Semi/Early Retirement at a young age

Andypandyboy

I may be speaking out of turn here OP, but you are in a great place financially, you can have a good lifestyle now, now, not just in 5/10 years. You have a baby on the way, you have a wife who is maybe facing the biggest change in her life she will ever face, yet you are still making cut backs to save even more.

You may think you and your wife are on the same page, but believe me adding a baby into the mix will bring changes. I had a friend who sounds very much like you; lovely chap, focussed, driven, eye on the future. He remained that way after his wife left him as he couldn't adapt to the changes wrought by family life. He never got over the feeling of incredulity that she hadn't realised why he was doing it, the reality is she had, but to her the current moment was more important, she got fed up of the tread mill and the eye on the furture.

My advice is you seem to have it all now at 32, kick back, adjust to family life, still plan for the future but not obsessively so, enjoy the here and now.

No offence, but reading your plans and how you map them out really rang alarm bells for me. Leave room for spontaneity, for living life. Good luck!

Reue

Andypandyboy wrote: »

I may be speaking out of turn here OP, but you are in a great place financially, you can have a good lifestyle now, now, not just in 5/10 years. You have a baby on the way, you have a wife who is maybe facing the biggest change in her life she will ever face, yet you are still making cut backs to save even more.

I couldnt disagree more. OP is clearly in an excellent place financially and will continue to be once baby arrives. Why squander away money now when they are perfectly capable of living a healthy, happy life frugally and with the added bonus of retiring early to spend more time with the child.

OP - Forego those lavish holidays now which won't be remembered by a baby/toddler.. and exchange them for investments which will allow you to spend time with your children when they are old enough to remember and appreciate it.

atush

I dont think anyone said Squander money or take lavish holidays. but doing things to retire a few years early when wife is up at 3am feeding baby with no Sky isn't exactly thinking about his OH either?

That is when I got Sky first time lol. It was my xmas present though.

Reue

atush wrote: »

I dont think anyone said Squander money or take lavish holidays. but doing things to retire a few years early when wife is up at 3am feeding baby with no Sky isn't exactly thinking about his OH either?

Would wife want to watch Sky at 3am whilst feeding?!

Perhaps wife would benefit more if OP were financially secure enough to quit work.. or go part time.. because of the previous sacrifices? Obviously it depends on OP and the other half..

atush

Yes, as apparently there are things she watches there. Who knew? Well we did cuz he said lol.

but she could always stream the internet so s long as he doesn't cut out BB she will be entertained.

And Children are a huge resource draining experience, so they would strain finances too just by their very existence.

C-dog

Appreciate the outside look into our lives, and the constructive comments. Currently we have a wonderful life, I truly believe that. Eating out, travelling and enjoying each others company. We want for nothing, but both have the same values that we will not waste money (define that as you will).

Sky is the obvious cost cutting choice as its an expense you accumulate over the years and never think to question. Truthfully we rarely watch tv in favour of reading and the shows we do watch are on freeview & we have since found the kardashians on netflix. Initial disruption to the schedule was sorted easily. If it was to be an issue, sky would be reinstated.

Andy I appreciate the sentiment and comment but my goal is to be financially independent to be able to spend more time with my wife and soon to be born child. However I believe my hardest goal will be to remove myself from the working environment. We have agreed to take an extended break either winter or summer, a mini retirement if you will when we reach our first milestone. This for me will be the defining moment in the next stage of my life.

atush

Good to hear Netflix at only 6 or so a month is providing lol.

I have however, a house of many men. who watch sport. Even though highly educated all. So although I got sky a decade or 2 back as my present, it is now the boys preserve.

You are still doing very well, indeed. As long as you remain flexible in the upcoming time with sprog no1, you will continue on your happy path.

In your pension planning re salary, dont forget the effect of CB and pension contributions. Contributing enough to get them back will pay, and if not make sure your OH is registered even though you dont get it as it means their Nics are paid til youngest is 12.

C-dog

atush wrote: »

Good to hear Netflix at only 6 or so a month is providing lol.

In your pension planning re salary, dont forget the effect of CB and pension contributions. Contributing enough to get them back will pay, and if not make sure your OH is registered even though you dont get it as it means their Nics are paid til youngest is 12.

It's the simple things....

Yep we're making provisions for CB, thought won't be an issue for a year or so as we're making full use of our entrepreneur relief sum.

As of this morning I've approximately 45% of my original goal stashed in investments. It's true personal finance has consumed the greater part of the last year for me, but conversely till that point consumerism had me. Now I have options. Thats what this is about

C-dog

March has been a big month all round. Firstly Friday marks my 2 year anniversary of starting to invest. My first S&S ISA consisted 100% of Virgin FTSE All Share tracker. It has been a positive experience, but the outcome of this fund is less than I'd hoped. Not to worry, I've marked this date by selling the fund and I will be filling my LS100 a little further when the funds transfer.

Mummy and baby C-dog to be are doing extremely well and it's all becoming very real, that in a few weeks we'll have a little one to call our own.

On a separate note, I have had a huge month of savings and investments. £15k invested within VUKE.L and I plan to purchase some Emerging Markets & VUSA.L over the next month. I've put £2k aside for this so far.

All investments this month are outside my tax sheltered accounts.

Ultimately I've decided against bonds as my thoughts towards them were really just another way of market timing. Ride the wave and buy on the way down as well as the way up. I have an offset mortgage which will be fully utilised if and when the market dips.

Lifestyle Concerns
Wife had a shopping trip with her family and I had a trip to Chamonix with a few friends this month. I probably read to many finance blogs and not enough fitness ones (or take action) at present and fitness has always been something I've loved. Throughout April, I'm making a conscious effort to reverse this trend. Might even do some outside activities.

Back in September I set a target to be 50% of the way to my Financial independence target by April 5th. I'll miss it by about 3%. It's not even an issue for me however, as it really does feel like I've hit the tipping point with investments. I remember reading way way back that when compounding really takes over it does the donkey work. It's an excellent feeling.

Here's to the next 2 years.

YoungBusinessman

C-dog wrote: »

Today I hit a little milestone. Since April 13, I've invested 200k. Boom

That needs to be cemented, so that a drop in share price isn't an issue. Plan is to add 50-70k to that by April and the next 50k by Sept.

Today I stand approximately 40% of where I would like to be before calling myself Financially Independent. Is that the finish line? Hell no. But at that point I'll consider my options.

I broached the subject of moving abroad for the first time since we found out about the baby. Actually fairly well received considering. Just shows we're pretty much on the same page as each other.

Time to knuckle down, work smarter, save harder & invest the rewards.

I also took a look at the monevator compound interest calculator a few times today. Without adding to the pension pot or ISAs any further, come 57 (25 years) I should hit the 600k mark. Now frankly we know thats not guaranteed, but it calls for a little celebration. 2 tickets to the Hunger Games.

On a side note, our combined monthly expenditure (excluding Holidays) has been a little under £1000 for the last 3 months. We live very well, but with no mortgage and no car payments, our expenditure is low low low.

Sorry to pull up an old post of yours but reading through since my post at the top of second page and regardless of income that last paragraph is absolute key!!! Keep expenses 3 figure, no debt and thats how you get financially independant!!!!! Amazing :beer: