works........................ why? My new 10 year plan is to increase my Vanguard investments and slowly move away from my current advisor by draining the money I have with him.

Great stuff James and thanks for the freebies! The benchmark performance data is screaming that majority stocks is always the winner, therefore high risk is always the best bet unless you are planning to spend the lot within 5 to 10 years?

Hi James,
Isn’t this benchmark missing an important factor?
Performance is one comparison benchmark but another one is that of risk/volatility. The importance of volatility was illustrated brilliantly in your last video with respect to sequence of return risk.
Just comparing performance benchmarks misses this element.
One could asses that their chosen fund was short of the benchmark for performance but was potentially mitigated by far less volatility.
Should one asses both factors when comparing funds?
P.S - still loved the video 😊👍

is that family oriented club, HC? 🙂

Im 58 and have a detailed spreadsheet model I made and update 1st Feb every year since 2016. That extra 1% return really does make a difference in the long run.
Thanks for your suggestion about investing in health. I was umming and arring about getting a new bike. You have convinced me to do it.

What a fabulous video! So helpful to me James. I watch most of your content and am about to retire in 4 weeks at 59.5 yrs old…. I’d put myself in the bracket where you said a client is aware of their finances well but not to the point where I know my own personal inflation. My wife and I have discussed the things we’re moving to in retirement and the priorities we want to achieve. One was health and wellbeing but tbh I didn’t know what this meant to me and I’d never considered a financial allocation to a goal. My IFA says my plan should include spending more in the earlier years and this aspect from this video has really opened my eyes to this opportunity and plan to spend to maintain health. Thank you so much

Fantastic video James (as always) and many thanks for the spreadsheets. Is your Retirement Planner spreadsheet available to download as I couldn't find it using the links?. Much appreciated.

Thanks for another clear video highlighting three important tasks and how to complete them. Interested to see how your template works if you are close to, or at retirement. I will share this video with colleagues who ask exactly the questions you answer.

How can I contact you about cooperation with the channel?

We have started to fill in the forms, strangely fascinating exercise. Next plan downsize the house, I worked out we use 25% of it. Now the kids have left home. We did get a Monday to Thursday lodger a few years ago, so get the £7,500 Pa allowance. Which pays the bills for the house. Never see him. Gave up truck driving recently, love not getting up at 03.30 and being away a lot of the time.

Over the long term 100% equities has outperformed going 80/20 or 60/40. So what risks should we be aware of when choosing a pension fund that is 100% equities? Why would a 30 year old, for example, choose not to go for that?

Bought a good cross section of an economy after i retired, Also i built a diverse portfolio that i'm attached to because it keeps me motivated. I never follow the crowd emotionally when choosing my picks. To be honest i sped up the profit and stock picking process where possible by using an FA, I also dabble in etf's, bonds, coins etcetera. After my first million I realized that when a stock starts booming chances of you finding out it's potential on time is very slim. most average investors are always late to the party, for this I make sure my CFA handles that, ever grateful to Emily Lois Parker. it’s like turning your notifications to earn more millions.

I didn't watch the entire video so you may have addressed this but someone's age must be factored in when deciding how much cash or equivalent to hold. I'm 74 and I can't risk a sharp market downturn at this point, especially because! I expect a market hit in 2024. 89 percent of my money is now in a money market fund earning over 5.25 percent and I can sleep soundly. So making a blanket statement that holding more cash that necessary is not good advice when one factors in age. It's good advice for younger people who will have time to recover from a market hit. And, keep in mind that if the market does take a big hit, I can then move cash into stocks. Because you failed to mention these obvious things, your judgement is questionable. But the, I've been investing for decades before you were even born and done quite well.😊

Hey James, love the content! I've found your videos so helpful so thanks for making them. I was wondering, when investing in Vanguard LifeStrategy for retirement, whether it's better to do so directly in the fund or through the Vanguard Stocks and Shares ISA? (bearing in mind I'd probably transfer to lower risk LifeStrategy funds over time). Or should I opt for a traditional personal pension?

Thanks!

You just delayed your cleaner's retirement goals! ;) Great video, as always James, thanks.

Great video once again. Thanks.

Is the Gym Collette's? Great Spot!

Hi James. If I wanted to use some of your tools (i.e. budget planner) for some of my own financial coaching clients? Would there be an issues, such as copyright? Or do you give permission to use these for my own commercial reasons? Thank you

Do you have recommendations/video on NHS workers?

Hi James. Have been watching your amazing videos with a great deal of interest, what a lot of work you put into these. Can you do a video on charges that relate to pension funds. I don’t know what is acceptable, what is the norm, and the effects these have. I have a managed fund and seem to pay out a lot, and when I think what my fund lost back in 2021 when I expressed concern as to the economy and nothing appears to have been done to mitigate the effects and subsequent losses I wonder what I am actually paying for. Many thanks.

James - great videos and work here generally - keep it up.

My question relates to asset allocation as I near retirement. I am 61 in April and am looking to retire at some time in by 65th year.

I currently have a large part of my pension invested in index funds (Vanguard developed world ex UK, Ftse all cap and a global bond fund.

I currently only have 10% in bonds and wand to progressively ramp this this % up.

I am due the full UK state pension (at aged 67) and my wife will likewise. As a couple thats a good 20K of fixed income guaranteed and index linked. How do I factor this fixed income into my overall asset allocation? If I go for a 70/30 or 60/40 allocation (stocks to bonds) I assume I need to include the state pension in the bond, fixed income side of the ratio, reducing my overall bond amount accordingly?

Do I work out how much an annuity would cost that pays out an inflation linked amount equal to the state pension and assume that is in my bond allocation?

Perhaps a future Vid James?

Andy

Concerned about your retirement? You all need to start building a good plan to increase your portfolio and save you the stress of working during your retirement age. I can boost of over $1.3m in housing, and 700k in stocks/crypto trading. Yes! I’m on track, following my investment advısor Brice Sawyer Gibson.

I’m a firefighter and our pensions have changed a lot in the last few years. I’m wondering where I stand now. I have watched a few of your videos and wondering where I can get help from? I’m 45 and should be able to retire at 50 after 31 yrs service. There are calculators floating about but they don’t help me as it seems like I’m not protected in the recent changes.

If you could point me in the right direction or where I could contact yourself for more detailed help that would be great. This would also help a lot of others in the same situation

Many thanks in advance for any help anyone with more knowledge than myself

Coffeezilla talks finance

Hey James, stumbled across your channel yesterday and have subscribed. Been going through some of your videos and a lot of great advise, but a lot to take in. Hard to know really what the "best" way is. Of course there really isn't one. But very easy to make costly mistakes and I have made many.
I'm keen to try to educate myself in this mind field to help improve financial security & freedom for me and my family. I have signed up to be notified for your course.
Keep up the great content!

Here's a suggestion, put a weighted vest on and make cleaning a workout. Save money on a cleaner and get stronger in the process. Health is wealth. 💪

Hi James - the tools in the video don’t seem to be linked anymore?

I'm a Yorkshire man who (without knowing what the fire movement was) at the age of 34 - chucked everything at the mortgage, then once cleared, got a lump sum pay off from work, then had a demented mother to luck after, so never really got to live a normal life for the last 25 years, I live on 3k a year because I've learnt to do everything from cooking, to fixing my car , to renovating my house with little money. My problem is I don't know how to spend money. My monthly outgoings are about 350 a month.(Inc all bills). I've a 1/3 of a gold plated pension, 200k+;in stocks and no mortgage. How should I spend my money, and how much will I need in old age , I'm 55 yrs old, happily single and Yorkshire .

Amazing video but I will say retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. This is how it should be and I really want that have that comfortable life . Any advice on what to do ?

these models should exclude these extremes results; especially the highest ones as they really skew the results.

I am never giving my money to anyone else again; these financial advisors used to charge me so much and i didn't even realise for years. now i am with vanguard and got about 20% over 2 years. i had a guy calling me saying he could get over 30% but again the fee was way too high. not falling for that again.

James. Good presentation. Many thanks.

I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.

There are links to download the tools in the description. I hope you find them useful. 👍