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  • FIRST POST
    • fred246
    • By fred246 4th Jan 18, 3:51 PM
    • 979Posts
    • 534Thanks
    fred246
    Prestigious cars or retire early
    • #1
    • 4th Jan 18, 3:51 PM
    Prestigious cars or retire early 4th Jan 18 at 3:51 PM
    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?
Page 3
    • motorguy
    • By motorguy 5th Jan 18, 3:08 PM
    • 16,756 Posts
    • 9,934 Thanks
    motorguy
    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?
    Originally posted by fred246
    Oh, hang on - the penny has dropped for me - your THAT Fred!

    The one who drives a 13 year old car, does all his own maintenance, doesnt trust garages, cycles to work on some 20 year old bike, doesnt get on with his co-workers, hates young people in nice cars, constantly brags about how well hes doing and what a great job he has but never spends it on anything fancy and oh, maybe most significantly, gets a 300,000 inheritance from a relative sometime soon?

    http://forums.moneysavingexpert.com/showthread.php?p=72161650#post72161650

    Within the next five years I will receive a lump sum and an inheritance
    Originally posted by fred246
    I could possibly end up with 300k in cash.
    Originally posted by fred246
    You forgot to mention "get left a large sum of money from the death of a relative" in the advice in your big I AM speech....



    I'm surprised you spent the money on a hot tub?
    Last edited by motorguy; 05-01-2018 at 3:28 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Tarambor
    • By Tarambor 5th Jan 18, 4:03 PM
    • 3,048 Posts
    • 2,212 Thanks
    Tarambor
    Interesting article here on how much of a pension pot you'd need to retire @ 55....
    Originally posted by motorguy
    Interesting in so much that it is utter rubbish.
    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)
    Well that claim of needing 1.3m is quite frankly a load of rubbish. 650,000 invested in something returning 4% per annum would provide an income of 26,000 for life without touching the initial 650,000.
    • motorguy
    • By motorguy 5th Jan 18, 7:44 PM
    • 16,756 Posts
    • 9,934 Thanks
    motorguy
    Interesting in so much that it is utter rubbish.


    Well that claim of needing 1.3m is quite frankly a load of rubbish. 650,000 invested in something returning 4% per annum would provide an income of 26,000 for life without touching the initial 650,000.
    Originally posted by Tarambor
    You're not allowing at all there for inflation - currently running at 2.7%.

    Try re-running your figures to maintain your 26,000 in real terms over say, 40 years (assuming you live to be 90)

    Pity you didnt think about that before calling it rubbish, eh?

    Irrespective of the actual figure involved, it takes a very very big number in a pension pot to retire at 50-55 and live the life the life you would really want to be able to lead.

    Fair play to the very few who through exceptional planning, frugal living all their day, damned good fortune or in the case of the O/P, helped by a windfal inheritance, but the reality is whilst many aspire to retire early and live happily ever after without a money care in the world, they dont realise just how much that would cost to do so.
    Last edited by motorguy; 05-01-2018 at 7:54 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • IanMSpencer
    • By IanMSpencer 5th Jan 18, 8:33 PM
    • 1,462 Posts
    • 1,080 Thanks
    IanMSpencer
    The rubbish is that 4% is a realistic return on that sized sum. A properly invested portfolio of that size should be exceeding 10%.

    The interesting bit is if Brexit goes pear-shaped, then those with large portfolios should actually be fairly secure as although there is a spread between UK and foreign investment, the reason the UK stockmarket has been so buoyant in the face of the potential downturn is how many of the FTSE 100 actually have a significant part of their earnings coming from abroad. The people who will be hit if things turn sour is not those with substantial money but those who see their earning potential disintegrate.
    • Robisere
    • By Robisere 5th Jan 18, 11:13 PM
    • 2,283 Posts
    • 3,084 Thanks
    Robisere
    I had to finish the work I loved due to injury and disability in my Fifties. If I could have continuing working as a workshop foreman in a business which rebuilt and maintained Classic cars, I would still be there. Or maybe not, as the place closed soon after I left because the owner could find no one else to replace me.

    "Avoid Children." Really? If that is something you really believe works for you on a finacial and life level, then fine. For me, the only events comparable to holding my 2 children when they were born, are my marriage and being the first grandparent to hold each of my 4 grandchildren when they were born. Nothing, absolutely nothing: no amount of money, no material possessions, can match the experiences of holding newborns, and taking part in their growth and development, watching them develop as people and trying to advise them on their journey.

    But I acknowledge that doesn't work for some people, so I won't say that I have pity for you, just that I personally, would not want to have missed being called dad or granddad.
    I think this job really needs
    a much bigger hammer.
    • LeeUK
    • By LeeUK 5th Jan 18, 11:37 PM
    • 5,979 Posts
    • 2,718 Thanks
    LeeUK
    Although this is all moot as I'm no where near retirement age yet, and my pensions forecasts say I'll be living like a pauper unless I can up my income/pay into my pensions more between now and then.

    But at least the 10K I put into bitcoins last week has made me a 2K return already.
    • GothicStirling
    • By GothicStirling 6th Jan 18, 11:41 AM
    • 1,058 Posts
    • 786 Thanks
    GothicStirling
    It all depends on priorities. For some people having a nice car they can take out on road-trips at the weekend makes their lives more fulfilling. Some of us like our jobs, we need to pay bills but we don't work to live either. I work in the NHS, and when I clock out I know I've helped a number of very poorly people, and that gives me job satisfaction (and is great for mental health). Weekends are for me, me, me time.

    So, my advice is to cut out the !!!!-waving. No-one is jealous, they're just thinking what a !!!!.
    • AndyMc.....
    • By AndyMc..... 6th Jan 18, 11:48 AM
    • 1,576 Posts
    • 1,012 Thanks
    AndyMc.....
    It all depends on priorities. For some people having a nice car they can take out on road-trips at the weekend makes their lives more fulfilling. Some of us like our jobs, we need to pay bills but we don't work to live either. I work in the NHS, and when I clock out I know I've helped a number of very poorly people, and that gives me job satisfaction (and is great for mental health). Weekends are for me, me, me time.

    So, my advice is to cut out the !!!!-waving. No-one is jealous, they're just thinking what a !!!!.
    Originally posted by GothicStirling
    Someone will be and not everyone will think that.
    • motorguy
    • By motorguy 6th Jan 18, 2:05 PM
    • 16,756 Posts
    • 9,934 Thanks
    motorguy
    Someone will be and not everyone will think that.
    Originally posted by AndyMc.....
    Jealousy - particularly in this instance - would be a fairly pointless exercise.

    Everyones particular circumstances are different and i dont think we're getting an "absolute" truth picture from some people at least, so jealously would be pointless.

    For example, when the O/P was bragging in his first post he forgot to mention his upcoming 300,000 inheritance AND given he rode to work for 20 years on a second hand bike he bought off ebay or somewhere (and lives a frugal lifestyle) i'd be extremely surprised if hes invested the ,s required to buy a jacuzzi.


    For those who have managed it, and are sitting on big pension pots, i wish them nothing but continued good fortune.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • fred246
    • By fred246 7th Jan 18, 1:43 AM
    • 979 Posts
    • 534 Thanks
    fred246
    I have found this thread quite amusing. I am sorry if people think I have misled them but the jacuzzi isn't mine. I never said it was. I am a member of a health club.
    When I buy something I decide exactly what I want and then keep it while it meets my needs.
    I walked round the house - cooker 17 years, microwave 5, dishwasher 2, washing machine 5, tumble dryer 16, fridge freezer 7, home cinema 4.
    I don't change everything after 3 years. There is no need.
    It is the same with my car. Why change something that works perfectly?
    I suffer no hardship. My colleagues seem to suffer more having to take their car to the garage for servicing.
    • fred246
    • By fred246 7th Jan 18, 2:18 AM
    • 979 Posts
    • 534 Thanks
    fred246
    I paid 16k for my current family car 14 years ago. Works perfectly. Just planning 3rd cambelt change. I took the family looking at new cars recently. Nobody was interested. My daughter got quite upset because she loves our current car so much. I had to explain that the average age of car death is 13 and it can't last forever.
    The reason I wrote the thread was the man opposite has a new Range Rover Vogue every 3 years. Probably company car. Probably leased. I imagine he ( or his company) has lost 150k in a similar time in depreciation. Always has a different colour which is the only way you'd know it was different. I just thought you could have a few years retirement for that money.
    Last edited by fred246; 07-01-2018 at 2:22 AM.
    • motorguy
    • By motorguy 7th Jan 18, 10:21 AM
    • 16,756 Posts
    • 9,934 Thanks
    motorguy

    The reason I wrote the thread was the man opposite has a new Range Rover Vogue every 3 years. Probably company car. Probably leased. I imagine he ( or his company) has lost 150k in a similar time in depreciation. Always has a different colour which is the only way you'd know it was different. I just thought you could have a few years retirement for that money.
    Originally posted by fred246
    Chances are yes its a lease car / company car and is written off against tax by his company.

    A colleague of mine whos currently an IT Contractor too has been lured in to a permie role again by a prestigious company. He currently has a 14 year old X3 on its last legs. They've told him to pick out pretty much whatever company car he wants so i think hes chosing between a Rangie, top end X5 or top end Volvo XC90 Hybrid.

    They'll change it every three years and its fully maintained and fully expensed.

    It works for him as his car is on its last legs anyway and no doubt the company will be getting a very preferential lease deal and be offsetting the cost of it against tax.

    I dont think theres any option for him to get the 80,000 or so in cash instead though.....
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Sea Shell
    • By Sea Shell 7th Jan 18, 11:04 AM
    • 785 Posts
    • 1,063 Thanks
    Sea Shell
    I'll take a paid off mortgage and early retirement against a flash set of wheels any day.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • motorguy
    • By motorguy 7th Jan 18, 11:07 AM
    • 16,756 Posts
    • 9,934 Thanks
    motorguy
    I'll take a paid off mortgage and early retirement against a flash set of wheels any day.
    Originally posted by Sea Shell
    Again that binary statement that doesnt really stack up in the real world - i dont think theres too many that simply by not having a "nice car" at their door for a number of years can suddenly have their mortgage paid off and can retire years early.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • TheMoonandBack
    • By TheMoonandBack 7th Jan 18, 11:36 AM
    • 65 Posts
    • 103 Thanks
    TheMoonandBack
    Again that binary statement that doesnt really stack up in the real world - i dont think theres too many that simply by not having a "nice car" at their door for a number of years can suddenly have their mortgage paid off and can retire years early.
    Originally posted by motorguy
    Agreed, from 2007 to 2015 I had what I consider to be a stupid car phase and ran new or less than 2 year old cars. I changed them regularly, eventually saw the light and stopped doing it.
    Even so when I worked out everything Id spent buying and selling motors it came to around 2000 per year, or 166 per month. In that time I had no cambelt changes, no breakdowns, minimal repairs and probably bought 6 tyres.
    That would not have made a major difference to my mortgage.
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
    • Sea Shell
    • By Sea Shell 7th Jan 18, 11:58 AM
    • 785 Posts
    • 1,063 Thanks
    Sea Shell
    I guess it's more of a mindset against unnecessary over spending, whether that be cars, clothes, holidays. It all adds up. Of course, one person's unnecessary is another person's must have!!!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • fred990
    • By fred990 7th Jan 18, 1:27 PM
    • 18 Posts
    • 13 Thanks
    fred990
    Retired recently at 54, I didn't get the car thing other than as a means of getting from A to B. A cheapo old VW works for me. My old workmates regularly drove 80-90-100k cars, funnily enough only the blokes though.
    They phone/email me and tell me how 'lucky' I am that I could afford to go early! YMMV
    Last edited by fred990; 07-01-2018 at 1:29 PM. Reason: Typo
    • bugslet
    • By bugslet 7th Jan 18, 2:07 PM
    • 6,155 Posts
    • 29,609 Thanks
    bugslet
    I 've had one (for me) really flash car, VX220 turbo. OK, not a wildly expensive car, but I could have got something cheaper and not bought it brand new. Loved it, still smile at the thought of driving it, just great fun!

    Before and after, vehicles have been second hand, just a way of getting from A to B.

    I haven't had holidays at apart from a few long weekends and three Xmas breaks in the UK since 1991, but then again I'm one of those people who gets bored after two days on holiday.

    I really do not like children, the maternal gene completely passed me by, though I like dogs and they'be cost me more than makes sense.

    I see so many contributions here from people whose main ambition is to retire early ...pretty sad really that they have jobs that they just don't enjoy. I also read articles about people who retire early and then don't know what to do with their newly acquired leisure ...again pretty sad.
    Originally posted by reeac
    I could have retired 18 months ago at 52. I work now because most days I enjoy it, and I want some more money to make retirement comfortable. I'm self-made, own business, so I've grafted for every penny. What I would like I more time and just work for myself with no employees and less responsibilities. I have so many things I want to do, and I can't do all of them in the weekends.

    Life is about finding what suits you and living accordingly.
    Last edited by bugslet; 07-01-2018 at 3:03 PM. Reason: spelling
    • tony541
    • By tony541 14th Jan 18, 7:18 PM
    • 25 Posts
    • 11 Thanks
    tony541
    I see so many contributions here from people whose main ambition is to retire early ...pretty sad really that they have jobs that they just don't enjoy. I also read articles about people who retire early and then don't know what to do with their newly acquired leisure ...again pretty sad.
    Originally posted by reeac
    I don't think many people who retire early get bored. I retired at 52 and spent a lot of time in Spain and have never been so busy. Spent a lot of time doing houses up for family and my partner. Fair enough if you enjoy your job but I didnt, but each to his own.
    I too never had posh cars, rather laughed at peeps which their shiny new cars, again each to his own. My last car a vw bora I bought for 1200 7 years ago and done 60000 trouble free miles in it since and only spent an average of some 250 a year on routine maintenance,
    • thescouselander
    • By thescouselander 14th Jan 18, 11:10 PM
    • 5,383 Posts
    • 5,000 Thanks
    thescouselander
    Its pretty foolish IMO to sacrifice things you might like now on the assumption you'll enjoy the benefits in retirement later. I know quite a few people (including my late mum) who popped their clogs much earlier than might be expected in their early 60s.

    Plan for retirement by all means but at the same time live life while you can and if you like posh cars then why not put some money in that direction - it might be the only chance you get to enjoy the benefits of your hard work.
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