When should I withdraw?


(Ben Sheppard) #1

I’m looking for some advice or articles I can look into concerning withdrawing investments.

I’m putting a lot of effort into retiring when I’m 50

I bought my first house with my fiance at the end of last year and we’re looking to aggressively get that paid off within the next 10 years. (The house value is 2.25* our yearly combined salary so we’re in a good place to get rid of it)

My bills come to 30.1% of spending with the biggest being the house payments.

My question is really, when do I start withdrawing money? Do I take it out as a large lump sum at 50? Withdraw an amount yearly from 40s? Any advice would be greatly appreciated!


(Dave Smith) #2

I would only withdraw as much as you need when you need it, and leave the rest in accruing dividends etc.


(Emma) #3

Really think you’d need a qualified financial advisor to answer this properly for you


(Elliott Shreeves) #4

Sounds like you need to speak to a IFA.


(Ben Sheppard) #5

Okay I’ll look into financial advisors around me, cheers!


#6

Yeah, plenty on internet about drawdown to read but talk to an IFA because if you plan to start living off your investments at 50, you might have 30-50 years to fund from them which makes planning carefully important :slight_smile:

IFAs: you want one who is a Chartered Financial Planner and can find them at https://www.unbiased.co.uk/ (If you’re in London or Scotland I rate these people https://www.carbonfinancial.co.uk/ )


#7

When you say ‘withdraw money’, do you mean withdraw from savings, ie ISAs and the like, because at 50, you’re probably too young to draw from a pension? Is it just you retiring? Will you get any other income, ie fiance’s wage? Do you know how much you will need to live on, once the house has been paid off?

Also, you’ll have to work out what happens if you continue to withdraw an amount year after year from your ‘pot’, to see if it will last until you can draw your pension (assuming you have one) and your state pension at age 67/68.

And don’t forget that in order to qualify for a full state pension, you have to have paid 35 years national insurance - you can check how many years you have paid here: https://www.gov.uk/check-national-insurance-record


(Ben Sheppard) #8

Thanks for your reply, I mean withdrawing from savings, and investments, things that are currently earning interest. The more I’ve got saved up the better position I’ll be in. After the house is paid off our outgoings would be under 800 a month.

Our only current income is both of our salaries. I want to look into rental properties as a potential income as well but I don’t know if it would be better to put it into ETFs. Again probably a conversation for an independent adviser.

Thank you for that link, I’ll take a look into that


(JC) #9

Monevator.com have a lot of good articles about withdrawing from investments/pensions. Plus a lot on passive investing
Research the financial independence retire early “fire” movement in the UK. Many people are blogging about doing the same so some of these may be of use.


(Ben Sheppard) #10

Thank you! I’ll be spending a good bit of time looking through that!