32 year old, hopes to semi retire by 40

Discussion in 'Money makeover' started by peterpanics, Jul 5, 2009.

  1. Marion

    Marion Moderator


    I am not aware of any staff in my college who have retired at 40 years. All have taken early retirement and the reduced earnings/pension that it brings. Most of my younger colleagues will never reach A pension based on your figure of €65,000. A number of them currently have a medical card.

    Personally, I cannot afford to retire early. I have a mortgage that extends beyond my retirement years a mortgage that had been expected to be repaid earlier but unanticipated cuts in public sector pay and unforeseen enforced austerity measures put a stop to this .

    Apologies for taking this thread off topic temporarily. I have nothing further to say on this issue.

    Gordanus likes this.
  2. drhum

    drhum New Member

    The retirement fund should never be used in betting. That's just from my own perspective.
  3. Setanta12

    Setanta12 Frequent Poster

    To thread over old ground - I am totally with Mandelbrot on what he says and can add to it.

    I used to prepare the tax returns of a gambler - it was his trade.
  4. Butter

    Butter Frequent Poster

    This was a fascinating read this morning. Not just for the OP's outline of what he wanted to do & how he has planned for it. Also because of fella's insight into his world.
    I used to think when I started working I'd want to be retired by 40. I couldn't imagine working beyond forty as it seemed ancient. Now at 41 I can't imagine being retired - I actually quite enjoy my job & have a decent work/family balance. Two kids & aspirations to move house probably put paid to the notion of retiring early as well.
    That said I have seen someone in work retire recently in mid-late 40s. Obviously further up the totem pole than I am and a wiser saver & investor.

    Best of luck with the plans to both PP & Fella. Having a plan & the will to carry it through seem to be key.
  5. RainyDay

    RainyDay Frequent Poster

    Or a luckier saver and investor, maybe?
  6. Butter

    Butter Frequent Poster

    Actually he is both wiser & luckier! Wiser because he held on to company shares over the years, I sold a lot of mine at various stages. Luckier because when he did sell the share price was at an all-time high. And being higher up the pecking order the share rewards were greater - so yeah, wiser & luckier!!!
  7. RichInSpirit

    RichInSpirit Frequent Poster

    40 was my target too at one stage. 50 now ,please God! :)
  8. PaddyBloggit

    PaddyBloggit Frequent Poster

    peterpanics ~ you're 2 years away from that magic retirement age of 40.

    Any update on how you're doing?
    jim likes this.
  9. Fella

    Fella Frequent Poster

    Be interested to know how Peter got on , just reading this thread again
    November 13 had 250k saved
    May 15 I have 290k saved and 186k in investments
    34 now and feel like I would have to work really hard to retire at 40 , early retirement is more challenging than I first suspected , better start doing the lotto :(
  10. moneybox

    moneybox Frequent Poster

    There very few 34 year olds that have close to half a million in savings, you have to be congratulated. Well done!
  11. Purple

    Purple Frequent Poster

    Can I be your friend? :D
    Sol28 likes this.
  12. The Ghoul

    The Ghoul Frequent Poster

    I am 37 and my annual expenditure is about 1.3% of the value of my investable assets. I think in theory it is possible for me to retire - ref: the "4% rule". However a change in circumstances would throw my calculations off. For example, I may wish to fund nursing home costs for my mother in the next few years and I would want to be working if I did that. Also, I am a conservative investor and think that a "1% rule" is more appropriate for me than 4%.

    I am in the good financial position that I am in due to several factors:
    Steady job in the public sector
    Consistent high savings rate (usually save around 75% of net income, saving seems to come naturally to me)
    Good luck
    Being single with no children
    Not smoking

    Were I to retire now I think I would receive a small public service pension as a preserved benefit at age 60. With minimalism, a little money goes a long way. I generally don't count that pension in my calculations.
  13. Purple

    Purple Frequent Poster

    Make sure you enjoy yourself and live your life. Money is just a tool, it can't bring happiness.
  14. hikicker

    hikicker Frequent Poster

    37, single, no kids, public sector job, saving 75% of your income. Go out and get your hole, you'll be a long time dead...........
  15. Purple

    Purple Frequent Poster

    That's kind of what I was saying but you put it better :D
    LM26, Sol28 and hikicker like this.
  16. demoivre

    demoivre Frequent Poster

    Why would you want to do that with the Fair Deal scheme in operation?
  17. Bronte

    Bronte Frequent Poster

    There's a lot to be said for working. What happens to people who retire very early, do they have motivation and fullfilment.
    moneybox and Purple like this.
  18. peterpanics

    peterpanics Registered User

    My salary increased a good bit since my last update early in 2013, enjoying my job a lot more these days on top of being a father. It is much easier now to see myself working in current role well beyond age of 40. I spend a lot more money on myself while having a good time with family, my Savings Rate has dropped but still overall good financial habits.

    Renting as before but not given up the plan to have a small hobby farm as part of a later than originally intended semi-retirement. Some part-time experience and education in this direction over the last years.

    No big regrets, I think it was good for me to save hard for a decade as it gives me more options now. Maybe my earlier dream for 40 when that was years away helped me to get through the hardest years of my career.

    Financial summary:
    Cash: 171k
    Shares & Funds: 166k
    Pension: 188k

    Partner has about 70k seperately saved and invested.

    Thanks for the inputs and interest.
    mtk likes this.
  19. mtk

    mtk Frequent Poster

    Fair play Peter
  20. mtk

    mtk Frequent Poster

    Any update on the progress peter?