Retirerment at 43 - Man logic....

[SpeckledJim]

Mezger said:

Second intrusion if you don't mind, how did you manage to create a position where you could retire at 37?

Oi! Manners! I think you mean

"How did you manage to create a position where you could retire at 37, your Grace?"

Sorry about that, your Grace. He's new.

[Mezger]

SpeckledJim said:

Oi! Manners! I think you mean

"How did you manage to create a position where you could retire at 37, your Grace?"

Sorry about that, your Grace. He's new.

Lol, indeed your honour, if you would be so kind as to divulge the secret to youthful retirement, I'd be eternally grateful.

[anonymous-user]

Mezger said:

Second intrusion if you don't mind, how did you manage to create a position where you could retire at 37?

Mix of luck and a very risky 10 year investment srtategy (stocks) throughout my late twenties and thirties. After that, property investment.

Edited to add: I'm not rolling in it by any stretch of the imagination (just look at my car history ) but I don't have a very extravagant lifestyle and enjoy nice things in life in very limited amounts so they always feel special.

Edited by anonymous-user on Friday 19th May 15:54

[johnwilliams77]

garyhun said:

Mix of luck and a very risky 10 year investment srtategy (stocks) throughout my late twenties and thirties. After that, property investment.

Presumably you were earning very well too to invest enough?

[red_slr]

This might help some of you

http://cfiresim.com/

[anonymous-user]

johnwilliams77 said:

garyhun said:

Mix of luck and a very risky 10 year investment srtategy (stocks) throughout my late twenties and thirties. After that, property investment.

Presumably you were earning very well too to invest enough?

Yes I was, more that I do now

[Welshbeef]

Interesting.

For those of you who have done it have you done it with kids? We have 3 all under 5 - how much extra do you need to have in the full fund to accommodate this extra cost? Ditto summer Aug holidays and skiing frankly those two alone for a family of 5 (school holiday time only) is into the £12k territory

[anonymous-user]

Welshbeef said:

Interesting.

For those of you who have done it have you done it with kids? We have 3 all under 5 - how much extra do you need to have in the full fund to accommodate this extra cost? Ditto summer Aug holidays and skiing frankly those two alone for a family of 5 (school holiday time only) is into the £12k territory

Depends if your kids are taking part in the lower stress, lower cost life.

Ditch the holidays and they will cost a few quid a week extra,

[Welshbeef]

desolate said:

Depends if your kids are taking part in the lower stress, lower cost life.

Ditch the holidays and they will cost a few quid a week extra,

So to retire decades earlier in this example I'd have to ditch skiing and summer holidays for what would be at least 18 years.... really?

Seems a bit punchy really as that's a drastic lifestyle change.

Is this the sort of sacrifice people have seriously made?

[anonymous-user]

Welshbeef said:

So to retire decades earlier in this example I'd have to ditch skiing and summer holidays for what would be at least 18 years.... really?

Seems a bit punchy really as that's a drastic lifestyle change.

Is this the sort of sacrifice people have seriously made?

If you read the OP he talks about downsizing.

Some people? would think sacrificing holidays in return for spending as much time with their kids as possible is worth it.

Some wouldn't.

You'd need to factor the extra into your maths.

Edit 3 kids in school will cost 45k a year at your local private school, so work that in as well.

Edited by anonymous-user on Wednesday 24th May 22:46

[anonymous-user]

As you get older your desires and priorities change, regardless of whether you are retired.

I used to travel a lot when I was in my 20s, 30s and 40s but now not so much. A drive down through France into Italy for a couple of weeks is all the holiday I need (and not necessarily every year). Most of the time I love to be doing things in nature and taking small UK trips (which can be very cheap if it's mid-week and not in peak season).

Retirement gives you so much more flexibility in what/how/when so it's not that easy trying to compare it to what you do now.

[Stevemr]

I am planning on FIRE this year as well. I will be 56 though.

Only issue I can see with your maths is your BTL income yo say 6 houses @ £400K thats 66K a house, what can you rent that out for?

I have 4 rented out value of them is probably around £380 K
Gross rent is £2050 pm.
They are all rented through agents who take between 5 and 7%
I plan on drawing £1425 a month from BTL income.
This allows for;-

B and C insurance
Rentguard Insurance (essential in my view)
maintenance
Voids.

[red_slr]

Welshbeef said:

Is this the sort of sacrifice people have seriously made?

We don't go away much. Last 10 years we did a week in Cornwall this Christmas, plus a few weekends away in our camper van.

I do sometimes get to travel with work, but mostly 2-3 days in the EU on my own and talking a couple of times a year.

We plan to travel for around 5 years when we retire pretty much full time, then scale it back to 3-6 months of the year.

I am more than happy to work flat out now (late 30s) for a return in my mid / late 40s.

We did travel a lot in our 20s so we don't feel we have missed out on much.

[del mar]

Stevemr said:

I am planning on FIRE this year as well. I will be 56 though.

Only issue I can see with your maths is your BTL income yo say 6 houses @ £400K thats 66K a house, what can you rent that out for?

I have 4 rented out value of them is probably around £380 K
Gross rent is £2050 pm.
They are all rented through agents who take between 5 and 7%
I plan on drawing £1425 a month from BTL income.
This allows for;-

B and C insurance
Rentguard Insurance (essential in my view)
maintenance
Voids.

I have just bought 2 for £62,500 each and should get £450 per month. The rental return is good but capital growth would be poor / average in 20 years I would guess £70-75k.

As this would be my sole income the risks of voids / maintenance etc are an issue.

I have been offered a rental guarantee for 3% - how do they work and are they worth the money ?

[Stevemr]

Hi Del Mar,

rent gtee, most pay out rent if tenant stops after 1 month (so one month is your excess) usually pay out for 12 months or until tenant leaves, also pay for legal costs of evicting them.
Normally take out through letting agent, or tag onto B and C ins (l and G do a good one.)

Is it worth it? - Its like any insurance a waste of money until you need it!!
I would not be without it, been happily paying it for years without making a claim and hope never to have to, but it lets me sleep at night!!
Plus, one time tenant came to me with sob story about lost job, I simply explained it was out of my hands as I had insurance which would automatically trigger legal action if rent missed, and suddenly, they could find the money!

Should also explain, figures in my earlier post, about taking out £1425 a month. I would expect to be able to take out a bit extra, maybe a £1000 at the end of each year, over and above that.

[GT03ROB]

Welshbeef said:

So to retire decades earlier in this example I'd have to ditch skiing and summer holidays for what would be at least 18 years.... really?

Seems a bit punchy really as that's a drastic lifestyle change.

Is this the sort of sacrifice people have seriously made?

Very probably. There is no right or wrong answer. It comes down to what is important to you.

Very few people will be able to retire at whatever age maintaining the same lifestyle.

[Welshbeef]

garyhun said:

As you get older your desires and priorities change, regardless of whether you are retired.

I used to travel a lot when I was in my 20s, 30s and 40s but now not so much. A drive down through France into Italy for a couple of weeks is all the holiday I need (and not necessarily every year). Most of the time I love to be doing things in nature and taking small UK trips (which can be very cheap if it's mid-week and not in peak season).

Retirement gives you so much more flexibility in what/how/when so it's not that easy trying to compare it to what you do now.

Generally If you have kids you have hem in the 36-65year range/when hey are dependant on you.

What is this mid week holidays melarky you can only take holidays in school holiday time.


Clearly if you have no kids and never will the cost to live is immensely less but given the UK average is 2.4 kids and we are in a baby boom and have been for a number of years that is increasing.

[HSV_V8]

Do it, this would be my ideal plan. Worst comes to worst and you have to go and do something part time?

I wouldn't hesitate, life to me is not about work but if you can get by and still do what you want then go for it!

[Welshbeef]

People say you can do your "hobbbies"

Well some are cheap some not.
Golf isn't
Skiing isn't
Sailing isn't
Rambling is less costs to get there

I guess you could get annual National trust membership and go round the entire stately home portfolio.

Gardening
Allotment


What I've read it appears the suggestion is to effectively have a business, but that comes with Risk.

[anonymous-user]

Welshbeef said:

People say you can do your "hobbbies"

Well some are cheap some not.
Golf isn't
Skiing isn't
Sailing isn't
Rambling is less costs to get there

I guess you could get annual National trust membership and go round the entire stately home portfolio.

Gardening
Allotment


What I've read it appears the suggestion is to effectively have a business, but that comes with Risk.

As usual I am failing to see your point.

Retire when you have enough cash to have the retirement you want.

If that includes funding 3 skiing trips a year then save a bit extra than if you want to join the ramblers.