Early-retirement wannabe
Comments
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That sounds like a delayed Christmas lol.
Yeah, but we also did it all at Christmas!
I haven't done much fish yet mainly because I'm pretty wicked at pan frying fish. What do you do with it? Salmon?I got a sous Vide for xmas. Have done all sorts with it, but really like how it cooks fish.
I now have a proper wand but started with a deep fat fryer and a home made (3D printed) external thermostat.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
inflationbuster wrote: »
£155K investment ISA averaging 9% per annum since 2009
- £210K pensions (one is a work pension 4% contribution with 8% employee contribution and one currently paid up but still growing)
Historical long term average is 5% (above inflation) with income reinvested. Though with no account of charges. Wouldn't base the future on short term returns.
With a UK focus your return has been boosted by a falling pound. Not that companies are generating much better profits.
That's a low % for a pension contribution if you want a decent retirement income at 55, or when ever you are able to.0 -
inflationbuster wrote: »Can l retire at 49? I'm 43 single no kids (and not wanting the latter).
Details:
- £4K per month salary
- £400K cash (£80K in NS&I products, £155K investment ISA averaging 9% per annum since 2009, rest in equities occasionally paying CGT). Medium risk investing FTSE100/FTSE250 only. Roughly £4K in dividends per annum.
- £210K pensions (one is a work pension 4% contribution with 8% employee contribution and one currently paid up but still growing)
- £135K commercial property £10K per annum rent.
I'm 100% debt free.
Honestly i'd love to retire earlier but l think I've got too much tied up in equities. I think if l had £150K instead of £80K in NS&I products, i.e., cash l can access without losing money i'd be more tempted.
more info needed.
Crucially it depends on how much you need/want to live on pa. Your 600k, appropriately invested, so not too much in cash (say 60:40 portfolio), could be expected to generate an inflation adjusted 3% or so pa (ie 18k) over 40yrs, with the commercial property added that's around £28k pa. You're about 18 years out from SP at 49 which might add another 8k if you have (or make further contributions) full qualifying years. You might want to front load withdrawals while younger, but your ability to do that will depend on market returns. Take too much early if markets do badly and you risk running out of money. Read up on safe withdrawal rates to get you started.
So it might well be possible if you keep investing/saving but would suggest you need to dig deeper to test the numbers.0 -
more info needed.
Crucially it depends on how much you need/want to live on pa.
My total outgoings are currently £1000 to £1500 a month. Includes utilities, tv license, car tax, council tax, food, clothes, car maintenance, house/car insurance, Netflix, broadband, mobile phone & ground rent.0 -
inflationbuster wrote: »Can l retire at 49? I'm 43 single no kids (and not wanting the latter).
Details:
- £4K per month salary
- £400K cash (£80K in NS&I products, £155K investment ISA averaging 9% per annum since 2009, rest in equities occasionally paying CGT). Medium risk investing FTSE100/FTSE250 only. Roughly £4K in dividends per annum.
- £210K pensions (one is a work pension 4% contribution with 8% employee contribution and one currently paid up but still growing)
- £135K commercial property £10K per annum rent.
I'm 100% debt free.
Honestly i'd love to retire earlier but l think I've got too much tied up in equities. I think if l had £150K instead of £80K in NS&I products, i.e., cash l can access without losing money i'd be more tempted.inflationbuster wrote: »My total outgoings are currently £1000 to £1500 a month. Includes utilities, tv license, car tax, council tax, food, clothes, car maintenance, house/car insurance, Netflix, broadband, mobile phone & ground rent.
So on top of the commercial property rental income, you need between 2k and 8k per year? Forget retiring at 49, sounds like you should have retired yesterday. Failing that, retire tomorrow!
Edit: That's maybe a little flippant. You might want the state pension eventually, so don't retire, go part time for a while to keep earning those qualifying years, then retire
Edit2: If your 600k only matched inflation (no real gains), you could draw down an inflation adjusted 8k per annum for 75 years... Assuming the commercial rent also increases in line with inflation it looks like you already have more than enough. Screw the state pension if you don't want to work anymore 0 -
You are in pretty good shape to retire early if you can keep expenses modest. But I think you are understating expenses....what about property maintenance. (New boiler, roof etc), replacement cars during the next 30+ years, health/dental, holidays, leisure pursuits with all that free time....
You need to model cash flow for income and expenses to give you confidence in your numbers.0 -
I wouldn't call FTSE100/250 only as medium risk personally.
How reliable is the commercial rent income if the UK economy tanks?0 -
SuperSecretSquirrel wrote: »Edit: That's maybe a little flippant. You might want the state pension eventually, so don't retire, go part time for a while to keep earning those qualifying years, then retire
Or if you have the property in your own name so count as self-employed make voluntary NI contributions. Currently very cheap class 2 but they are likely to be abolished.0 -
Currently very cheap class 2 but they are likely to be abolished.
Pushed back a year to April 2019 but what a cracking bargain it was while it lasted.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
You are in pretty good shape to retire early if you can keep expenses modest. But I think you are understating expenses....what about property maintenance. (New boiler, roof etc), replacement cars during the next 30+ years, health/dental, holidays, leisure pursuits with all that free time....
You need to model cash flow for income and expenses to give you confidence in your numbers.
Thanks! l do need to model inflation into my current expenses and include some one off examples.0
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