Retiring early – How did you do it ?

NoRegretsCoyote said:
Have #3, you'll never regret it.
I’m not sure if you’re joking



Don't buy company shares. Unless you are very lucky, like working for Apple in the 1990s, you will do better with a diversified portfolio. So put it into your pension.
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Really??
I work for one of the big American pharma companies and thought maybe it is a good idea partly because of the tax incentive, I also plan to be there long term and hopefully get good returns in a couple of years. I know zero about stock markets and tbf don’t have the cash to invest hence my thinking this is an easier option.
I have done irish life previously (saving for house) and I’ve just read on here not to use them.
 
I think the poster didn’t catch the nuance of your question and was poo-pooing the concept of buying individual companies/stock picking generally.

Availing of share incentive plans through your employer is generally a good idea. The main caveat being that you liquidate them as soon as possible. And, in my view, take the cash if it’s a pure cash vs shares deal, which it rarely is.
 

Exactly. Most people I know just leave these shares in the drawer. You can be lucky - a family friend worked for Apple in Cork in the 1990s - but there are always going to be dogs and having a chunk of your wealth in one stock makes no sense. Diversify.

MsCutha said:
I also plan to be there long term and hopefully get good returns in a couple of years.
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Maybe you will, but you are taking a gamble by staying with the one firm. It is like going to the races and putting all your money on a 10/1 outsider at the first race.
 
How soon is soon though? We are expected to keep them for a minimum of 3 years to avail of the tax free benefit. There is also the option of a wage deduction over the next couple of months (couldn’t afford to do) which after reading this I am glad I did not opt for. Thanks for the info, really appreciate it.
 
At the moment I don’t have spare cash (very insignificant compared to figures on this site) for investment hence sticking to the one. But points taken, I will be keeping a good watch on them. Thanks
 
Noregretscoyote I wasn’t sure if you’re joking or being sarcastic about my comment regarding having a third child haha.
 
As soon as you can sell them without any clawback basically. Most of the typical share schemes do make sense to be fair. The trick is to just sell them or most of them once it becomes possible to do so without penalty. The logic is that you don’t want too much of your wealth (i.e. shares plus income) tied to the fortunes of one company. For every fairytale about Microsoft or Apple there are multiple tales of woe.
 
MsCutha said:
Noregretscoyote I wasn’t sure if you’re joking or being sarcastic about my comment regarding having a third child haha.
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I am not! We had #3 at your age and have............no regrets.

Gordon Gekko said:
For every fairytale about Microsoft or Apple there are multiple tales of woe.
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It's an old story, but Enron employees lost over a billion in 2002 US dollars as the company's stock went to zero.
 
NoRegretsCoyote said:
I am not! We had #3 at your age and have............no regrets.



It's an old story, but Enron employees lost over a billion in 2002 US dollars as the company's stock went to zero.
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And they lost their jobs as well, so their exposure to company collapse was increased by having their wealth tied up in the company as well.
 
Very interesting thread, I'm 49 so taking the advice on board.

E24k left on my mortgage should be paid off in 2.5 years as I am overpaying each month. I am at the max ( I think for may pension contributions) Company pay 7% and I'm paying the 7% to match and with additional 16% AVC. Current pension value E128K. Single. Currently on sick leave from work however it has given me time to realise there is more to life so when I am well enough to work again I will need to figure out where to go as I cannot see myself there until 65!!!
 
Wish you well in your recovery.
What's your plan if you don't return to work?
124k is a small pension pot.
 
Thank you Fistophobia

My plan is to get a job just not the one I have. Yes I see the pension pot is small so know I will continue to ensure some sort of standard of living. Last night I was putting together a spreadsheet of my current expenditure monthly and yearly, it adds up pretty quickly... however I hope once my house is paid off that is my biggest outgoing. I Have E50k in savings but getting little or no return and am afraid to invest longterm knowing that I am not in work right now
 
At 49 you have time to sort it out so no need to panic but don't waste time either. Note that when you go from 49 to 50 your maximum pension contribution for tax purposes (excluding the employer contribution) increases from 25% to 30%, and this increase is available in the year of your 50th birthday and is available for the full year (people often assume it doesn't kick in until the following year).

One other suggestion for 2023 when your mortgage is cleared. The moment that happens, divert the full amount of the repayments into some combination of your pension and a savings/investment account. Don't let a penny of it near your current account! On the basis you've survived without it up to now you should be able to live without it and it will really turbo charge your pension.

Good luck with your recovery and your future plans.
 
Thank you so much freelance , great advice,
Yes the big 50 in May, that is good to know about the pension I wasn't aware of that I will certainly look into that for the next month.
 
Some good advice there as heading towards big 50 too, easy seen the sooner you start saving the better your outcomes, going to be a reckoning in nxt generation of those with no accommodation , basically renting, no capacity to save and working till 70,,
 
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