Can you live off your investments/savings?!

ruperts

Thrugelmir wrote: »

You'd be eternally fretting that 4% is far too optimistic though. Doesn't leave much for major items of expenditure either.

True but it also doesn't account for receiving the state pension at all, which if it remains anything like as generous as it is now, would be a major boon. So in respect of the risks and the opportunities I would argue it's swings and roundabouts. I wouldn't necessarily want to retire in that position, but having the option would be much better than not, and it's certainly a viable target for people in their 30's just starting to think about retirement.

Mark993targa

I am thinking about early retirement at 55 . We have 4 rental properties giving us a income of £2200 per month plus we have savings of £145000 is this enough to live off.

taurustime

prezzacc wrote: »

Hi all.

Just wondered would it be possible to live off interest / divedens / income from money you have invested / in savings? I've just worked out what I'm getting each month on my savings, a piddly amount, but it got me thinking those who are financially well off could quite likely live off thier investments and savings surely?

Yes! I am approaching semi-retirement in September 2019. For the last 6 years, I have managed my own SIPP and S&S ISA, transferring funds from previously poorly paying and poorly performing providers on to the UK's largest online investment platform. I wish I had done this decades ago! My SIPP returned 19% last year and my S&S ISA 22%. The difference in returns is due to my SIPP being drip-fed monthly from my salary and employer whereas my S&S ISA limit was invested in one hit. I have absolutely no investment skills. However, if you can read, you can invest! I simply invest in funds - never shares! - with strong performance records over the past 5 years. My investment decisions are made based on easily available online research material. I'm certainly not wealthy but, with my State Pension, a very small annuity and the drawdown availability from my investments, I should be fairly comfortable in my retirement years. Living long enough to enjoy it is the challenge! Managing your own investments is the key to your future financial security!

GDB2222

Mark993targa wrote: »

I am thinking about early retirement at 55 . We have 4 rental properties giving us a income of £2200 per month plus we have savings of £145000 is this enough to live off.

Depends what your outgoings are.

Doshwaster

I'm 45 and single and that is very unlikely to change so my current plan would be to sell my house and buy/rent in a cheaper part of the country to free up some equity.
If you take a complete retirement fund as being pensions + savings/investments + property I think I would be OK with a total of about £750,000 in 20 years time. I currently have a net worth of around £350,000 so I'm about halfway there. Considering I was penniless until I was 28 that isn't bad going.

elephantrosie

reduce your expenses, if you cant increase your income :P

Thrugelmir

GDB2222 wrote: »

It's probably okay to draw all the income and spend it, providing the investments are likely to keep pace with inflation.

My retort would be which investments would one choose to achieve this aim?

Thrugelmir

Mark993targa wrote: »

I am thinking about early retirement at 55 . We have 4 rental properties giving us a income of £2200 per month plus we have savings of £145000 is this enough to live off.

Mortgage free properties?

GDB2222

Thrugelmir wrote: »

My retort would be which investments would one choose to achieve this aim?

Real assets like shares and real estate. Goodness only knows how it will turn out, of course.

short_butt_sweet

Doshwaster wrote: »

I'm 45 and single and that is very unlikely to change

IME, that's likely to change ... to 46

back on topic: a mortgage-free (freehold) house + about £500,000 would be plenty for me.