Early retirement?

Discussion in 'General Chat' started by Trollslayer, Jul 18, 2015.

  1. Trollslayer

    Trollslayer
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    OK, as some may know I was made redundant recently from a well paid job and have been investing in funds for a short while.
    I have been job hunting which takes time and yesterday a though occurred to me.
    By actively managing the pension funds and using drawdown instead of taking an annuity the numbers to very good.
    It's a shock and I didn't get to sleep until after 4am but haven't found a hole yet.
    The biggest issue is that I have been focussed on work for a long time and will need to get out and do things but there are some decent volunteering options (air ambulance, STEM ambassador etc.).

    Gulp!
     
  2. wilbanat

    wilbanat
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    More time to Mod us lot :clap: If you want us to give you more to do, then just shout....We are always here and always will be..............FOREVER! :)
     
  3. Trollslayer

    Trollslayer
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    [​IMG]
     
  4. Tetlee

    Tetlee
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    If you can afford to and the timing is right with your recent redundancy, why not?

    In that position I would. I'll be planning on retirement as early as possible, although in my situation(no savings, no pention and no future inheritance) I'll probably be looking at around 70:facepalm:

    How old are you BTW?
     
  5. Flashy

    Flashy
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    Someone I used to work with retired early in his mid-50s. Big changes at work at the time and he decided the time was right to get out. His mortgage was a staggering £70 a month then (no, I haven't missed off a zero or anything...) and children moved out, so not too many overheads beyond general cost of living.

    Still meet up regularly and he said it's the best thing he ever did. He still keeps his hand in with work helping out when needed and other little things, plus does a fair bit of volunteering, too – as anyone who's retired and is still fit and healthy will tell you, there's no problem filling the time.

    The only issue is whether you can afford it. If you can, as Tetlee says, why not? Would it be worth having a chat with a financial advisor, just to check your sums do add up?
     
  6. Trollslayer

    Trollslayer
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    Tetlee - 55 and why not is a very good question.
    Flashy - good comments.
    My mortgage is about £600 a month at 2% over base rate, £53k to pay off. Continuing to pay the mortgage will mean drawing enough money to hit 20% tax so total cost would be about 22%pa. That means paying it off from a lump sum is probably best and means I have less regular obligations, easier to take out money when it's best.
    Investments are doing about 2-2.5% per month and taking out 10%pa will leave plenty for capital growth.
     
  7. indianwells

    indianwells
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    That is impressive!! Got to be fairly high risk with that sort of return surely? Mine are doing 10-13% but that is per year.
     
  8. Trollslayer

    Trollslayer
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    I have done a lot of research with help from others here several months ago.
    Axa Framlington biotech has a high rate of return (45% annualised over the last three years) but is volatile so to be treated as a long term investment, 10 years or more.
    River & Mercantile smaller UK companies has 33% annualised over the last three years and is much less volatile.
    I also wrote some Python code that scrapes prices daily from my broker's website and creates a spreadsheet with the history of pricing, charts with variable period averaging etc. so I can keep track of what is happening.
     
  9. indianwells

    indianwells
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    I see, you are obviously putting the work in. I don't have the time (or knowledge) to do that so use a couple of investment companies.
     
  10. Trollslayer

    Trollslayer
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    Analysis has been a significant part of my work so it comes naturally.
    10-13% through a company is quite good, particularly as they will go for lower risk companies because it is safer for them.
     
  11. gibbsy

    gibbsy
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    At 55 and with good health, plus you've done your sums and can afford it, then why not. I had to retire before that because of ill health and although I'm financially sound it is very limiting as to what I can do. Now with no mortgage and no debts plus an enhancement to my pension next year all should be looking rosey..............if I was in good health. Use your time and your health to enjoy your life.:smashin:
     
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  12. Trollslayer

    Trollslayer
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    Thanks.
    Frankly the prospect of not getting messed around and sometimes lied to by recruiters is part of the attraction.
     
  13. Tetlee

    Tetlee
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    Funny enough 55 was always my dream retirement age. I remember when I purchased my first flat and got myself a pension in my early 20's, being asked the age I wanted to retire, 55 was my reply and I planned around that.

    Of course alot changes over the years and I now realise that will be highly unlikely. I am lucky to have my own business which I'm truly thankful for, having been self employed for a large chunk of my working life in the past it is tough going back to being unappreciated by employers and the typically nonsense modern day interviews. I say think long and hard, and if you can retire now, go for it and enjoy life!

    Good luck either way.
     
  14. Greg Hook

    Greg Hook
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    Good on you is all I can say. As long as you have done the numbers and all eventualities are covered then have a great retirement!

    Just be aware that excluding the costs of travelling to work and back which you won't have any more, your day to day living costs may be more expensive as you are likely to want to do things during the day. When I was made redundant back in 2010, for only three months thankfully, I found it quite expensive being out of work due to wanting to go to various places or do things.
     
  15. indianwells

    indianwells
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    Do it if you can. I remember being told by everyone to work until you are 65 and then enjoy the rest of your life. I thought to myself, 65??? F.&@k that, and 55 was my absolute minimum. I am fortunate to be able to do it at 54 and I most definitely will. I know it is a huge cliche but we really are here only once so as soon as you can leave the sh*tty treadmill of working then do it.
     
  16. Trollslayer

    Trollslayer
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    Greg - good point about costs increasing.
     
  17. Greg Hook

    Greg Hook
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    It's something people often don't consider. Being at work you are not spending money. But being at home, unless you sit watching TV all day then you will need to find something to fill the time. That often involves spending money.
     
  18. Trollslayer

    Trollslayer
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    Plus I have to buy my own biscuits in the future.
     
  19. Greg Hook

    Greg Hook
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    Or make your own, that would fill some time! :)
     
  20. Trollslayer

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    My cooking is banned under the Geneva Convention :(
     
  21. SteveCritten

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    Hi mate, retire as soon as you can as you know I just have (3 weeks). I still haven't made a final decision on whether to get a full time job till I am 55 then "live it up" and do a bit of volunteering or settle for what I have just do a couple of days a week now. Factors around me are making me err on the later ie frinds dying recently.
    I have a few properties too that provide a small income and I am in the 20% tax bracket already but has been said here I intend to do more during the day (been for my first golf lesson this week) and I have a young family 17 and 10 so I probably need a little more income than you.
    What I will say is I wouldn't rely on risky investments for your main income. Keep those as an extra bonus. Just out of interest are they invested in a SIPP already? It really depends on how your investments sit but if you feel confident then retire as early as possible. It's only been 3 weeks for me and I still get emotional talking about it as I know I will miss it deeply as I loved my job but I can see the benefits too ie more time with my family.
     
  22. mij

    mij
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    Early retirement for me was due to watching all the males in my family dying well before the age of 65, my dad was was 56 and I have managed to surpass that :)

    My father in law was a very good well known cyclist who had a massive bucket list for his retirement, sadly he died aged 65 and a few months :( What makes it even sadder is that he had the means to retire at 55, but kept on finding trivial reasons to carry on working.
     
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  23. johntheexpat

    johntheexpat
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    With high yielding, high risk investments to rely on and a mortgage than may rocket if it isn't paid off it may not be so easy in the years to come. And you can reasonably expect to have another thirty plus years to finance. ( unless you are just look ing to finance up until state retirement age).

    High yielding shares give high yields because not everyone shares your optimism about the shares. If they did the yield would be lower.

    And then there is the keeping busy question. It's not as easy as full time volunteering because volunteers very often get dissillussoned with being treated as lesser mortals. Which may give you more free time to look at your investments and then tempt you to start tweaking them etc. Which is a dangerous game.
    Finally it is very true that work helps define you. Your job gives you status and focus along with respect dignity and security. Retiring changes that and many people find the transition difficult to say the least.
    But good luck whatever path you take.
     
  24. Trollslayer

    Trollslayer
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    Steve,
    the investments are mostly in the pension fund with a smaller amount in a stocks and shares ISA.
    I am planning to take about 40% of average growth as income and long term two bad years in a row won't have any major effect. Got to work out the long term implications of shifting money into the ISA e.g. tax efficiency.
    These are funds not companies and it is important to track performance which is what I have set up and will check comparative performance once a month. Managing the money is important so I don't turn around in five years and see the value has been dropping for three years!
     
  25. Trollslayer

    Trollslayer
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    John,
    I am using funds not shares, I couldn't predict company behaviour accurately enough and I will be learning more about funds which will give me a bit more to do.
    You are right about keeping busy. I will do some presentations for the air ambulance and maybe a bit of office work so I will have a focus without the stress of my previous job. It was a job I enjoyed with great people but coming home I often needed quite a bit of time to unwind then it was bed time, off to work again etc..
     
  26. Philly112

    Philly112
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    I had a similar thread a couple of years ago, and exchanged a few posts with Steve Critten I think. We're all about the same age.
    I was 54 in May, and in 2 weeks I start a 'new' 3 day a week job. I probably could have stuck it in my current role till 55, and then gone, but it was driving me mad, and as this opportunity came up, I thought 'let's go for it'. I'll be on 3/5 of my current salary, so a fair bit less. This is around my target retirement income (after tax etc) and at 55 I will hopefully be able to sustain that until I peg out. And if I am enjoying it, I might carry on until beyond 55. We don't have a mortgage, which is handy.

    One note about spending more in retirement. That's true day to day, but also factor in being able to holiday at times to suit your finances, not your companies requirements. You can get some very cheap last minute deals which are not usually feasible if you're in a job. And if you do any weekend city breaks now, home or abroad (we do)- they are MUCH cheaper Tues-Thursday than at the weekend.
    And there are quite a few cheap hobbies you could take up which could actually reduce your weekly spend. Cooking is one. Golf isn't :D
    Good luck.
     
    Last edited: Jul 19, 2015
  27. NewfieDrool

    NewfieDrool
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    Go for it, you live but once and get just one chance to do what you want.
    If you wanted to keep busy there is nothing stopping you going alone with a venture where you are your own boss and can pick how many hours or what you want to do.
    My father passed away at 69 and under the 65 year pension crap he would have had 4 years, he in fact went at 55 and had many a good day on the river banks which was his passion.
     
  28. Trollslayer

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    The last job had it's stresses but was very enjoyable, good people and a chance to do good work.
    I am going to repeat what so many others have said - being made redundant has been a blessing in disguise because I wouldn't have thought about early retirement. Part of me was so focussed on building up a pension and with all the changes that have been made I am now able to retire.
    Newfie - I don't think my kind of thing where I can be self employed without contracting but some thought might occur later on.
     
  29. NewfieDrool

    NewfieDrool
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    I know what you mean, I spent the best part of my life in a factory and unknown to me I was just work orientated. When I left there I went part time at several places, local supermarket, care home then to my gardening job.
    It took ages to get out of the work routine, it's like a conditioning but now I'm more relaxed, have fun, spend time doing more of what I want and have met some lovely people with my present job.
    I've just been treated to a lovely little fishing boat from a good friend who I work for. She felt I needed more time out to do things I enjoy and she's been very kind to me and we often end up on a Friday on her boat too.
    I often think where I am now and where I could have been and taking that step from a secure 5 day a week job was the best thing I've ever done.
     
  30. RBZ5416

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    Is short-term contracting an option rather fully retiring? So just work 3-6 months of the year through the dark, cold days & let someone else pay the heating bill. That way you would keep your skills current & have the option to return to full-time employment should life throw you a curved ball.

    I won't bore you with my story (in fact I just deleted it) but all I'm saying is by all means go for it, but have an exit strategy in case life one day slips a huge banana skin in your path...
     

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