# Advice Request - retire early - am i dreaming ?



## sydnick (4 Jan 2008)

Age: 35
Spouse’s/Partner's age: single

Annual gross income from employment or profession: approx €83k
Annual gross income spouse: N/A

Type of employment: e.g. contract IT professional

Expenditure pattern: on current contract can save approx 
€25k per annum

Rough estimate of value of home N/A
Mortgage on home N/A
Mortgage provider: N/A
Type of mortgage: Tracker, interest only, fixed rate
Interest rate

Other borrowings – no debts, no loans
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 

Savings and investments: €7k Rabodirect (rainy day money), €13k BOI & AIB shares, have just sold 2 properties in Ireland, net to me after CGT, fees, etc is €560k

Do you have a pension scheme? approx €20k in overseas pension, no irish pension
Do you own any investment or other property? no

Ages of children: none

Life insurance: no


*What specific question do you have or what issues are of concern to you?*
I am an IT professional on contract overseas (non-EU). I have spent my whole working career working hard, living frugally and paying off my investment properties. I now have approx €567k in cash (from sale of my investment properties) + €13k in shares and can save approx €25k per annum...by still working hard and saving harder...I've got the saving habit now  

I really want to return to my hometown in Ireland but this is just not possible in my current line of work. My dream (like everyone) is for my assets to provide me with enough income so that i can give up work and pursue other interests. I'm sick of IT and do not want to work till I am 65 only to die of a heart-attack at 66 !!! I have considered putting €200k into a house in Ireland with a €170k mortgage, the rent should cover the mortgage. This would give me a house to move into should i return to ireland. However i don't believe property to be a good investment in ireland anymore....could this money be working harder for me elsewhere?

A friend has said I should be putting all extra cash into my overseas pension....but i don't want to wait that long. I know it's tax efficient but I am really determined to become financially independent asap and am willing to do anything to achieve that goal. Basically what i am asking, is it possible to work for maybe 5-10 more years and then be able to retire, or am i just dreaming ? and if possible what investments should i make ? I am confortable with risk as i am relatively young and earn good money. I estimate that with a mortgage of €1100 per month I would need €45k net per annum + 3-4% for inflation to live the life i would like (even less if i can arrange some work in ireland). Any advice is much appreciated.

by the way - I love the forum and have learnt loads already from here


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## Brendan Burgess (4 Jan 2008)

I think you are focussing on the wrong issue here. You are 35 which is too young to be planning imminent retirement. With €600k in assets, that is nice, but not nearly enough to retire on. 

You don't like your current job? You are young enough to make a complete career change. And you have the flexibility to do it. You have the cash to finance a few years of study. You are not tied to a family or to a home. 

You might not be able to work in your home town as an employee. But can you start any business in your hometown?  What big city or town is your hometown near? Could you get a new career nearby? 

There is a demand for IT professionals in most places. Could you change to a different aspect of IT? Training maybe? Helping small businesses? 

I am not sure about the overseas pension. Are you sure it's tax efficient? It depends on how contributions to pension schemes are taxed in the country in which you are resident. If the tax rates are low, there is no point in contributing to a pension scheme as you will probably be taxed on drawdown in Ireland. 

Anyway, your main requirement is for a career makeover, and not a money makeover.

Brendan


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## sydnick (5 Jan 2008)

Thanks Brendan - I think you are right and it is a career makeover i need (I have been considering this).

On a more general note -am i wrong to hope that I can someday accumulate enough assets that i can live off ? For example, €1 million @ 5% pa = $50k pa. With 3% inflation I would need to achieve minimum 8% pa year on year (presuming I have a million euro). 

Is 8% year on year minimum a realistic target ? As I said earlier, even if i change career my ultimate target is to achieve a passive income. 

Thanks


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## ClubMan (5 Jan 2008)

sydnick said:


> With 3% inflation I would need to achieve minimum 8% pa year on year (presuming I have a million euro).


Note that _CPI _inflation is c. 5% at the moment even if _HICP _inflation (basically inflation excluding mortgage costs) is nearer the 3% figure that you mention.


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## birdy (5 Jan 2008)

You are single now, but at 35 the chances of meeting some body & maybe children should not be dismissed altogether. This would change your needs in the future


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## eamo01 (16 Dec 2016)

It's been 9 years @sydnick, how have you progressed with your plans?


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