Early Retirement

[treasure]

Age: 52
Spouse’s/Partner's age: None

Annual gross income from employment or profession:70K
Annual gross income of spouse:N/A

Type of employment: Teacher

In general are you:
(a) spending more than you earn, or
(b) saving? Saving

Rough estimate of value of home : 800K
Amount outstanding on your mortgage: paid off
What interest rate are you paying?

Other borrowings – car loans/personal loans etc: none

Do you pay off your full credit card balance each month? yes
If not, what is the balance on your credit card?

Savings and investments: 125K

Do you have a pension scheme? yes

Do you own any investment or other property? no

Ages of children: none

Life insurance: none

My question is : I would like to take early retirement, which would give me a pension of about 25k and a lump sum of 75k. I reckon that I could live on 25k per year. Should I sell my house and move into a smaller house or apartment now or should I wait a few years to see if there is more confidence in the market? Thanks for any suggestions.

 

[mtk]

Re: Early Retiremant

sounds like no need to rush into selling your house if you can live on the 25k. obviously impossible to guess where market will go ...
Just wondering have you any plans for your time. Hope you dont get bored ( a concern i would have myself)!

 

[niceoneted]

Re: Early Retiremant

Fair play to you for being in such a great position.
Would you be interested in finding where you would like to live and purchase that now while prices are more realistic. It may be possible to rent out your current home - sounds like it is either very big or in great location due to value, so it might be good for a higher end let. you could perhaps sell it later if/when house prices start to rise.
I imagine you are the sort of person that could well live on the 25k a year - I would be like that too, I'd probably be saving some!!
Perhaps you would like to have a house in another country with a warmer climate, you could downsize here and do that if you sold your home.
When exactly are you planning on retiring - this year? I can understand with all the cut backs.
Good luck.

 

[UFC]

Go for it.

25k a year is plenty of money for a single person to live on. And you have a 125k fund should you run into trouble.

Enjoy!