So I am better able to track my progress toward FIRE, I have decided to post an update of my retirement fund each month.
This fund is the sum total of my SIPP, Work Pension, Friendly Society Tax Exempt Savings and my S&S Isa, none of which I will be drawing from until my planned retirement. The target for these funds is £300,000, which is based on a retirement income of £12k per annum. I am saving separately for a house deposit and although that money is not part of my retirement fund, it will be instrumental in providing me eventually with a paid off house and therefore reducing the amount I need in retirement to £12,000 per year.
The aim is to keep throwing as much as I can into my retirement fund, with the biggest portion going to my SIPP, to take advantage of the tax relief. I am planning on being a non-tax payer in retirement.
Going forward, I will be tracking the totals of the above accounts, which hopefully will rise with growth and dividend reinvestment. I have input the last two months figures into google spreadsheets and come up with the handy little graph below:
|The long journey to financial freedom starts here!|
Although it doesn't exactly look very exciting right now, I am hoping that as the months go by, it will give an accurate picture of my journey towards financial freedom.