FIRE-side chat: Scot-free

While most readers enjoy pulling up a stool and listening to these FIRE-side chats, we do sometimes hear that a particular story is a bit unusual compared to the usual work-to-retirement path. So this time I’m pleased to talk to ‘WeeScot’, who is on a conventional route towards a comfortable early retirement – very much still an achievement, and something we might all aspire to!

A place by the FIRE

Morning! How do you feel about taking stock of your financial life today?

I’m feeling reflective, which is why I offered to do a FIRE-side Chat. I’ve been a regular Monevator reader for many years. However I rarely comment on posts.

Over the years I have learned a lot from the site and wanted to share some of my experiences with other readers in the hope that it would be helpful. 

How old are you and your partner?

I’m 54 and my wife is 57. We have been happily married for 30 years. 

Do you have any dependents?

We have one daughter who is 28. She is an NHS doctor – the first doctor in our family – working in the highlands of Scotland. She is doing very well and we are both immensely proud of her. 

Whereabouts do you live and what’s it like there?

We live in Glasgow. It’s a beautiful city with friendly people. The only downside is the weather – Deacon Blue’s Raintown is very apt if you’re old enough to remember the iconic album cover. 

Do you consider you’ve achieved Financial Independence and why?

I wouldn’t say I’m financially independent just yet. I’m getting closer, but not quite there.

My goal is to retire before 60, not to hit a specific number. For me, it’s more about having time to spend with friends and family, which feels far more valuable than chasing a bigger bank balance. At this stage in life, I’m choosing to prioritise time over money.

So you’re obviously not yet Retired Early…

No, I’m still working and I enjoy my current job in financial services.

My wife retired at 55 due to ill health and is no longer able to work. This has significantly influenced my approach to retirement. Rather than working longer to provide more financial security, it’s inspired me to retire before 60 so that we can spend more time together whilst we’re both fit and able to enjoy life together.

For me, time spent with your partner isn’t the shared hours. It’s the ordinary moments that become your favorite memories. 

When do you think you’ll call it FIRE?

I’m hoping to retire in the next five years or so. 

Assets: pensioned-up and mortgage-free

What’s your current net worth?

Our combined net worth is around £1.7m.

What makes up your net worth? Are there mortgages or other debts, too?

Our main assets are: 

• £500,000 family home in Glasgow
• £300,000 flat in Edinburgh 
• £100,000 in a stocks and shares ISA
• £800,000 in pensions from various employers
• We don’t have any mortgages or debts. 

The Edinburgh flat was originally bought as both an investment and a lifestyle choice. It made sense at the time, as I was working in the city and wanted to avoid a long commute

Ironically, I changed jobs about a year later and wasn’t based there anymore –such is life!

Fortunately, the timing worked out well though, as our daughter ended up studying at Edinburgh University and used the flat during her degree. That saved on accommodation costs. After my daughter graduated we rented it out to a couple who are friends of hers, though they’re due to move out soon.

The Edinburgh property market has performed well over the past five to ten years. But I’d admit any increase in value has been more down to good luck than careful planning!

What’s your main residence like?

We live in a three-bedroom detached house in the leafy suburbs of Glasgow. After making overpayments for many years we now own it outright and have been mortgage free for ten years.

Glasgow on FIRE: a characterful city to work and retire in.

What was your thinking with the early repayments?

My initial strategy was to overpay by £50 per month. Over time increased this to circa £500 per month as my salary grew.

This approach wasn’t driven by a particular date but instead by a desire to reduce the overall term of the mortgage and associated interest payments as quickly as possible.

Over the years I believe that this approach has saved us thousands in interest payments. More importantly it did not materially impact our day-to-day quality of life, which is equally as important. 

It might not have been the best financial decision, as the money could have been invested elsewhere. However it does let me sleep well at night. I think that is also an important factor. 

Do you consider your home an asset, an investment, or something else?

My wife and I consider this a home not an asset or investment.

We chose it initially because of good schooling for our daughter, not to make money. Enjoying where you live for us is more important than making money.   

Earning: it helps to enjoy work

What’s your job?

I work in a change and transformation role for a financial services company, leading large-scale business and tech projects to improve how we serve customers and advisers.

After more than 25 years in this industry, I’ve gained deep experience with Life and Pension products and regulatory changes, which I believe ties in closely with the FIRE journey.

It’s not often we get someone from the industry on Monevator…

While financial services often get a bad rap – especially when things go wrong – there are many moments that show the human side, too.

For instance I remember a time when we paid out a life insurance policy early so a critically-ill woman could marry her partner at short notice. Technically outside the rules – but absolutely the right thing to do.

Is navigating all the complexities easier for you from the inside?

As a DIY investor and employee, I still find the financial world full of jargon and complexity – even from the inside.

Also, digitisation has made services more accessible, but it also tempts people to tinker too much. As Steven Bartlett joked in a recent podcast, forgetting your investment account password might be the best thing you can do!

When it comes to FIRE, I’ve found that a slow and steady approach – regular investments in passive funds – offers the best chance of reaching your goals with confidence and less stress.

It might not be exciting, but it works.

What’s your annual income?

My annual income is around £100,000.

How did your career and salary progress over the years – and was pursuing financial independence part of your career plans?

When I graduated from University I started out in a software development role with a starting salary of £12,000. It felt like riches to a wide-eyed 21-year-old.

My career progressed quickly as I gained more experience in different technologies and software languages. However I soon learned that I was better at managing projects and people than programming. Since then I have been predominately in change and transformation, working for different financial services companies over the last 25 years, which I’ve enjoyed. 

Did you have any advice about building a career and growing income? Perhaps something that you wished you’d known earlier?

My advice is ‘be comfortable in the uncomfortable’.

Moving jobs and roles either within a company or changing employer is the best way to learn new skills and experience. If your current role feels too comfy this can often be a sign that you are not developing or stretching yourself enough. 

Secondly don’t chase money – chase opportunity.

If you’re excited about the opportunity you are more likely to do a great job. Your company will recognise this and the money will hopefully follow. 

Do you have any sources of income besides your main job?

No. I work full-time, which is my only income.

My wife took early retirement due to ill-health and has a small pension. 

Did pursuing FIRE get in the way of your career?

No – and I have enjoyed my career in financial services.

I only started regularly hearing the term FIRE in the UK around ten years ago and I don’t believe I’ve been actively pursuing FIRE. However regularly reading Monevator and other sites like Quietly Saving, I may have been doing it subconsciously without realising!

Saving and spending: Scottish virtues

What’s your annual spending? How has this changed over time?

My annual spending is probably around the £30,000 to £40,000 mark.

This is typically on basics like food, transport, utilities – plus one or two nice holidays a year.  

Do you stick to a budget or otherwise structure your spending?

I don’t budget monthly, but my spending habits are pretty steady and I’m not one to splurge.

Growing up in a traditional Scottish family, I was taught not to buy what I couldn’t afford – and that mindset has stuck with me. I only make big purchases when I have the cash to pay in full.

I have a credit card that I rarely use, and I always clear the balance each month to avoid any fees.

How would you describe that traditional Scottish family mindset?

Both my parents retired in their 60s and live comfortably thanks to their hard work. They were great role models who passed on a strong work ethic.

That has served me well – and I’m proud to see the same values showing in my daughter, too.

I’ve always believed that money you earn yourself is far more meaningful than money that’s simply given.

What percentage of your gross income did you save over the years?

In my 20s, saving was tough. My wife and I bought our first flat at 25. A few years later we had our daughter, so family came first.

I did contribute to a pension, but only at the basic 3–5% level. Thankfully, working in financial services meant I benefited from generous employer contributions of around 10–13%.

In my 30s and 40s, I gradually increased my pension contributions to about 10%, but hitting 50 was a wake-up call.

I’d read that your total pension contributions (yours and your employer’s) should be around half your age. Digesting this rule-of-thumb pushed me into action.

Nowadays I contribute 27%, with my employer adding 13% for a total of 40%. It’s made a big impact on my pension growth.

The lifestyle adjustments have been minor – cutting back on extras like holidays and car upgrades – but worth it to stay on-track for retirement before 60.

In hindsight, starting earlier would have helped, but I’m glad to be making up ground now. A few sacrifices feel like a small price to avoid working extra years. It’s a trade-off I’m happy with.

What’s the secret to saving more money?

Saving is a habit. I put money away into a different account as soon as I get paid. I don’t touch this for day-to-day expenses. This allows me to enjoy the rest guilt-free.   

Do you have any hints about spending less?

Don’t buy what you don’t need and be careful with day-to-day spending habits.

That daily coffee from Costa may be nice every morning. However it could be costing you £600-£700 per year, which could be used for something more productive – or indeed fun!

Do you have any passions or hobbies that eat up your income?

My wife and I love live music and regularly attend concerts in Scotland and travel across the UK – or even abroad – to see our favorite bands.

One highlight was Adele in Munich last year. That was truly an amazing experience both musically and visually with a 220-meter screen.

We are also football season ticket holders and have been for many years. This has been a rollercoaster – thanks to events both on and off the pitch – but we still love going to home games on a Saturday.

Investing: towards simplicity

What kind of investor are you?

Well, a former boss once told me, “I want my money to work as hard for me as I did to earn it,” and that mindset really stuck.

So I’ve always managed my own investments and never used a financial adviser.

Over time, my approach has shifted. I’ve gone from trying to beat the market with active investing to preferring a more passive strategy, which suits me better.

I’m fully invested in equities, and now have less than 10% in active funds.

Do you use any of your fellow professionals?

Recently I had a call with a financial adviser through a free service from my employer to see if I’m on track to retire in the next five years.

The adviser was great, and after doing some personalised retirement modelling, it was reassuring to learn I’m on the right path. It was validating – and honestly a relief – to hear that many of my investment choices aligned with his own. Particularly after being a DIY investor for 25-odd years. 

To be honest this experience has also changed my perception on paying for financial advice. I’d now consider looking for a financial adviser to help me set-up a retirement plan once I get closer to FIRE. 

What was your best investment?

Property has been our best investment. My wife and I bought our first Glasgow flat in our mid-20s and moved a few times as our family grew. Each move brought a good increase in property value, which helped us move up the ladder – though we’d say it was more luck than strategy.

We’ve never focused on renovating to sell, but instead chose homes based on location over style. Fortunately, the areas we picked became more desirable over time. That boosted their value.

We know we’ve been lucky – especially with how much harder it is now for younger people to get on the property ladder. Many of our friends’ adult children are still living at home. They have little chance of buying unless they get extra help.

Did you make any big mistakes on your investing journey?

Definitely! Managing your own investments means you make mistakes and when it’s your own money you learn fast.

A few hard-won lessons come to mind:

Chasing winners – I used to jump on whatever active fund was flying high that month — only to watch it crash the next. I’ve since learned slow and steady wins the race. (No pun intended on your namesake portfolio!)

Panic selling and meddling – I’ve trained myself to ignore big market swings (like the Q1 drop this year) and stick to the plan. Too many people I know panic and sell the moment their fund dips 10%. I’ve also stopped constantly switching funds. It only adds stress and fees.

Avoid what you don’t understand – I tried crypto a few times and realised it felt more like gambling. Seems to me the only consistent winners are the platforms, who earn fees regardless of whether you gain or lose.

Emotional investing – I’ve held onto losing funds hoping they’d bounce back, only to regret it. Sometimes you’ve just got to cut your losses and treat it as tuition fees for learning the ropes.

What’s been your overall return, as best you can tell?

On average, my pensions and stocks and shares ISAs see around 9% annual growth, depending on market conditions. My best investment so far has been the Legal & General Global Technology Index Trust, which has grown by over 50% – a great return over the years.

I’m mostly invested in US funds, which have done well over the past decade, but I also make sure to include other regions to stay diversified.

It might not be the perfect allocation, but it suits me and I’m happy with the results.

When I reach FIRE, my plan is to use income drawdown from my pensions rather than buy an annuity, as it offers more flexibility. I’ll keep my ISAs as a backup or for topping up income if needed.

How much have you been able to use your ISA and pension allowances?

At present, I’m putting around £40,000 to £50,000 (combined employee and employer contributions) annually in my pension. This consumes about 27% of my salary.

I typically also save £1,000 per month into my ISA as a regular habit and try to fill up to £20,000 each tax year, if I have money available. However this isn’t always possible. 

To what extent did tax incentives and shelters influence you?

As a higher-rate tax payer in Scotland I’m keen to ensure that my investments are as tax-efficient as possible. So I save heavily in pensions to reduce tax.

But I also save into the ISAs to provide some financial flexibility and protect me in case the government decides to change pension or ISA rules in future. 

How often do you check or tweak your portfolio?

I check my portfolio weekly and track performance in a big Excel spreadsheet I’ve built over the years.

It’s something I genuinely enjoy. It keeps me motivated and helps me maintain a growth mindset, whether I’m seeing gains or spotting opportunities during a dip.

That said, I don’t have a specific investment target. It’s more about using the data as feedback and staying engaged.

I know weekly tracking might be too frequent for some, but for me, it’s a positive habit that keeps me focused and doesn’t do any harm.

Over the years I have developed good self-discipline and I avoid tweaking my portfolio too frequently. I occasionally make changes – once or twice a year – to rebalance. However I’ve sometimes gone a year or two without making any changes at all.

Moving the majority of my portfolio into passive funds has also helped me avoid making too many tweaks or changes.  

Wealth: enjoying working towards a rich life

We know how you made your money, but how did you keep it?

Big trees grow from little acorns and even now I still regularly save and invest regularly as a habit. One challenge I recognise though is should you change this habit when you move into de-accumulation?

It would be great to hear views and experiences from other Monevator readers on this topic. I expect this it be an issue for me, having been in the saving and investing mode for many years.  

Which is more important, saving or investing, and why?

Both is the pragmatic answer. But if you pushed me to choose one I would say investing is more important. Where you put your money can make a huge difference in the financial returns, particularly over the longer term. At my stage in life I’m laser-focused on where I’m invested and the performance of my assets.

I appreciate that this is not the norm. When I speak with friends and family about pensions and what funds they are invested in, they typically look at me like I’m speaking a different language. So I recognise that I am an outlier. 

Do your goals have a timeline?

My goal is to retire in five years’ time. 

Has anything unexpected got in your way on the path to financial independence?

Over the years I’ve experienced many twists and turns, both in terms of unplanned career changes due to market forces and investment mistakes. But I’m pleased with how things have panned out to date.

The journey is as important as the destination. I’ve learned to enjoy the ride so I feel contented. 

Do you have any other financial goals?

My key financial goal is to be able to do what I want when I retire and not be restricted – within reason – by money. Having the freedom to be able to go out for a good meal with friends or attend the theatre without having to check my bank balance first is important and a nice feeling.

For me financial goals are about having the freedom to do what you want when you want. We can always have more money but never buy back time. 

What would you say to Monevator readers pursuing financial freedom?

A few friends and colleagues have already retired, and through our chats, one message keeps coming up: having a clear purpose in retirement really matters.

It needs to be more than just holidays or hobbies. It’s about finding something meaningful that keeps you motivated once the daily work routine stops.

One of my close friends has embraced this brilliantly, spending his time writing children’s books in winter and creating an award-worthy garden in summer – all purely for the joy of it.

After working most of my adult life, I’m really looking forward to the freedom retirement brings. I haven’t fully figured out my own purpose yet. But I’m excited to explore that as my FIRE date gets closer.

Tidying up

When did you first start thinking seriously about money and investing?

I started reasonably early. I even took out a personal pension in the early 1990s before the introduction of auto-enrolment.

Since then I have always been interested in money and investing, which I think is a good Scottish trait!

Did any particular individuals inspire you to become financially free?

The contributors to Monevator and the community that engages in the comments are my inspiration, particularly as Monevator is focused on a UK audience.

It’s a reminder that you’re not alone. Many of us are thinking and feeling the same things. 

Can you recommend any other favourite resources for anyone pursuing the FIRE dream?

I’m a big follower of Steven Bartlett. I regularly listen to his Diary of the CEO podcast when travelling to and from work. Many of the guest speakers on investing and more recently Artificial Intelligence have been fantastic. 

What is your attitude towards inheritance?

I will start to consider inheritance tax more closely once I FIRE – I want to ensure that my wife and daughter are looked after.

The recent inheritance tax changes are frustrating and feel counterproductive for someone who has worked their whole adult life. However let’s not get into politics…

What will your finances ideally look like towards the end of your life?

My view is simple. Enjoy your money while you can! Life’s short, so make the most of it with friends and family doing what makes you happy.

And on that note… I think it’s your round, The Investor!

Indeed – my thanks to WeeScot for taking the time to share his story with us. It’s a good reminder that you don’t need to start a side hustle or run a business or move to the mountains to achieve your goals (not that there’s anything wrong with those either…) and that conventional wisdom is wise for a reason. Questions and constructive feedback are both welcome, but anything bad-tempered or nasty will be deleted. WeeScot is a long-time Monevator reader, but he’s not a regular commenter – let alone a battle-scarred blogger like me. Be sure to read our other FIRE-side chats.