Early-retirement wannabe

bugslett

I don't think anyone on here is being pretentious or suggesting that anyone can do it. Like any group of people, some are nicer than overs, some are more realistic etc. I'm aware that FIRE is not possible for everyone, never suggested it would be.

However reading through this thread and others may help some people in various ways.

I've not had a wage that put me into the 40% bracket until I was 52, but I'm retiring at 55 because I left a poorly paid office job and started a business, which anyone can take a chance on doing.

Marine_life

There's a really good analogy I like from the world of motoring and it's this:

"Anyone who is driving faster than me is a lunatic and anyone driving more slowly is an idiot"

The point being that of course there are people who are well off and earning way above the average and of course there are people who are struggling to make ends meet. But, there's a lot of people between those polar opposites who with some financial knowledge, discipline and planning can aim for early retirement.

Marine_life

Pennysmakepounds wrote: »

These articles are an interesting read but hardly brain surgery to anyone with common sense.

Maybe not brain surgery but with low interest rates, a decline in direct benefit pensions and a constantly moving pensions / investments landscape, I think it's pretty complicated to know whether you're doing the right thing.

gallygirl

HardCoreProgrammer wrote: »

Sorry many such stories from the US are porkies. Think of the Beardstown ladies investment club, for example.
How can someone not on investment bankers salary, with student loans (they are massive in the US) to pay back, earn enough to retire after working for 10 years? If it looks like a duck, swims like a duck, and quacks like a duck, ...

I can think of a few examples on MMM (including Mr MM himself) who retired after less than 10 years work. One is an ex-teacher with an ex-teacher wife, currently travelling the world with two very young children and living on rental income.

Of course someone living on a minimum wage and trying to run a home can't retire in less than 10 years, but most people have choices they could make differently. Putting £30 a month into a new phone deal and another £25 on a Sky package rather than £55 extra into a pension for instance (as my SIL does), or redecorating and changing sofas yet again, as another acquaintance does. Or being guilty of lifestyle creep with every increase in income.

As ML says, it's hard to know what to do, on the other hand there is plenty of information freely available on the internet if you prioritise looking for it over other things.

justme111

In a way - how much would you think it is acceptable to spend a month on a phone and tv/broadband? If you deduct it from those £55 I doubt very much it would have bought much time for retiring early- if you do it your whole life even..

michaels

justme111 wrote: »

In a way - how much would you think it is acceptable to spend a month on a phone and tv/broadband? If you deduct it from those £55 I doubt very much it would have bought much time for retiring early- if you do it your whole life even..

£55pm for 40 years with 2% real growth would give a monthly payment in retirement of £133 using a 4% withdrawal rate.

I pay £3pm on mobile line rental and get a handset costing about £100 every 4 years. TV subscription, NowTV every now and again using offers, probably about £20pa, otherwise freeview.

bugslett

michaels wrote: »

£55pm for 40 years with 2% real growth would give a monthly payment in retirement of £133 using a 4% withdrawal rate.

I pay £3pm on mobile line rental and get a handset costing about £100 every 4 years. TV subscription, NowTV every now and again using offers, probably about £20pa, otherwise freeview.

Since its you Michaels, I feel the need to do one upmanship:p. No TV or broadband and work buys my phone and pays for it*

* oh heck, I'm finishing work soon:rotfl:

justme111

michaels wrote: »

£55pm for 40 years with 2% real growth would give a monthly payment in retirement of £133 using a 4% withdrawal rate.

I pay £3pm on mobile line rental and get a handset costing about £100 every 4 years. TV subscription, NowTV every now and again using offers, probably about £20pa, otherwise freeview.

Ok that's £2 /month handset and £3/month line. What about broadband?

michaels

bugslett wrote: »

Since its you Michaels, I feel the need to do one upmanship:p. No TV or broadband and work buys my phone and pays for it*

* oh heck, I'm finishing work soon:rotfl:

Although there are no doubt tax advantages of 'work' paying for your phone I suspect it is all the same money at the end of the day.

I suspect I would be chained to the rack with electrodes attached to my t*s within about 24 hours of the wifi being turned off in this house until I got it turned back on.....

michaels

justme111 wrote: »

Ok that's £2 /month handset and £3/month line. What about broadband?

I had assumed perhaps wrongly that the sky £25pm was for a TV package rather than a broadband package hence my comments re saving on a TV package. Hard to get broadband for less than £18pm these days.