Prestigious cars or retire early

EssexExile wrote: »

Children cost more than cars, avoid children.

I retired at 50, 16 years ago, it's great.

But the value of a kid goes up. Ive got an 8 month old and every day gets better...the nights get worse with less and less sleep, but the days are better.

Retire.
The second that you can.
Live in penury if you must, it is better than working those extra years to be "better off" and then becoming ill- at which point all that money you sweated to save will be used to pay for your care before the state chips in.
Retire with nothing, and anything you need you will be given by the sweat of someone else's brow.

I'm retiring this year no matter what, I'll get by somehow, I just pray that I can make it with my health still intact.

fred246 wrote: »

I am planning to retire very early in the next year. All my colleagues are saying that they've many more years to go. I have been reflecting on how I have got to my current financial position. The number one saving has been avoiding private education. Number 2 is avoiding buying posh cars. I normally buy standard cars and maintain them myself till they die. Most of my colleagues buy a new prestigious car every 3 years. I reckon I will retire five years early as a result from my back of a fag packet calculations. I was sat in the Jacuzzi the other day working out my investments.
Property-slowly increases in value over the years
Shares-ups and downs but should make plenty.
Bonds-safer should make a bit.
New cars-MASSIVE LOSSES GUARANTEED.
So do people make that connection? Would people rather enjoy years of retirement or have a posh badge on their car? Or would they prefer to deny the association?

You're asking a very loaded question there - with a very clear response being "oh yes, i'd rather retire early".

To contrast, my BIL retired last year aged 56, having driven brand new cars every three years - Preludes, then Accords, then the last 3 - Jaguars. His wife changed her car every three years too - usually a Jazz or similar. They've lived in a detached home in a nice development since they married and will stay there in their retirement years. He worked his way up in the civil service and retired from a Head of Finance role, having worked his way up from an entry level admin person 40 years ago.

So driving a nice car and retiring early arent mutually exclusive - i guess though it depends on your earning potential, how generous your employers pension has been, and how much effort you make yourself as to whether you can do both.

Also, i know of many many people who look back on their lives and say "i wish i'd lived a bit more" or took more chances, or retire with ill health an can do little, or dont make it to retirement at all - my wife was commenting there that of 3 of her friends who got their first management role in BT at the same time and roughly the same age as her some 20 years ago, two of the three of them are now dead. :eek:

And lets not forget that the vast majority of people who dont spend money on nice cars, nice holidays, a nice house, etc live like that because they have no choice - often of course, with protests to the contrary.

And finally, theres retirement and theres "retirement" - very few retire early and can continue to afford to do the things they really want to do. Not much point in retiring if at that point you cant afford to take the holidays and drive the cars you always denied yourself.

IMHO, theres a balance to be had. I want to enjoy life now whilst i'm young enough to do it (48), whilst of course keeping an eye on the longer term, should i be fortunate enough to make it to retirement.

facade wrote: »

Retire.
The second that you can.
Live in penury if you must, it is better than working those extra years to be "better off" and then becoming ill- at which point all that money you sweated to save will be used to pay for your care before the state chips in.
Retire with nothing, and anything you need you will be given by the sweat of someone else's brow.

I'm retiring this year no matter what, I'll get by somehow, I just pray that I can make it with my health still intact.

Am i reading this right? You're saying retire with nothing and let other people - presumably the state - support you? Is that not what all the dole heads down the dole office have done then?

And whats the point of "retiring" just to "get by somehow"?

I'd rather work and enjoy life with the money i earn.

I think the reality is, the bulk of people who have retired early can do so because of final salary based pensions and have had long tenure with a particular employer OR have benefited at some point from a property boom.

Interesting article here on how much of a pension pot you'd need to retire @ 55....

https://www.nutmeg.com/nutmegonomics/will-your-pension-be-big-enough-for-you-to-retire-at-55/

To have a household income of just £26,000 to have a "comfortable" retirement, you'd need a pension pot of £1,300,000 (and presumably have your mortgage cleared by then too)

For a more luxurious retirement (including buying a new car every 10 years!) and having £39,000 of household income for the rest of your days, you'd need a pension pot of £2,000,000.