Early retirement advice

Lifeinthesun

Registered User
Messages
12
Hoping to retire early 2022 with full 800k in SSAP. Fund is broken down with 3 rental properties value 440,000 and 360,000 in cash.
200k cash to take - 25%. 63500 to amrf, balance to arf. 3 properties bring in 750x3 - 2250 euro per month tax free into arf.
Value of fund to drawdown 536,500 of which I can take 4,5,6 per cent or more.
I have no mortgage on my home, no loans, and I have cash savings of 50,000. I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply. Both of us are still working, my wife has no pension, we will both stop work, we are both 56.
Any advice or recommendations on my details above?
Any reason why we shouldn’t both get state pension at 68/69 with full prsi contributions?
Is my wife entitled to any benefits when she finish work?
I pay tax and prsi on my drawdown from arf?
Should I take 4 or 6% from fund, at beginning, bearing in mind I have lump sum?
Where should I invest say 100,000 of lump sum for 10 years?
If I was to continue to get small wage weekly from employer, (consultancy work) can this be put directly into my arf?
Any advice would be very welcome as I have been trying to work out this over the last few year, thus buying 3 properties to keep fund financing me. This is my first post as I have only found this forum. It is excellent information
 

RedOnion

Frequent Poster
Messages
6,198
I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply.
If you do this, you'll become tax resident in Turkey. I'm not sure of the impact (if any) of this on your PRSI contributions for Irish state pension.
 

Lifeinthesun

Registered User
Messages
12
If you do this, you'll become tax resident in Turkey. I'm not sure of the impact (if any) of this on your PRSI contributions for Irish state pension.
Only going to stay maybe 3 to 4 months at a time, but understand if I stay longer there can be implications, thanks
 

RedOnion

Frequent Poster
Messages
6,198
Only going to stay maybe 3 to 4 months at a time
It doesn't matter if you fly home every weekend. It's the total number of days that you spend per year in / out of a country that determines your tax residence. They don't have to be consecutive days.

Edit: maybe the system in Turkey is not as straight forward; I've read some conflicting advice. However, you would become non-resident in Ireland, which is they let part re pensions.
 
Last edited:

Lifeinthesun

Registered User
Messages
12
It doesn't matter if you fly home every weekend. It's the total number of days that you spend per year in / out of a country that determines your tax residence. They don't have to be consecutive days.

Edit: maybe the system in Turkey is not as straight forward; I've read some conflicting advice. However, you would become non-resident in Ireland, which is they let part re pensions.
I must look into this as it did not cross my mind, thank you
 

1eyeonthefuture

Registered User
Messages
58
Hoping to retire early 2022 with full 800k in SSAP. Fund is broken down with 3 rental properties value 440,000 and 360,000 in cash.
200k cash to take - 25%. 63500 to amrf, balance to arf. 3 properties bring in 750x3 - 2250 euro per month tax free into arf.
Value of fund to drawdown 536,500 of which I can take 4,5,6 per cent or more.
I have no mortgage on my home, no loans, and I have cash savings of 50,000. I also have a property in turkey where we hope to spend 8 months of the year, living very cheaply. Both of us are still working, my wife has no pension, we will both stop work, we are both 56.
Any advice or recommendations on my details above?
Any reason why we shouldn’t both get state pension at 68/69 with full prsi contributions?
Is my wife entitled to any benefits when she finish work?
I pay tax and prsi on my drawdown from arf?
Should I take 4 or 6% from fund, at beginning, bearing in mind I have lump sum?
Where should I invest say 100,000 of lump sum for 10 years?
If I was to continue to get small wage weekly from employer, (consultancy work) can this be put directly into my arf?
Any advice would be very welcome as I have been trying to work out this over the last few year, thus buying 3 properties to keep fund financing me. This is my first post as I have only found this forum. It is excellent information
Did you come to any conclusions on your queries here?
Thanks
 

Lifeinthesun

Registered User
Messages
12
I am still hoping to do as I have said in my post. I think the Amrf has disappeared so that money can go straight into the Arf. I am hoping to continue to do some consultancy work! Probably take 4 or 5 per cent! It’s where to invest the 200,000 lump sum or even 100,000 of it! I have 3 good tenants who take care of the properties and this is reflected in the rent they pay. So hopefully March/April 2022 I will start
 

50andOut

Registered User
Messages
164
Hi LITS

Why take out 4 or 5% from the ARF and then invest the €100-200k?

You do not need to draw down from the ARF until you are 60 - so for the first 3 years, use the drawdown cash for living exp, and leave the ARF as a tax free investment. then after that take the minimum of 4% and continue to use the remaining cash on hand to top up any additional spending required.

Note: there is a requirement to maintain PRSI contributions to continue to build up the entitlement to a full state pension, but you say you will do consultancy work. So the above info is assuming that you cover the minimum requirements for prsi

I find your initial post a little hard to follow / interpret, and you don't list what monthly/annual expense you expect to have, so it would be helpful to list out a little clearer in order to get some additional insights/experience/opinions.

Either way the exposure to investment is covered via the ARF, I would personally keep any excess cash at hand in govt savings over various different periods, to be readily available aligned with my annual spending

50+O
 

Lifeinthesun

Registered User
Messages
12
Thank you, I didn’t realise I could leave Arf until I’m 60. Yes hopefully what I earn from consultancy work can keep up my prsi contributions. My expenditure!, I’m not sure, maybe after year 1, I will have a better idea. I am hoping to live in Turkey for 5 months of first year spread out over the year. It is very cheap to live there. The monthly rent will grow my Arf but the only downside at present is the interest the bank takes on your cash in the SART.
 

50andOut

Registered User
Messages
164
Actually to be more specific its the year in which you turn 61 that the 4% imputed distribution starts.

anyway, start tracking your expenses now and get a clear picture of your outgoings now in order to better estimate your future needs..

50+0
 
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