Retire early (living off savings)

[baliongo]

200Plus Club said:

You are obviously a pipefitter if you are chucking 6" pipe around, very physically demanding and wearing and proof the one size fits all retirement age for state and other pensions isn't right. Some of the guys I know in their early 60s who are still having to work are now suffering with worn out knees, back and neck issues and physically cannot do what's needed after 40yrs humping heavy duty pipe around.
Get out as soon as you are able is a great plan!

Yes matey i do large install work and many parts of my body are suffering,as said before i am 50 yrs old and at times i feel far older,i am still reasonably strong but back and knee issues have plagued me for a few years.

I am 6ft 3" and my height has played a part i am sure...

And i do hope to get out before i have to...

[Smitters]

xeny said:

Smitters said:

Clearly, this isn't possible. Therefore, I looked into another Vanguard fund - one linked to a target retirement year, which moves down the risk profile over time. Since I already have my rainy day savings, returning next to nada but there if needed, what's the view on this as a plan for sensibly placing any money left over at the end of the month? What else could I look at?
.

Put it in LS rather than target retirement, and do your own moves down through bond/equity ratios - that way if your circumstances change you can change the investment directly rather than mucking about with changing the target retirement rate to change the bond/equity ratio.

Also, especially if you're retiring early, you may want to stay with a decent fraction of equities to keep you going through a hopefully long retirement rather than hunkering down with almost everything in bonds.

Thanks for the response. I already have one LS Fund as my regular "savings" which kicked off my S&S ISA, which is equities heavy now, since I'm a) starting a bit late and b) still have long enough to go that I'm OK with the risk. I think my choice of a TR fund was because I'm ultimately quite passive in activity, so it represents a fairly safe, theoretically reasonable return to balance the risky LS fund. I get what you're saying in terms of ease of manipulation though.

[cashmax]

Fascinating thread, not sure why it’s such an interesting read, perhaps the glimpse into random folks hopes, dreams & aspirations, who knows?

My main observation is just how mature the majority of people seem to be about planning for the future, until I was in my mid thirties I just spent every penny I had and more, with no thought for the future.

It wasn’t until I had kids and as they grew, it also started to grow on me that I my life had changed and my family were a unit and heavily dependant on me.

I’m 46 now and since having kids in my mid 30’s, my vision for the future has changed many times, I had started my own business, just before the kids and it quickly became apparent that this was going to be a make or break opportunity. I had made no plans for the future and had no private pension and even contracted out of the state one (perhaps those payments have gone somewhere, who knows)

Through hard work with a big sprinkling of luck (another story) I have ended up pretty much retired after a couple of private equity transactions yielded around £3M. Even though it didn’t happen overnight and was planned, it still felt like winning the lottery and I did what any self respecting PHeader is required to do, I acquired a Ferrari and a boat, moored in an expensive marina, that was 3 years ago and the novelty of the Ferrari wore off very quickly indeed and the boat is for sale too.

Even now, I tend to be at a constant battle with money, with no idea what the future might hold, I have some days thinking my family and I should enjoy it while it lasts and others thinking we should be more frugal, making sure we have the means to last for perhaps another 30 years…

I suppose my point is that whatever your financial position, I’m not sure putting off today for tomorrow is not for everyone and a strong financial standing doesn’t mean you are going to enjoy life anymore than your peers, it just means your “worry bucket” gets filled with more trivial, first world things.

Edited by cashmax on Tuesday 6th February 11:53

[200Plus Club]

I've a slightly new path opening up potentially that i never previously considered, which could let me retire around 57, but means i'd be house/home sharing with an Aunt (shes my 2nd Mum since mine passed away). i dont get a pension until 65, without damaging it massively going early, but in 4/5yrs the mortgage will be paid off and i'll have probably £180k equity in our home which we may sell or rent out. that would free up some significant cash, if we move in with the Aunt. Shes no family other than me, and its a large 17th century farmhouse with a bit of land, so we'd all have a bit of space to breathe. the house is in mine/sister names once our Aunt passes on, so i'd have to look after my sisters share and make allowance for that.

the wife has tiny pensions coming at 60 and 66 but we have some income from a flat we own, mortgage free. shes 4 yrs older and determined to retire in 4 yrs or so as shes spending time looking after her mum who is 87 and at present still self supporting at her own council home.
so we might end up in rural North Lincs, in a very quiet peaceful village, maybe 40mins drive to York, 20 to Doncaster, 40 to sheffield, but a big change from city living.

The main considerations are living with and supporting my Aunt who will be 80 then, and making the change from a large city life (Sheffield) to living in a very small very close knit community but having cash to support that and perhaps 7 or 8 years earlier retirement.

[nought2sixty]

cashmax said:

Fascinating thread, not sure why it’s such an interesting read, perhaps the glimpse into random folks hopes, dreams & aspirations, who knows?

My main observation is just how mature the majority of people seem to be about planning for the future, until I was in my mid thirties I just spent every penny I had and more, with no thought for the future.

It wasn’t until I had kids and as they grew, it also started to grow on me that I my life had changed and my family were a unit and heavily dependant on me.

I’m 46 now and since having kids in my mid 30’s, my vision for the future has changed many times, I had started my own business, just before the kids and it quickly became apparent that this was going to be a make or break opportunity. I had made no plans for the future and had no private pension and even contracted out of the state one (perhaps those payments have gone somewhere, who knows)

Through hard work with a big sprinkling of luck (another story) I have ended up pretty much retired after a couple of private equity transactions yielded around £3M. Even though it didn’t happen overnight and was planned, it still felt like winning the lottery and I did what any self respecting PHeader is required to do, I acquired a Ferrari and a boat, moored in an expensive marina, that was 3 years ago and the novelty of the Ferrari wore off very quickly indeed and the boat is for sale too.

Even now, I tend to be at a constant battle with money, with no idea what the future might hold, I have some days thinking my family and I should enjoy it while it lasts and others thinking we should be more frugal, making sure we have the means to last for perhaps another 30 years…

I suppose my point is that whatever your financial position, I’m not sure putting off today for tomorrow is not for everyone and a strong financial standing doesn’t mean you are going to enjoy life anymore than your peers, it just means your “worry bucket” gets filled with more trivial, first world things.

Edited by cashmax on Tuesday 6th February 11:53

Have you ever considered owning your own brewery? 😉

[cashmax]

nought2sixty said:

Have you ever considered owning your own brewery? ??

Small industry with little or no prospects apparently...

[Armitage.Shanks]

cashmax said:

I suppose my point is that whatever your financial position, I’m not sure putting off today for tomorrow is not for everyone and a strong financial standing doesn’t mean you are going to enjoy life anymore than your peers, it just means your “worry bucket” gets filled with more trivial, first world things.

Very true chum. It's a difficult balance especially when we don't know how long we've all got. In 8 days I hang up my suit and take my options. Advice I've so far received is I've got enough through the pension to sustain me well but it will never sit comfortable spending your own money when you could spend income through working. Also I chose not to take a pension income maximum, given that when you're in your 80s you don't necessarily spend as much albeit that's 30yrs off. Depite having some decent cash I don't crave those luxury purchases at all. I was tempted on a bespoke suit but realised I'll have limited opportunity to wear it in future. 65" OLED will be on the cards though.

[mikeiow]

Armitage.Shanks said:

I was tempted on a bespoke suit but realised I'll have limited opportunity to wear it in future. 65" OLED will be on the cards though.

I'm planning more for a bespoke campervan or suchlike - no suits once I give up the day job! Mind you.....I don't wear one now!
Why stop at OLED: projector surely
Good luck: the adventure begins!

[baliongo]

I have realised there are a few things i want to buy before i pack it all in for good,being able to save all i earn means i can treat myself and the wife without impacting on our retirement fund...

[Storer]

Armitage.Shanks said:

Very true chum. It's a difficult balance especially when we don't know how long we've all got. In 8 days I hang up my suit and take my options. Advice I've so far received is I've got enough through the pension to sustain me well but it will never sit comfortable spending your own money when you could spend income through working. Also I chose not to take a pension income maximum, given that when you're in your 80s you don't necessarily spend as much albeit that's 30yrs off. Depite having some decent cash I don't crave those luxury purchases at all. I was tempted on a bespoke suit but realised I'll have limited opportunity to wear it in future. 65" OLED will be on the cards though.

Forget the suit. I only wear one to weddings/funerals these days. You can buy lots of pairs of nice shorts (my normal attire for at least 6 months of the year) including to meet my bank manager, clients or suppliers.

Some people look at you a bit strange but I just think "I don't care what you think". "I do what I want now."

[nought2sixty]

cashmax said:

Small industry with little or no prospects apparently...

For a brewer, yeah. You could probably have a tidy pension running a small brewery with a few members of staff.

[dmulally]

baliongo said:

I have realised there are a few things i want to buy before i pack it all in for good,being able to save all i earn means i can treat myself and the wife without impacting on our retirement fund...

That's the trap I fell into and why my retirement lasted barely half a year. There comes a point where it becomes less about the money and more about the social conditioning. It's so easy to say and hard as fk to do.

Good luck!

[mccrackenj]

cashmax said:

nought2sixty said:

Have you ever considered owning your own brewery? ??

Small industry with little or no prospects apparently...

Does it have to run at a profit? Could you not stomach a small annual loss and treat it as a hobby?

[cashmax]

mccrackenj said:

cashmax said:

nought2sixty said:

Have you ever considered owning your own brewery? ??

Small industry with little or no prospects apparently...

Does it have to run at a profit? Could you not stomach a small annual loss and treat it as a hobby?

Probably, but I already have a significant number of loss making hobbies.

[StairDominator]

dmulally said:

After an argument with my bank a few years ago I sold my house and 30 years left of the mortgage and moved to New Zealand.

I bought a bare block for as cheap as I could and have been slowly building it up with one eye on retirement. I'm off grid and collect my own water for example.

I planned to do something similar to what the OP did but only lasted five months before I took up a contract in town again. I was all set to have a good five years off work comfortably to see how I liked it but stupid cars have me working again. It's tragically funny really. When I work I have no time and when I have time I have no money!

Those five months were pretty sweet though and the farm is humming now so it wasn't wasted. I'll try again next year I guess. After a trip to the states to buy a classic snotter and take a tour of the bible belt.

Off grid living's my ultimate goal. Rainwater harvesting, coppicing, self build, energy and food production etc. That's true self employment. I get a lot of satisfaction from being independent and self-reliant, I require a proactive lifestyle or I suffer greatly from lack of it. Testament to this thread, generally humans do not lead a happy or healthy lives partaking with the proverbial rat race. Why the wish to retire at the earliest opportunity if so? When I obtain my smallholding I know I will never retire - but maintaining a smallholding's a way of life. I'm a self-confessed misanthrope, so being around people get's old very quickly - with that in mind I was never suited the rat race to begin with; quite frankly it's a miserable lifestyle that makes my skin crawl.

[wisbech]

nought2sixty said:

For a brewer, yeah. You could probably have a tidy pension running a small brewery with a few members of staff.

Isn’t that known as ‘having a job’ and ‘not being retired’?

[nought2sixty]

wisbech said:

Isn’t that known as ‘having a job’ and ‘not being retired’?

The idea would be to have the staff running it. You would just collect the profits, enjoy the hospitality of festivals and events, tell people you own a brewery etc.

[TCS1]

^It's how I work at the moment, albeit different sector. I do 10hrs a week, sorting orders, paying suppliers, admin, payroll etc. I'd advocate it as the way you should work, rather then retire.

[Storer]

Employing staff is something I would definitely avoid in retirement (haven't employed someone directly for 18 years) as it increases the hassle of running a business.

Retirement is about avoiding hassle as it reduces the enjoyment of life.

[dmulally]

StairDominator said:

dmulally said:

After an argument with my bank a few years ago I sold my house and 30 years left of the mortgage and moved to New Zealand.

I bought a bare block for as cheap as I could and have been slowly building it up with one eye on retirement. I'm off grid and collect my own water for example.

I planned to do something similar to what the OP did but only lasted five months before I took up a contract in town again. I was all set to have a good five years off work comfortably to see how I liked it but stupid cars have me working again. It's tragically funny really. When I work I have no time and when I have time I have no money!

Those five months were pretty sweet though and the farm is humming now so it wasn't wasted. I'll try again next year I guess. After a trip to the states to buy a classic snotter and take a tour of the bible belt.

Off grid living's my ultimate goal. Rainwater harvesting, coppicing, self build, energy and food production etc. That's true self employment. I get a lot of satisfaction from being independent and self-reliant, I require a proactive lifestyle or I suffer greatly from lack of it. Testament to this thread, generally humans do not lead a happy or healthy lives partaking with the proverbial rat race. Why the wish to retire at the earliest opportunity if so? When I obtain my smallholding I know I will never retire - but maintaining a smallholding's a way of life. I'm a self-confessed misanthrope, so being around people get's old very quickly - with that in mind I was never suited the rat race to begin with; quite frankly it's a miserable lifestyle that makes my skin crawl.

Be prepared to hear pretty much everyone you know tell you that you're crazy in a weird well meaning attempt to justify their own decisions.

Best thing I ever did. Knowing I could leave work at any date I feel like or get sacked and it doesn't mean much is very relaxing.