Early-retirement wannabe

atush

polyphonic99 wrote: »

In response to the original questions by the OP, 252 pages previous:

1) I retired over 13 years ago when I was 49, I'm now 62, married but we don't have any children.

2) I started planning it in my early 30's. I started a DC pension that would allow me to take it at 60. I reduced my working week to 32 hours/4 days a week from when I was 39 to see how I would use the extra time and if it was going to work for me and my partner. The driver was that I had traveled and bummed around doing odd jobs most of my 20's and really enjoyed it. I went to college as a mature student and only started my proper work career when I was 29. I always valued my time over money. I saw no point working your rocks off until you were 65 and then putting your feet up. Life is too short and I wanted to spend my time how I wanted while I was still young and fit enough to enjoy it.

3) I worked freelance for 20 years as an IT specialist. The original reason to save was to give myself at least a years living expenses so that I could always walk away from a contract. I found that having that safety net gave me power and freedom when I went to interviews. I always interviewed the client rather than the other way around; did I want to work for them, they had to agree to my terms if they wanted me. For some reason they always did. Within my first year I had saved enough to be out of work for 2 further years. My strategy then was to save at least 50% plus of my earnings, buy a house and pay off the mortgage in 10 years. I did it in 8 years.

4) When I finally retired at 49 in 2005 the reduction in my earnings was to about 50% of my part time earnings, and probably down to 20% of my peak earning when I had worked full time. I had moved up the property ladder to a point where half my assets were in my home in the UK and if needed I could downsize to a smaller 4 bed home and still release 50% of my homes value. Basically the house is insurance if things go wrong. Up until the financial crisis in 2008 things were comfortable. After 2008 I had to review all my projections and as long as I could get a 3% annual return I could avoid eating into my capital and I would be fine until my private pension kicked in when I was 60. The pension had a Guaranteed Annuity Rate of 10%.

5) Obviously the main concerns were running out of funds. On top of that I knew my work IT skills would rapidly become obsolete, and I wouldn't be able to go back to work in the same capacity again, so it was a one way bet, and I had to get the timing right. Apart from funds, the next issue is health. I try to eat well and exercise every day. I don't have any private health care, but haven't needed it as yet. I was never concerned with how I would use my time, there are so many things to do, to learn about and explore.

6) How is it progressing? Great. I have never regretted my decision. A couple of years after the setback of the financial crisis my wife got an inheritance which provided an extra security blanket. Since 2008 I had put money into 5 year fixed term bonds. The last three paying a return of 5% matured in 2015 so for a year before my pension started, my income fell to below 5 figures for one year but I hadn't needed to dip into my capital over those 11 years for living expenses, though of course it hasn't grown as much as inflation. Since my private pension started things are more comfortable and I can now add to my capital again. In non financial terms I have had the time to care for my elderly ailing father, much better than putting him in a care home, and I bought a small holiday home in southern Europe a few years ago which is great to visit for a few months a year. The only downside is Brexit. Freedom of movement is always described in the media as something that the UK suffers or has to endure. But it works both ways, it gives us Brits the freedom to travel, live and work anywhere in Europe, and I've been doing that off and on since I was 18. I think it will be a real shame if 18 year olds of today don't get the same opportunities that I had, it will be a real loss of freedom and opportunity.

I am a non EU cit so brexit doenst affect me as much. but It does my 3 children and I know that although they wernt planning on living in the EU do not like the idea they cant in future

Kit_Katt

gadgetmind wrote: »

A used Tesla Model S or a new Hyundai Kona EV.

Really ...whats rough cost how old / mileage Gadget?

Dont know the Kona must familiarise myself with it.

cfw1994

Kit_Katt wrote: »

Really ...whats rough cost how old / mileage Gadget?

Dont know the Kona must familiarise myself with it.

On the Kona: nor did we until a month ago....placed an order soon after reading about it! 42 week lead time: 280 mile range, loaded with gadgets, it should work brilliantly as our second (smaller) car for (I hope) a good few years. Not cheap, but far cheaper than a Tesla, & I calculate we could easily save £1k+ a year on fuel. Gets great reviews too.

Wednesday2000 wrote: »

Oh, I'm absolutely sure that is true.:A

It's just amusing to me how much the men at my husband's work complain about their kids.:rotfl: Apparently, some of them often say they are counting down the days until the kids are 18 and can leave home.

They will probably want money for deposits on their flats/houses so I doubt the financial burden will end at 18!

I'm very glad that I went on the pill at 14 years old.:cool:

Well, maybe we are an exception: just got ours back (from uni and internship!) & whilst I never feel we have a dark house, they lighten up the place with their banter! We have a ski trip with them to look forward to in March. They will also brighten up their elderly & frail grandparents this week. Should help us at the pub quiz later this week too: they have a pretty broad knowledge for ones so young.
:beer:

I absolutely get that they prevented my “financial freedom”, but do not regret it at all.
Mind you, I’m also very glad my g/fs were on this pill when I was a young man: things could have been very different :rotfl:

polyphonic99 wrote: »

In response to the original questions by the OP, 252 pages previous:

<snip>

6) How is it progressing? Great. I have never regretted my decision. A couple of years after the setback of the financial crisis my wife got an inheritance which provided an extra security blanket. Since 2008 I had put money into 5 year fixed term bonds. The last three paying a return of 5% matured in 2015 so for a year before my pension started, my income fell to below 5 figures for one year but I hadn't needed to dip into my capital over those 11 years for living expenses, though of course it hasn't grown as much as inflation. Since my private pension started things are more comfortable and I can now add to my capital again. In non financial terms I have had the time to care for my elderly ailing father, much better than putting him in a care home, and I bought a small holiday home in southern Europe a few years ago which is great to visit for a few months a year. The only downside is Brexit. Freedom of movement is always described in the media as something that the UK suffers or has to endure. But it works both ways, it gives us Brits the freedom to travel, live and work anywhere in Europe, and I've been doing that off and on since I was 18. I think it will be a real shame if 18 year olds of today don't get the same opportunities that I had, it will be a real loss of freedom and opportunity.

Sounds like things have gone well: thanks for bringing us back on course!

I’m still working the numbers to have the option to wind back/off in a year or two, but actually I’m quite enjoying things at the moment...work jaunts this year to Vegas (a hoot!), Prague, Stockholm, Munich, Amsterdam make for an entertaining time: I do my very best to ensure I am not just “in and out”, & having just sent a Christmas message to around 100 pals around the globe, I do appreciate what I have

MallyGirl

cfw1994 wrote: »

Well, maybe we are an exception: just got ours back (from uni and internship!) & whilst I never feel we have a dark house, they lighten up the place with their banter! We have a ski trip with them to look forward to in March. They will also brighten up their elderly & frail grandparents this week. Should help us at the pub quiz later this week too: they have a pretty broad knowledge for ones so young.
:beer:

I absolutely get that they prevented my “financial freedom”, but do not regret it at all.

I still have my DD at home (in lower 6th) and am not wishing her away at all as she is turning into a lovely, funny, caring young lady but I am looking forward to her setting off on new life adventures which means that we can too. We have been lucky enough to be able to offer her a wide range of opportunities as she grows up - we would undoubtedly have more money without her but we would be the poorer for it. We chose to have her with all that such a commitment means.
I do look forward to losing the constraints on when we can take holiday though

atush

JoeEngland wrote: »

A stock market crash could happen in or out of the EU. As for travelling, have you considered going economy or premium economy and having more trips rather than splash out on business class?

I wont be flying long haul in economy anymore. PE is the lowest i will go. Have begun upgrding to Business ocasionally lately. As you get older, the increased comfort and better state you arrive in makes a huge difference to me. Esp I usually drive 2 hours after arrival.

atush

cfw1994 wrote: »

Well, maybe we are an exception: just got ours back (from uni and internship!) & whilst I never feel we have a dark house, they lighten up the place with their banter! We have a ski trip with them to look forward to in March. They will also brighten up their elderly & frail grandparents this week. Should help us at the pub quiz later this week too: they have a pretty broad knowledge for ones so young.
:beer:

I absolutely get that they prevented my “financial freedom”, but do not regret it at all.

I completely agree with this. My OH would have retired years ago if we hadnt had kids, and they do brighten up things. The 2 left are moving out next year in Jan and August, so our costs will be plumitting I hope.

gadgetmind

Kit_Katt wrote: »

Really ...whats rough cost how old / mileage Gadget?

I got a 30k mile 2016 Model S 90D with *lots* of toys for £65k but if you go older you can get down to around £40k. Model 3 is cheaper so used examples in a few years (3-4?) should be £25k ish pretty quickly.

Dont know the Kona must familiarise myself with it.

Kona EV is sub £30k and has close to a 300 mile range. It's a cracking car and the guy who runs the Tesla UK owners group has one as a second car.

The reckon mid 2020s for price parity with internal combustion.

Coming down to a fully-charged car every morning is rather nice, as is an almost entirely silent 0.60 in 4.2 seconds!

Wednesday2000

cfw1994 wrote: »

Well, maybe we are an exception: just got ours back (from uni and internship!) & whilst I never feel we have a dark house, they lighten up the place with their banter! We have a ski trip with them to look forward to in March. They will also brighten up their elderly & frail grandparents this week. Should help us at the pub quiz later this week too: they have a pretty broad knowledge for ones so young.
:beer:

That's nice.:)

Yeah, I don't mean to sound like I hate kids or anything. I'm just glad that we were so careful with contraception.;)

kangoora

gadgetmind wrote: »

I got a 30k mile 2016 Model S 90D with *lots* of toys for £65k but if you go older you can get down to around £40k. Model 3 is cheaper so used examples in a few years (3-4?) should be £25k ish pretty quickly.

£65k for a 2nd hand car......

I guess I'll spend £20k and have £45k left to spend on fuel (not counting the extra cost of any elecricity). I figure that'll get me to the moon and a decent portion of the way back before I break even on costs.

The Kona sounds interesting though, I may take a look at it.

michaels

kangoora wrote: »

£65k for a 2nd hand car......

I guess I'll spend £20k and have £45k left to spend on fuel (not counting the extra cost of any elecricity). I figure that'll get me to the moon and a decent portion of the way back before I break even on costs.

The Kona sounds interesting though, I may take a look at it.

Also look at the kia e-niro - very similar but slightly larger than the kona and if you order when it is released in January you may get it within a few months unlike the kona that appears to have a 12m waiting list.


When working out costs purchase price is about 10k more than the equivalent petrol/diesel but you will save 75% on fuel cost and more on zero tax and minimal servicing requirement.

Depreciation is the big unknown of course, at the moment second hand ev values are very strong as there is so little available either new or second hand. Low mileage Konas are currently selling for more than they cost new.