Early-retirement wannabe

lvader

My forecast for retirement income if I retire at the state pension age is higher than what I earn now, but I don't intend to work that long!

Almo

elantan wrote: »

Whilst yes it is fantasy stuff for me ... I am delighted that it isn't for others, I'm not jealous of ML etc having the money they have ... They have worked hard for it and used their money wisely, it's more than I will ever have, but that doesn't make me jealous or envious, it does make me feel happy that they will realise their dreams

It's not a competition, why not be happy for another human being ... Why feel despondent because your situation is different ?

I'm envious; I'd love to have that degree of financial security when I retire. But I think it's incrediby motivational as well, I know Marine_Life has been 'lucky' (used advisedly, I know it is far from just luck) to earn a very good salary and had some boosts such as the non-contributory pension but reading about someone being in such a solid position does give me inspiration to really knuckle down and get into a good financial position now.

jamesd

itm2 wrote: »

With less than 6 weeks to go to R-day I probably won't have time to negotiate a mortgage etc while still a salaried employee,and I'm guessing it'll be alot more difficult as a retiree?

Less income so yes it'd limit the amount you could borrow, as will your age. Something to discuss with a mortgage broker. An equity release mortgage would probably be available even if a standard one isn't but that might not save mortgage interest cost compared to a BTL mortgage.

spakkaman

cyclonebri1 wrote: »

We pooled resources before we were married, and that's 40 year ago this year, (better not forget that one). I don't see how trust can really exist if you don't. I may be wrong, maybe it's not the modern way but it's what we do, however we do each have our own current account in addition to our joint current account that covers all our planned incomings and out goings.

We have these for several reasons, not least because we both feel the need to have instant access to money and there is the financial concern that we could run the account into the red by not knowing what the other was doing. We don't want a situation what was this draw out for etc etc.

Don't get me wrong, we each only ever have about £1k max in these accounts, but if we both simultaneously commit to something, we know the liquidity of our own accounts.

Also, I have always been the higher earner and by a good margin, it would feel wrong to me to have a pile that was way in excess of my wife's.

Tax issues? that's never been a concern to either of us, apart from savings, we don't
earn enough or have complicated incomes.

We both share account details and have access to each other account so nothing hidden, but I can pick just the right moment to tell her I have just blown my pot on a new Browning 12 gauge, or her, another pair of shoes:D:D:D

Very similar with me. When just leaving Uni 35 years ago I was a bit in debt while my wife to be was more than solvent we set up home together and I thought it was a helluva good idea to propose a 'what's mine is yours' policy. She was a bit wary but after 30 years of marriage she constantly wonders how couples with separate accounts cope.

She manages the money and I audit the books about twice per year (to check that we are saving OK).

We have always saved hard and have never (in my recollection) had an argument of any substance about money.

Left alone I would probably have spent a lot more so I am grateful for our decision so long ago - at the time it didn't seem a big deal but it was in fact life changing.

Marine_life

cyclonebri1 wrote: »

But ML, again this thread really has been lifted into dreamland as far as the vast majority are concerned, good luck, you have obviously earned it, but you have just left many despondant with those figures:eek:

Can I go back to my previous point which is that I think a lot of people do not achieve their potential either because they lack the confidence, the opportunity or the ability and mostly its the first two.

I have a 2:2 degree from an average British university and until I was 35 I had a series of reasonably well paid jobs (I think I was earning about 50k when i left London). However, working in London I had hit a ceiling and it was clear without doing something I would have moved forward very slowly if at all. I could have stayed in the same poisition another 5-6 years but would have been eventually "moved on". I actually decided to move overseas where I was "better" than those working with me and moved ahead a lot more quickly. I look at a lot of colleagues who will not move or make a change even if it means they won't progress.

Anyway i could go on but I feel a lot of people get "stuck" because of inertia. That's not always the case I have seen it first hand on several occasions. People just have to take more ownership of their lives (oh and having a spouse who is prepared to move with you helps a lot ).

Marine_life

gallygirl wrote: »

There really is another world out there - when I read about you all with massive pots, wondering if you can afford to retire, I worry I really am being too gung ho about going asap .

Different worlds and different but similar issues.

My brother retired when he was 50 (about three years ago) on nothing but a fire service pension. Other than a lump sum of approximately 100k he is living his life on just over 1,000 per month (and some part time income from his wife). He and his wife have raised four boys, have no debt and see to spend all their life on holiday (if you can call taking a week off from retirement a holiday).

They do not seem to want for anything and are perfectly happy. I actually look at them enviously!

There are two differences:

1. He is very "good with his hands". I am completely useless with a scredriver so have to pay for everything.
2. We have build up a high level of expenditure and now it will take us some time to wind that down again.

Do we feel more contented, happier and more secure than they do? I would say generally no because (and I know this will sound slightly ridiculous) we have more to lose!

The good think is you have an excellent plan plan with which you feel comfortable - so i would not call it gung-ho - I would call it well thought through.

Marine_life

gadgetmind wrote: »

There is no part of my retirement plan that it someone else's problem!

Great quote.

You know in todays world I don't know how much security there is in anyone's plans and partially that is something which keeps driving me on.

I received a statement from my pension provider in the UK (the fronzen DB scheme) which says that there is a massive underfunding in the scheme which has a recovery plan whereby my erstwhile employer pays in around 30 million a year for the next 7-8 years to close the funding gap :eek:

Similarly, a good buddy of mine who lives in Greece had a good chunk of his savings in a Cyprus bank. His savings have been blitzed along with those of the everyone else. I would be absolutely sick to my stomach.

So in some ways I think you are in a good position being in control of your own destiny (so to speak). But I am not sure I could cope with the constant pressure to rebalance. Do you do that or do you have a broad risk balanced portfolio?

Marine_life

AlwaysLearnin wrote: »

Presuming you're not getting 4.4% net on your cash savings, why not pay the mortgage asap?

We had a five year fixed rate with a maximum 5% per annum redemption in the first three years and 10% per annum thereafter. Needless to say we have been paying down the absolute maximum every year. We have a settlement figure for December this year.

We could actually remortgage at 1,35% and whilst we are tempted to arbitrage, i like the idea of being completely debt free so we will settle it.

gadgetmind

Marine_life wrote: »

Great quote.

Yeah, other than the it/is typo/

my erstwhile employer pays in around 30 million a year for the next 7-8 years to close the funding gap :eek:

Great for you, but the money comes from somewhere, so someone's pocket. Harsh but true.

I am not sure I could cope with the constant pressure to rebalance. Do you do that or do you have a broad risk balanced portfolio?

100% managed by me and rebalanced/invested based on my view of the world. Fortunately, as an engineer, I am able to ignore rhetoric and emotion and look at underlying valuations and directions.

I also have a portion of my portfolios for themes (aka "it seemed like a good idea at the time") and this has also tended to do well.

Imagine a seven figure portfolio jointly managed by Mr Spock and Captain Jack Sparrow and you'll have a pretty good grasp of my approach!

jamesd

Marine_life wrote: »

I am not sure I could cope with the constant pressure to rebalance. Do you do that or do you have a broad risk balanced portfolio?

One thing to know about rebalancing is that doing it too often is bad. So an engineer's approach would probably involve trying to factor that into such decisions.

Though I suspect that gadgetmind pays more attention to the purpose or rebalancing: buy low, sell high, with rebalancing a tool to do some selling of risers and buying of fallers. Which is OK provided it happens and isn't allowed to run forever until the next crash makes it too late to extract some profit.