# Early retirement advice



## Lifeinthesun (8 Mar 2021)

Hoping to retire early 2022 with full 800k in SSAP. Fund is broken down with 3 rental properties value 440,000 and 360,000 in cash. 
200k cash to take - 25%. 63500 to amrf, balance to arf. 3 properties bring in 750x3 - 2250 euro per month tax free into arf.
Value of fund to drawdown 536,500 of which I can take 4,5,6 per cent or more.
I have no mortgage on my home, no loans, and I have cash savings of 50,000. I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply. Both of us are still working, my wife has no pension, we will both stop work, we are both 56. 
Any advice or recommendations on my details above?
Any reason why we shouldn’t both get state pension at 68/69 with full prsi contributions?
Is my wife entitled to any benefits when she finish work?
I pay tax and prsi on my drawdown from arf?
Should I take 4 or 6% from fund, at beginning, bearing in mind I have lump sum?
Where should I invest say 100,000 of lump sum for 10 years?
If I was to continue to get small wage weekly from employer, (consultancy work) can this be put directly into my arf?
Any advice would be very welcome as I have been trying to work out this over the last few year, thus buying 3 properties to keep fund financing me. This is my first post as I have only found this forum. It is excellent information


----------



## RedOnion (9 Mar 2021)

Lifeinthesun said:


> I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply.


If you do this, you'll become tax resident in Turkey. I'm not sure of the impact (if any) of this on your PRSI contributions for Irish state pension.


----------



## Lifeinthesun (9 Mar 2021)

RedOnion said:


> If you do this, you'll become tax resident in Turkey. I'm not sure of the impact (if any) of this on your PRSI contributions for Irish state pension.


Only going to stay maybe 3 to 4 months at a time, but understand if I stay longer there can be implications, thanks


----------



## RedOnion (9 Mar 2021)

Lifeinthesun said:


> Only going to stay maybe 3 to 4 months at a time


It doesn't matter if you fly home every weekend. It's the total number of days that you spend per year in / out of a country that determines your tax residence. They don't have to be consecutive days.

Edit: maybe the system in Turkey is not as straight forward; I've read some conflicting advice. However, you would become non-resident in Ireland, which is they let part re pensions.


----------



## Lifeinthesun (9 Mar 2021)

RedOnion said:


> It doesn't matter if you fly home every weekend. It's the total number of days that you spend per year in / out of a country that determines your tax residence. They don't have to be consecutive days.
> 
> Edit: maybe the system in Turkey is not as straight forward; I've read some conflicting advice. However, you would become non-resident in Ireland, which is they let part re pensions.


I must look into this as it did not cross my mind, thank you


----------



## 1eyeonthefuture (20 Nov 2021)

Lifeinthesun said:


> Hoping to retire early 2022 with full 800k in SSAP. Fund is broken down with 3 rental properties value 440,000 and 360,000 in cash.
> 200k cash to take - 25%. 63500 to amrf, balance to arf. 3 properties bring in 750x3 - 2250 euro per month tax free into arf.
> Value of fund to drawdown 536,500 of which I can take 4,5,6 per cent or more.
> I have no mortgage on my home, no loans, and I have cash savings of 50,000. I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply. Both of us are still working, my wife has no pension, we will both stop work, we are both 56.
> ...


Did you come to any conclusions on your queries here?
Thanks


----------



## Lifeinthesun (21 Nov 2021)

I am still hoping to do as I have said in my post. I think the Amrf has disappeared so that money can go straight into the Arf. I am hoping to continue to do some consultancy work! Probably take 4 or 5 per cent! It’s where to invest the 200,000 lump sum or even 100,000 of it! I have 3 good tenants who take care of the properties and  this is reflected in the rent they pay. So hopefully March/April 2022 I will start


----------



## Oisin19 (21 Nov 2021)

you should read this and get tax advice on your particular situation. If turkey decide that the payments from the arf are pension income you could have a double taxation on your ARF income.



you probably should only take out what you need. the tax free lump sum could fund your lifestyle for the years up to 61.


----------



## 50andOut (21 Nov 2021)

Hi LITS

Why take out 4 or 5% from the ARF and then invest the €100-200k?

You do not need to draw down from the ARF until you are 60 - so for the first 3 years, use the drawdown cash for living exp, and leave the ARF as a tax free investment. then after that take the minimum of 4% and continue to use the remaining cash on hand to top up any additional spending required.

Note: there is a requirement to maintain PRSI contributions to continue to build up the entitlement to a full state pension, but you say you will do consultancy work. So the above info is assuming that you cover the minimum requirements for prsi

I find your initial post a little hard to follow / interpret, and you don't list what monthly/annual expense you expect to have, so it would be helpful to list out a little clearer in order to get some additional insights/experience/opinions.

Either way the exposure to investment is covered via the ARF, I would personally keep any excess cash at hand in govt savings over various different periods, to be readily available aligned with my annual spending

50+O


----------



## Lifeinthesun (21 Nov 2021)

Thank you, I didn’t realise I could leave Arf until I’m 60. Yes hopefully what I earn from consultancy work can keep up my prsi contributions. My expenditure!, I’m not sure, maybe after year 1, I will have a better idea.  I am hoping to live in Turkey for 5 months of first year spread out over the year. It is very cheap to live there. The monthly rent will grow my Arf but the only downside at present is the interest the bank takes on your cash in the SART.


----------



## 50andOut (23 Nov 2021)

Actually to be more specific its the year in which you turn 61 that the 4% imputed distribution starts. 

anyway, start tracking your expenses now and get a clear picture of your outgoings now in order to better estimate your future needs..

50+0


----------



## garbanzo (19 Jun 2022)

Lifeinthesun said:


> Hoping to retire early 2022 with full 800k in SSAP. Fund is broken down with 3 rental properties value 440,000 and 360,000 in cash.
> 200k cash to take - 25%. 63500 to amrf, balance to arf. 3 properties bring in 750x3 - 2250 euro per month tax free into arf.
> Value of fund to drawdown 536,500 of which I can take 4,5,6 per cent or more.
> I have no mortgage on my home, no loans, and I have cash savings of 50,000. I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply. Both of us are still working, my wife has no pension, we will both stop work, we are both 56.
> ...


Hey LITS

Came across this thread and thought to ask you how did the plan work out for you in the end?

Cheers

g


----------

