Early-retirement wannabe

Svenena

I'm planning to retire early, but as I'm 27 it's rather difficult to plan for the future, as there are so many uncertainties. I currently only have a short-term (5 - 10 years) plan, thus: I'm currently saving (about 40% of my net income) for a deposit to buy my first property. This is going to take me about 2.5 - 5 years, and after that I intend to split my excess income between overpaying the mortgage and making AVCs. I hope to have children at some point in the next 10 - 15 years, and I also don't know what will happen to my income in the next 30 or so years (hopefully it will increase!).

I think at the moment I need to be researching how I can make the most of my savings in the future in terms of investments and pensions. Most of my colleagues are a similar age to me, and no-one else seems to give any thought at all to retirement planning (which I suppose is understandable!), and I feel like my understanding of the subject is very poor. I realise though that making an investment into planning for the future while I'm still relatively young can have a greater impact than leaving it until I'm older, and I want to make the most of this.

Marine_life

Svenena wrote: »

I'm planning to retire early, but as I'm 27 it's rather difficult to plan for the future, as there are so many uncertainties. I currently only have a short-term (5 - 10 years) plan, thus: I'm currently saving (about 40% of my net income) for a deposit to buy my first property. This is going to take me about 2.5 - 5 years, and after that I intend to split my excess income between overpaying the mortgage and making AVCs. I hope to have children at some point in the next 10 - 15 years, and I also don't know what will happen to my income in the next 30 or so years (hopefully it will increase!).

I think at the moment I need to be researching how I can make the most of my savings in the future in terms of investments and pensions. Most of my colleagues are a similar age to me, and no-one else seems to give any thought at all to retirement planning (which I suppose is understandable!), and I feel like my understanding of the subject is very poor. I realise though that making an investment into planning for the future while I'm still relatively young can have a greater impact than leaving it until I'm older, and I want to make the most of this.

I think that in an excellent idea!

I am in the relatively fortunate position at the moment of being able to save a decent amount of money quite quickly but if I had started a few years ago then I would be in a much more comfortable position (or able to retire even earlier).

Of course you can never plan for the unexpected and when I was your age I would never have imagined that I would have ended up where I am today.

I would also mix in a bit of realism in terms of making sure you have no regrets as you get older - as has been said in many other posts, you only live once so make the most of it! Certainly two events have been financially very damaging for me one was having children and the other moving to australia (and then moving back again). However, i wouldn't change either as both were very rewarding.

Neverthless a log term view gives you the chance to take a longer term perspective on investments (maybe look for growth rather than immediate return) which will really pay dividends over a 20-30 year investment cycle.

Berst of luck.

btw, today is 1372 days to go

Lois_and_CK

Domain.Rider wrote: »

I retired at 55 on Weds 29th July 2010 (I decided on the previous Friday!). I was intending to go at 57 or 58, but a company buy-out and consequent pension changes forced my hand.

Fortunately, I'm single, no dependents, and the mortgage is paid off. I'd enjoyed my job as a software developer in the city - it was well paid, not overly stressful (I always refused management positions - for me, the money doesn't compensate for the stress), I was good at it, and had a decent final salary pension. But after 26 years doing the same kind of stuff, I'd just grown tired of it. I was just going through the motions.

For the last 7-10 years, I was maxing out my AVCs and savings, ready for early retirement, and when I totted it all up at the crucial time, it came to just over my NUMBER (about 1/3 of my salary), which is easily enough for my quiet lifestyle. So I took the FS pension and a flat annuity with the AVCs, plus there's still a healthy chunk of savings for security, repairs, major items, and pension top-ups if state pension is trimmed too far.

Since my sudden departure, I've been happier and more relaxed than for many years. I realise now that the job was mildly depressing me, because I'd lost interest in it. Now I can get up early, or sleep in as long as I like (hearing next door scraping ice off the car early in the morning before I turn over to go back to sleep can't be costed in monetary terms!), I exercise, go for runs, got myself a bicycle, eat healthily, take long walks along the coast, spend hours online, stay up late watching the Ashes, and still keep getting that little smile of realisation that I don't ever have to work for money again All the things I'd planned to do in retirement are still on hold while I continue to 'adjust to' (i.e. enjoy) my sudden leisure status.

I'm so glad I stopped when I did - the rail season ticket for the commute into London has gone up 12.5% this year, after an 8% rise last year (I would be paying almost £5,000!). The new company owners are trimming costs by killing projects, freezing pay & recruitment, removing coffee machines (yes!), no bonuses, no profit-share, no share options, and the new pension scheme is poor. Morale has plummeted - the only thing keeping people there is the difficulty of finding other jobs... those that can are leaving. I don't miss any of it

What an incredible inspirational post. I can't tell you how many times I have re-read your post, and I've just read it out to my husband who also thinks what you've done is something to aspire to. This especially struck both of us:

Domain.Rider wrote: »

hearing next door scraping ice off the car early in the morning before I turn over to go back to sleep can't be costed in monetary terms

How right you are. I shall be printing your post and pinning a copy to my board at work, and a copy on the fridge at home.

Thank you :T

Gatser

Marine_life wrote: »

I missed a day yesterday - which means......

1373 days to go

Now I am getting hooked too... (I quoted wrong number, its 618 days for me today... so I am just 755 days ahead!)

I emailed a friend today to let him know that he only had 3398 days left to go! .... because he insists he needs to work until "at least 65" With such a big number, perhaps knowing it is not so good? :eek:

gfplux

I feel the need to add something about a subject (or Asset) not yet mentioned in this thread.

HEALTH

Yes one thing that we should all list in our total assets calculation is health AND mobility alongside cash in the bank.

As I have mentioned I retired 13 years ago at age 53.
It was only then that I began to think about my long term health. I had been too busy while working to think of it.

If I were to enjoy a long and happy retirement then I had to be healthy enough to enjoy it.
I now take more care of myself. Go to the gym. Try not to over eat and drink. Visit my Doctor regularly and have an annual comprehensive blood test. Visit an oncologist every two years to have my eyes properly tested. Every 6 months visit my dentist and clean my teeth more regularly than I did when working.
Do not think I am not a little overweight and I do puff while walking up the stairs but I am trying my best.

I could go on and have probably done so, but it is important.
This is an area that I and too many ignore as we "plan" our financial success.

We can not avoid an "act of God" but we can still look after ourselves before it happens.

chris_m

gfplux wrote: »

Visit an oncologist every two years to have my eyes properly tested.

Did you mean "oncologist"?

gfplux

Was that a Freudian slip?
I meant of course Ophthalmologist.
Thanks

Marine_life

gfplux wrote: »

I feel the need to add something about a subject (or Asset) not yet mentioned in this thread.

HEALTH

Yes one thing that we should all list in our total assets calculation is health AND mobility alongside cash in the bank.

As I have mentioned I retired 13 years ago at age 53.
It was only then that I began to think about my long term health. I had been too busy while working to think of it.

If I were to enjoy a long and happy retirement then I had to be healthy enough to enjoy it.
I now take more care of myself. Go to the gym. Try not to over eat and drink. Visit my Doctor regularly and have an annual comprehensive blood test. Visit an oncologist every two years to have my eyes properly tested. Every 6 months visit my dentist and clean my teeth more regularly than I did when working.
Do not think I am not a little overweight and I do puff while walking up the stairs but I am trying my best.

I could go on and have probably done so, but it is important.
This is an area that I and too many ignore as we "plan" our financial success.

We can not avoid an "act of God" but we can still look after ourselves before it happens.

Ahhh. Of course Health.

One of the topics that can stops me in my tracks if I think about it too long. Of course one can plan for a long retirement but who knows what will happen - whether it be an immediate tradgedy or life being cut short by an illness.

I think you need to adopt a caustious but realistic approach. I am all-in favour of enjoying money now (within reason) AND planning for an early and hopefully long retirement. Actually achieving that balance is one of the most difficult in the early retirement equation.

Now in my mid-forties, I am increasingly focused on health issues, am a much more regular visitor to my GP and still take regular exercise. I would have to say though that my feeling is that medical science is not as advanced as we might think and it is rare that I come away from the doctors with a feeling they actually know what is wrong! Most of the time is just goes away so maybe I am a hypochondriac?

I do have a plan to have all my long term ailments resolved before i take retirement (dodgy knee, sore arm), and I am my dentists best friend! It makes sense to enter retirement in the best possible shape.


Oh and by the way 1371 days to go

Marine_life

I thought I would share with you something a bit naughty.

I was playing around with my spreadsheets today and I ran the numbers to see what would happen if I retired in October THIS YEAR. The scary thing is that without school fees I think it could be made to work (with income of around 50,000 a year - which would assume drawing money out of capital). It would be especially luxurious but would certainly be comfortable. Not sure the kids would thank me though.

I hate doing that as it puts all sorts of thoughts in my mind which could potentially lead to divorce!

Nice to have a fall back position though.

Gatser

Marine_life wrote: »

I thought I would share with you something a bit naughty.

I was playing around with my spreadsheets today and I ran the numbers to see what would happen if I retired in October THIS YEAR. The scary thing is that without school fees I think it could be made to work (with income of around 50,000 a year - which would assume drawing money out of capital). It would be especially luxurious but would certainly be comfortable. Not sure the kids would thank me though.

I hate doing that as it puts all sorts of thoughts in my mind which could potentially lead to divorce!

Nice to have a fall back position though.

Yes...very NAUGHTY!! .... upsetting those of us with 100's of days to go yet!

...and £50k in retirement is DOUBLE my NUMBER... so pure luxury.

So what are you waiting for??? Oh yes .... 1371 days...