Early-retirement wannabe

kidmugsy

rosy wrote: »

That was the other thing I was concerned about - almost being too scared to spend the money just "in case" and then those hard earned savings ending up as inheritance tax payments. I like that way of thinking about it - spending becoming a duty. I'm going to remember that!

Think of all your spending as attracting a 40% discount - no IHT!

peterg1965

Marine_life wrote: »

You know that's a very interesting point and one that I have a clear view on.

I will tend to economise on the things that make sense to economise on e.g. I very rarely buy lunch but will rather bring either sandwiches from home or leftovers. Also, I will buy "own brand" stuff from supermarkets / shop at Aldi to keep grocery costs down. In addition I don't really mind wearing cheap "work shirts" etc.

However, if i want a gadget I will buy it and we both run new and reasonably expensive cars. Similarly, we will take a decent holiday each year but rarely have meals out.

So I would classify my philosophy as a "selective" luxury lifestyle. I won't waste money on things I consider non essentials but will have the occasional big expense.

This is where I am. Similarly we have two new and decent cars on the drive and do not really want for anything and live in a comfortable house. One big compromise is that we do not have an annual holiday, whilst this does not bother me as I travel with work, it frustrates my wife and kids. When we do go away (every 3/4 years they tend to be long haul holidays). So I think the term 'selective luxury' lifestyle probably covers me off too.

Gatser wrote: »

This is one reason why Semi-Retirement has to be a safer option.
I think I would quickly lose touch with work culture if I totally retired as well as useful contacts to get work in the first place.
One guy that reports to me is 78 ... he says just working 2 short days each week keeps his mind (and body, he walks to work) active. AND he avoids some household chores!

The move away from the comfort blanket of paid employment is certainly a challenge... but I am thankfully reminded by friends how LITTLE you need to have a happy & fulfilled existence...
(excluding Ferrari's in the garage!)

I can see myself doing this, primarily to pay the maintenance bills for the Ferrari

peterg1965

Gatser wrote: »

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DITTO

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Moving house is a big question for us too.
We KNOW we want to move in the next 2-3 years but do not want
to be moving again in a hurry... we want to keep open minds.
One minute the idea of a quality apartment appeals... then we sit in our garden and feel we would miss that!
We need to think this one out over YEARS!!

We ponder over what treats we want to enjoy ...as you say... the usual "Where to go before you die" question...

Same here. We have in our minds that the next house is where we will live well into retirement proper. In our minds eye we have a country property, maybe that chocolate box thatched cottage, village life etc. what plays on my mind is the expected £20k plus moving costs, it's not a decision to be made in a hurry.

gfplux

I retired 15 years ago at 52/53.
Over these 15 years I found it very easy to switch from wealth creation to wealth retention. I have found I had over estimated my expenses and from this thread and many others this seams a common theme. My net worth is simmilar to when I retired.
I think it all comes down to mind set and you either have that or you don't. It appears to me that becomes plain as you get older. If you are properly planning for retirement then you can make it happen. If you don't plan you don't get. We could afford five star but most of the time spent three star and were happy. If you earn five star and spend like three star or four you can have a very satisfying life and a wonderful retirement.

peterg1965

gfplux wrote: »

I retired 15 years ago at 52/53.
Over these 15 years I found it very easy to switch from wealth creation to wealth retention. I have found I had over estimated my expenses and from this thread and many others this seams a common theme. My net worth is simmilar to when I retired.
I think it all comes down to mind set and you either have that or you don't. It appears to me that becomes plain as you get older. If you are properly planning for retirement then you can make it happen. If you don't plan you don't get. We could afford five star but most of the time spent three star and were happy. If you earn five star and spend like three star or four you can have a very satisfying life and a wonderful retirement.

Excellent post, I think you have firmly hit the nail on the head!

atush

This is where I am. Similarly we have two new and decent cars on the drive and do not really want for anything and live in a comfortable house. One big compromise is that we do not have an annual holiday, whilst this does not bother me as I travel with work, it frustrates my wife and kids. When we do go away (every 3/4 years they tend to be long haul holidays). So I think the term 'selective luxury' lifestyle probably covers me off too.

This is where I am NOT lol.

we have 2 old cars on the drive (three if you count the boys car too which is the newest at 7 years old ;-)

We take 2 annual family holidays. Couldn't live where I do w/o those holidays. Think your wife and kids are Saints.

But, we don't eat out (well did when we lived in Jersey this year for x months, as the restaurants there are very good and some were down right cheap but not now we are back). Don't go to the pub. Fish and chips take out max once per month. Cook fresh from scratch, batch cook etc. getting very good with waste, try to keep it very low.

so, before retirement I will have to buy new cars, and save harder before so I can continue to have holidays.

And will be moving but one thing I learned this year is I don't want to retire in a country cottage. We have lived in the sticks for ages now, and I think when we retire a smaller house in a town will be better for us so we can walk to places to eat or at least take a bus/taxi. Nearest bus route to where we are is over half a mile. And isn't a great one.

peterg1965

atush wrote: »

This is where I am NOT lol.

we have 2 old cars on the drive (three if you count the boys car too which is the newest at 7 years old ;-)

We take 2 annual family holidays. Couldn't live where I do w/o those holidays. Think your wife and kids are Saints.

But, we don't eat out (well did when we lived in Jersey this year for x months, as the restaurants there are very good and some were down right cheap but not now we are back). Don't go to the pub. Fish and chips take out max once per month. Cook fresh from scratch, batch cook etc. getting very good with waste, try to keep it very low.

so, before retirement I will have to buy new cars, and save harder before so I can continue to have holidays.

And will be moving but one thing I learned this year is I don't want to retire in a country cottage. We have lived in the sticks for ages now, and I think when we retire a smaller house in a town will be better for us so we can walk to places to eat or at least take a bus/taxi. Nearest bus route to where we are is over half a mile. And isn't a great one.

Oh well, we can't all be the same I suppose! It's not all doom and gloom for my wife though - three trips to NYC, one holiday in California, one visit with me to Martinique and two European holidays, all since 2001, so not that much sympathy is required!

Tancred

Marine_life wrote: »

I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

Who is aiming for early retirement (or who has retired early already)?
When did you begin planning and what drove the decision?
What is the strategy for getting there?
How much of a relative decline in income are you prepared to take / did you take?
What are your main concerns?
For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

I will post my strategy but wanted to get some thoughts

I have no chance of early retirement unless I win the Euromillions jackpot. A pipe dream for all except a minority on defined benefit pensions and small mortgages.

Tancred

gfplux wrote: »

I retired 15 years ago at 52/53.
Over these 15 years I found it very easy to switch from wealth creation to wealth retention. I have found I had over estimated my expenses and from this thread and many others this seams a common theme. My net worth is simmilar to when I retired.
I think it all comes down to mind set and you either have that or you don't. It appears to me that becomes plain as you get older. If you are properly planning for retirement then you can make it happen. If you don't plan you don't get. We could afford five star but most of the time spent three star and were happy. If you earn five star and spend like three star or four you can have a very satisfying life and a wonderful retirement.

It all depends on affordability, but please don't generalise. Of course if you esarn £100k a year then you can afford to put £50k a year in the pension pot and live reasonably well on the remaining salary, but most people cannot do this.

atush

peterg1965 wrote: »

Oh well, we can't all be the same I suppose! It's not all doom and gloom for my wife though - three trips to NYC, one holiday in California, one visit with me to Martinique and two European holidays, all since 2001, so not that much sympathy is required!

that number of holidays would see me only abt 4 years lol.