Thanks for the replies. There is certainly some food for thought there. My original plan was to build up my equities in order to cover college expenses. 12k/year x 4/5 years x 3 children = 144/180k. I had hoped that would leave me free to live off my lump sum (1.5 times finishing salary) plus my pension.
I will look into the State savings scheme but the last time I looked the returns seemed very small. I will investigate further. Thanks again. TJ
I’m going through a detailed retirement planning exercise at the moment which I’m finding very useful.
The biggest takeaway for me is that we probably need a lot less than I would have thought.
Welcome to fire.Take your mortgage, money you save regularly, childcare, schooling, pension provision itself, debt servicing, the actual cost of working (clothing, coffee, lunches, etc), and get rid of them.
What’s left behind is less than you’d think.
I’m going through a detailed retirement planning exercise at the moment which I’m finding very useful.
The biggest takeaway for me is that we probably need a lot less than I would have thought.
Any chance you would write up a seperate post on the process, method, calculations, and insights you gained?
When you retire you'll have a net income from pensions of around €32 a year plus your rental income. Therefore if you take Sarenco's advice (you should) you'll have no mortgage, an annual income of about €36000 (assuming €4k net from your investment property) and over €200k in the bank (€100k left in investments + €100 lump sum at retirement). You'll also have a €200k capital asset and a pension worth well over a million euro.
Could you live on a take home income of around €700-€750 a week?
I would be very comfortable on that level of income. My expenses will be much lower . Additionally I would plan to downsize as I will be living alone (most probably!) and have quite a large property in a desirable location. This would most likely give me a further 200k+ pot.
Hi SPC, my savings are €500to equities and €250 …. I will consider a change to this based on earlier advice.45 to 60 is 15 years time frame. Op has early retirement goal.
200k equity could double in value in that time which could facilitate even earlier retirement. selling it down now will have taxes.
- What Is profit from rental like and have you included it in your savings figure?
- Is 750 savings going 500 into equity and 250 into cash? It do you mean 750 on to of 500 equity savings?
What is car loan costing? What is interest rate?
Will kids need accomodation for college? Or will they live at home?
I think advice is a bit too conservative.
Kids college will start in 5, 7 and 12 years
Op is saving 9k cash p.a. in 11 years time (after first finished college) that's 100k cash. And his college outflow will only have been (4 yrs + 4 yrs) = 8*12k i.e. 92 k. I.e. he can build up about enough cash to put kids through college. If expenses are higher he can dip into equity.
I'd suggest
-Pay off car loan with cash.
-switch future savings to mostly cash
-investigate if you can buy back years to be ready for early retirement
I think you could retire a lot earlier than 60 if you planned and budgeted it.
Eeek!My car loan is €340p.m. at a rate of 7.5% with Credit Union, approximately 15 months left to run.
Take your mortgage, money you save regularly, childcare, schooling, pension provision itself, debt servicing, the actual cost of working (clothing, coffee, lunches, etc), and get rid of them.
What’s left behind is less than you’d think.
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