Early-retirement wannabe

Marine_life

After eight weeks off, Monday is decision day (hand in notice or go back).

I've been thinking this through a lot and there are a couple of things at the moment that are causing me a slight hesitation. Firstly, we have a very sick parent at the moment who is likely to pass away in the next couple of months and, secondly we need sell our house to partially fund our retirement plans.

So not exactly one more year syndrome but at least a partial delay until we know how things are going to play out.

My notice period would carry us through in any event until 30 September 2015 so I don't anticipate there being a major delay (remind me of that statement in six months!).

keith969

kidmugsy wrote: »

I have the impression that the great majority of the planners of very early retirement that I read on the web fall into the category "no kids".

Mmm, if I had not met my ex 30 years ago and had 3 kids, I would be rolling in it and could have retired a few years ago! Alas seperation presses the 'reset' button for all your pension planning!

gfplux

Sometimes "early retirement" is easier if you get that final push. I had been planning but dithering when I got pushed over the cliff. Best push I ever had.
Perhaps Marine Life you have too many choices?

Marine_life

gfplux wrote: »

Sometimes "early retirement" is easier if you get that final push. I had been planning but dithering when I got pushed over the cliff. Best push I ever had.
Perhaps Marine Life you have too many choices?

I think a push would be very nice indeed!


There are a couple of things in play here which i would group into short and long term with an added spinkle of psychology ;-)


Long term we are pretty much where we though we wanted to be in terms of financing. Our pensions (from age 62) which are now set in stone will come in at around €60,000 per annum (excluding any state pension) in today's money. In addition, we have a pot of deferred income of around €800k (guaranteed future value) available from age 62 to top that up. We also have some miscellaneous other bits and bobs of pension pots (probably around €100 k in todays money).


To fund the gap to 62 (next 11 years) we will have around €1.3 million once we have sold the house and we feel reasonably comfortable with an annual budget of around €70 k on an ongoing basis which leaves us with a huge buffer. In addition, my spending plans are built on very conservative assumptions of zero income and investment terms equalling inflation. Even in a meltdown scenario we would be able to 'belt tighten' if things went pear shaped.


That means if I look at my "steady state" plan once we are settled into our new life then everything looks good.


Short term there is some uncertainty that we want to weather as we transition to our new life. That means selling the house (frankly with the market here I have no idea what we will get but had a valuation last year which we are basing our sums on). In addition, sick relatives means multiple short term (expensive) trips back to the UK, moving costs to our new house and some costs associated with our new house (new kitchen etc.). I want to fund those costs out of earnings rather than have to take big chunks out of our retirement fund.


The psychology element is the more tricky one. In part this transition will be a challenge for my wife as we will be going from a position where we have never budgeted for anything (never needed to) to a situation where we will need to have a plan (albeit fairly generous). In addition of course moving from having a full time job to ...errr....not having one :-)


So where does that leave us?


I think we will know by 1 April where we stand (both emotionally and financially) so I don't see a material delay (not sure how my wife would answer ;-).


Watch this space.

mgdavid

You are in a very good position; 51 is early to retire by anyone's standards. Without re-reading, what are you going to DO in retirement? Do you have a list and a plan of projects / activities / pastimes that you KNOW will keep you busy for 20 years? It's my belief that if you don't stay physically and mentally busy one goes downhill fast! Do you have a passion that's going to serve you well as a retirement activity? My concern is that you don't, as if you did you would be champing at the bit to retire and wouldn't be having second thoughts.

gallygirl

To fund the gap to 62 (next 11 years) we will have around €1.3 million once we have sold the house and we feel reasonably comfortable with an annual budget of around €70 k on an ongoing basis which leaves us with a huge buffer. In addition, my spending plans are built on very conservative assumptions of zero income and investment terms equalling inflation. Even in a meltdown scenario we would be able to 'belt tighten' if things went pear shaped.

Short term there is some uncertainty that we want to weather as we transition to our new life. That means selling the house (frankly with the market here I have no idea what we will get but had a valuation last year which we are basing our sums on). In addition, sick relatives means multiple short term (expensive) trips back to the UK, moving costs to our new house and some costs associated with our new house (new kitchen etc.). I want to fund those costs out of earnings rather than have to take big chunks out of our retirement fund.

This is what your huge buffer is for ML - be brave!

Goldiegirl

By most people's standards, you have a huge buffer of money to keep you going -realistically you could stop work any time you wanted.


If you are hesitating, you probably aren't mentally ready to retire yet

Marine_life

mgdavid wrote: »

Without re-reading, what are you going to DO in retirement? Do you have a list and a plan of projects / activities / pastimes that you KNOW will keep you busy for 20 years?

The answer to that is not really - and certainly nothing you would call a passion. I think If I had a passion I would be on my way.


That's not to say I don't have some ideas.


On the money making side I plan to try and do some consulting work and we plan to rent out the appartment which is attached to our house.


I also expect there will be some travelling and exploring - our recent six week trip to Australia and New Zealand was such a great experience I am keen to repeat.


Then of course there is skiing, moutainbiking and hiking and maybe taking up golf again.


I also plan to spend a lot more time cooking and blogging.


None of the above would be called a passion but neither do I expect to be bored!

Marine_life

Goldiegirl wrote: »

If you are hesitating, you probably aren't mentally ready to retire yet

I am. Its definitely Mrs ML who is more hesitant.

Hopelessly_Hopeful

Marine_life wrote: »

I am. Its definitely Mrs ML who is more hesitant.

I think many people are hesitant. There are no rights or wrongs in my view. A few of my pals who are within the 'eligible' age or financial situation haven't taken the plunge for retirement. I think much of it has to do with having to make a decision and for the pals in mind they worry about feeling old and work is a significant life line. For me the point is it is nice to have the choice and that's what keeps me going - working towards the luxury of being able to choose.

HHx