Financial Independence is Just Round the Corner




I haven’t posted anything for such a long time as I didn’t feel I had much to say other than monthly dividend reports, new purchases etc.

Now however, Mrs FIUK and I will be stopping work this year and living off of our SIPP / ISA until our final salary pensions and state pensions kick in, so I thought that I would resume posting in the lead up to this exciting moment and report on how I have calculated that we can live without salaries. Once we are no longer working I will also be able to show what can (or can’t) be achieved with regard to leaving work early without a huge pension pot (I define huge as above £500,000 as this would provide £20,000 per year with a withdrawal rate of 4%).
Our current financial position is as follows:

SIPP                                     £119,791
ISA                                       £67,594
Company Pension            £64,495
TOTAL                                £251,880

I expect to save a further £10,000 between now and stopping work, which will bring the value of my “FIRE Engine” up to approximately £262,000.
In addition to the above, there is likely to be £22,000 in cash, plus approximately £18,000 from the shares I hold in my employing company which have to be sold when I leave.
So, all in all, around £300,000 is available to pay for me and Mrs FIUK to live until our pensions start to be paid (Mrs FIUK does have a company DC pension, but as that is only around £20,000 and cannot currently be accessed I am not including this in my calculations).

I look forward to posting my progress to Financial Independence over the next few months.



2 thoughts on “Financial Independence is Just Round the Corner

  1. weenie

    Hi FIUK

    Welcome back and great to read that you have the ‘finish line’ in sight! Well done!

    Interesting that your ‘FIRE Engine’ value is pretty similar to my planned ‘Future Fund’, ie around £300k. Most folks documenting their journeys seem to be saving upwards of £500k – £1m+ but I guess if they live in places like London, they’d probably need that to sustain their quality of life.

    Look forward to reading more of your progress to actual FI! 🙂

    Reply
    1. Financial Independence UK Post author

      Hi Weenie

      Thanks for your welcome, and as you say interesting that you are aiming to get to a similar value for your Future Fund?

      I am looking forward to reporting on my progress, and I hope that everything works out for you on the job front.

      Best Wishes
      FI UK

      Reply

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