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  • FIRST POST
    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 815Posts
    • 1,460Thanks
    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 175
    • lco199
    • By lco199 26th Sep 17, 9:43 AM
    • 13 Posts
    • 18 Thanks
    lco199
    There are additional costs of not working, e.g. greater electricity/fuel/water costs at home. Not great but you should allow a little.
    Originally posted by Terron
    Yeah, I can appreciate that. There'd also be savings in rail travel on the other hand I guess. Can't say for sure whether I'd be spending more or less, but realistically I'd like to have the opportunity to spend more.

    Pretty confident at the moment that if I can get my savings up to £250k+ by age 50 I should be fine to live off that for 10-15 years before needing to start drawing on pensions. Fingers crossed anyway!
    • crv1963
    • By crv1963 26th Sep 17, 10:13 AM
    • 158 Posts
    • 417 Thanks
    crv1963
    Yeah, I can appreciate that. There'd also be savings in rail travel on the other hand I guess. Can't say for sure whether I'd be spending more or less, but realistically I'd like to have the opportunity to spend more.

    Pretty confident at the moment that if I can get my savings up to £250k+ by age 50 I should be fine to live off that for 10-15 years before needing to start drawing on pensions. Fingers crossed anyway!
    Originally posted by lco199


    Go for it Ico199


    Plans change over time but if you have a goal the details can be amended as you go to fit the circumstances.- My goal was clear retirement on my 55th birthday.


    Divorce with pension sharing order then re-marriage and relocation has forced amendments, still retiring at 55, but will need to work until 60 in some capacity to ensure enough funds to tide us over until SP starts when I'm 67. At which point will be enough to live the lifestyle we want.


    Still will be early retired at 60/62 if you define SRA as the start of normal retirement age.
    • Terron
    • By Terron 26th Sep 17, 3:11 PM
    • 112 Posts
    • 115 Thanks
    Terron
    Yeah, I can appreciate that. There'd also be savings in rail travel on the other hand I guess. Can't say for sure whether I'd be spending more or less, but realistically I'd like to have the opportunity to spend more.

    Pretty confident at the moment that if I can get my savings up to £250k+ by age 50 I should be fine to live off that for 10-15 years before needing to start drawing on pensions. Fingers crossed anyway!
    Originally posted by lco199
    That sounds fine. I was just saying that based on actual experience £10k pa was too little for me. £18k pa was more than enough
    • MartynC
    • By MartynC 27th Sep 17, 4:07 PM
    • 1 Posts
    • 1 Thanks
    MartynC
    ISAs for retirement
    Soddit, just emptied ISAs that we've been working on for 25+ years to provide inlaws with a bridging loan after their house sale fell though. It sodding well better be back in there by April 5th!

    This cruise to retirement is proving to have some rapids!
    Originally posted by gadgetmind
    Hi,
    I have an investment ISA with Best Invest which invested in several Global ETFs.
    I did not know you could take most of it out as cash for emergencies and put it back before 5th April and keep the Tax Free status
    MartynC
    • Snakey
    • By Snakey 27th Sep 17, 4:41 PM
    • 1,006 Posts
    • 1,219 Thanks
    Snakey
    ..an interesting point we discussed on my course was "if you don't like work you'll dislike retirement".
    Originally posted by crv1963
    Is this another way of saying "wherever you go, there you are" or was there more to it than that?
    • crv1963
    • By crv1963 27th Sep 17, 6:24 PM
    • 158 Posts
    • 417 Thanks
    crv1963
    Is this another way of saying "wherever you go, there you are" or was there more to it than that?
    Originally posted by Snakey


    No that was about it, namely if you are unhappy working why would you think you'll be any happier not working? Basically the message was to make sure you had interests and felt able to do things or you ran the risk of remaining miserable!
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • westv
    • By westv 27th Sep 17, 6:56 PM
    • 4,370 Posts
    • 1,990 Thanks
    westv
    Basically the message was to make sure you had interests and felt able to do things or you ran the risk of remaining miserable!
    Originally posted by crv1963
    I would have thought that was obvious.
    • ermine
    • By ermine 27th Sep 17, 7:28 PM
    • 623 Posts
    • 924 Thanks
    ermine
    I did not know you could take most of it out as cash for emergencies and put it back before 5th April and keep the Tax Free status
    Originally posted by MartynC
    You can if and only if it is a Flexible ISA, which depends on the provider. My Charles Stanley ISA is, and I borrowed from it this year also to bridge a house sale. My TDDirect ISA isn't so I couldn't do that.
    • crv1963
    • By crv1963 27th Sep 17, 8:34 PM
    • 158 Posts
    • 417 Thanks
    crv1963
    I would have thought that was obvious.
    Originally posted by westv


    It probably is if you think about it and your inner happiness but if you haven't thought about what you want retirement to look like for you it may not be obvious to you.


    It also was acknowledged that sometimes retirement is a key to unlocking happiness from the workplace, the discussion was about how to make you think about yourself as an individual without a definition as in many- most? are defined by their roles (job title, father, son, husband etc) as it is easy to then take the title and role of retired thereby opting out of trying anything new- a common problem that can lead to just sitting around!


    We had to the define how we would like our retirement to look like for us taking into account all aspects of life- financial, relationships, roles and spirituality needs (in the broadest sense not necessarily religious needs).


    Many sort the finances but not the other aspects I retire wife works and earns more a reversal of our lifetime of marriage for example, how does that make me feel, how does it affect our relationship and what do we need to discuss?


    CRV
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • Marine_life
    • By Marine_life 30th Sep 17, 8:22 PM
    • 815 Posts
    • 1,460 Thanks
    Marine_life
    Already on Day 8 of our roadtrip:

    http://earlyretirefree.com/day-8-zion-national-park-to-death-valley/

    Early Retirement rocks!
    Something witty goes here
    • gallygirl
    • By gallygirl 1st Oct 17, 9:48 AM
    • 16,459 Posts
    • 107,839 Thanks
    gallygirl
    Already on Day 8 of our roadtrip:

    http://earlyretirefree.com/day-8-zion-national-park-to-death-valley/

    Early Retirement rocks!
    Originally posted by Marine_life
    Em, yes, we sort of told you that .
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • OldMusicGuy
    • By OldMusicGuy 1st Oct 17, 10:32 AM
    • 193 Posts
    • 356 Thanks
    OldMusicGuy
    It probably is if you think about it and your inner happiness but if you haven't thought about what you want retirement to look like for you it may not be obvious to you.
    Originally posted by crv1963
    Well said, and excellent post. I had not thought seriously about retirement until about 2 years ago. Yes, I had addressed the financial side of things some years previously and was building up a good DC pot, but my mindset was very much the "one more year" - keep plugging away and saving and then probably at some point I will retire, probably mid sixties just before SP age of 66. I hadn't thought much about why I was retiring, I just knew I would.

    Two years ago, a combination of my increasing age (struggling to deal with travel and stress) and a massive increase in workload causing a near breakdown made me question things. My wife also made me take a step back and look at what I had become, a corporate wonk that was too addicted to the status of a well paid professional job. Hence a deep look at what I wanted to do with my remaining life and the decision to retire at a specific date as soon as practical rather than just carry on aimlessly with the OMY mindset. My wife's support and counsel was important because this was a joint decision.
    Last edited by OldMusicGuy; 01-10-2017 at 10:35 AM.
    • atush
    • By atush 1st Oct 17, 11:29 AM
    • 16,372 Posts
    • 10,132 Thanks
    atush
    Already on Day 8 of our roadtrip:

    http://earlyretirefree.com/day-8-zion-national-park-to-death-valley/

    Early Retirement rocks!
    Originally posted by Marine_life
    i've caugth up now lol
    • Lingua
    • By Lingua 5th Oct 17, 12:27 PM
    • 203 Posts
    • 213 Thanks
    Lingua
    Hi all! I've read through some (though not all) of this thread and have taken notes already!

    Few things about me:
    Age: 20
    Occupation: Student
    Target Retirement Age: ASAP!
    Target Retirement Income: £12k/yr

    I'm planning on buying a house in an urban centre and work nearby for an easy (and walkable) commute, renting out rooms in the house to pay for the mortgage and bills. I should leave university with around £50k-£60k depending on spending over the next few years. Some is invested in S&S, with the rest as a cash or LISA deposit for the house. Playing it mostly by ear as I haven't even entered the world of work yet so no idea as to what sort of retirement age I can look forward to!

    Lingua
    Long-Term Goal: £14'000 / £40'000 mortgage downpayment (2020)
    • DancingBadger
    • By DancingBadger 6th Oct 17, 7:07 AM
    • 143 Posts
    • 115 Thanks
    DancingBadger
    Already on Day 8 of our roadtrip:

    http://earlyretirefree.com/day-8-zion-national-park-to-death-valley/

    Early Retirement rocks!
    Originally posted by Marine_life
    Seconded. We’re a bit further west of you - in Yosemite. Amazing place. We’re staying at Big Trees Lodge in Wawona; a step back in time - no TV, no radio, internet available only in the sunroom, and entertainment provided by the resident pianist. Fabulous! 👍
    • Apodemus
    • By Apodemus 6th Oct 17, 8:07 AM
    • 958 Posts
    • 769 Thanks
    Apodemus
    Hi all! I've read through some (though not all) of this thread and have taken notes already!

    Few things about me:
    Age: 20
    Occupation: Student
    Target Retirement Age: ASAP!
    Target Retirement Income: £12k/yr
    Originally posted by Lingua
    While I am all for early retirement, I’ve had a very varied career, worked in some incredible places and with some great people. There has to be a balance between that sense of achievement in a job well done and the desire for a life of leisure!
    • bugslet
    • By bugslet 6th Oct 17, 8:36 AM
    • 5,751 Posts
    • 28,186 Thanks
    bugslet
    It probably is if you think about it and your inner happiness but if you haven't thought about what you want retirement to look like for you it may not be obvious to you.


    It also was acknowledged that sometimes retirement is a key to unlocking happiness from the workplace, the discussion was about how to make you think about yourself as an individual without a definition as in many- most? are defined by their roles (job title, father, son, husband etc) as it is easy to then take the title and role of retired thereby opting out of trying anything new- a common problem that can lead to just sitting around!


    We had to the define how we would like our retirement to look like for us taking into account all aspects of life- financial, relationships, roles and spirituality needs (in the broadest sense not necessarily religious needs).


    Many sort the finances but not the other aspects I retire wife works and earns more a reversal of our lifetime of marriage for example, how does that make me feel, how does it affect our relationship and what do we need to discuss?


    CRV
    Originally posted by crv1963
    I've two causes for hesitancy for retiring early. One is my loyal staff, of whom I'm really quite fond on the whole and there's a bit of guilt at 'leaving' them.

    The second is as CRV says. I've things I'd like to do that I don't have time to do now, wether that would expand and sustain me I don't know, I think so. But I'd lose the kudos (such as it is) of being a. a business owner, b. one of the very few women that do what I do ( count them on the fingers of one hand) and c. by virtue of what we transport, I become that bit more interesting. I retire and all of a sudden, I'm adrift.

    I also live alone and have absolutely no family. I do have a circle of friends and would have time to make more, but I'd miss the social element of work, staff and customers.

    I'm fairly sure I have enough to retire, if anyone wants to comment:

    387,000 in the business, but it's mine.
    300,000 ish in pension. I'll be chunking some in at the end of the financial year to bring it up to that figure.
    Some money will come from the end of the business; either just closing up, so sale of assets and whatever is left on the books, that would be conservatively speaking 300k gross - lose a load in tax possibly - accounting dark arts will come into play. Or possibly sell which would probably leave me with 600k +, tax liability significantly reduced.
    Minor amount of personal savings, 20 k ish

    Age 53, notional amount left on mortgage.

    If anyone wants to use the word 'dithering', that's fine
    • Apodemus
    • By Apodemus 6th Oct 17, 9:08 AM
    • 958 Posts
    • 769 Thanks
    Apodemus
    Bugslet, could you organise a phased buy-out (either external or employee) to transfer the company across and ease your own departure? Possibly also tax advantages to the sale coming in over a number of tax years?
    • AnotherJoe
    • By AnotherJoe 6th Oct 17, 9:09 AM
    • 7,670 Posts
    • 8,279 Thanks
    AnotherJoe

    I'm fairly sure I have enough to retire, if anyone wants to comment:

    387,000 in the business, but it's mine.
    300,000 ish in pension. I'll be chunking some in at the end of the financial year to bring it up to that figure.
    Some money will come from the end of the business; either just closing up, so sale of assets and whatever is left on the books, that would be conservatively speaking 300k gross - lose a load in tax possibly - accounting dark arts will come into play. Or possibly sell which would probably leave me with 600k +, tax liability significantly reduced.
    Minor amount of personal savings, 20 k ish

    Age 53, notional amount left on mortgage.

    If anyone wants to use the word 'dithering', that's fine
    Originally posted by bugslet
    I would say that's not enough at your age. I would want double that at least.

    I would get at least another two years in, maximising your pension contribution up to £40k gross if you can, then it will be accessible to you immediately, which it isnt now, and you could have £750k by then and two less years to draw down for. (Or if the markets take a dive and you have say £500k you can carry on another year or two until a recovery)

    This is predicated on;
    You seem to like your job.
    You probably are spending more than you could reasonably draw down from £600k (especially with a 40 year horizon on that)
    You are ambivalent about leaving and it might be tough to get back to a similar position if after a couple of years you decided to start again
    • crv1963
    • By crv1963 6th Oct 17, 9:23 AM
    • 158 Posts
    • 417 Thanks
    crv1963
    I've two causes for hesitancy for retiring early. One is my loyal staff, of whom I'm really quite fond on the whole and there's a bit of guilt at 'leaving' them.

    The second is as CRV says. I've things I'd like to do that I don't have time to do now, wether that would expand and sustain me I don't know, I think so. But I'd lose the kudos (such as it is) of being a. a business owner, b. one of the very few women that do what I do ( count them on the fingers of one hand) and c. by virtue of what we transport, I become that bit more interesting. I retire and all of a sudden, I'm adrift.

    I also live alone and have absolutely no family. I do have a circle of friends and would have time to make more, but I'd miss the social element of work, staff and customers.

    Age 53, notional amount left on mortgage.

    If anyone wants to use the word 'dithering', that's fine
    Originally posted by bugslet

    I don't think giving something serious thought is dithering. Your post does illustrate the point that I was making - we need to get our heads around the idea that we are something different when retired and need to find something purposeful to us to replace the 8-12 hours a day we spend working.


    The social aspects of working are generally not considered everyone focuses on the financial, but we need to look at it in the whole.


    We had a number of presentations, one from the volunteer sector was identifying that many people use volunteering as a way of replacing the social side of work, the loyalties and friendships. Church / Parish Councils are packed with former accountants and business people who share their expertise!


    Another presentation was looking at boosting income, as an opportunity to start a business!


    I'm no expert financially but would suggest bugslet that your figures show 1m- 1.3m as a pension pot so at a 3% draw down rate about 30-39k pa before tax, with SP kicking in at 67.


    If you are looking a possible retiring bugslet could you use the time between now and actual retirement to look at the other areas of retirement, slowly step back from your business and maybe work part time, letting others pick up the slack? Or is it that you may want to disengage from it completely when you do retire and look at a different activity completely?


    CRV
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
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