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  • FIRST POST
    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 826Posts
    • 1,485Thanks
    Marine_life
    Early-retirement wannabe
    • #1
    • 5th Nov 10, 10:46 AM
    Early-retirement wannabe 5th Nov 10 at 10:46 AM
    I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

    Who is aiming for early retirement (or who has retired early already)?
    When did you begin planning and what drove the decision?
    What is the strategy for getting there?
    How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?
    For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    I will post my strategy but wanted to get some thoughts
Page 191
    • inflationbuster
    • By inflationbuster 4th Feb 18, 3:43 PM
    • 161 Posts
    • 45 Thanks
    inflationbuster
    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.
    • gadgetmind
    • By gadgetmind 4th Feb 18, 3:48 PM
    • 10,779 Posts
    • 8,655 Thanks
    gadgetmind
    That sounds like a delayed Christmas lol.
    Originally posted by atush
    Yeah, but we also did it all at Christmas!

    I got a sous Vide for xmas. Have done all sorts with it, but really like how it cooks fish.
    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 now have a proper wand but started with a deep fat fryer and a home made (3D printed) external thermostat.
    Last edited by gadgetmind; 04-02-2018 at 3:52 PM.
    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.
    • Thrugelmir
    • By Thrugelmir 4th Feb 18, 4:57 PM
    • 58,203 Posts
    • 51,575 Thanks
    Thrugelmir

    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)
    Originally posted by inflationbuster
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ams25
    • By ams25 4th Feb 18, 5:09 PM
    • 150 Posts
    • 169 Thanks
    ams25
    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.
    Originally posted by inflationbuster
    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.
    Last edited by ams25; 04-02-2018 at 5:12 PM.
    • inflationbuster
    • By inflationbuster 4th Feb 18, 6:10 PM
    • 161 Posts
    • 45 Thanks
    inflationbuster
    more info needed.

    Crucially it depends on how much you need/want to live on pa.
    Originally posted by ams25
    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.
    • SuperSecretSquirrel
    • By SuperSecretSquirrel 4th Feb 18, 6:19 PM
    • 677 Posts
    • 3,036 Thanks
    SuperSecretSquirrel
    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.
    Originally posted by inflationbuster
    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.
    Originally posted by inflationbuster
    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
    Last edited by SuperSecretSquirrel; 04-02-2018 at 6:38 PM.
    • ams25
    • By ams25 4th Feb 18, 7:34 PM
    • 150 Posts
    • 169 Thanks
    ams25
    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.
    • AlanP
    • By AlanP 4th Feb 18, 7:40 PM
    • 1,170 Posts
    • 842 Thanks
    AlanP
    I wouldn't call FTSE100/250 only as medium risk personally.

    How reliable is the commercial rent income if the UK economy tanks?
    • Terron
    • By Terron 4th Feb 18, 8:43 PM
    • 199 Posts
    • 183 Thanks
    Terron
    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
    Originally posted by SuperSecretSquirrel
    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.
    • gadgetmind
    • By gadgetmind 4th Feb 18, 9:11 PM
    • 10,779 Posts
    • 8,655 Thanks
    gadgetmind
    Currently very cheap class 2 but they are likely to be abolished.
    Originally posted by Terron
    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.
    • inflationbuster
    • By inflationbuster 4th Feb 18, 9:29 PM
    • 161 Posts
    • 45 Thanks
    inflationbuster
    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.
    Originally posted by ams25
    Thanks! l do need to model inflation into my current expenses and include some one off examples.
    • inflationbuster
    • By inflationbuster 4th Feb 18, 9:35 PM
    • 161 Posts
    • 45 Thanks
    inflationbuster
    How reliable is the commercial rent income if the UK economy tanks?
    Originally posted by AlanP
    It's been surprisingly robust through the dot com and sub-prime recessions. Two months of half rent since 1998 is the worst I've suffered.
    • tyronealan
    • By tyronealan 4th Feb 18, 9:39 PM
    • 68 Posts
    • 21 Thanks
    tyronealan
    Best reasons to retire early? I am 56 a teacher of 34 years and chance of redundancy and early retirement has come up.
    What are the thoughts, the pluses and negatives to retiring early? Please be honest or point me to posts for objectivity.
    • OldMusicGuy
    • By OldMusicGuy 4th Feb 18, 10:38 PM
    • 335 Posts
    • 668 Thanks
    OldMusicGuy
    Best reasons to retire early (if late 50s):
    - Health. You need to stay fit and healthy if you want to enjoy a fruitful later life. This takes time and effort, and a busy work life doesn't allow it.
    - Lack of stress. Stress is bad for you and it only gets worse as you get older (see above point).
    - Enjoy 10 to 20 years of active life doing different things than you have done for the last 34 years (in your case). Once you get to 80 plus you will have to slow down a bit....
    - Spend quality time with your partner/family/friends /pets or even just yourself.
    - Read all those books you never had time to read.
    - Visit all those museums you never had time to visit.
    - Visit all those places in the world/the UK you never had time to visit.
    - Do all those hobbies you never had enough time for.

    Reasons not to retire:
    - You define your life and your sense of self-worth by your work.
    - Money (lack thereof).

    Hope that helps!
    Last edited by OldMusicGuy; 04-02-2018 at 10:41 PM.
    • gallygirl
    • By gallygirl 5th Feb 18, 7:53 AM
    • 16,550 Posts
    • 109,321 Thanks
    gallygirl
    tyronealan, I agree with OMG - very few downsides. Another big plus is getting your Sundays back - no 'creeping dread' as the evening approaches and another week beckons. Even if you love your job I'll bet a part of you becomes disengaged with the weekend and starts focusing on the week ahead.

    Go for it (assuming the numbers work, but I assume you wouldn't be posting if they didn't).
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = 0
    "Do what others won't early in life so you can do what others can't later in life"
    • enthusiasticsaver
    • By enthusiasticsaver 5th Feb 18, 8:55 AM
    • 6,259 Posts
    • 12,407 Thanks
    enthusiasticsaver
    I would take up the option so long as you can afford to. I retired at 57 and it is great especially not having to commute in the bad weather. Housework, shopping etc is done leisurely rather than in between working days. I have time to enjoy hobbies and socialise with friends and am exercising more and enjoying it because it does not feel like a chore.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • gadgetmind
    • By gadgetmind 5th Feb 18, 10:06 AM
    • 10,779 Posts
    • 8,655 Thanks
    gadgetmind
    TBH dropping to a four day week made a huge difference to me so consider part time rather than a dead stop.
    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.
    • ams25
    • By ams25 5th Feb 18, 10:28 AM
    • 150 Posts
    • 169 Thanks
    ams25
    Best reasons to retire early? I am 56 a teacher of 34 years and chance of redundancy and early retirement has come up.
    What are the thoughts, the pluses and negatives to retiring early? Please be honest or point me to posts for objectivity.
    Originally posted by tyronealan
    good list from OMG. But this is a very personal thing so if the financials work you have to imagine your life without work. What would you do that you can't do now, what might a typical week look like, what would you miss and not miss about work. What's holding you back?

    I left when a redundancy option came up and in the end happened quite quickly. But after many years of enjoying work (often too much) I'd become jaded and/or burned out and leaving just felt right (I knew the numbers should work) and I have not looked back.

    As a teacher you could have the option of tutoring to add additional funds/purpose if needed.

    Good luck.
    Last edited by ams25; 05-02-2018 at 1:44 PM. Reason: typo
    • Terron
    • By Terron 5th Feb 18, 1:48 PM
    • 199 Posts
    • 183 Thanks
    Terron
    Pushed back a year to April 2019 but what a cracking bargain it was while it lasted.
    Originally posted by gadgetmind
    I am looking at paying them for a year to max out my SP.
    • atush
    • By atush 5th Feb 18, 2:52 PM
    • 16,640 Posts
    • 10,342 Thanks
    atush
    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 now have a proper wand but started with a deep fat fryer and a home made (3D printed) external thermostat.
    Originally posted by gadgetmind

    My son does Salmon all the time ( I dont like pink fish- although i like tuna). We did Cod the other night. Had a really nice texture. I have done pork shoulder for pulled pork, a prime rib of beef, steak, and some asian chicken thighs. going to try checken breasts soon. Bit of a faff, so dot use it much in the week.
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