Early-retirement wannabe

cathybird

gfplux wrote: »

This is a word of advise or warning but probably only applies to those who have been enjoying retirement for some years like me (19 years)
Having retired at 52 and been a hoarder of paperwork, very recently I decided that I should downsize my filing/hoarding of paperwork.
...
So the advise, don't wait until it becomes a "project" keep your old paperwork under control.
By the way, the job is still not finished but I can see the light at the end of the tunnel.

gfplux, I'm doing the same - having a big clearout, selling stuff off on eBay and Amazon, but also reducing paperwork to (I hope) zero in terms of physical paper and keeping purely digital records, and not overdoing it with them either. I'll have to keep some papers though (eg birth certificate). But the aim is to get as close to paper-free as I can.

gadgetmind

greenglide wrote: »

Who by:question::cheesy:

Well, my wife agrees as long as I promised to actually earn less, and employer has officially agreed subject to some unofficial caveats. These include fixing my org chart (too many direct reports, team spread across 4 continents, that kind of thing) and making sure it can all keep working without me.

gadgetmind

cathybird wrote: »

my tax situation means that I don't lose too much income by going to four days

I've modelled both scenarios to the penny, and I pay a whopping £20k pa less in tax+NI by going to four days. Basically, that extra day was all going to HMRC anyway, so what's the point?

greenglide

that extra day was all going to HMRC anyway

I hope you are exaggerating somewhat?

I remember the old days (1970s?) when the top rate of tax was 83% and the investment surcharge could take the tax take to 98%!

Goldiegirl

gfplux wrote: »

This is a word of advise or warning but probably only applies to those who have been enjoying retirement for some years like me (19 years)
Having retired at 52 and been a hoarder of paperwork, very recently I decided that I should downsize my filing/hoarding of paperwork.
So the job began. The parameters being to hold only paper that was dated 2014 and 2015 and destroy (shred) the rest.
I am lucky? to have lived in for many years in a country that have basements designed for the hoarding of paper!
So I began with many, many boxes together with a domestic shredder. And the determination NOT to read any of the files.
Now a few weeks late with much effort, much time, many trips to the tip and a growing admiration for a small but sturdy shredder (shout out for the GBC Shredmaster 70S, bought for under €40 nearly 12 years ago)
As I shielded my eyes from the solicitors bill for the flat sale in North London 17 years ago to the bank statements dated 1982!!!! I realised only too well that I had left this job for far too long.
So the advise, don't wait until it becomes a "project" keep your old paperwork under control.
By the way, the job is still not finished but I can see the light at the end of the tunnel.

For the past couple of years I've de-cluttered and got rid of old paperwork, so that I could start retirement on a neat and tidy basis. I'm keeping the paperwork down on a regular basis, so that it doesn't build up again. That's the theory, anyway!


To the people who are cutting their working week, don't try to do a full 5 days work in your reduced hours - it's a trap that is easy to fall into.

melanzana

Hi all.

Am still having a ball on the old early retirement thing after 18 months! I wish all of you well who are, can, are thinking of it, are afraid of it, want to do it, etc.!

I didn't do that much planning, but got finances in order, paid down debt and wey hey, it's really great!

Am just back from New York, and turned around three days later to go to the West of Ireland with my sister. Great weather on both trips despite the fact that one was in November (US) and the other was this week, just back from Galway now. What a beautiful part of the world that is.

Oh, the good life!

I blimmin hate unpacking though!

Great to be able to enjoy it while I can walk and talk at the same time!

Best of luck.

gadgetmind

greenglide wrote: »

I hope you are exaggerating somewhat?

No, I'm not. Working 5 days a week, I'd be hitting full personal allowance claw back and a big slug of pension contribution taper. By dropping to 4 days, I reduce my tax bill by £20k and I get an extra £10k+ going into my pension. My take home does drop, but a fair bit of this is down to the pension, and it's not a crazy amount.

Trust me, I've got spreadsheets that model this to the penny, and the tax+NI figures have been checked on the MSE and other calculators.

It really is a no brainer for me to work less, and HMG's cunning plan to get me to pay for the new IHT changes have resulted in their tax take dropping.

This is the Laffer Curve in action.

Marine_life

gadgetmind wrote: »

No, I'm not. Working 5 days a week, I'd be hitting full personal allowance claw back and a big slug of pension contribution taper. By dropping to 4 days, I reduce my tax bill by £20k and I get an extra £10k+ going into my pension. My take home does drop, but a fair bit of this is down to the pension, and it's not a crazy amount.

Trust me, I've got spreadsheets that model this to the penny, and the tax+NI figures have been checked on the MSE and other calculators.

It really is a no brainer for me to work less, and HMG's cunning plan to get me to pay for the new IHT changes have resulted in their tax take dropping.

This is the Laffer Curve in action.

We have a statutory right in Germany to ask for 4 days but I always have the feeling that:

a. I will just end up working 50% of the fifth day anyway
b. Other people will pour scorn on my lazy work habit!
what do you think?

Goldiegirl

A. Very likely, or you'll try and do 5 days work in 4 days

B. Why worry about what other people think. Especially as you intend retiring next year........

gadgetmind

I am aware that the work won't go away, but this will force me to delegate more, and will force everyone to take succession planning seriously.