Littlewillow
Registered User
- Messages
- 19
Having worked all my life I blindly put away a few bob each week into AVCs and eventually ended up out of work at 58 because of redundancy. Now I work part time and earn about 300 each week. My partner is a sole trader and earns about €300 each week. On this money we seem to have a nice although simple lifestyle and manage a few holidays each year as well as a few meals out and a few concerts over the year.
Over the years I saw a number of former colleagues reach retirement and fall into ill health soon after. Some friends too met the same fate. Some others passed away. I'm now 60 have no debts, no mortgage and a smallish pension pot of 320k sitting in a BOB with Irish Life in a lifestyle strategy pension fund. We own our home. My partner and I have about €35k emergency fund which we can access any time.
I'm in good health and was thinking of cashing in my chips - taking about 80k as a tax-free lump sum and putting the rest in an ARF or some other investment vehicle and touring Europe in a motorhome for a year or two with my partner. We intend to rent our house during that time and expect an income of about €1200-1400 a month. I'm no financial wiz but believe the rental income, topped up by another €500 to 600 a month (drip fed monthly from either the tax free €80k or a combination from the ARF) is more than adequate for our needs while living in the motorhome.
We also discussed downsizing and at a guess would have another 80-100k left over at some point after the sale of our current home which may or may not be sold before we go away.
So if we leave in 2020 on returning I think we'll need an income near to 26k from 2022 (we will then be 62 and about 5 years from state pension which we both qualify for). We think we may not have the same level of outgoings because our house will be cheaper to run and we intend to use only one car as opposed to two. We also expect to get rid of our landline and broadband fees as our phones can fulfil the need for email, streaming, etc.
We are not too concerned about leaving anything - other than our home - by way of inheritance to our two adult children.
What do people think? Are these the dreams of a delusional dimwit or is it doable?
Over the years I saw a number of former colleagues reach retirement and fall into ill health soon after. Some friends too met the same fate. Some others passed away. I'm now 60 have no debts, no mortgage and a smallish pension pot of 320k sitting in a BOB with Irish Life in a lifestyle strategy pension fund. We own our home. My partner and I have about €35k emergency fund which we can access any time.
I'm in good health and was thinking of cashing in my chips - taking about 80k as a tax-free lump sum and putting the rest in an ARF or some other investment vehicle and touring Europe in a motorhome for a year or two with my partner. We intend to rent our house during that time and expect an income of about €1200-1400 a month. I'm no financial wiz but believe the rental income, topped up by another €500 to 600 a month (drip fed monthly from either the tax free €80k or a combination from the ARF) is more than adequate for our needs while living in the motorhome.
We also discussed downsizing and at a guess would have another 80-100k left over at some point after the sale of our current home which may or may not be sold before we go away.
So if we leave in 2020 on returning I think we'll need an income near to 26k from 2022 (we will then be 62 and about 5 years from state pension which we both qualify for). We think we may not have the same level of outgoings because our house will be cheaper to run and we intend to use only one car as opposed to two. We also expect to get rid of our landline and broadband fees as our phones can fulfil the need for email, streaming, etc.
We are not too concerned about leaving anything - other than our home - by way of inheritance to our two adult children.
What do people think? Are these the dreams of a delusional dimwit or is it doable?