early retirement?

[uuf361]

jonah35 said:

Key is to never, ever retire. It ages you, makes you slow and makes your health suffer.

I think it depends on the person.

Both my Grandfathers retired early - one as you say became slow and I never remember him with much 'get up and go' and he passed away at 79 which I don't consider old.

The other was forced into early retirement around 55, did a few odd jobs for the next couple of years a couple of days each week and hasn't done anything since......he's now 91 and still the same character although admittedly bits of his body are starting to wear out as he has replacement parts that are now 70 years old.....

I'm hoping to retire no later than 60 and preferably around 55, once my mortgage is paid off. I have nobody to leave anything to or to care for, so I may as well dwindle down my money and leave little other the property.

[98elise]

Soir said:

droopsnoot said:

No, the idea is that with appropriate investments, a 4% annual return should be achievable without affecting the capital, so when you take your required annual income and divide by 0.04, you're just calculating what size capital will produce that annual income assuming 4% return. Then of course if you can economise further, or your return is better, all to the good.

I'm glad someone mentioned Mr Money Moustache, it is a very US-centric site but a lot of the stuff on there translates well here too. There's no doubt he's been fortunate to be in the right industry in a good time for that industry, but he's also not just blown the money.

That makes sense, thank you

Be very interested to hear of anyone else who has done or aiming to do this

I'm aiming to retire using BTl's. 7% annual return through the rent, and the capital should take care of itself.

I started my plan when I was 45, with the aim of retiring when I'm 55. I'm now 48 and have 4 BTL's which is my bare minimum for retirement.

The good thing is that owning the BTL's have given me the drive to look at other business avenues.

[Qwert1e]

98elise said:

I'm aiming to retire using BTl's. 7% annual return through the rent, and the capital should take care of itself.

You'll be lucky. The next round of tax increases will almost certainly target Buy To Let landlords.

[LucreLout]

Qwert1e said:

You'll be lucky. The next round of tax increases will almost certainly target Buy To Let landlords.

Any increase in costs is likely to be passed on to the tennant in part or in full, so may not be the problem you seem to think it will be.

[coetzeeh]

Qwert1e said:

You'll be lucky. The next round of tax increases will almost certainly target Buy To Let landlords.

What do you expect will change? (honest question).

[98elise]

Qwert1e said:

98elise said:

I'm aiming to retire using BTl's. 7% annual return through the rent, and the capital should take care of itself.

You'll be lucky. The next round of tax increases will almost certainly target Buy To Let landlords.

BTL's are already taxed as income, so what do you expect them to increase?

[uuf361]

The income is taxed and there is CGT to pay (which went up a couple of years ago) so not sure what other portion there will be left to tax unless you increase either of those ?

[Stevemr]

I dont think they will, but the obvious one is to say mortgage interest cannot be offset against income, that seems to be the constant Guardian gripe any way!

[Welshbeef]

Stevemr said:

I dont think they will, but the obvious one is to say mortgage interest cannot be offset against income, that seems to be the constant Guardian gripe any way!

Well you could set it up as a ltd company for the portfolio so unless Accounting standards / tax rules change for all companies to remove debt interest as a tax deductible then its totally safe.