DON'T RETIRE YET - Wait!

👉🏻 Looking for help with Financial Planning?
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about working with us, please follow this link: go.novawm.com/getintouch
If you're thinking about retiring, think again. Retiring one year later can make all the difference.
Planning for income in retirement is complicated, especially when stock market returns are so unpredictable. But there are useful tools we can use to help guide our decisions.
When I first put Ben's details into Timeline the output looked more positive than in my own model. This is because my model uses more conservative expected returns (7.5% for global equities and 2.5% for govt bonds) than the historical averages Times uses.
I thought this discrepancy would distract viewers from the real lesson at hand. So, I increased the level of expenditure to £45,000 from 55-75 and to £35,000 from 75-95. With this, the median line neatly ran out at 95, and we could still see the same effects of retiring later.
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - James is not responsible for investment actions taken by viewers. Please seek out a regulated advisor if you require assistance (while James is a financial adviser, he does not provide advice through this KZbin Channel, which is not affiliated with his employer).
James Shack™ property of James Shackell
Copyright © James Shackell 2022. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
00:00 Intro
00:36 A Big Mistake
02:17 The Explanation
05:37 Timeline

[@JamesShack]

If you want to give the Cashflow Plan a try please watch this video here: kzbin.info/www/bejne/gYbKkKhvbtBrrdk

[@hadphild]

can you add in the Pension lifetime allowance to your Google tool

[@NekonataVirino]

Excellent points - money is important but time and health are key. My hand was forced into retiring at age 50 by ill health. I lost an expected 17 years worth of high quality saving… but living my frugal life now is way better than pushing through to save more money I would not have lived long enough to spend.

[@JamesShack]

Well said. We all find out way with what we have. We adapt to whatever hand we’re dealt.

[@cyclegurujay2312]

Yep, this is key for me. Enjoy the time you have whilst making do with what you have. All the best!

[@alantaylor9925]

James, having watched thousands of hours of KZbin videos I've never felt compelled to comment on one so this is my first... Just a simple thank you for the highly informative and thought provoking content you're creating. I've seen many comments on your vids of people saying they've started to more analytically and systemically plan for their futures having watched your vids so you should feel very proud of the impact you're having. Hope all is well with you. Keep up the great content. Alan

[@JamesShack]

Wow. Thank you so much for this Alan. It's comments like this that keep me going. It's strange sitting in my kitchen, writing, filming, and editing all on my own then watching the views tick up. They quickly become meaningless. But it's comments like this that bring it into perspective, thank you!

[@CovertDonut]

I second this. I first started watching James' Lifestrategy videos and his overviews of index funds. Pretty much stopped me messing about picking stocks and simplifying my portfolio. I honestly think James advice will be priceless for me (no pun intended) in the long run. Keep up the good work 👍

[@JamesShack]

@@CovertDonut I’m glad to be of service Ben! All the best.

[@ChrisBird1]

You really resonate with me ,I had worked all this out alone over my 50 years . But you add the facts and figures to back up my thoughts . thanks man .

[@markcarter9476]

Excellent video detailing some important points. However, a key factor not mentioned is your expenditure. People really don't need to buy most of the crap they purchase, most of it is just landfill. Think very carefully about what you buy, do I really need or want this item in my life for many years to come? Spend less and financial worries just sail away into the distance. Make being frugal part of your retirement / pension planning.

[@ap80shg]

Just don't have a female partner in your life and you'll be able to retire easily by 40

[@SEEKERONE1]

You offer some of the best advice out there.

[@mattsennett]

Brilliant James and this has really got me thinking!!

[@hanahowey]

you explain things so well, thank you

[@JamesShack]

You’re welcome!

[@kitcar765]

I built my own model (I’m 34 and just paid mortgage off). so been trying to work out when I can stop working. I found this odd qwerk, where say retire at 55 or 60 and draw a decent amount, the pot shrinks (as you might expect) but the compound effect is soo strong over time that it eventually over-rides the taking out of the pot, and the pot grows again. even using modest figures of yearly growth and modest monthly savings leading up to retirement, the sums get huge. glad I watched your video, as my projects didn’t ‘seem right’ but the maths and calculations checked out. and well done for building a sheet, it takes a lot of knowledge and time and factoring in reasonable assumptions on market returns. And some stuff which is hard to model with excel such as sequence of returns risk. The goal is to die with nothing and leave the kids the house. but as your video shows you can easily end up working far too long and wasting precious time when you don’t need to. Impossible to get the balance perfect, also aiming for 95 when most people die around 80 seems a bit too conservative when your that old it’s no longer ‘go-go’ year anyway, and still state pension (for now)

[@davethorne6988]

Brilliant video. Definitely thought provoking!!

[@JamesShack]

Glad you liked it!

[@grottonisred6541]

I'm coming up to 63 and clearly in the ZONE. I think having a plan of how your retirement is going to play out is important, activities both for your mind and body are key, especially if you live on your own like I do.. The social contact at work should not be underestimated even though the alarm going off at 06.30 is somewhat irritating. Great video, its the first of yours I've seen but I'll now catch up...👍

[@Kez1a1]

Absolutely right...i'm in exactly the same boat as you (aged 57)...ten years from retirement however dreading it.. so looking to work as long as i can...maybe up to 70.

[@garyhollywell2112]

Brilliant watch thank you

[@roblowry9457]

Really glad you added the last part of the video. At 55, I am very much wrestling with when to retire - its surprising how your resilience starts to flag as you get older. Certainly not got the energy I had even a few years ago.

[@JamesShack]

It’s a transition, a big one so take it slowing if you can!

[@roblowry9457]

@@JamesShack going part time instead of just stopping is definitely in my thoughts. Thanks for the great content

[@littlechanges13]

My nan died a year after retirement. Waiting an extra year is not risk free. When I get to 90 I don’t think I’ll have the same spending… you can’t take it with you when you die.

[@pistopit7142]

Quality content as always. For me time is the most precious asset. That is why I enjoy my work.

[@JamesShack]

It's amazing how people's imaginations open up when you tell them, you actually only need to earn £10k or £20k. You can quit your big stressful corporate job NOW. And if you earn a little each year, doing something you love you'll be just fine. Even a part time income of £5k a year goes a LONG way.

[@daveschmarder-1950]

I would never leave a job. The job left me just before I became 57. I then took the hint. I saved a good amount. Now, 15 years later, my stash has doubled. I've always stayed in the market and kept my spending well under control. I've enjoyed good financial security.

[@welshhibby]

Congratulations Dave, well played.

[@Turtytreeandaturd]

Great comment 👍

[@JamesShack]

Great attitude Dave, all the best.

[@shropshire1233]

Really interesting video. A close relative has worked in a hospice for many years and has spent a lot of time speaking with people who really are on their death bed and not one of them has ever said, “I wish I’d worked longer”. However, many have said the opposite.

[@JamesShack]

Having a purpose in life is very important. Arguably the most important thing. For some, their work is their purpose and would never consider retirement. For other retirement is a chance to find their real purpose.

[@stuartpeacock1576]

Great Video thanks very much!

[@JamesShack]

You are very welcome!

[@jamesbryan14]

What a great video! So useful.

[@JamesShack]

Glad it was helpful!

[@simonupstone4924]

I'm trying out your Cashflow Plan spreadsheet and find it really interesting. I've built a few similar myself over the years, they're very useful for projecting what might happen, but I find circumstances change through life so that assumptions get major revisions maybe every 5 years with family milestones: births, marriages, career changes, divorce, deaths & inheritance. I shall merge some ideas from your model into my next mark V. How about a video on 'drawdown sequencing optimisation'... I'd like to know your insights.

[@kevinwall795]

Great video. I did find myself asking the question "Who needs £3m at the age of 95?", but you summarised that well at the end of the video. Food for thought...

[@bandolero5068]

Fascinating, good work.

[@JamesShack]

Many thanks!

[@nicobass1966]

Thanks very much and very useful

[@JamesShack]

No problem!

[@sunnytylee]

Great video as always!! 👍👍

[@JamesShack]

Thanks again!

[@elisabetejorge2527]

Your videos are really outstanding. Thank you for doing such brilliant content. All the best

[@JamesShack]

I'm glad to be of service!

[@stevegeek]

Another great video James. I appreciate the straight forward analysis. I get the feeling many pension providers don't actually have their client's best interests in mind and would rather everyone work until they drop, especially if they are selling annuities where they don't pass the pension pot on.

[@JamesShack]

Do you mean because they’re projections always look so bad?

[@stevegeek]

@@JamesShack Yes, they seem to encourage you to keep working forever with pathetic projections. I'm thinking of a flexible draw-down or partial pension encashment rather than an annuity.

[@admiraldirtbag4336]

You are changing my life. Thank you! I'm sharing your work with family and friends too.

[@aaqr4579]

Hi James Your videos are so informative and enjoyable to watch. However, I wish you made more videos about defined benefit pensions, in particular teachers' pensions. As a 54 yr old teacher wanting to retire at 55, I feel the information out there is very scarce, and hence the idea of whether it's the right thing to do or not is very nerve-racking!! Can you please 🙏 find some time to make some indepth videos about teachers pensions eg is early buy out worth it for example. Thank you

[@chrismclean2989]

Still interesting and informative 👍

[@stuartbrown3277]

Hi James. Really interesting video to see the difference and relatively small amount of time can make to the long term growth of a pension pot. Is there a link to the excel spreadsheet you use in the video? Thanks Stuart

[@annamottan]

Hey James Awesome video, since finding out about Graham Stephen I was looking for a UK based KZbinr who does videos on finance and just basic education and here you are. Love your content and I have started investing because of it. I have one request though, could you do a video on credit cards ?

[@neilcook1652]

Simply superb information and presented with clarity, so helpful, life changing, thank you James, greatly appreciated....

[@JamesShack]

You're very welcome!

[@robertbonfiglio3218]

Hi James, Just want to say thank you for your brilliance and helping me decide to leave the work force in June, 2022. I am here in the USA and as you know, we retire at much later age than in the UK. I'll be 65 in August and I have had enough of working. I have paid off my home and saved a bundle but have been reluctant to move to a work free life. After watching many of your videos (and I might add my financial advisor has been telling me for the last several years to retire!), It's time to now start living my life. Health is very fine and money is fine but time is not. So thank you and I'll keep watching. Perhaps you can have some videos for those that are retired and help us manage what we do have. All the best, Rob

[@JamesShack]

That's great to hear Rob! Always good to hear these results. You'll always need to have a purpose after work. Some find it quickly, for others it's a journey, a good one all the same!

[@athought2256]

Big thanks for the Cashflow Plan and videos. It was more sophisticated than the one I had hashed up! If someone had a taxed pension that was not from a SIP can you then put something into a SIP, gain the tax back and then withdraw 25% per year tax free? Only asking because I am trying to figure out if that is a legit way of reducing the income tax bill on a pension and not sure I am quite clever enough to fathom it?

[@antonyborthwick1372]

Great video as usual James. I really appreciate your explanations and making the complex easier to understand. I honestly thought this video was going to be doom and gloom (Boo! I dont want to work another year more than I have too), but what a great message about time, money and health.

[@JamesShack]

Exactly, it's important you start thinking about that as soon as possible. I'm 32 and already think about this a lot!

[@malone77]

Started investing recently because of your videos, also guys like Richard Fain have inspired me. Wish I started earlier however at 31 I'll do my best to invest and grow my money as much as possible. Love your videos , was planning on retiring at 50 however content like this shows that a few more years may be worth it.

[@JamesShack]

31 is young! You’ll find a balance when you get there, all of our views and ideas change as we age.

[@malone77]

@@JamesShack hahaha true I still feel young I just wish I started at 21 🤣

[@tommarsters2453]

Hi James, great video as per usual. How would you go about looking at a client that has a CARE pension through teaching/local government? Obviously its a set return but how would you model this going forward and how would you know what you may need to contribute to a private pension?

[@arunmenon6513]

Great lesson, I did not pick this up either. Need to stress test it 😂

[@JamesShack]

Please do!

[@hartunion]

Hi James - Wondering where I can locate the model spreadsheet? I am an Irish resident but there is only 1 key difference in the pensions law's versus the UK.

[@rmroberts94]

We've been playing around with the spreadsheet and it's SUPER helpful. Being US-based, we've had to make calculation adjustments regarding taxes and hope I didn't miss anything! If you have any helpful knowledge about the differences between using this in UK versus US, I'd love to hear them. Here were the main adjustments I made: 1) there is no personal allowance in the US tax code, 2) our 401k accounts (similar to your pension accounts) don't allow us any tax-free withdrawals to my knowledge, and 3) I just adjusted the tax bands to more closely match ours. It's not 100%, but close enough I think.

[@JamesShack]

Hi Rachel, when making far out projections like this they will aways be wrong. Even if you have all the tax worked out perfectly. So the model, even without adjustments will give you a good idea of your direction of travel. Good enough to get you thinking and motivated. I think the tax is quite a small variable compared with inflation and rates of return.

[@maxpower1423]

Hi, please can I ask for some advice about ill health retirement and the effects this may have overall on your pensions? and what is the best thing to do if say you have 4 different pension pots due to 4 different jobs. Thank you in advance I really enjoy watching your videos and hope that you can help.

[@timo3626]

Excellent video James. I echo all the positive comments so far and no doubt to come. Your financial guidance and it’s associated ‘life guidance’ of recognising when enough is enough, really has changed my life. And, as a consequence, everyone in my life no doubt about it. I shall be contacting you when closer to retirement. At the moment I’m in the wealth building stage. Sincerely.. thanks James.

[@JamesShack]

Aw Tim! Thanks for the comment. It makes me so proud to hear that it's helped. I hope the network effects of financial literacy keep getting passed onto other generations too!

[@TheDangerousKid]

My other half just said “why are you watching mortgage videos on a Saturday afternoon” 😁 if you know you know 👍

[@Macedonia270]

I have often asked myself the question... If I came to a point where the doctor told me that I only had one year left to live...how much would I pay to have one more year....

[@ElijsDima]

A question not necessarily about this video, but perhaps for a future vid... How should someone think in their 20s/30s, having spent some years without thinking much about saving-for-pension, starting to look at all this *now* , and considering if its worth even getting into investing/savings now when - by all indicators - we are right at the start of a stock crash *and* inflation / mortgage-rate rise, asian ecenomy collapse (evergrande etc.), and possibly an in-europe war... A lot of the usual "start investing!" advice seems to gear more towards times when the stock market is somewhat good and world situation is somewhat stable. Looking at all this now, and pondering how to get started without making stupid mistakes off-the-bat, feels strange when we're kind of looking from the edge of a cliff into a... (3-year, 5-year, 10-year?) abyss...

[@JamesShack]

I get this question a lot so perhaps time to do a video on it.

[@stuartamorrison]

Thanks for the spreadsheet. It would also be helpful if the spreadsheet could handle reducing pension investment risk as you near retirement age. This seems to be constant over the working period. Also it would be really helpful if the assumptions on tax bands takes into account the difference in Scottish tax bands and rates which is different from the rest of the UK.

[@JamesShack]

The decreasing risk is a feature request on the list. The tax should not have a enormous difference. Any projection that far out is going to be wrong, so the accuracy levels we're dealing with of +/-30% mean small tinkering with tax doe snot have a big impact. The main purpose of the model is to start a conversation, and if necessary adapt it for your own situation.

[@luka3174]

Great to see it is inflation adjusted. It is worrying how many people plan for retirement without properly considering its influence

[@JamesShack]

Yes indeed!

[@MrMrMcguinness]

As the videos goes on James' kitchen gets brighter. Wonder how many episodes it'll take to get full lighting

[@JamesShack]

I prefer it in the light but the light changes quite a lot which makes the cuts look more obvious! If it's a flat grey cloudy day its good.

[@gegenmiketom]

Great calculator James, only mistake i can see is spelling 'downzise' in the assumptions!! ;-)

[@92belisarius]

Hi James, Love your videos, really great content. I currently just invest in Vanguard FTSE Global All Cap, but just watched a video of someone suggesting 3 separate funds to cover for example S&P500, Emerging Markets and Bonds. What do you think? Is this worth it or just stick with one fund?

[@JamesShack]

I think one fund makes this so much more simple she gives you exposure to so many more markets.

[@Zimpaz]

My VUSA and VWRL have been taking a pounding this month!

[@davesimm]

You mean they're presenting you with some great cheap buy in's?

[@ChrisShawUK]

Fab James! Of course, that same model can help you answer the question of not delaying one more year. Do you really think you'll need a million in today's money at 95? I know what that answer is for me, so I stopped working at 51!

[@JamesShack]

Hi Chris, I know I won't! Good for you!

[@williamsmollett8752]

Hi - is the cash flow model / tool still available to download ? I'am enjoying your informative videos James - keep up the good work !

[@JamesShack]

Here you go: james-shack.co.uk/cashflow-planner

[@martinmccullough5788]

Hi James, I use a broker ( Advance ) with the combine fees of 1.5% .. Do you believe that Vangard would be a better to use ?

[@grahamgilbert9331]

Hi James can you please send me the link to your Cash Flow Retirement Spreadsheet.

[@kennethmiller8415]

As an American, I am shocked to hear James frequently talking about British retirement age in the mid-fifties. American early-retirement is at age 62 for partial benefits and full benefits at age 67. Love James Shack content!

[@MrDuncl]

The state pension age is 67. However, you can start taking out of the equivalent of a 401K at 57. I think this video illustrates that that might mot be the best plan.

[@TheGforceuk]

I’m lucky to have a defined benefit final salary scheme but annoyingly I’ve left it too late at 54 to take advantage of it enough to retire abroad in the 5 years that I’d like to

[@JohnSmith-ch9lp]

Excellent video James. I have now binged all 44 of your vids in a week. I can't recommend them enough to anyone with an interest in investing and in a secure financial future for themselves and their family. 👍

[@davidmc5949]

Hi James where can I use the cash flow plan as i cant find a link

[@clivedyer17]

Brilliant content! I am unable to see the cashflow plan to download?

[@JamesShack]

Is it not in the description?

[@russmcsporran]

Be interested to know what is a ‘reasonable’ success rate when e.g. using timeline. Whilst ideally it would be nice to have a rate of 99%, is it more reasonable to target something like 75% with the expectation that this is analysed each year during retirement and if the portfolio is veering towards worst case then income or (more likely) expenditure is adjusted to ensure it stays at a reasonable percentage?

[@JamesShack]

That's basically it. If you have a good sequence of returns in the first 5-10 years - you're home free. It's only if you get a poor initial sequence or returns that you then have to get tactical and start making changes.

[@russmcsporran]

@@JamesShack do you have a video explaining how best to manage sequence of returns?

[@JamesShack]

@@russmcsporran not yet no!

[@chriscoomber9140]

Hi James. Loving all your videos and made some big financial decisions as a result. So thank you 😊 I'm try to access your cash flow model but I'm unable to via the link provided. Please help

[@JamesShack]

Does this work ? james-shack.co.uk/cashflow-planner

[@TheHairyKarl]

Hi James, is it worth my wife and I opening an investment ISA each or just having one and focusing on that? We’re not super well off so can’t exactly take full of advantage of 2 peoples tax allowance. Cheers, love your vids.

[@JamesShack]

Hmmm I can't think of any benefit of having two off the top of my head. If the ISAs have any fixed fees then it might save you money just having one.

[@TheHairyKarl]

@@JamesShack thanks James!

[@emailforjasonsmith]

Hi James, does your forecasting spreadsheet include any tax due if you exceed the pension lifetime allowance limits?

[@JamesShack]

No it does not

[@karlos99able]

Hi James, thank you for doing what you do with so much passion. I have a question for you, if you had a lump some of $300 000 to invest would you dollar cost average into an index like msci world or wait for some tech stocks to get hammered? (long term investment horizon 10 years+)

[@JamesShack]

Glad to be of service. I've done a video on this here: kzbin.info/www/bejne/on68l5-Mr9SeaZI But no, it does not make sense to time the markets. Of course, buying in when it's lower is great but you have no idea when that will happen!

[@normhanson981]

I worked in the UAE for a good few years and one of the quantity surveyor guys there used to say , one more year then I’m going home to my family , he always stayed in the UAE though and unfortunately died at his desk one morning of a stroke . Tragic.

[@JamesShack]

That is what we need to avoid at all costs.

[@markukblackmore]

In the spreadsheet you enter a yearly expense amount and that doesn’t seem to be adjusted into the future for inflation. What am I missing?

[@jpturner171]

Hi James I have 18 months left totally agree with your advice as usual!👍🏽 Semper Fi from the States!

[@robert-moyse90]

Still haven't made the jump into investing. Not sure whether to invest more into my pension or start investing in both the s and p 500 and ftse 100. Or all 3? What would you recommend. BTW I'm currently 32 years old.

[@JamesShack]

Watch these two video here ( in order ): kzbin.info/www/bejne/l32QeJqNoKZla7M kzbin.info/www/bejne/oni0an6vhtZrgNk

[@robert-moyse90]

@@JamesShack Will do now. Thanks James

[@ethansaltmere]

Don’t buy ftse, but s and p 500 vanguard etf via your pension it’s the only fund you’ll ever need

[@matthewhall8443]

Hi James, your videos have been really informative in regards to planning for retirement. Do you have any thoughts on how your advice would vary for someone on a defined benifit pension? A lot of advice is targeted towards those with a defined contribution pension. Cheers

[@JamesShack]

Hi Matthew, DB pots are a lot more complicated. Hopefully I can do content on them in the future but need to get it signed off by my compliance team. As an adviser even talking about DB pensions is dangerous! So heavily regulated.

[@mollyt4639]

I’m being made redundant in March, when I’m almost 54. My redundancy isn’t bad … obviously not as good as my salary, expenses, & bonus I was receiving. However i have rental properties, own my home outright. I’m trying to convince myself, I have enough, but watching this perhaps I need another job & to keep paying into my pension 😫 Edit I’m not planning on touching my pension anytime soon … maybe when I’m 60 … so hopefully this will save me??

[@chrismclean2989]

Compounding 👍

[@neogovernment]

Most of the world retire without any savings. It would be very interesting to hear a video from you which addresses persons at retirement age with say £100k in bank and only state pension. What can millions like them do or is it too late? Are stock market investments only for the young?

[@JamesShack]

My video on Sunday will address this!

[@dadsgoogleacc259]

james - what do you make of this. I've had full advice from a financial adviser who's conclusion was that we should transfer a final pension pot to his associated company called Quilter. I looked at Quilter and said I didn't like the platform and preferred interactive investor. He then said he was changing his advice to not in my interest to transfer. Is that pension freedom??

[@JamesShack]

DB transfer advice is a very tricky topic. So unfortunately i'm unable to comment without all the details!

[@oceanblue1369]

Where can I find the link to the model please ?

[@laurenceireson4538]

The journey can be better than reaching the desternation

[@chqshaitan1]

Great video, full of valuable information , nice to see how much of a difference just 1 year make, very eye opening

[@JamesShack]

Compound growth never ceases to amaze !

[@mrt1878]

Best channel out there for sensible and practical guidance…I am lucky to hold a defined benefit pension, however I was programmed to wait until I’m 60 when it ‘fully matures’ but listening to James and using the principles from the tool enabled me to make the call early and I’m retiring at 57. You cannot buy time or health so as soon as you just about can afford to, then that is the time to seize the moment and don’t wait and wait as you are probably kicking the can….

[@JamesShack]

That's great to hear Mark, a DB pension provides a reliable income stream but you may not need it all. And you can't spend it when you're dead! You may get c25% less income by taking it early but you also get that income for an extra 3 years, that also needs to be taken into account

[@mrt1878]

@@JamesShack I’m taking a 15% hit but as you say I will have a reliable income plus a lump sum so what’s the point in hanging in there….life is precious

[@bcrowcroft]

Where do I find the cash flow spreadsheet you are using?

[@bcrowcroft]

@@JMW80 thank you, I got a copy now

[@ricktonge]

Problem im finding with the model is if you set retirement before age 55 its shows you can draw down pension which obviously you cant. Need an option on the model for early retirement with pension access only at age 55 or 57. I want to bridge with my SS ISA and then move to pension drawdown later. Can this be done?.

[@JamesShack]

Yes that is a limitation. But the model does draw down ISA and other investments before pensions. So if its drawing on pensions before 55 then it must have already depleted your other assets and you’d have run out of money

[@ricktonge]

@@JamesShack Thanks James. Great model, very useful.

[@AlessandroMaccagnan]

Do you work only with the UK system or any chance that you know also other European systems? (second btw 🤣)

[@JamesShack]

Hi Alessandro, what do you mean by system? Tax system or Timeline but for Europeans?

[@AlessandroMaccagnan]

@@JamesShack yep tax and rules. Some of the considerations that you put forward in your videos do not work exactly in other European countries.Of course the high level ideas are 100% the same, but the specific of the taxes and pension and laws, rules etc etc are different.

[@JamesShack]

@@AlessandroMaccagnan es indeed. The leasson of this video still stands no matter what country you're in. But unfortunately I don't know much about EU investment/tax rules!

[@DaveJohnson]

I've been liking and subscribed for a few weeks now (sorry for the late follow) and really appreciate your content. I did try to use your retirement calculator, but my circumstances are probably unique, in that I'm 42 and already getting a pension. It will change at 55 and I'll get the state pension on top at 67, but I don't know the value of my current pension (Military) so I was unable to use it without fear of getting it wrong, and giving up work next week 😂 I do have a sum of money saved in NS&I bonds that I don't 'need' but like to have easy access to 'just in case' but I know it could probably be better invested somewhere else, however I've had 4 small wins since investing 12 months ago so the incentive to stay with them is quite high considering the total prize money has exceeded any interest I would have had on the same money elsewhere. Financially I'm comfortable with very little outgoings, no debts and a decent credit score, so for that reason I only work 2 days per week for a bit of extra income. It would be nice to make that money work for me though.

[@JamesShack]

Hi Dave, yes the model is probably not quite suited to your situation. Having an emergency fund is essential, but once it gets too large you need to think "Can i have this money say here for 20 years?" it will be errored over time. So it's about finding a good balance. It sounds like you've found a pretty good one tho!

[@DaveJohnson]

@@JamesShack thanks for your response, it's appreciated.

[@PeteMulv]

Hello Dave. I also have a military pension and I entered in the additional retirement income section, start now, end at 100 and then put the annual total in the last box. Just an idea. You can always adjust it when it jumps at 55, I assume you took as much commutation as you could.

[@DaveJohnson]

@@PeteMulv Thanks for the advice, I'll try it again using your system and see how it looks. Yes, I commuted for a larger tax free sum as the pension income was still more than my mortgage, and allows me to earn a bit more before my tax threshold.

[@garybenn9482]

Is there a service like timeline that us mortals can use at all for stress testing?

[@JamesShack]

You can download a free trial and give it a go.

[@joshholland9020]

It’s definitely hard for my brain to comprehend lol. 3mil more for 3 years extra work 😮😂

[@j3ddesign247]

Recently found your videos and it's really inspired me to get started improving my financial knowledge and start investing. The biggest question with my current finances I have, however, Is what should I be doing with the money I put aside for tax throughout the year? I'm self employed/self assessment, in the high band of tax, and feel like I'm wasting a lot of potential with the money I'm putting aside each month. I'd love some insight here :)

[@JamesShack]

There's not munch you can do here other than keep it in an NS&I account or other savings account. It's a tough one!

[@j3ddesign247]

@@JamesShack Thanks, good to know I'm not missing much on that front then. Love your channel! :)

[@joeby13]

Hey James, love the videos. I'm looking to save £1000 a month this year, as saving to do some home improvements come start of next year. It won't be touched until the start of 2023, seems a waste to just put it in an easy access savings account, what would you recommend?

[@kristiyanivanov7414]

I wonder if he worked for 10 more years, how would that look like? One application of that is if one can leave such absurd amount of money to help their children in their life.

[@Mickthemove_]

I presume this only applies if you want to leave money to somebody/thing, a lot of us want very little left at the end of life or 95 whichever comes first :)

[@JamesShack]

In that case, you'd work one extra year and increase you income draw by 10% - or whatever the extra allows.

[@bencarter8905]

Compound interest really is an amazing thing. Even if you understand how it works and its power, it can still surprise you in niche cases

[@JamesShack]

Gets me every time!

[@swright5690]

Great content and just as good for Americans.

[@MrJcarden]

how do i get the cashflow plan james

[@JamesShack]

There’s a link to it in the pinned comment 👆🏻

[@adamp6320]

Sorry would rather have a year off at 55 while healthy and able to enjoy life; 95+ is not guaranteed and spending after age 90 is likely to be VERY limited given mobility.

[@JamesShack]

It's about finding a balance, maybe you want to leave something to kids/grandkids and you find that working an extra year could leave them A LOT! Or maybe allow you to spend more on yourself.

[@barrymatthews5476]

Another amazing video James, thank you. I am approaching retirement, within the next 5 years, and I am tracking my investments closely. I built a rudimentary model myself just for interest in building a consolidated view of my pension investments and to help learn more about how investments, interest, and age of retirement impacts my retirement wealth! I too found that there is a sweet spot in terms of retirement age and my pension fund growth /longevity! I am now about to head across to your video and download your free investment model to see if my work was accurate or just a complete work of fiction! 🤣. Loving the videos, please keep them coming.

[@JamesShack]

Hi Barry, I wish you all the best with the retirement plan and I hope you find the model useful!

[@MrWaterbugdesign]

I retired 20 years ago at 45. I didn't have a pile of money. There are other options. "Retirement" is a poor term. Working until 65 at a company, getting a gold watch and a pension check every month. That's a sudden and binary change. It's not the same thing as "retiring" way before 60. I loved my job, my career as a software engineer working at startups creating consumer products. But I loved the freedom of not having to work on a specific task everyday. When you retire early a funny thing happens....a bunch of fun but low return things becomes good income. There are endless things you can do as a hobby that also happen to produce income. Once your home is paid off your expenses get really low and most of the expenses you do have are fairly discretionary. You can eat pasta instead of steak. So invently a pond vacuum, building them and selling them online because you love it might bring in $400/mo. If it becomes a job you don't like then shut it down. Like oil painting? Cool. What the hell are you going to do with all those paintings? Travel the US going to flea markets and sell them for cheap. Could cover the cost of that vacation seeing the US. Meeting and talking to people at flea markets can be fun. And you learn about the US. Like gardening? What happens when your yard is done? Do other people's yards, and they'll pay you. Plus you when you don't need the money you can bid jobs high. Most landscapers have to bid really low to get jobs, stay busy to keep money coming in and that results in all these landscapers doing the same low end results. You can standout doing creative landscaping you enjoy. There is a market for creative craftsmen. I would not look at early retirement as binary...job and no job. Cover your basic staying alive and then you're free to try things you enjoy with the freedom to move on from anything you don't like. This also means not investing a lot in some business. Investing $100k in a landscaping business, hiring workers....that's a job people want to retire from. Keep life simple.

[@ItsMe-co4bj]

Water bug and George Johnson. My god whoever says youtube is a waste of time doesn’t know what their missing, your comments are exactly the reason I come to view this section. In life everyday is a school day and you can stubble across comments from people that really make you think and re-evaluate things. Random people can be so incredibly wise, but totally get their point across In only a few short sentences. So THANKYOU ! to you two and everybody else that has made me think 🤔 over the years and long may it continue.....

[@JamesShack]

This is so true. Most people do not need anywhere near as much as they think they do, and even if they do think they need more it's all on discretionary items like eating out or flying business. It's hard to imagine the other ways you can make income until you force yourself into that position. And if you end up doing things you love, you'll probably be good at it or at least get good at it because you're willing to put in the effort.

[@paulthorpe766]

@@JamesShackThat is very true - in 2017 I sold my various businesses (insurance brokers, trackday and supercar hire and productivity and risk consultancy ) at 55 which tbh I was bored off especially the mtgs and admin... and took up my hobby of old watches a bit more gleefully.... now every day is fun and still pays the bills 😉 !

[@molocouk]

James, I cannot thank you enough for these videos. I look forward to them every time and have shared them with friends and family. You make an extremely complex/intimidating subject accessible and easy to understand. Please dont stop!

[@JamesShack]

Ah thank you!! I won't, and i'm glad to be of service!

[@davidwhittaker8392]

Hi James where can I download your pension sheet ?

[@JamesShack]

In the description of this video - kzbin.info/www/bejne/gYbKkKhvbtBrrdk

[@TheBillBomb]

I love this example. Your example is on the cusp between living into the principal and living on the interest. Add 39 years of compound interest and then the end result is very sensitive to this.

[@David-gs3vx]

A person aged 33 now will be able to claim the UK state pension at age 68, not 67.

[@johnwayne6303]

The man will not spend £40,000 that he planned. So you have put that down in savings. But what will he spend normally? Does he not spend anything?

[@johnmitchell4152]

No sh*t Sherlock! Love the videos by the way, super helpful 👍🏻

[@coderider3022]

Numbers seem too high. I compare my numbers against other calculator, yours is about 25% too much.