Early-retirement wannabe

edinburgher

I'm familiar with MMM, a bit too sweary to read at work on my break though

Our savings ratio is probably more like 30-40% (14% is pensions), but it can be difficult to analyse accurately because sites like MMM usually look at people starting from nothing (i.e. save 50% for 17 years and you're done etc.). Our wealth (such as it is) is split between home equity, pensions, ISAs, cash and P2P (like most 'normal' people) and while I appreciate the theory, sometimes it feels like we're going nowhere fast.

I wouldn't mind getting my hands on the low housing prices some of the Americans are able to find!

atush

seven-day-weekend wrote: »

My firm advice is....do it while you can because you may not be able to otherwise.

A friend of ours died suddenly at 62....but he'd had his three years of living in the sun in Portugal.

Another friend died at 59, three weeks after being diagnosed with cancer - he never had a chance to retire to the country, which was his dream.

Do it while you can, you may not get another chance.

You could also visit the doctor more often as you get older to find health issues before you drop dead of them? And get treatment?

Many men dont do this.

atush

edinburgher wrote: »

I'm familiar with MMM, a bit too sweary to read at work on my break though

Our savings ratio is probably more like 30-40% (14% is pensions), but it can be difficult to analyse accurately because sites like MMM usually look at people starting from nothing (i.e. save 50% for 17 years and you're done etc.). Our wealth (such as it is) is split between home equity, pensions, ISAs, cash and P2P (like most 'normal' people) and while I appreciate the theory, sometimes it feels like we're going nowhere fast.

I wouldn't mind getting my hands on the low housing prices some of the Americans are able to find!

And many americans have really expensive housing such as in NY, DC and CA.

I sold my mothers rather unimpressive house in the DC area for well over $300K 15 years ago? Would be worth a small fortune now I think.

edinburgher

And many americans have really expensive housing such as in NY, DC and CA.

Indeed, but high COLA seems to go hand in hand with salaries that seem frankly ridiculous to most Brits. From what I read, the average FI interested graduate over there in finance/law/IT expects $$$$$$ as a starting point. In my neck of the woods, the salary for an IT manager with perhaps 200 staff is more like $140,000+ (and that will be someone with decades of experience, not a fresh face).

Then again, they do carry much higher student loan debt n many cases.

I think the problem is that I find the outliers depressing, but they're often the most vocal proponents of ER/FI etc.?

Tee

Edinburgher,

Don't be too disheartened. We're planning on FIRE in the next 5 years, making "average" wage: me (£32Kpa) and OH (£23Kpa, only this year). We have a young child and live in money-sucking London. Been tracking our expenses for 3 years and I know that we live royally now on £18Kpa: mortgage repayment, at least 2 foreign holidays every year, fresh pricey organic food, days-out, gym/club memberships, home repairs, etc. So it can be done on a "normal" salary and in an expensive area. I see the post-retirement spends as key to getting there.

mgdavid

chucknorris wrote: »

....... I don't think that I will run out of money, but I'm damn sure that I am going to run out of time.

Wise words, well worth repeating.

@MarineLife - write this on the mirror you look into every morning... !!

kidmugsy

atush wrote: »

You could also visit the doctor more often as you get older to find health issues before you drop dead of them? And get treatment

The evidence is that tests for non-symptomatic conditions are largely a useless expense, and can even do more harm than good. The "annual check-up" is a huge money-spinner for US medics, but seems to be a bad idea.

It might be far better, healthier , and cheaper to be more alert to symptoms, if people can do that without becoming hypochondriac.

atush

edinburgher wrote: »

Indeed, but high COLA seems to go hand in hand with salaries that seem frankly ridiculous to most Brits. From what I read, the average FI interested graduate over there in finance/law/IT expects $$$$$$ as a starting point. In my neck of the woods, the salary for an IT manager with perhaps 200 staff is more like $140,000+ (and that will be someone with decades of experience, not a fresh face).

Then again, they do carry much higher student loan debt n many cases.

I think the problem is that I find the outliers depressing, but they're often the most vocal proponents of ER/FI etc.?

Actually, the DC area is filled with lowly govt workers. You know, civil servant types. My father was one. Mother worked for he equiv of the local council.

And yes, we do carry quite large student debt, esp if you go on to grad school. Took me years to pay mine off.

gfplux

Just want to say hello again. Now closing in on my 20th aniversay of my retirement at 52.
Health good (as far as I know) Finances and net worth are as good as they were 20 years ago. 30th Wedding anniversary coming up shortly.
Feel great and I can say I have never been bored.
Anyone who continues to work past the time they COULD retire will only regret those lost years when they finally do retire.

enthusiasticsaver

We had been planning to retire within the next five years when my husband was 60 in 2018 and I was 58. Out of interest we got quotes for my husband to retire this October when he is 58 (so 2-7 years early) and luckily because we have been overpaying into his pension (part DB and part DC) since the 80s we can afford for him to go earlier. I will continue to work as I only work part time (3 days a week) in a very enjoyable and relaxed atmosphere and my husbands job is much more stressful. We decided we would rather he go when he is fit and well rather than wait another 5 years for the sake of only around £3k per year.

We are on relatively average salaries (£45k and £12k) so it can be done if you save and prepare. I have been tracking our expenses over the last few years and we can retire on £18000 net but we are aiming for £24k per annum net to give us some wiggle room. The pension offered by my OHs company pension scheme will be around £20k gross per annum from October 2016 and a lump sum of around £140k. That will more than cover expenses even without considering my part time wages or our existing savings. Our philosophy has always been work has to be enjoyable and my OH is no longer happy with his company due to recent changes in structure and hours. Here is hoping we are making the right decision.