Retiring early – How did you do it ?

Allpartied said:
Secondly, the property market accumulated a significant amount of capital for you. No doubt your property increased in price over the years due to the development of your little bit of Ireland. All of this was paid for by general taxation.
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I am not sure that I agree with this. If instead of "property market" you substitute the words "public sector pension" the statement would be equally true. A public sector pension is, in essence, a significant capital asset.

Many people in the private sector have traditionally gone the 'buy to let' route in order to provide an income in their old age. I am not sure that it is fair to single out this form of accumulated capital for special punitive tax treatment.
 
ATC110 said:
The state pension is a subsistence payment rather than a 1.5 times final salary tax-free lump sum plus 50% of annual salary for life; to compare both is puerile
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A "subsistence" payment that is paid to everyone including those on very high incomes at retirement?
 
mtk said:
May I ask you in relation to any financial mistakes what they might be in order to avoid them
in relation to period 50 to 60 or 65? did you just use savings to support yoursefl?
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I started investing directly in the stock market. I had no fear. Buying and selling. There were about a dozen companies that I studied. Making about €300 per week. Used Campbell O'Connor, so fees were low. I noticed that I could regularly do 30 trades on the trot, all showing a profit. I started to become reckless and began trading on gut instinct rather than fundamentals. I noticed that one trade done badly would easily wipe out all the 30 profitable trades. I did a bit of short selling, not recommended. It's all very well as some companies have a trading pattern but when the market price shifts.....you get caught.
Just before 9/11, I invested heavily in Insurance companies. Lost a huge chunk. Began to lose my nerve but kept on trading. It took me 5 years to get my losses back.
Then the recession circa 2007. Lost again. I had become more cautious since 9/11 so I began to invest in more "safe" shares. Lost another chunk of money. I more or less exited the market but kept about a half dozen shares that were showing a loss but the companies had good prospects. These came good and in the last few years I made money and got all my losses back. I sold half of my holdings when Campbell O'Connor closed last year....big mistake, the market has kept going upwards. I haven't lost any money but if I had held those shares, between profits and dividends I would say I missed out on about €40k. I have a decent amount of money sitting in an account in Davy, just sitting there, I don't want to go back in and buy at the top of the market. I also cannot purchase shares that I sold last year for say £25, that are now £30.

Just to end....I remember sitting on the balcony of a hotel in Spain, having a drink. I had been trading BP on a regular basis. I remember ringing COC and asking them to sell my holding while sitting on the balcony. I turned to my wife and said "that's the holiday paid for"..... a real Dell Boy moment.
 
For me early retirement is before 60 - I had hoped to retire age 56ish. I am a secondary school teacher and I thought that it would get easier with time and experience but I am finding it increasingly difficult and wonder how many more laps I can do!

As I am post 1995 public servant I am more or less resigned to the fact that I will have to hang in until I am 60 which is my retirement age.

Just turned 50 and I have just signed up to buying back 11 years notional service. By 60 I will have paid in the max contributions. I worry a bit about supplementary pension as I have a rental property and a small farm which makes shag all but it is a small business concern with money going in and out. I also have a Guinness pension coming at 65 (currently @12k p/a. I have started AVC contributions and will continue doing some contributions if I have any capacity to make tax free contributions.

I am currently doing some work on the home house and garden and will have this well done by 60 - I plan on having the house retirement years proof as much as possible! I have always been good with money but have recently become much more conscious about my spending. I have a 16 car and was going to change it but decided to keep it as long as possible maybe even up to retirement as it would take 20k for a new one on trade in and then you are tied to the exorbitant service charges that main dealers charge. I am also going to save as much as possible so that I will mange if I don't get the supplementary pension at 60!

I also love to travel and agree with above poster that life is for living so I will have a good holiday every year and a few weekends away etc- that's not up for negotiation.

Very interesting questions raised by the OP and excellent answers. I am amazed how many friends I have who are not thinking about their retirement and think that I am suffering from some kind of anxiety by my planning and concerns etc.
 
general comments. How I got here :
maxed pension contribution
I recall employer used to able to give bonus into pension without impacting max contributions. not sure if still can do this
paid off mortgage ASAP
Never took out any loans other than mortgage
Payoff credit card in full every month
earned sufficent income to do above!

didnt waste cash on cigarettes and we don't drink much

happy to walk when can to saty fit and be green lower stress and save costs
ate very healthily avoiding ready made crap and over priced fancy burger joints. Your Health is your biggest asset IMHO.

shopped around (where convenient)

Donts':
avoided any property syndicates that came knocking
avoided accumulating stuff
didn't take transfer value from DB scheme when it was "fashionable" ( control it etc.) to do so

Dos:
We use (need) 55k -60k pa . Do a detailed budget yourself. don't kid yourself
 
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Laramie said:
I get by on about €25k per annum. This includes holidays.

How do you need €55k?
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Everybody's situation is different. We were always used to relatively low wages with no bonuses anytime. Mrs Lep had to give up work on marriage and spent over 20 years rearing our kids and then returned to work. We had the occasional overtime but like many we were screwed with 3rd Level fees + accommodation and no grants, we paid every cent of income tax due like most and couldn't afford a tax advisor, the car was nearly held together with sellotape. I could go on and on (Before somebody says it I'll say it myself "You usually do!").

If you are used to plenty you may have some difficulty settling to retirement as you'll most likely have less income. I don't begrudge anybody of high income while working or in retirement provided it was earned above board. When you weigh everything retirement is the better optiion. No more gridlock, no more hassle, no crying, take as long as you wish with everything, read what you like, watch television whatever you wish and when you wish etc. We spend so much time in Spain that I'm fearing a letter from Spanish Revenue - come to think of it, if we acquire a residencia we could end up paying less taxes - perhaps our time to pay less has come?

Summary of Above:- Cut your cloth to suit your measure.
 
Laramie is probably a single person with no dependants, no mortgage. If wrong please enlighten us on where I'm going.
 
No. Married. Three grown up children left the home. No mortgage.

2 x cars. Insurance/Petrol/NCT/Tax comes in at about €2400.. We have no need for the two cars as we live close to all amenities, bus and DART. We also have free travel. Not sure why we keep second car.

House Insurance about €500.

Utilities. Gas/electricity about €1800.

Internet/TV/Phone about €850.

Property Tax €1500.

Food about €2500. Cook from scratch.

Health Insurance plus doctors about €2200 (with snowyb's help)

Holidays. €5000

Gifts/birthdays/christmas etc about €2500.

Entertainment to include drinks/coffees/meals out. €2500

So far about €22k in total.
 
Ok so just 2 of you. You're able to feed/water yourselves for €7 per day, that's impressive!
 
That is good going Laramie, I am on my own and excellent at budgeting (in my opinion) and I wouldn't come in under that and I don't even have that holiday!
 
Ceist Beag said:
Ok so just 2 of you. You're able to feed/water yourselves for €7 per day, that's impressive!
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Why is it impressive?

We are lucky in so far as we live beside Aldi, Lidl, Dunnes, Tesco, SuperValu, M & S. All of these have incredible value in vegetables, fruits and meat.

If you choose carefully you can buy vegetables for 49c, meat/chicken for €3 etc. 3 x meat/fish items in Lidl for €9. 3 x meat/fish items in Dunnes €10. (You also get €10 back in Dunnes for a €50 spend). Tins of fish for 80c, Buy on Chinese New Year specials and stock up with noodles and sauces. Pizzas on special offer etc
Last weekend Lidl had toilet rolls at half price. They also have their vegetable seeds in stock. A packet for less than a Euro. Three time the price in Woodies. I will be growing salads, french beans, spinach, broad beans, potatoes etc. I do this more so for the fun as I can usually buy the veggies in the supermarkets for a lot less than I can produce for the work involved.
 
I will post later for my annual outgoings. Im truly amazed Laramie and I consider myself good with money .
 
Laramie said:
Why is it impressive?
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You might not think it is that impressive, but believe me there are not many who could get by so cheaply. I think we are quite good on budgeting for groceries and we spend at least 3 times what you spend. We are a family of 5 but still even with just 2 of us I doubt we could get close to that. Fair play.
 
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