Early-retirement wannabe

kidmugsy

itm2 wrote: »

I'm working on assumptions of 3.5% inflation and 5.5% return on investments. I was wondering whether anyone had anything a bit more sophisticated that they wouldn't mind sharing?

2% real for a pension fund is pretty reasonable for the next 20-30 years according to these chappies:

https://infocus.credit-suisse.com/data/_product_documents/_shop/382269/credit_suisse_global_investment_returns_yearbook_2013.pdf

shireknight

I don't plan to fully retire until my proper retirement age because I believe you need a job to keep yourself active and motivated however I've always planned to semi-retire on my 50th birthday.

I'm now 43 and I'm pleased to report that I'm on target to semi-retire on my 47th birthday -my definition of semi-retire is to work three days a week and have four days off as opposed to working five and only having two off.

I have never believed in pensions because I think they are a con so I took a different approach, I brought a small one-bedroom house at age 22 slowly up-sizing to my current three-bedroomed house in 2007 with a 20 year mortgage fixed for the first ten years.

Over the last 5 years I've been overpaying my mortgage payments every month and also paying an additional 5% lump sum in once a year and will easily pay the mortgage off before the ten year fixed rate expires.

My plans for the future (baring unforeseen circumstances) are to semi-retire in 2017 and live mortgage/rent free in my house until my 60th birthday when I will then sell the house, stick the proceeds into a couple of bank accounts and move into one of those self contained retirement flats living off the house proceeds and government pension till I die.

Things have worked out well for me so if there is one piece of advance I can give anyone just starting out it would be to buy a house as early as you possibly can and once you get your claws into one no matter what happens in the future you make sure you pay those monthly payments even if it means you can't go socialising or buy flashy clothes keep up to date with your mortgage because once it's paid off a house is a gold mine.

BrianMitchell123

Early retirement planning is usually all about money and disregards the fact you are getting older everyday and when you are early retirement planning do not overlook retiring overseas.

Thrugelmir

shireknight wrote: »

My plans for the future (baring unforeseen circumstances) are to semi-retire in 2017 and live mortgage/rent free in my house until my 60th birthday when I will then sell the house, stick the proceeds into a couple of bank accounts and move into one of those self contained retirement flats living off the house proceeds and government pension till I die.

Give the return on "bank accounts". I would question whether this is enough, if you live for some years to come. Given inflation and the fact you won't be receiving a state pension for some years.

Mrs_Z

Very interesting thread. Here's another early retirement wanna-bee. Not got round to do proper planning as yet other than I'm on target to clear mortgages by early 2016 when my current fixed term contract ends (I'll be 48 by then). Whilst I will not have enough to pack it in completely, at least with the mortgages cleared off should give an option to work part-time..... The only problem is that with the increased time off, surely the spending will increase too as then finally, one has time to travel, do and see things, etc?

Linton

shireknight wrote: »

......

I have never believed in pensions because I think they are a con so I took a different approach, I brought a small one-bedroom house at age 22 slowly up-sizing to my current three-bedroomed house in 2007 with a 20 year mortgage fixed for the first ten years.

Over the last 5 years I've been overpaying my mortgage payments every month and also paying an additional 5% lump sum in once a year and will easily pay the mortgage off before the ten year fixed rate expires.

My plans for the future (baring unforeseen circumstances) are to semi-retire in 2017 and live mortgage/rent free in my house until my 60th birthday when I will then sell the house, stick the proceeds into a couple of bank accounts and move into one of those self contained retirement flats living off the house proceeds and government pension till I die.

Not an approach I would suggest for anyone unless they fancy living on the equivalent of £140/week for a third of their lives.

And, from personal experience, many people at 60 are a long way from being ready to live in a retirement complex. They are full of old people!

atush

Marine_life wrote: »

Well I KNOW that's conservative.

The problem is that although my daughter left home for Uni about three years ago - we still cook for 4!

I found it easy to downsize from 5 portions to 3, but even easier was I used to do 2 meals per night (except Sat lunch, Sunday Lunch and Dinner) so now I just do the one meal most nights (son eats his own thing maybe once per week plus sat night). It has saved me quite a bit.

OH used to get home really late, and boys ate earlier. Plus we liked to eat different stuff. They are beginning to like 'our stuff' now though. Not always a good idea, or money-saving.

I made Lobster thermidor last Saturday, and although Lobster is cheaper here than lost places, it still isn't cheap. And my son dunked his bread from his meal in the dish and was " Oh, I like this".:eek:

mgdavid

atush wrote: »

..........I made Lobster thermidor last Saturday, and although Lobster is cheaper here than most places, ............

er, would it be too cheeky to ask roughly where is 'here'?
I'm definitely up for cheaper lobster !

mgdavid

shireknight wrote: »

......... until my 60th birthday when I will then sell the house, stick the proceeds into a couple of bank accounts and move into one of those self contained retirement flats living off the house proceeds and government pension till I die........

no offence meant, but what on earth will you DO?? This sounds terribly limiting, more like existing than living.....

gadgetmind

mgdavid wrote: »

I'm definitely up for cheaper lobster !

Leeds market late on a Saturday, particularly if the weather has been crappy.

It's a bit pot luck, but you can feed a family of six for a fiver if you're game for a bit of ready, steady cook!