Early retirement without a fortune
- Thread starter oracle
- Start date
Start another thread for home schooling mods?
Lets get back to the topic, really interesting reading.....
Lets get back to the topic, really interesting reading.....
Instead of saying 'great thread, but too off topic' why don't you post something *on* topic?
Ditto. Peter 14.7
Or we could just admit this is the internet and it is a very very rare thread indeed that doesn't go "off topic". Just like not many verbal conversations in life stick to the one topic from start to finish.
It's pretty obvious from the first line or so which posts are to do with homeschooling and no one is forcing anyone else to read those posts afterall.
It's pretty obvious from the first line or so which posts are to do with homeschooling and no one is forcing anyone else to read those posts afterall.
Some good concepts on Mr Money Mo and Early Retirement Extreme.
One post made me realise, for some people all they need to plan for is enough income to retire on until they qualify for the pension. Once you reach pension age you will receive an income from the government which will be enough for most people.
So someone 47 only needs to find enough money to live on for the next 20 years until 67 when the pension kicks in. Approx $120k earning 7% could be enough for someone to 'retire' at this age.
One post made me realise, for some people all they need to plan for is enough income to retire on until they qualify for the pension. Once you reach pension age you will receive an income from the government which will be enough for most people.
So someone 47 only needs to find enough money to live on for the next 20 years until 67 when the pension kicks in. Approx $120k earning 7% could be enough for someone to 'retire' at this age.
We don't know what the pension system will be like in 20 or 30 years time. It may be non-existent, be restricted to certain criteria or be woefully inadequate. Therefore, whilst it is heresy in a entitlement oriented country like Australia, I think it is best to aim for self funded retirement rather than depend on the vagaries of a pension in the future. I would recommend 2 mil (indexed to inflation ) generating at least 5% p.a. with ownership of PPOR to allow permanent retirement from age 40 for a single person.
Many planning on going on the pension probably think, working hard/planning/saving/sacrificing when you can drop dead before or soon into retirement, is probably more likely than no pension in 20 to 30 years, so they'd rather 'live for today'.
I think that's a more likely scenario too, even though I'd never plan for the pension myself - even though I probably do live just as well as some people who blow all their income and don't invest for retirement.
I envisage a later pension (already broached) but I don't ever see no pension.
The elderly will never be homeless or starving in our lifetime or while we splash cash around to other welfare groups.
I think that's a more likely scenario too, even though I'd never plan for the pension myself - even though I probably do live just as well as some people who blow all their income and don't invest for retirement.
I envisage a later pension (already broached) but I don't ever see no pension.
The elderly will never be homeless or starving in our lifetime or while we splash cash around to other welfare groups.
The issue then becomes a decision between "living for today" versus saving for tomorrow. How do you split the income? Too much either way will lead to either present or future compromise of lifestyle. I suspect that if pension was removed, there would be a much clearer decision making process as people do not live with a sense of entitlement that they can always rely on handouts for the future.
Good to see this thread on topic.
China, If you had to make a choice then "living for today" should always win because that's what life's about. Tomorrow never comes. When I was 10 years old my friend's dad had a sign in his milk bar saying "free ice cream tomorrow". Kids would go back the next day asking for their ice cream and he would tell them to read the sign.
You have 2 choices. Retire younger on a modest income (comfortable life in SEA Asia or Sth America) or work longer and retire on a larger income. Personally i don't think it's worth the extra 20-30 years.
Better to split the income in favour of your younger years and keep 25% for when you're older (60+) because your cost of living will be cheaper and your ageing body won't gain as much satisfaction doing things a younger person can do. Plus there's always the chance of dying or becoming incapacitated before you reach that stage.
In our lifetime Australia will always have the pension so Terry makes a good point about spending the bulk of your assets before being eligible for the pension when you won't require as much income.
China, If you had to make a choice then "living for today" should always win because that's what life's about. Tomorrow never comes. When I was 10 years old my friend's dad had a sign in his milk bar saying "free ice cream tomorrow". Kids would go back the next day asking for their ice cream and he would tell them to read the sign.
You have 2 choices. Retire younger on a modest income (comfortable life in SEA Asia or Sth America) or work longer and retire on a larger income. Personally i don't think it's worth the extra 20-30 years.
Better to split the income in favour of your younger years and keep 25% for when you're older (60+) because your cost of living will be cheaper and your ageing body won't gain as much satisfaction doing things a younger person can do. Plus there's always the chance of dying or becoming incapacitated before you reach that stage.
In our lifetime Australia will always have the pension so Terry makes a good point about spending the bulk of your assets before being eligible for the pension when you won't require as much income.
I won't be retiring young..... Too old for that, this is my last year of my forties.... I have struck a balance for living today and saving for retirement, starting the investment journey 19 years ago, selling up 13 years ago and starting again 8 years later....
I find the options people have taken and their drive to control their destiny inspiring. Hats off too you for sharing, with some of your tips my retirement may move forward too. Thank you
I find the options people have taken and their drive to control their destiny inspiring. Hats off too you for sharing, with some of your tips my retirement may move forward too. Thank you
Interesting concept about focussing on today but how much is the pension - is it impacted if you're (still) holding a largish asset/real estate portfolio? And is it 65 that one qualifies?
And TingTong, have to say what you're doing is an inspiration - you mentioned circa $40-50K per annum of net passive income provide a decent amount to retire on in SEA (for you) but I've run the math including my family (wife and 3 young kids)...its coming in way past the $100K mark with education thrown in. Assuming that one doesn't have a business to supplement excess rents, is there any other way in your opinion to achieve the goal quickly? Pretty much know the answer to this ie 'no' but open to some lateral thinking suggestions.
And TingTong, have to say what you're doing is an inspiration - you mentioned circa $40-50K per annum of net passive income provide a decent amount to retire on in SEA (for you) but I've run the math including my family (wife and 3 young kids)...its coming in way past the $100K mark with education thrown in. Assuming that one doesn't have a business to supplement excess rents, is there any other way in your opinion to achieve the goal quickly? Pretty much know the answer to this ie 'no' but open to some lateral thinking suggestions.
According to The 4 Hour Work Week by Timothy Ferris, one can start up an online business that pretty much runs itself once automated. I have been thinking, thinking but cant think of any ideas to provide such a service that hasn't already been done to death. Back when the gurus teaching this concept made their millions and retired young, they could sell diet pills, weight loss programs and fitness programs etc.
Hi Terry
I was just reading this and that's pretty much the goal here
Freedom 45: The math behind my retirement plan
....perhaps this is a large part of the problem....
But - as you age your medical expenses can become much higher to continue with your quality of life.
You might hit the great genes - like my grandmother who is now 94 - and need no medical intervention or medication at all as you age ... but I have also seen older people on 2 year public waiting lists, living in excrutiating pain, for hip replacements ... and other who fund their own new hips (either thru private insurance or just paying for it) and getting them done within weeks.
I know which camp I'd rather be in - the one that can afford to fund my own health care costs, when I need them.
I also look at retiring older - with more cash - means I can stay in the Hilton Paris instead of the backpackers (although I'll probably house sit like Kathryn) etc
Don't get me wrong, If I won that $100m on OZ lotto the other day I retire in a flash, but I don't really see the need to retire early if you have to scrimp and save every dollar you earn.
Retirement for me is being able to maintain my same level of spending I do now into perpetuity (adjusted for inflation). I'm not a big spender but I don't wont to be checking my receipts at woollies every time I shop to see if they overcharged me.
Generally the people I find with a huge urge to retire early are those people who either A) Hate their job, B) Hate the company they work for or C) Hate the people they work with.
If I hated my career that much that I wanted to retire early, I'd just change my career to something I enjoyed. (You may take a pay cut, but doing something you enjoy is better for you mentally).
Retirement for me is being able to maintain my same level of spending I do now into perpetuity (adjusted for inflation). I'm not a big spender but I don't wont to be checking my receipts at woollies every time I shop to see if they overcharged me.
Generally the people I find with a huge urge to retire early are those people who either A) Hate their job, B) Hate the company they work for or C) Hate the people they work with.
If I hated my career that much that I wanted to retire early, I'd just change my career to something I enjoyed. (You may take a pay cut, but doing something you enjoy is better for you mentally).
