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  • FIRST POST
    • mystic_trev
    • By mystic_trev 9th Jul 17, 1:36 PM
    • 5,147Posts
    • 15,366Thanks
    mystic_trev
    How to retire at 40
    • #1
    • 9th Jul 17, 1:36 PM
    How to retire at 40 9th Jul 17 at 1:36 PM
    Program on C4 tomorrow night at 20.30.

    http://www.channel4.com/programmes/how-to-retire-at-40

    http://www.independent.co.uk/life-style/how-to-retire-at-40-tips-plan-saving-earning-average-salary-a7828801.html

    http://www.dailymail.co.uk/femail/article-4673030/How-retire-40-don-t-earn-fortune.html

    I managed it at the age of 42 nearly 21 years ago. It was done with a lot of hard work, and a little bit of luck, having been involved in a Company MBO 10 years previously.Friends thought I was mad and would run out of money in my 50's. Now, aged nearly 63, my net worth is well excess of that when I retired, thanks to some canny investing.

    The last 21 years has given me the ability to do many things that would probably have been more difficult if I'd waited to retirement at 60.
Page 1
    • fewgroats
    • By fewgroats 9th Jul 17, 1:37 PM
    • 391 Posts
    • 212 Thanks
    fewgroats
    • #2
    • 9th Jul 17, 1:37 PM
    • #2
    • 9th Jul 17, 1:37 PM
    Round the neck you're forty!
    Lent Challenge: 132/200 Failed
    Pancake Day+70 challenge (ends 8 June): 244/300 Better
    • A_T
    • By A_T 9th Jul 17, 2:00 PM
    • 234 Posts
    • 119 Thanks
    A_T
    • #3
    • 9th Jul 17, 2:00 PM
    • #3
    • 9th Jul 17, 2:00 PM
    "Jason and Julie, now 45 and 44, currently live in a campervan which allows them to travel all across the world. Of course it helps that the couple were both earning £90,000 a year previously"
    • blindman
    • By blindman 9th Jul 17, 2:12 PM
    • 4,988 Posts
    • 4,022 Thanks
    blindman
    • #4
    • 9th Jul 17, 2:12 PM
    • #4
    • 9th Jul 17, 2:12 PM
    "Jason and Julie, now 45 and 44, currently live in a campervan which allows them to travel all across the world. Of course it helps that the couple were both earning £90,000 a year previously"
    Originally posted by A_T
    So they were DINK'ys

    Earned nearly 4 times the average salary EACH

    Most likely had a decent pension and bonus scheme

    Now they live in a campervan
    Not exactly rocket science.

    @ Mystic_trev


    What was your secret?
    Luck by the sound of it and loads of Ca$h due to work or Bonus schemes?
    Kids?
    Married?
    I'm sure we can all retire at 30 if we had £1M and no responsibilities

    When we moved her there was a famous local guy who lived in the bus shelter and had been there for 20 years +
    Used to walk into town, got fed, very polite.Locals gave gifts\Xmas cards and food.
    Bus company even built another bus shelter nearby so that he was not disturbed in his new abode.

    Apparently he was a headmaster and then he "retired"

    Must have been "living the dream" for those 20 years.

    So we can all retire at anytime.
    Last edited by blindman; 09-07-2017 at 2:18 PM.
    • atush
    • By atush 9th Jul 17, 4:06 PM
    • 16,372 Posts
    • 10,132 Thanks
    atush
    • #5
    • 9th Jul 17, 4:06 PM
    • #5
    • 9th Jul 17, 4:06 PM
    Exactly. I had 3 kids (twins so wasnt looking for 3 lol) and I would never live in campervan.

    Plus no campervan
    which allows them to travel all across the world.
    exists. cant get to the USA, aus etc.

    if that is early retirement to you- great. Have fun. Not for me.
    • Fireflyaway
    • By Fireflyaway 9th Jul 17, 4:19 PM
    • 1,353 Posts
    • 1,362 Thanks
    Fireflyaway
    • #6
    • 9th Jul 17, 4:19 PM
    • #6
    • 9th Jul 17, 4:19 PM
    Sure some people can retire at 40 but for most people it depends what sort of life you want. In theory I could retire at 40 but I don't want to be living in a tent eating scraps out of bins!
    Same with that mortgage free show. Yes some people had a nice paid for family home but many lived in buses, boats or trailers!
    I'd rather work till 60 and have a great lifestyle than be scraping by at 40.
    • auldblerk
    • By auldblerk 9th Jul 17, 4:20 PM
    • 503 Posts
    • 280 Thanks
    auldblerk
    • #7
    • 9th Jul 17, 4:20 PM
    • #7
    • 9th Jul 17, 4:20 PM
    It's all about definition, the definition of retirement and what's after work.
    We all have our dreams and ideas on after retirement and we're all different. Luck or money or even both don't gaurantee happiness
    Last edited by auldblerk; 09-07-2017 at 4:24 PM. Reason: typo error
    • bostonerimus
    • By bostonerimus 9th Jul 17, 8:26 PM
    • 1,212 Posts
    • 668 Thanks
    bostonerimus
    • #8
    • 9th Jul 17, 8:26 PM
    • #8
    • 9th Jul 17, 8:26 PM
    Retirement depends on the amount you need to live and your ability to generate that income. If you are a high earner and frugal so you can save a lot then it won't take you long to save enough to be financially independent. If you also don't have kids then you have another financial advantage, but maybe you are disadvantaged in other ways.

    I was able to retire at age 52 because I had a good salary, saved a lot into low cost tracker funds and controlled my spending. I got divorced in my late 30s and my ex and I split out assets 50/50 so that was a bit of a hit for both of us. Stil without children I was able to live a simple lifestyle and save money. I do all my own cooking....even bread......I rode a bike to work so my last car lasted for 16 years. Marriage and children make it very difficult to retire early.
    Misanthrope in search of similar for mutual loathing
    • atush
    • By atush 9th Jul 17, 9:39 PM
    • 16,372 Posts
    • 10,132 Thanks
    atush
    • #9
    • 9th Jul 17, 9:39 PM
    • #9
    • 9th Jul 17, 9:39 PM
    But I expect that in Boston, you arent living in a Campervan?

    And I just sold our 17 and 14 year old cars to buy new ones (but were 2/3 years old so not new).

    But we would have been able to reite at 52 as well, if we didnt have 3 children.

    You were Dinkys, and that is great ( I always thought I would be one too) but I feel that is why you were able to retire so young. Children cost a whole lot (even more than a divorce esp a divorce w/o children).
    • bugslet
    • By bugslet 9th Jul 17, 9:57 PM
    • 5,751 Posts
    • 28,186 Thanks
    bugslet
    Marriage and children make it very difficult to retire early.
    Originally posted by bostonerimus
    I'd agree on the children, I'm definitely richer for not having them. However marriage/life partner....that must depend on if you are with someone who is on the same financially frugal page as you. If you are married to a spendthrift, then yes, early retirement is difficult. However if you are both of the same mind, then you are halving some bills such as housing and reducing your share of the council tax.
    • bostonerimus
    • By bostonerimus 9th Jul 17, 10:03 PM
    • 1,212 Posts
    • 668 Thanks
    bostonerimus
    But I expect that in Boston, you arent living in a Campervan?

    And I just sold our 17 and 14 year old cars to buy new ones (but were 2/3 years old so not new).

    But we would have been able to reite at 52 as well, if we didnt have 3 children.

    You were Dinkys, and that is great ( I always thought I would be one too) but I feel that is why you were able to retire so young. Children cost a whole lot (even more than a divorce esp a divorce w/o children).
    Originally posted by atush
    My ex did not work for most of our marriage as she was going to college... so one income and a lot of tuition fees. Being single and without kids certainly makes early retirement a lot more possible because you have far fewer responsibilities.

    You are right, I don't live in a camper van, I live in a very nice two family home that I own and I rent out the ground floor apartment which provides nice income diversification.
    Last edited by bostonerimus; 09-07-2017 at 10:05 PM.
    Misanthrope in search of similar for mutual loathing
    • michaels
    • By michaels 9th Jul 17, 10:04 PM
    • 19,905 Posts
    • 91,288 Thanks
    michaels
    Only if your oh is bringing in any money....
    Cool heads and compromise
    • Thrugelmir
    • By Thrugelmir 9th Jul 17, 10:17 PM
    • 56,183 Posts
    • 49,567 Thanks
    Thrugelmir
    I've no regrets that I'm still working. Managed to travel a lot, experience lots of different things, owned a ridiculously expensive sports car to run. Lost money owning shares in start ups that never market traction. You make your own good fortune. Only a few pull out the golden ticket though. I'll look back one day and say that was a helluva a lot of fun.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • bugslet
    • By bugslet 9th Jul 17, 10:23 PM
    • 5,751 Posts
    • 28,186 Thanks
    bugslet
    Only if your oh is bringing in any money....
    Originally posted by michaels
    Time to have a word with Lady Michaels

    I certainly noticed the loss of Mr Bugs 40k a year. And him, just thought I better make that clear
    • Triumph13
    • By Triumph13 10th Jul 17, 10:28 AM
    • 1,117 Posts
    • 1,373 Thanks
    Triumph13
    +1 on the impact of having children. It isn't just a matter of the costs of raising children and the income foregone / childcare paid to look after them in the early years. It can also have a big impact on how much money you feel you need / want - especially if you are retiring before your kids are fully independent. If we hadn't had kids we would almost certainly have retired before 50 and would have been happy to include equity release in our ultimate funding plans and aim to spend everything by the time we die. As it is, not only do we want to be able to leave a decent inheritance, but also to have enough to help out with University costs, house deposits , etc, etc which all adds up to a sizeable increase in the amount we feel we need and thus the number of years we have to work. Are they worth it? Unquestionably.
    • michaels
    • By michaels 10th Jul 17, 11:16 AM
    • 19,905 Posts
    • 91,288 Thanks
    michaels
    Fixed that for you, we got our first teenager yesterday....

    +1 on the impact of having children. It isn't just a matter of the costs of raising children and the income foregone / childcare paid to look after them in the early years. It can also have a big impact on how much money you feel you need / want - especially if you are retiring before your kids are fully independent. If we hadn't had kids we would almost certainly have retired before 50 and would have been happy to include equity release in our ultimate funding plans and aim to spend everything by the time we die. As it is, not only do we want to be able to leave a decent inheritance, but also to have enough to help out with University costs, house deposits , etc, etc which all adds up to a sizeable increase in the amount we feel we need and thus the number of years we have to work. Are they worth it? questionably.
    Originally posted by Triumph13
    Agree with you though re the (anticipated) extra costs impacting on retirement timescale. Just as one example we wouldn't need such a big house now and would more likely be able to factor in downsizing to a smaller one if we didn't anticipate eventual grandchild visits etc.
    Cool heads and compromise
    • atush
    • By atush 10th Jul 17, 12:08 PM
    • 16,372 Posts
    • 10,132 Thanks
    atush
    I am planning on downsizing, just as soon as I can convince the Twins to move out lol.

    They are living at home (paying rent of course) while saving up to move out/buy/move to a new country etc.
    • AlanP
    • By AlanP 10th Jul 17, 12:09 PM
    • 988 Posts
    • 703 Thanks
    AlanP
    No doubt about it, having children or not, makes a huge difference in so many ways.

    One of the guys I work with (2 daughters) makes the point that if they had put aside all the money that has cost over the years they could afford to pay for full time companion / carer in their dotage and still be in profit.

    He had just had 2 weddings in 18 months which may have had something to do with that viewpoint
    • Triumph13
    • By Triumph13 10th Jul 17, 1:19 PM
    • 1,117 Posts
    • 1,373 Thanks
    Triumph13
    Fixed that for you, we got our first teenager yesterday....
    Originally posted by michaels
    Well they do say that having kids is the happiest 12 years of your life...
    • Spreadsheetman
    • By Spreadsheetman 10th Jul 17, 9:03 PM
    • 52 Posts
    • 43 Thanks
    Spreadsheetman
    Well, that was lightweight.

    For unintentional comedy there was a payday loan advert in the halftime ad break - er, won't be retiring if you go there then ;-)
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