Net Worth

I have detailed my Net Worth as at 31sMarch below, I have also left my previous Net Worth table below so the changers  can be seen.

While I am not looking for capital growth it feels good that my net worth has increased by just over £31k, but a lot of the increase is due to payments into my ISA and Company Pension, so this has increased the amount of income my portfolio generates.

31st March 2015

Net Worth   œ£527,071.96
Assets
Cashϣ11,000.00
ISAϣ35,413.82
Employers Sharesϣ13,930.00
SIPP£œ107,823.58
Employers Pensionϣ35,962.00
Mrs FIUK Employers Pensionϣ11,229.12
Houseϣ210,000.00
Former Employers Pensionϣ130,630.31
£œ555,988.83
Liabilities
Mortgage£œ28,916.87

30th November 2014

Net Worth  £495,875.38
Assets
Cash£8,000.00
ISA£28,883.47
Employers Shares£12,370.00
SIPP£100,321.48
Employers Pension£30,590.84
Mrs FIUK Employers Pension£11,229.12
House£210,000.00
Former Employers Pension£125,140.73
£526,535.60
Liabilities
Mortgage£30,660.26

4 thoughts on “Net Worth

  1. Huw

    Hi FIUK,

    Thank you for sharing this information with us. How did you find the process?

    I have a few questions, I hope you don’t mind me asking:

    -You have a lot of income streams (to come at least), am I right in saying that the pensions aren’t being withdrawn at the moment?
    -Do you have plan on having the pensions pay out at different stages or are you going to get payouts on all of them at a set time?
    -Do you have a goal value for your Net Worth or for just for your NISA/SIPP?
    -You’ve included Mrs FIUK’s pension in the above, are your income streams set up to cover the cost of living for both of you or does she have separate plans?

    Your Net Worth is looking very impressive, and your not far away from the £500k club now!

    All the best
    Huw

    Reply
    1. Financial Independence UK Post author

      Hi Huw

      Thanks for commenting, and asking questions which I will do my best to answer

      1. You are correct that my pensions are not having any money withdrawn at present
      2. I haven’t finally decided on my pay out strategy, it will probably depend on the benefits of the tax free lump sum as if I take out one from each pension each year I may be able to avoid paying any tax for a few years (the balance I withdraw may be below the earnings taxable threshold)
      3. I don’t have a target for my Net Worth, ideally I would like to get to the point where I can live entirely on the dividend income. I don’t think that will happen for quite a few years so I may choose to gradually draw capital out to close the gap. I have a spreadsheet which tells me when the capital would run out (I would still have the state pension and my old final salary pension paying out monthly), and on present calculations if I retired at 55 I would run out when I am 87. On this basis I would probably take the chance as I could probably find some part time work if need be, but if I have to live on my state pension and final salary pension from 87 onwards I will have had 32 years of living an enjoyable life while I am (hopefully) fit and healthy enough to be able to keep active.
      4. I have factored in both of us living on the joint pension amounts, however Mrs FIUK has a final salary pension from 18 years working at a financial institution which I haven’t currently accounted for as this is not payable until 2028, however it will certainly top us up when it does become payable, and will almost certainly mean the capital runs out even later.

      I am pleased that you enjoyed my post, along with others, and look forward to updating it at the end of the year, then quarterly, and particularly reaching £500,000

      Best Wishes
      FI UK

      Reply
  2. weenie

    Hi FI UK
    Thanks for sharing your net worth and as Huw points out, you’re nearly a half-millionaire 🙂

    I note with interest how little cash you are holding and it’s something I’ve been thinking of recently. When I originally set my own FI goal, cash actually made up 20% of my target pot. I’m now of the view that that’s probably just too much, the cash is unlikely to be earning much interest, I’d be better off investing it, unless I’m going to save it and use it to say buy property or a new car. So, for 2015, I’m going to have a rethink and recalculate.

    Also, my ISA and SIPP values are about the same and for now, I’ll keep it that way. Sure, I get tax benefits investing in the SIPP but I like the freedom of the ISA, which I’ll be able to tap into if I’m able to retire before my works pension kicks in.

    Great work, look forward to seeing more updates!

    Reply
    1. Financial Independence UK Post author

      Hi Weenie

      Thank you for reading my blog and commenting.

      I don’t keep too much cash as I am in a relatively secure job, and the shares I own in my company would automatically turn into cash if I did lose my position. In addition I can always get cash from my ISA so as long as I am not a forced seller during a market drop I can access cash reasonably quickly.

      As and when I do reach FI, I will have to hold more cash, but if I am receiving sufficient dividend income it probably won’t change too much (as a group, my dividends tend to increase despite individual companies performance e.g. Tesco’s 75% cut in this years interim).

      As with most things in investing, every decision is personal to you, and your circumstances & attitude to risk.

      Best Wishes

      Reply

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