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Annieindublin

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An article I came across in the Indo. Not sure I can link it here.


€700,000 in seven years — here are nine things we would never spend money on

While he’s right about lunches and first class plane tickets I’m not sure that pausing to smell the fresh air help retire early. But is 700k a magic number for early retirement? And how does that work out if you quit the rat race and walk the kids to school?

Also.. and this jarred with me… where do you get takeaway for 5 for €50? Seriously want to know that!

We grew a family investment portfolio of €700,000 in seven years — here are nine things we would never spend money on

In my first article, I shared how our family escaped the rat race through the principles of the FIRE (Financial Independence, Retire Early) movement.
www.independent.ie
 
Annieindublin said:
Also.. and this jarred with me… where do you get takeaway for 5 for €50? Seriously want to know that!
Click to expand...
At least one (very decent) Indian takeaway near me in D7 does a daily special for €9.99 (vegetarian) or €11.99 (meat). Main, basmati, large nan bread, a couple of poppadoms and a small portion of raita/mango relish. I'd get two meals out of it myself.
 
Annieindublin said:
An article I came across in the Indo. Not sure I can link it here.
Click to expand...
Don't worry. They publish basically the same article from your man every couple of weeks so eventually there'll be a version that's not paywalled.

We grew a family investment portfolio of €700,000 in seven years — here are nine things we would never spend money on

In my first article, I shared how our family escaped the rat race through the principles of the FIRE (Financial Independence, Retire Early) movement.
www.independent.ie

Michael Houghton: ‘For the sceptics and disbelievers, here’s a breakdown of how we saved enough money to retire in just seven years’

In my third article, I want to address some of the tougher questions I’ve seen online since my first two articles were published.
m.independent.ie
https://m.independent.ie/business/personal-finance/i-switched-from-investing-in-a-pension-into-property-so-i-could-retire-at-43-now-im-on-course-to-do-that-at-41/a1326288586.html

Michael Houghton: ‘How did I get my wife on board with extreme budgeting? I showed her how financial freedom creates time freedom’

In 2017, our Saturdays revolved around shopping. It was our routine – our weekly trip to a store to buy things we thought we needed. It felt normal, just part of our lives.
m.independent.ie

‘Double-jobbing, sober living and staycationing – seven extreme life changes we made to get to financial independence’

I get it – saving up €700,000 in just seven years is an extreme goal. When we embarked on our FIRE (Financial Independence, Retire Early) journey, we took an all-or-nothing approach because we were determined to break free from the rat race.
m.independent.ie
 
Retirement at 41 is pretty dam impressive. Especially if you only start to plan that 6 years before that… not sure about the timeline.. started in 2017.. retired already?

I found some other articles about FIRE and was annoyed by the links and pop ups and affiliates… maybe that the secret. Retire from one job and make a living telling people how you did that.
 
Our local Indian takeaway is €15 a main… so €75 minimum (more like €90 with breads etc) although if you’ve young kids you might get them to share. My kids are adults and big men so we’d buy 3 but one or two lunches usually from the leftovers.

That’s just an aside. He also talks about Mac Donald’s so 3 happy meals and 2 adults meals/burgers won’t come to much. Long time since my kids saw mucky d’s as anything other than a lunch, certainly not a main meal.
 
Back to the article… if you retire at 41 you’ll have a big hole in your PRSI contributions won’t you?

Although can you “retire” and sign on for credits somehow?
 
Annieindublin said:
if you retire at 41 you’ll have a big hole in your PRSI contributions won’t you?
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You can still accumulate PRSI contributions - e.g. class S contributions on pension income. I'm doing that myself these days at age 58. And credits and/or voluntary contributions may be other options.
 
Did he not invest in rentals (from the little I read), he would get class S for this too.
 
For me 1.6m is around the household figure I need. My goals are to be tax efficient by keeping drawdowns to in and around the 20% tax rate for both of us. Includes expectations of some small inheritance and counts on 3 state pensions (UK and Ire) plus a DB pension at various points.

Also need min 8% growth. Potentially can pull the trigger at 55 (45 now).

I figure a meagre existence is possible with 600k but I would have the heebie jeebies on that.

I would sooner retire earlier on the lower tax band than kick on for higher figures. This country is paid for by high earners and it irks me no end. 8% USC on the hardest earned part of my work etc etc. You can have a good life with 42k each during the go-go years.
 
Fortune said:
I don't think this guy is retired.
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I’ve listened to a few of his podcasts and I’m inclined to agree - I think he’s stretching the definition of FI a bit for his audience. A lot of his wealth seems to be in relatively low value properties, the kind that become hard to rent in a downturn. Plus they’re all within a company structure so while he may have avoided tax on the way in, it’ll be a different story on the way out if he needs to liquidate some assets.

At the same time, he’s more independent than I am and fair play to him for that. Does a bit of paid hockey coaching on the side that he’d enjoy as a hobby, etc.
 
Also have listened to many of his podcasts. He seems to have really "grinded" (a word he uses a lot) and sacraficed quote a bit for the noble end goal of being FI.

And FI, he is. He isnt retired he is FI.
 
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