Do i have enough for early retirement?
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that's the law- when people have spare money there are many calls for it.
if you had less money your situation would not have changed- only your relative's would.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Actually there is nothing in statute that compels me/OH to give. That has been our choice. It's about taking responsibility and caring for those nearest and dearest to us. You are quite right that we chose to support family rather than see them struggle and/or burden the taxpayer, We have foregone a holiday (or two) and a car (or two). Better that than a young family has their taxes increased to cover the deficit - don't you think?that's the law- when people have spare money there are many calls for it.
if you had less money your situation would not have changed- only your relative's would.
We are not martyrs, simply pragmatic and, yes, most concerned about the welfare of those closest to us.0 -
Dairy Queen, sounds like fate has decided to open its bowels on you. Good for you on the caring for family front. I have some idea of that; my wife has later stage dementia and I am her sole carer 24/7 and have been so for the last 6 years - like you, no holidays and relentless slog - big bills in the future maybe if I can't keep caring at home and my teeth will just have to fall out.
Your generosity towards your stepchildren is a wonderful thing but if they knew it was going to leave you short surely they'd be horrified at taking so much and hand it back.
Anyway, at least you have a lovely smile - and seemingly a sharp sense of humour. Best of luck.0 -
DairyQueen wrote: »Actually there is nothing in statute that compels me/OH to give. That has been our choice. It's about taking responsibility and caring for those nearest and dearest to us. You are quite right that we chose to support family rather than see them struggle and/or burden the taxpayer, We have foregone a holiday (or two) and a car (or two). Better that than a young family has their taxes increased to cover the deficit - don't you think?
We are not martyrs, simply pragmatic and, yes, most concerned about the welfare of those closest to us.
I may have done the same, I am neither questioning what you do nor doubt you do it voluntarily.
I just point out that you are not in danger of having too little because what you have is spent on others so that one is a discretionary spending and surely it would not cause you being short of funds for living. It does not make sense for you to worry you will not have enough - unless you worry you will not have money to help all your relatives that could benefit from help.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Would you (or I) want it any other way? There's a big difference between giving and victimhood. I very much doubt that I would have been able to spend so much time with my parents, in what is likely to be the last decade of their lives, if the circumstances had been different.Terry_Towelling wrote: »Dairy Queen, sounds like fate has decided to open its bowels on you. Good for you on the caring for family front. I have some idea of that; my wife has later stage dementia and I am her sole carer 24/7 and have been so for the last 6 years - like you, no holidays and relentless slog - big bills in the future maybe if I can't keep caring at home and my teeth will just have to fall out.
Your generosity towards your stepchildren is a wonderful thing but if they knew it was going to leave you short surely they'd be horrified at taking so much and hand it back.
Anyway, at least you have a lovely smile - and seemingly a sharp sense of humour. Best of luck.
I am also blessed with a great relationship with my younger stepd. No regrets there.
OH and I are fortunate that we won't be left short but we are only able to help because we had insurance against adversity and that insurance was created from productivity over decades. If we had retired at 35 (OH could conceivably have done this minus the dependents) then there would have been no chance of being in a position to help now.
Giving is a healthy thing to do. I just wanted the OP to be aware that there will be times when s/he will be needed by others and retirement in your 30s is unlikely to prepare you financially or psychologically to help spouse, kids, parents, society or yourself.
Don't sell yourself short OP. There is more than money to be gained from working.0 -
Spot on, but that level of discretionary spending would have been unachievable had we not had productive working lives.I
I just point out that you are not in danger of having too little because what you have is spent on others so that one is a discretionary spending .
My point being that not only does retirement in your 30s disengage you from mainstream society, it also ill-prepares you financially and psychologically for all the random events that can happen throughout life.0 -
Are there not doubts about the true effectiveness of using the Guyton Klinger rules for retirement income?
https://earlyretirementnow.com/2017/02/08/the-ultimate-guide-to-safe-withdrawal-rates-part-9-guyton-klinger/
Also when thinking about early retirement with decades ahead, it is easy to fall into the trap of just thinking about disposable income keeping up with inflation, e.g. 1.5 - 2% as an average. That alone would see your standard of living decline relative to the social average, because average incomes tend to rise faster than inflation over decades. So if your disposable income now were the median UK income level, but only increased by inflation for the next 50 years, in 50 years your income would be well below the median.0 -
No, because that site didn't really use the rules, then criticised them for things caused by their own changes.bobhopeful wrote: »Are there not doubts about the true effectiveness of using the Guyton Klinger rules for retirement income?
Right. Two things tend to mitigate that real issue:bobhopeful wrote: »when thinking about early retirement with decades ahead, it is easy to fall into the trap of just thinking about disposable income keeping up with inflation, e.g. 1.5 - 2% as an average. That alone would see your standard of living decline relative to the social average, because average incomes tend to rise faster than inflation over decades.
1. Spending tends to decrease gradually at normal retirement ages with the excess going into savings. But I doubt that this is true for the very early retirement considered here.
2. The safe withdrawal rates are for exceptionally bad investment times and if more normal results happen income will rise. But no guarantee of this.
Given the long retirement this is another reason to prefer a larger margin than needed at normal retirement ages.0 -
Hi there
I know this is an old post but there has been a change in circumstances - i now have a job! I want a bit of reassurance i guess in terms of whether and how long i need to work before i can "retire" with enough safety and how best to optimise my current assets and the income/benefits from my job. The job is full time and potentially something i would like to do for a few years but its too early to tell and potentially i could end up leaving in a year or so (hence another reason about finding out how long i could retire in).
So my current assets:
Equities ISA and trading accounts: £330k
Pension (previous employer): £110k
P2P: £25k
Cash: £115k
Job income/benefits:
Salary: £80k
Pension: I contribute 10%, employer 15%
Potential for bonus but not going to be meaningful (say 10%)
My outgoings (once i "retire") would be around £24k including mortgage payments.
My current outgoings are a bit more given travel to work costs and food etc. After pension contributions, i am netting just over £4k a month of which i spend roughly £2.3k. So save £1.7k a month roughly. I should be due back some tax refund as i started middle of the current tax year.
I still expect to receive a large inheritance of at least £500k but i hope not for a very long time and i prefer not to even think about that.
Many thanks0 -
If you're thinking of retirement, surely you need to take more risk than holding 115k cash?
Suggest reading some of the FIRE (Financial Independence Retire Early) blogs. The basic maths dictates a 4% draw-down rule, so for £24k / year it's x25 i.e.: £600k invested.
However, there's some criticism of the 4% draw-down rule as it doesn't cover a sufficient timescale in history, and some are suggesting 3% is more appropriate.
Also, retiring might seem amazing (it does to me), but think about it - how would you occupy your time, especially if you "only" have £2k / month income?
I am 31 and have had similar thoughts, but I think generally it stems from a career I don't necessary enjoy (IT), rather than the desire not to work and watch daytime TV all day. I am fortunate in that I am an IT contractor so able to invest decent amounts in a short period (available contracts permitting), and I too am stock-piling funds, but rather with the view to being able to be more flexible with my career (i.e.: not chase the money) when I get to my 40s...0
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