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    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 765Posts
    • 1,273Thanks
    Marine_life
    Early-retirement wannabe
    • #1
    • 5th Nov 10, 10:46 AM
    Early-retirement wannabe 5th Nov 10 at 10:46 AM
    I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

    Who is aiming for early retirement (or who has retired early already)?
    When did you begin planning and what drove the decision?
    What is the strategy for getting there?
    How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?
    For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    I will post my strategy but wanted to get some thoughts
Page 163
    • OldBeanz
    • By OldBeanz 6th Jun 17, 3:15 PM
    • 622 Posts
    • 441 Thanks
    OldBeanz
    You can save £60k across three 123 Accounts with Santander earning more than 1% along with smaller amounts in numerous other current accounts. Why pay your mortgage off when you can earn more risk free?
    • bugslet
    • By bugslet 6th Jun 17, 3:27 PM
    • 5,100 Posts
    • 25,622 Thanks
    bugslet
    You can save £60k across three 123 Accounts with Santander earning more than 1% along with smaller amounts in numerous other current accounts. Why pay your mortgage off when you can earn more risk free?
    Originally posted by OldBeanz
    In my case, I had a parent that went bankrupt and lost the house we were living in. I ended up buying it to keep a roof over our heads. That has probably skewed my perspective somewhat!
    • atush
    • By atush 6th Jun 17, 3:38 PM
    • 15,938 Posts
    • 9,677 Thanks
    atush
    and I tend to view my business as the savings.
    Yes, we have a bit of that- shares in my OH's privately held company. Only problem is, got no idea what it is worth lol.
    • AnotherJoe
    • By AnotherJoe 6th Jun 17, 4:35 PM
    • 6,535 Posts
    • 6,957 Thanks
    AnotherJoe
    I suppose if you are risk averse the payoff of surety is greater than the opportunity of growth or loss - head or heart time ?
    Originally posted by chiefie
    Not if your mortgage is at 1%, no
    • Anonymous101
    • By Anonymous101 6th Jun 17, 4:44 PM
    • 939 Posts
    • 301 Thanks
    Anonymous101
    Not if your mortgage is at 1%, no
    Originally posted by AnotherJoe
    I agree... if your mortgage is very low and you could easily pay it off if the worst did happen then whats the point in paying it off.

    Surely the confidence comes from getting a much better return than the bank are charging you for the borrowing? Even for someone right at the pole of risk free investments even cash would out perform the borrowing.
    • Marine_life
    • By Marine_life 6th Jun 17, 5:01 PM
    • 765 Posts
    • 1,273 Thanks
    Marine_life
    I am retiring February 2018 aged 60.....Now I have decided to go, every day at work is painful!
    Originally posted by OldMusicGuy
    What's making you wait? Do you need the final months to qualify for your pension?
    Make it idiot proof and someone will make a better idiot…
    • ex-pat scot
    • By ex-pat scot 6th Jun 17, 5:12 PM
    • 188 Posts
    • 198 Thanks
    ex-pat scot
    Just to add to this thread, I am retiring February 2018 aged 60. Was driven to it by pressure of work and also deteriorating personal relationship with my wife (I was acting the corporate wonk at home). Also, our son has just finished Uni so that relieves some of the financial pressure. On the surface, our monthly post tax income will drop by about 70%. But we should be fine as we will be changing our lifestyle significantly (downsizing and living more sustainably).

    Main concern is that it can't come a day too soon. Now I have decided to go, every day at work is painful!
    Originally posted by OldMusicGuy

    Me too! Except that mine is May 2024. At the risk of wishing my life away, it can't come too soon.


    It might not be a binary "full stop" to work, but the prospect is tantalising. It's the old notion of control and Financial Independence: I might choose to continue, but that will be a positive choice rather than an expectation or necessity.
    • westv
    • By westv 6th Jun 17, 7:12 PM
    • 4,218 Posts
    • 1,793 Thanks
    westv
    Not if your mortgage is at 1%, no
    Originally posted by AnotherJoe
    How big a fee did you have to pay for that?!
    • bugslet
    • By bugslet 6th Jun 17, 9:07 PM
    • 5,100 Posts
    • 25,622 Thanks
    bugslet
    Yes, we have a bit of that- shares in my OH's privately held company. Only problem is, got no idea what it is worth lol.
    Originally posted by atush
    There's enough in the directors current account for me to live comfortably for the next 15 years and if I just finished the company, there'd be something more, though not a clue what.

    How big a fee did you have to pay for that?!
    Originally posted by westv
    Mines currently 1.39%, it's tracker mortgage. I swapped to what was then Ing, because there was no fee and I could overpay with no penalty. Did that about 18 months before the crash, no cleverness on my part, just very lucky.
    • OldMusicGuy
    • By OldMusicGuy 6th Jun 17, 10:04 PM
    • 80 Posts
    • 119 Thanks
    OldMusicGuy
    What's making you wait? Do you need the final months to qualify for your pension?
    Originally posted by Marine_life
    No pension but a significant amount of restricted stock options vesting plus my annual bonus. Would fund around two years of retirement income. My son finished Uni this month so did not want to stop before that. I have considered going now but the lump sum I will get in February is making me hang on. But it is tough!
    Last edited by OldMusicGuy; 06-06-2017 at 10:06 PM.
    • fatbeetle
    • By fatbeetle 7th Jun 17, 4:55 AM
    • 207 Posts
    • 253 Thanks
    fatbeetle
    I'm planning on retiring in January 2018, at age 59.

    Our situation is a bit different to most I think.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
    • Marine_life
    • By Marine_life 7th Jun 17, 8:18 AM
    • 765 Posts
    • 1,273 Thanks
    Marine_life
    No pension but a significant amount of restricted stock options vesting plus my annual bonus. Would fund around two years of retirement income. My son finished Uni this month so did not want to stop before that. I have considered going now but the lump sum I will get in February is making me hang on. But it is tough!
    Originally posted by OldMusicGuy
    It is difficult but I would focus on building in a few small milestones along the way (maybe a couple of holidays) to give you something positive to look forward to during the difficult months ahead. After so many years of working I am sure the next few months will pass in a flash.
    Make it idiot proof and someone will make a better idiot…
    • AnotherJoe
    • By AnotherJoe 7th Jun 17, 8:37 AM
    • 6,535 Posts
    • 6,957 Thanks
    AnotherJoe
    No pension but a significant amount of restricted stock options vesting plus my annual bonus. Would fund around two years of retirement income. My son finished Uni this month so did not want to stop before that. I have considered going now but the lump sum I will get in February is making me hang on. But it is tough!
    Originally posted by OldMusicGuy
    If you don't have a pension, open one up now, don't pass up the tax bump especially if you are on 40% or higher tax, not to mention depending what you earn this year you could claw back allowances you've missed out on for at least last year.
    • OldMusicGuy
    • By OldMusicGuy 7th Jun 17, 9:16 AM
    • 80 Posts
    • 119 Thanks
    OldMusicGuy
    It is difficult but I would focus on building in a few small milestones along the way (maybe a couple of holidays) to give you something positive to look forward to during the difficult months ahead. After so many years of working I am sure the next few months will pass in a flash.
    Originally posted by Marine_life
    Good advice, I'm already doing that with major work projects, getting into the "well that's the last time I will have to do that" mindframe. My employer knows I am retiring so there are some things that are already being allocated to other people and at least I can refuse getting involved in new projects. But the days are dragging.....

    If you don't have a pension, open one up now, don't pass up the tax bump especially if you are on 40% or higher tax, not to mention depending what you earn this year you could claw back allowances you've missed out on for at least last year.
    Originally posted by AnotherJoe
    Don't worry, I have a big SIPP pot. I have completely maxed out all my contribution allowances (including the carry forward allowances) in the last few years as I have been in the 45% tax bracket. That's why my income will drop so much in retirement. After a 40 year career I've ended up earning quite well so have been putting a lot of money into the SIPP over the last 5 years.

    However, I have no DB pensions at all, hence no specific need to wait until 60. The first job I had back in 1978 was working for Amoco, and that was the only company in my career that had a DB pension scheme (which was probably non-contributory). I worked there for just under 5 years before I moved to a new job. I found out later in life that if I had worked there for at least 5 years, I would have been entitled to a pension. OK it wouldn't have been massive, but any inflation linked income stream is worth having in retirement IMO. Old me is kicking young me up the backside for not just hanging on a few months more in that first job!
    • Marine_life
    • By Marine_life 7th Jun 17, 12:39 PM
    • 765 Posts
    • 1,273 Thanks
    Marine_life
    The first job I had back in 1978 was working for Amoco, and that was the only company in my career that had a DB pension scheme (which was probably non-contributory). I worked there for just under 5 years before I moved to a new job. I found out later in life that if I had worked there for at least 5 years, I would have been entitled to a pension. OK it wouldn't have been massive, but any inflation linked income stream is worth having in retirement IMO. Old me is kicking young me up the backside for not just hanging on a few months more in that first job!
    Originally posted by OldMusicGuy
    I guess we were all a little bit oblivious to the true value of DB pensions back in the day and I am one of those who believes that there should be some financial training in schools and universities.

    I have one such pension where the qualifying criteria was something like two years. Now that I look at that pension the actual value of the pot is around £50,000 but the pension itself has a guaranteed mimimum payout based on current prices of around £12,000 per annum (index linked!). It makes me laugh as they also offer me the "opportunity" to take the fund and buy a cash annuity with a value just over £2,000 per annum. Errrr....that will be a no then.
    Make it idiot proof and someone will make a better idiot…
    • westv
    • By westv 7th Jun 17, 12:59 PM
    • 4,218 Posts
    • 1,793 Thanks
    westv
    Some of us have DB pensions that had to be rescued by the PPF so they aren't quite as generous as they should be - no lump sum for example.
    • AnotherJoe
    • By AnotherJoe 7th Jun 17, 2:15 PM
    • 6,535 Posts
    • 6,957 Thanks
    AnotherJoe
    Don't worry, I have a big SIPP pot. I have completely maxed out all my contribution allowances (including the carry forward allowances) in the last few years as I have been in the 45% tax bracket. That's why my income will drop so much in retirement. After a 40 year career I've ended up earning quite well so have been putting a lot of money into the SIPP over the last 5 years.
    !
    Originally posted by OldMusicGuy
    It was your comment "no pension" that lead me to believe you, errm, didn't have a pension.

    • OldMusicGuy
    • By OldMusicGuy 7th Jun 17, 4:18 PM
    • 80 Posts
    • 119 Thanks
    OldMusicGuy
    It was your comment "no pension" that lead me to believe you, errm, didn't have a pension.

    Originally posted by AnotherJoe
    My bad, I should have been clearer! The question seemed to be asking about a DB pension kicking in, and I don't have any of that.
    • RoonilWazlib
    • By RoonilWazlib 16th Jun 17, 4:19 PM
    • 115 Posts
    • 74 Thanks
    RoonilWazlib
    A number of months since I visited this thread so spent a few hours (on work time ) catching up.


    The big day is nearly here ML. Must feel great
    • Marine_life
    • By Marine_life 16th Jun 17, 4:47 PM
    • 765 Posts
    • 1,273 Thanks
    Marine_life
    A number of months since I visited this thread so spent a few hours (on work time ) catching up.


    The big day is nearly here ML. Must feel great
    Originally posted by RoonilWazlib
    It is indeed .....and I will admit I have been counting down the days (two weeks today).

    I have my one day a week contract for next year and I'm not yet sure how that will work out and there is no precedent as nobody has done it before However, in my mind the ideal scenario is that I will spend say one hour per day on answering emails and then two days where I work three hours. But one thing is sure......I will NOT be letting the hours creep up!

    My first job will be to get my blog fully up and running so you'll be able to spend a few more work hours catching up ;-)
    Make it idiot proof and someone will make a better idiot…
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