retire on not?

ratraceout

ok so i have trawled the web and seen the calculations etc on how and when to retire. none seem to make much clear sense to me.

im currently working in a sales job which pays very well and has huge commission potential! lucky me right???

but.... i can't stand it anymore. i have been doing it for 20 years, set up and sold a business and then came back into the industry working for another firm. i have suffered with anxiety and depression over the years and most have been linked to the job i think.

im 41 years old and have managed to buy a house in the uk which is worth about £650k and has 150,000 mortgage. i also have a holiday home which i bought for cash and is worth about £1.25m. savings wise im sitting on about 800,000 of which about 400,000 is invested in funds / stocks etc.

the way i see it the holiday home can probably net me about 50-60 k a year in rental. im still young so i wouldnt stop work but just want to get out of the 8-7 daily slog.

problem is i dont know if i can do it and am worried about inflation and many years of retirement. im married but we dont have any kids yet although we will want to have 1 or 2....

any thoughts on what you all believe i should / could do? can i just quit? i have nothing lined up work wise but as i said would want to do something so as not to just fade away... but not high stress work, just something i enjoy...

thanks for reading and looking forward to all your sensible thoughts!!!!

:idea:

newcastleneil

I would think you have enough to retire on .Depends on what life style you live and if you are prepared to" cut your cloth " so to speak .The big question is and only you know the answer is " do I have the balls to quit my job"

Regards

McKneff

What interests do you have, what do you like to do.

Could you work for yourself, doing something that you like to do at your own pace.

You are one very very fortunate young man.

Annie

ratraceout

thanks to you both for taking the time to reply... i am fortunate i know Annie but i also have worked feverishly hard, albeit at times when i have felt like death warmed up. i would like to raise a family eventually and live without the daily stress and anxiety.

PasturesNew

Just drop out and chill for 2-3 years and see what you fancy doing. I'm now in my 4th year of doing this and I've less than 1/10th what you have. Yesterday and today I just went beachcombing.

leahciM

ratraceout wrote: »

the way i see it the holiday home can probably net me about 50-60 k a year in rental.

...but not high stress work, just something i enjoy...

:idea:

50k relatively passive income.

Only you know what funding your lifestyle requires, but if this is anywhere near enough why not take a part time job as a florist/lifeguard/baker whatever it is you want to do.


It's a plunge, no doubt. Why not get the holiday home rental arranged now while you're still working so you can get a good idea of if your 50k estimate is accurate?

ratraceout

beachcombing sounds like paradise at the moment! i know its a big step Leah but sometimes your mind and body just tell you you have had enough of what you are doing.. i have some ideas but need to get my head straight before moving into something new... thanks for replies

KenC_3

I was in a similar position regarding the well paid job I didn't enjoy so gave up in May 2007 aged 44. I've no regrets and now lead a much healthier lifestyle. I've dropped 2 1/2 stone in weight.

I now cycle every day, whatever the weather, unless I am golfing on one of two bikes. I also have a bike at my holiday home in the Algarve and I now have the time to get out there more regularly Co-incidentally I'm flying there today for 8 days - a holiday I booked last Thursday.

Remember that not earning means that your personal tax allowance can be used against savings income, saving you 40% at the top end. You also have the 10% and 20% bands to use against savings income.

I also have the time to manage my assets more effectively.

I could have continued to work and had more wealth but less time to enjoy it and possibly for a shorter timespan.

So, if you're looking for some encouragement, you've found it.

ratraceout

im very encouraged by your post and thanks for it. back in the office today and oh lord did i feel like not coming in.....

McKneff

ratraceout wrote: »

im very encouraged by your post and thanks for it. back in the office today and oh lord did i feel like not coming in.....

Just remember, your not here just for the weekend.

My mum went out for some tea for my dad, he said he wanted some bacon and eggs, they were the last words he ever spoke to her, she dropped down dead of a heart attack while out shopping. She was just 60, so think on.

It certainly changed my way of thinking.

How many years do you think you have left to live.........
Maybe 1, maybe 10 or 12. enjoy them

rdtrdt

I stopped "work" in my 30s. It started off as a bit of a break from my regular career, giving me time to focus on figuring out how to manage my finances, as I was flush with cash at the time and didn't particularly trust anyone else to manage it for me. It's now 10 years later and I've still not returned to work, and am now essentially unemployable, I should imagine.

There are some very positive aspects to being outside the world of conventional work, but also downsides. Others have mentioned some of the benefits, which I'd wholeheartedly agree with. For example, I like to cook a lot and stay fit (walking, running, cycling in the countryside), and like to travel a bit (albeit pretty inexpensively), which I couldn't have done to the extent I have if I'd been in most jobs. To many people, it might seem idyllic. Also, not going to work each day, and having time to investigate better value ways of doing things can both save quite a bit of money compared to your average cashflow-rich/time-poor employed person.

However, the benefits of consistent (and easy) cashflow to be had from regular employment shouldn't be underestimated. I've fortunately managed to grow my "personal balance sheet" by around 20% in the time I've not worked, through a combination of investment and "relative" frugality. But, the lack of cashflow means that I need to be forever vigilant and sensible with financial matters, something of the mindset of a pensioner, perhaps. This'll increasingly be the case, I expect, in the rising inflationary environment we're likely to face over the next 20 years or so.

Your pot size is significant, and would easily be sufficient for me to retire on while still leading a very good lifestyle. How you'd manage on it would obviously depend on the cost of the lifestyle you pursue, but if you're reasonably sensible I wouldn't foresee any problems.

I've now not worked for so long that various negative memories of work have begun to fade away, and I'm almost beginning to miss it (grass is always greener)! I suspect this may well lead me to look to start some business venture of some sort, maybe beginning the whole cycle again.