Do I have enough to live off investment income?

Blobby8_2

If you can live off £11k / pa (as above) try for redundancy to give you a contingency and get the hell out of there. I finished 5 years ago - best move I ever made. Work sucks.

Sisyphean_Task

I would try stay in work of some kind.

There are various reasons
1) Get your NIC stamp paid.
2) Retain some skills
3) To stay active and have more social contacts
4) If we have inflation your savings would be worth less but wage inflation would help you.

Would they allow you to reduce the hours in your current job? If so would that make it more putupable? If you could do that and retain the same hourly rate that should pay more than the alternative of a new part time job.

I stopped working in my early 40's in 2003 to try my hand at investing. The investing has gone very well though I am now finding it more difficult. However after 8 years out of work I'm now missing work a bit (never expected to say that!) but with my employment gap my job propects are very limited. In 2007 I thought I was very well off but feel that events since then have stolen part of my wealth and lowered my living standards. Wage inflation is a fear.

cheerfulcat

225 K would bring in roughly 11,000 pa if invested in corporate bonds and high yield shares. Income would fluctuate, as would capital values. If you are used to a steady income, you might find that difficult.

Could you go self employed? As Lokolo suggests, perhaps garden design or gardening?

You might be interested in the TMF boards High Yield Portfolio and Investing for Income.

Arthurian

Perhaps see if your parents have any contacts at the local OAP club or church, or if their home help or visiting nurse knows other old people who want their lawns mowed? £10 per lawn in a row of sheltered bungalows would soon bring in some cash.

richardlionheart

I often feel like packing in work , esp after a long weekend away
on monday mornings ( i guess its all this doom and gloom in the media and everywhere .. it grinds you down )



As one of the previous posters mentioned maybe a break from your present job will give you a whole new aspect ?
maybe take a year out put you in a new frame of mind.
or even do some voluntary stuff to keep busy ( this could lead to some new line of work ?)

good luck in what ever you decide

Rich

diable

Hide the money off shore and go on the dole, rent out your spare room for extra cash and then do gardening work cash in hand.

smallfry27

I felt like OP at 47. I reduced my hours, and then downgraded to a less stressful job. Then unexpectedly got voluntary reduncancy at 51. Unfortunately that now means my pension is based on the lower grade, and doesn't reflect the 20 years I spent on the higher grade. But it was worth it to have more free time. I do two voluntary jobs, lots of clubs and societies, and don't know how I ever had time to go to work. I have to be careful with money, though not stingy. I rarely spend money on 'holidays' as I feel I'm on holiday most days.

When you are already burnt out, you are not in a very good position to apply for other jobs. I did look into some, but it seemed I'd have to be really 'creative' about the reasons I'd left the previous job.

I just finished reading John Naish's book 'Enough', inspiring for anyone who wants to get off the money-making treadmill.

Eco_Miser

If you pensions will be sufficient when you finally get them all, then you have over £200k to spend over less than 20 years. So if £10k a year is enough for you, go for it. I've been 'economically inactive' for two years now, and managing on a third of that, I've also become active in my local community, meeting many more people than I did at work.

That's ignoring the interest you get, and also the effects of inflation; with a bit of luck, and following the advice on this forum, the interest will more than cover the inflation.

I'm also ignoring the inheritance, as it the time before you receive it that has to be considered..

Loughton_Monkey

If you want a 'real' metric, I have 5 years experience of my own similar situation, and it has all gone 'comfortably' to plan (so far - even including the recession). So in my own case, my total 'balance sheet' came out in the order of 40 times my 'annual spending'. But this needs a bit of explanation.

This included (accurate) figures of pension pot values. Some of these are in payment now. Some are still 'to be crystalised'. Pensions were around 33% of my total 'balance sheet'. My house value was in the order of 40% of balance sheet. Hence no income whatsoever, but equity remains to be released by downsizing - by approx 50%, sometime around age 65 to 70.

So the other 27% was in 'cash' [including equity investments etc.] and this figure was subsequently (and will in future) be supplemented by pension lump sums.

I was just turned 56 when I retired - so somewhat later than yourself. I remain reasonably confident that I can continue to spend at the same 'fully acceptable' lifestyle, inflation proofed, for our remaining years [assets and spending include those of wife. But we have no children].

So as a rough test, try valuing your pensions, house, and all other assets. Importantly get a full 'value' of what you think your 'good lifestyle' spending is. Take full account of inflation. See what values you will have remaining after 9 years of no income, and see if it approximates to around 35 to 40 times your [then] spending. If so, you may have 'cracked it', but of course the earlier you retire, the more 'uncertain' your financial projections will be - not least because they have to be accurate for a very long time into the future.

dlk

Depends what your expectations are and lifestyle but it seems to be plenty for a basic lifestyle. Your savings can earn you around £10k per year which without a mortgage or rent is certainly enough to be comfortable without eroding capital. If it was me I'd probably try and live relatively frugally for a year or two so that you know a little better where you stand with regards inheritance. If you inherit anywhere near £500k or even half of that you should then have an extremely comfortable retirement.

Of course all that depends on personal preferences. If your leisure time is spent on your computer or watching tv then you are fine. If on the other hand you dine out 3 times a week, whilst driving a sports car and enjoy 3 or 4 holidays a year then you should maybe think about a part time job doing something you enjoy.