Early-retirement wannabe

atush

Good to know

Karmacat

Absolutely! Keep going, ML.

AnotherJoe

Marine_life wrote: »

So I'll be retired at 52 and two-thirds.

There are three aspects to accumulate the wealth required to retire early, two of which (live frugally and invest sensibly) are the subject of the majority of personal finance blogs. The third (increase your earnings) is not spoken about because I guess its the hardest of the three to achieve. That will be the focus of my blog

I don't want to wish my life away but I am looking forward to 30 June.

Good on you ML, I shall be retiring the same day, but you have nearly ten years on me in terms of getting out of the workplace, I guess I count as mildly early retirement rather than any of the extreme retirement blog type stuff.

Even so many in my workplace of a similar age say they can't afford to retire yet though in terms of earnings and lifestyle they are very similar to me. But I don't think they had the focus on retiring early that I've had for only the last 5 years, but that focus and some luck (a good period for the stock market and Brexit helping non U.K. Shares) and some great share purchases,( is that luck or skill?) mean I've hit that target.

Can you explain what you mean by increasing your earnings? Do you mean from your investments ? Or if from earnings, and as you will retired, does mean you will be taking up alternative employment ?

Marine_life

AnotherJoe wrote: »

Can you explain what you mean by increasing your earnings? Do you mean from your investments ? Or if from earnings, and as you will retired, does mean you will be taking up alternative employment ?

I want to look at all the ways in which people can generate more income from personal development, passive income or entrepreneurship. I remember a phrase which has fallen a little bit out of use, namely "you've got to speculate to accumulate". It doesn't mean gambling, it means maybe sometime you have to change things in order to move ahead. its a big topic so likely will fill me with material for many years.

AnotherJoe

Sounds interesting as long as it's not the recursive "write a blog about early retirement to make enough money to retire early". Only so many of those possible

Talking of which many of those type of blog s talk about "early retirement " when what they really mean is "being self employed rather than working for "the man". Theres one, no name no pack drill, which trumpets how this guy has retired but read the blog and he's still working 5 days a week just for himself instead of ina salaried position and he talks about building networks, marketing and so on to keep his stream of income coming in long term.

Nothing wrong with that but it seems disingenuous to pretend you've "retired" when you are still working, the only difference is you have multiple streams of income from different employers.

Even the pioneer, Mr Money Mustache seems to have fallen into that area. Apparently it's not work if you barter your time for a reward (for example building a house for someone in Hawaii with accommodation provided free) but it is working if you work at say IT in the week and then "barter" the money received to buy accommodation in Hawaii .

Ivrytwr3

Can i retire at 54?

Ideal world my figures would be at age 54 (all of this comes into effect from this age):

Mortgage free
£50k savings
£15k per year pension from age 54
£20k per year pension from SPA
State Pension at SPA (if still around!).

Wife works and earns approx £12k per year and has poor pension provision as has only recently been enrolled in work place pension with equal contributions of 4% each, estimated £19k pot at SPA (although she will have full NI contributions by SPA having worked all her life).

atush

You could always increase what your wife pays into pension?

That would help (but she wouldnt get it until age 55- it is unusual to have a pension that pays out at 54)

AnotherJoe

Ivrytwr3 wrote: »

Can i retire at 54?

Ideal world my figures would be at age 54 (all of this comes into effect from this age):

Mortgage free
£50k savings
£15k per year pension from age 54
£20k per year pension from SPA
State Pension at SPA (if still around!).

Wife works and earns approx £12k per year and has poor pension provision as has only recently been enrolled in work place pension with equal contributions of 4% each, estimated £19k pot at SPA (although she will have full NI contributions by SPA having worked all her life).

How old are you now ?Your savings aren't that great if they have to last for the rest of your retirement so I'd focus on saving / investing to build that lump sum up before you retire.

Ivrytwr3

44 now - we are overpaying our mortgage so we can clear that as soon as possible but certainly by 54, possibly a little earlier (£70k to go). At age 54 i will be been given the lump sum of £50k from my workplace.

I am thinking retire from my full time work at 54 and source part time close by, with maybe a salary of £15kpa to £20kpa (rural location, lowish wages).

But just wondering if full retirement at 54 is an option, obviously not then!

AnotherJoe

Ivrytwr3 wrote: »

44 now - we are overpaying our mortgage so we can clear that as soon as possible but certainly by 54, possibly a little earlier (£70k to go). At age 54 i will be been given the lump sum of £50k from my workplace.

I am thinking retire from my full time work at 54 and source part time close by, with maybe a salary of £15kpa to £20kpa (rural location, lowish wages).

But just wondering if full retirement at 54 is an option, obviously not then!

That's common but often a poor financial choice, you are paying off a debt at say 2% when a pension long-term and including tax relief might be getting you anywhere from 10% to 25% (latter if a high rate tax payer)

Given you have ten years to get a bigger lump sum I'd say it's all reasonable target, it all depends what you think you need to live on. Do you know what you are spending now ?