Retirerment at 43 - Man logic....
Discussion
Wild thoughts at lunch time....
If we were to sell what we own, house, flat cars and savings (no debt) - that would raise a pot of say £1.1 -1.2m on a sunny day with a favourable wind.
Move back to Newcastle, buying a house in the same area we grew up in - £200,000
Buy 6 buy to lets for £400,000 - this would produce approx. £2,400 a month in rent. This would increase by an amount over time so some degree of inflation proofing / pay rise.
This would leave say £550,000 left, drawing it down by £18,000 a year for 30 years which would take me up to 73.
Total income £44,000
Split between two of us we would pay limited tax on the rental income and no NI.
That would equate to a Gross salary of about £55 - 60,000. A decent income in Newcastle, especially with no mortgage.
I would draw my pension at age 65 - which on contributions to date could grow to be millions.... In reality £250,000 ish ?
Whilst I would technically run out of my draw down pot by 73, I still have the 6 houses which should hopefully have increased to say £75,000 each another £450,000 which at £30k a year should get me to 88. This assumes that we just waste the monthly income for the next 30 years which is unlikely.
Issues.
Selling on a rainy day with no wind....
Living near aged parents.....there are good and bad aspects to this
Inflation eroding savings this bit needs a lot of thought - this could be off set by spending more of it on properties, and having less sat there doing nothing ?
Slack periods / repairs to the properties. 10% of income - rental property to date hasn't caused any issues, but i appreciate they can go wrong.
Boredom there is nothing to stop either of us taking a job if it becomes a huge issue.
No silly cars - although I reckon i might be able to keep one, and the family banger.
Spending more time with the wife.
I have 5 friends only one lives in the same area of the country as us so that is not a huge issue.
Wife would move back.
9 year old son, doesn't have a choice but he wants to stay with his friends.
What else am I missing ?
Thanks
Del
If we were to sell what we own, house, flat cars and savings (no debt) - that would raise a pot of say £1.1 -1.2m on a sunny day with a favourable wind.
Move back to Newcastle, buying a house in the same area we grew up in - £200,000
Buy 6 buy to lets for £400,000 - this would produce approx. £2,400 a month in rent. This would increase by an amount over time so some degree of inflation proofing / pay rise.
This would leave say £550,000 left, drawing it down by £18,000 a year for 30 years which would take me up to 73.
Total income £44,000
Split between two of us we would pay limited tax on the rental income and no NI.
That would equate to a Gross salary of about £55 - 60,000. A decent income in Newcastle, especially with no mortgage.
I would draw my pension at age 65 - which on contributions to date could grow to be millions.... In reality £250,000 ish ?
Whilst I would technically run out of my draw down pot by 73, I still have the 6 houses which should hopefully have increased to say £75,000 each another £450,000 which at £30k a year should get me to 88. This assumes that we just waste the monthly income for the next 30 years which is unlikely.
Issues.
Selling on a rainy day with no wind....
Living near aged parents.....there are good and bad aspects to this
Inflation eroding savings this bit needs a lot of thought - this could be off set by spending more of it on properties, and having less sat there doing nothing ?
Slack periods / repairs to the properties. 10% of income - rental property to date hasn't caused any issues, but i appreciate they can go wrong.
Boredom there is nothing to stop either of us taking a job if it becomes a huge issue.
No silly cars - although I reckon i might be able to keep one, and the family banger.
Spending more time with the wife.
I have 5 friends only one lives in the same area of the country as us so that is not a huge issue.
Wife would move back.
9 year old son, doesn't have a choice but he wants to stay with his friends.
What else am I missing ?
Thanks
Del
Edited by del mar on Wednesday 17th May 17:36
You could probably add extra income from some form of work.
When you don't have to work, work takes on a different slant and can be enjoyable as you can pick and choose what you do.
Some people enjoy the whole career and hard work aspect others don't. The fact you are thinking of this suggests that you want a change.
When you don't have to work, work takes on a different slant and can be enjoyable as you can pick and choose what you do.
Some people enjoy the whole career and hard work aspect others don't. The fact you are thinking of this suggests that you want a change.
Yipper said:
The trick to super-early retirement is to continue working part-time. Else you go stale and get bored. Drive a taxi, do some freelance consulting, sell cars on Ebay, refurb property, whatever.
Or have a hobby you are really into.Get your Mrs into BDSM and you'll never be bored.
desolate said:
You could probably add extra income from some form of work.
When you don't have to work, work takes on a different slant and can be enjoyable as you can pick and choose what you do.
[/snip]
This, retire might be where you want to be at the moment and if maths works out why not.When you don't have to work, work takes on a different slant and can be enjoyable as you can pick and choose what you do.
[/snip]
Any hobbies or interests that would allow additional financial freedom and some return without the rat race stress?
Not having to work but choosing to work could be as much of what your looking for as retirement.
Nice thing to ponder on.
Yipper said:
The trick to super-early retirement is to continue working part-time. Else you go stale and get bored. Drive a taxi, do some freelance consulting, sell cars on Ebay, refurb property, whatever.
Exactly this. Work part time at something you enjoy rather than having to work for money alone.Assuming your 2400 pcm is gross, you won't be retired if you have 6 BTL's! You will end up being a property manager, so may as well do what a lot of people with a self managed portfolio do, and start to manage other properties.
Unless you want to throw money away on agents that is...
Unless you want to throw money away on agents that is...
Ive just done it and im in my 30s with no kids and would say go for it.
People say youd get bored but i personally dont think i will.
So far ive got in better shape and can hit the gym well rather than having a quick 30 mins here and there and then go for a coffee and read the paper in the coffee shop across the road.
In the evenings its stuff like having friends round, going to the pub, more gym and so on.
What im planning on doing is travelling the world much of the time without plans. This doesnt cost much - Flights to florence c.£150 and then hiring a car and stopping off places in Tuscany wine tasting and so on for ask long as i feel like. Fiat 500 car hire c.£20 per day and hotels/villas arent too dear.
Then going to thailand to go around the islands again - its pretty cheap there for food, accommodation and beer - can soon spend a few months there - ive done this before.
The biggest issue you have is finding similar people to go with. Fortunately ive lived near my home town all of my life so have lots of friends here. Different people join me on different holidays etc but also there are people you meet when you get to a new place.
Different things for different people. My logic is you cant take it with you and theres no point saving and saving - could soon get a job as a taxi driver or something ng if i wanted.
It is, however, surprisingly weird how little you can spend if mortgage free. Household bills c.£400pm and gym membership £40 and everything else is to spend. Travel costs a bit but once in the actual country you can spend very little. Recently been to the canaries. Get up and go for a jog, sunbathe, play squash or something and then out for dinner and beer in the evening - you only need to spend £40 a day (or even less if you dont eat out each night!)
At some point in the future there will also be the state pension and occupational pension to claim too.
If i get bored ill worry about it at that point lol
People say youd get bored but i personally dont think i will.
So far ive got in better shape and can hit the gym well rather than having a quick 30 mins here and there and then go for a coffee and read the paper in the coffee shop across the road.
In the evenings its stuff like having friends round, going to the pub, more gym and so on.
What im planning on doing is travelling the world much of the time without plans. This doesnt cost much - Flights to florence c.£150 and then hiring a car and stopping off places in Tuscany wine tasting and so on for ask long as i feel like. Fiat 500 car hire c.£20 per day and hotels/villas arent too dear.
Then going to thailand to go around the islands again - its pretty cheap there for food, accommodation and beer - can soon spend a few months there - ive done this before.
The biggest issue you have is finding similar people to go with. Fortunately ive lived near my home town all of my life so have lots of friends here. Different people join me on different holidays etc but also there are people you meet when you get to a new place.
Different things for different people. My logic is you cant take it with you and theres no point saving and saving - could soon get a job as a taxi driver or something ng if i wanted.
It is, however, surprisingly weird how little you can spend if mortgage free. Household bills c.£400pm and gym membership £40 and everything else is to spend. Travel costs a bit but once in the actual country you can spend very little. Recently been to the canaries. Get up and go for a jog, sunbathe, play squash or something and then out for dinner and beer in the evening - you only need to spend £40 a day (or even less if you dont eat out each night!)
At some point in the future there will also be the state pension and occupational pension to claim too.
If i get bored ill worry about it at that point lol
del mar said:
I appreciate the boredom, I think I would have enough interests to keep going but a job is always an option
Are there any gaping holes in my logic ?
flat cars - anything under 130 tall !!
Why not buy 12 buy to lets?Are there any gaping holes in my logic ?
flat cars - anything under 130 tall !!
Could emigrate - wingate school in tenerife looks good. Your son would finish school at 2pm, you cycle to pick him up and then play footy at the beach, eat on the balcony, sit outside in the sun with your wife and just relax. Safe place to bring up your son, not materialistic, nice weather, nice food and so on.
Youd get a nice place for £200k and i struggle to see how you could spend over £75 a day there on general expenditure. Younwouldnt need a car as youd cycle or jog and youd soon get to know all the locals etc.
Or you could keep working, be stressed, not as fit, getting up on a cold november morning to go to work and spend less time with your son and sit in at night because its too cold and dark to do anything in the uk.
I am planning a similar thing although not quite that early, maybe 2-3 years later than you. I joined Mr Money Moustache last year which is a forum based around retirement and retiring early... also eating food out of other peoples bins and wearing slippers made from old carpet but that's another story...
They call it "FIRE". Financially Independent / Retire Early. I.e your investments provide enough income to cover your expenses, entertainments, travel, medical etc. Its a good site to look at.
Most people on MMM forums have a FIRE figure of around 1M - 1.5M so your figure sounds about right. On this they say you can sustain a decent income forever or until being so old as it makes no difference. At the moment people are basing this around returns of c.4% PA so your 1M gives you £40k per year before tax. Its a massive subject and how to achieve the "FI" part is a big topic in itself as some people go the property route, others things like VLS or pensions - there are loads of ways to do it.
There are so many spreadsheets and the like you can do, I keep my own early retirement sheet updated once a month to make sure I am on track. Sounds like you are already at the FI stage you just need to decide your RE date. My wife used to think I was living in dream land thinking we could retire pretty early but over the last 12 months she has started to pay a lot more attention now the spreadsheets are starting to follow the curve which leads us to a possible retirement age of 45...
As for getting bored, with 2 or 3 hobbies, some travel, property to look after it would not be difficult IMHO.
They call it "FIRE". Financially Independent / Retire Early. I.e your investments provide enough income to cover your expenses, entertainments, travel, medical etc. Its a good site to look at.
Most people on MMM forums have a FIRE figure of around 1M - 1.5M so your figure sounds about right. On this they say you can sustain a decent income forever or until being so old as it makes no difference. At the moment people are basing this around returns of c.4% PA so your 1M gives you £40k per year before tax. Its a massive subject and how to achieve the "FI" part is a big topic in itself as some people go the property route, others things like VLS or pensions - there are loads of ways to do it.
There are so many spreadsheets and the like you can do, I keep my own early retirement sheet updated once a month to make sure I am on track. Sounds like you are already at the FI stage you just need to decide your RE date. My wife used to think I was living in dream land thinking we could retire pretty early but over the last 12 months she has started to pay a lot more attention now the spreadsheets are starting to follow the curve which leads us to a possible retirement age of 45...
As for getting bored, with 2 or 3 hobbies, some travel, property to look after it would not be difficult IMHO.
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