Early-retirement wannabe

Marine_life

mystic_trev wrote: »

I've enjoyed reading this thread, so here's my story.

Retired at 42 over fourteen years ago, does this make me the earliest retirement here? A lot of hard work and a bit of luck. It would have been 41 but I stayed on a few months longer, working my own terms i.e. Getting in late, leaving early and taking long weekends!

Worked in London since leaving school. Involved in an MBO in the mid 80's. Decided in mid 1996 there was more to life than getting up at five and getting home at eight, and wanted to spend more time on my passion, Travel. I've now been to over a hundred countries, many several times.

As for my finances, basically worked on figures from the back of a fag packet, wouldn't have a clue how to do a spreadsheet. Anyway, some years are expensive if say I've been to 18 Countries, as I did one year, or cheap, as I'll only be out of the Country for a few weeks, this year. I've been fairly shrewd (lucky) with my Investments, and cashing in my MBO shares (once the Company had floated) raised a fair amount of money. I've got a fair stash in my SIPP which I doubt I'll touch until I'm at least 70. I also own several Properties, and it would be possible to live on that income alone. All in all it aint a bad life!

I am not sure whether to be filled with admiration or be a bit jealous (i think probably a bit of both ).

I am not a great believer in luck but I am a great believer of being in the right place at the right time...and it sounds like you nailed it.

I do have a couple of questions though:

1. After 14 years in retirement, any regrets?
2. Having done so much already - what lies ahead?

Marine_life

Today is a bit of a milestone there are now only 1365 days to go - why significant? Well that means exactly 1 year.....plus 1,000 days. Ok, its a relatively meaningless statistic but it makes me happy

Far more significant in January is that money arrives as it's the months when annual bonuses arrive. To some extent this give me a headache (but a nice one) as I have to start the round of wondering exactly where to put the money (with horrible interest rates).

This year and for the last few months I have been taking a much more active interest in where to invest and have some ideas.

1. For a start I have used all my available tax free investing options.

2. Secondly, I have put the maximum into my firms deferred compensation scheme (this is a scheme which begins paying out when I am 60). Its an interesting one as effectively it means the contributions go in tax free now but will be taxed later on withdrawal (when hopefully my tax rate is a lot lower). Anyway, that contribution amounts to around 18% in total of my gross earnings and I expect to continue to contribute that for the next 3 years.

3. On the search for better returns i am putting a chunk into a mixture of bond funds in an offshore wrapper. This seems quite decent as there is no entry fees and whilst its a very cautious investment, returns should still be 6-8% pa (I have a regular contribution into a selection of much more adventurous funds).

3. The final chunk will be squirrelled away into a five year fixed rate bond.

jamesd

Marine_life wrote: »

1. For a start I have used all my available tax free investing options.

Hard to believe that you've used all of them:
1. Pension: 100% of salary wit tax relief, up to a maximum of £50,000 from next tax year, possibly more or less this year depending on how transitional protections apply to you.
2. ISA £10,200.
3. CGT allowance of £10,100 of gains.
4. £200,000 of VCT annual allowance with 30% initial tax refund to claim from HMRC, but only up to the amount of income tax you've paid. Might be useful to get 30% relief instead of pension 20% relief on basic rate income.
5. £500,000 for Enterprise Investment Trusts plus an unlimited amount when used for CGT deferral.
6. Possible use of offshore or onshore investment bonds to defer tax until you're in a lower income bracket

Some of the more cautious VCTs might be interesting, offering around 5% tax free income as well as the 30% tax relief. The difference between sale price and resale price can be an issue, though, particularly for limited life versions that are designed to end after a set time. VCTs are potentially interesting to me because of the ongoing tax free income.

Even relatively low risk VCT or EIS investments are high risk on the normal scale, the word relative is important, it's compared to other VCT or EIS investments.

cyclonebri1

mystic_trev wrote: »

I've enjoyed reading this thread, so here's my story.

Retired at 42 over fourteen years ago, does this make me the earliest retirement here? A lot of hard work and a bit of luck. It would have been 41 but I stayed on a few months longer, working my own terms i.e. Getting in late, leaving early and taking long weekends!

Worked in London since leaving school. Involved in an MBO in the mid 80's. Decided in mid 1996 there was more to life than getting up at five and getting home at eight, and wanted to spend more time on my passion, Travel. I've now been to over a hundred countries, many several times.

As for my finances, basically worked on figures from the back of a fag packet, wouldn't have a clue how to do a spreadsheet. Anyway, some years are expensive if say I've been to 18 Countries, as I did one year, or cheap, as I'll only be out of the Country for a few weeks, this year. I've been fairly shrewd (lucky) with my Investments, and cashing in my MBO shares (once the Company had floated) raised a fair amount of money. I've got a fair stash in my SIPP which I doubt I'll touch until I'm at least 70. I also own several Properties, and it would be possible to live on that income alone. All in all it aint a bad life!

But mystic treg, you have to admit that you ARE the exception that proves the rule??

As are those that !!!! it all up against the wall then win the lottery:A

Not that I include you in that group,

jeanniebeanie_2

mystic_trev wrote: »

I've enjoyed reading this thread, so here's my story.

Retired at 42 over fourteen years ago, does this make me the earliest retirement here? A lot of hard work and a bit of luck. It would have been 41 but I stayed on a few months longer, working my own terms i.e. Getting in late, leaving early and taking long weekends!

Worked in London since leaving school. Involved in an MBO in the mid 80's. Decided in mid 1996 there was more to life than getting up at five and getting home at eight, and wanted to spend more time on my passion, Travel. I've now been to over a hundred countries, many several times.

As for my finances, basically worked on figures from the back of a fag
packet, wouldn't have a clue how to do a spreadsheet. Anyway, some years are expensive if say I've been to 18 Countries, as I did one year,
or cheap, as I'll only be out of the Country for a few weeks, this year.
I've been fairly shrewd (lucky) with my Investments, and cashing in my
MBO shares (once the Company had floated) raised a fair amount of
money. I've got a fair stash in my SIPP which I doubt I'll touch until I'm
at least 70. I also own several Properties, and it would be possible to live
on that income alone. All in all it aint a bad life!

Will you marry me?

cyclonebri1

jeanniebeanie wrote: »

Will you marry me?

And if he's the other way he could allways marry me??:D:D

bendix

mystic_trev wrote: »

I've enjoyed reading this thread, so here's my story.

Retired at 42 over fourteen years ago, does this make me the earliest retirement here? A lot of hard work and a bit of luck. It would have been 41 but I stayed on a few months longer, working my own terms i.e. Getting in late, leaving early and taking long weekends!

Worked in London since leaving school. Involved in an MBO in the mid 80's. Decided in mid 1996 there was more to life than getting up at five and getting home at eight, and wanted to spend more time on my passion, Travel. I've now been to over a hundred countries, many several times.

As for my finances, basically worked on figures from the back of a fag packet, wouldn't have a clue how to do a spreadsheet. Anyway, some years are expensive if say I've been to 18 Countries, as I did one year, or cheap, as I'll only be out of the Country for a few weeks, this year. I've been fairly shrewd (lucky) with my Investments, and cashing in my MBO shares (once the Company had floated) raised a fair amount of money. I've got a fair stash in my SIPP which I doubt I'll touch until I'm at least 70. I also own several Properties, and it would be possible to live on that income alone. All in all it aint a bad life!

Good story.

I'm 46 and could retire today if I wanted, but figure I will continue working for a couple of years, then take a year off to semi-retire, before spending the next five years in some kind of lifestyle activity - small business or consulting type job - until I get bored of it.

I basically had nothing until I was thirty, then decided to get serious and have basically saved, saved, saved since then.

I have an apartment in Bangkok and am currently building a retirement home (three beds, large garden, swimming pool etc) in a beach resort called Hua Hin. I might sell the apartment at some stage but it's giving me 8% yield at the moment, so why bother.

I have enough in cash reserves to generate interest of around £3000 a month at the moment and there is no way I would need that to live in Thailand (I work in UK currently), but I would like to continue growing my cash savings to a point where that is generating £3300-£3500 a month. That would provide my living (and savings) budget from the ages of 48-55, before my private pension plan kicks in with, perhaps, enough in it by then to supplement the income another £1000 or so each month.

As a budget, I'd be very happy with that. I wouldn't spend that much, which means the capital would continue to grow and the income generated would easily keep pace with or outstrip inflation.

Two more years work? I can live with that.

cyclonebri1

bendix wrote: »

Good story.

I'm 46 and could retire today if I wanted, but figure I will continue working for a couple of years, then take a year off to semi-retire, before spending the next five years in some kind of lifestyle activity - small business or consulting type job - until I get bored of it.

I basically had nothing until I was thirty, then decided to get serious and have basically saved, saved, saved since then.

I have an apartment in Bangkok and am currently building a retirement home (three beds, large garden, swimming pool etc) in a beach resort called Hua Hin. I might sell the apartment at some stage but it's giving me 8% yield at the moment, so why bother.

I have enough in cash reserves to generate interest of around £3000 a month at the moment and there is no way I would need that to live in Thailand (I work in UK currently), but I would like to continue growing my cash savings to a point where that is generating £3300-£3500 a month. That would provide my living (and savings) budget from the ages of 48-55, before my private pension plan kicks in with, perhaps, enough in it by then to supplement the income another £1000 or so each month.

As a budget, I'd be very happy with that. I wouldn't spend that much, which means the capital would continue to grow and the income generated would easily keep pace with or outstrip inflation.

Two more years work? I can live with that.

So why do you find the need to waste your time on here??

Is there something you don't have??, Not happy or something??

Who really knows what a man actually "needs":A

bendix

cyclonebri1 wrote: »

So why do you find the need to waste your time on here??

Is there something you don't have??, Not happy or something??

Who really knows what a man actually "needs":A

What makes you think I'm wasting time? I enjoy the site; ergo I'm not wasting time, I'm spending it.

I don't understand your point.

cyclonebri1

bendix wrote: »

What makes you think I'm wasting time? I enjoy the site; ergo I'm not wasting time, I'm spending it.

I don't understand your point.

No, you wouldn't