Both jobs can be stressful at times. A "nice to have" would be one or both of us stepping back or retiring in mid-late 50's.
When people are thinking of retiring early, it suggests to me that they are in the wrong job.
You are very well paid and you have plenty of assets.
One or both of you could change careers or employers to do a job you really want to do. You can afford to do so.
Brendan
Fitness, strength and wellbeing. All other things being equal, your 60s could well be some of your best years. Based on your current earnings trajectory, you shouldn't have too many money worries. You family will be raised(ish) and you should have a lot of freedom. But to maximise the benefit you need to be in good health when you get there. Now would be a good time to start including (if you both haven't already) fitness in your plans. Diet, gym, strength and fitness coaching, Pilates, Yoga, hillwalking etc etc. the list is endless. It doesn't have to become an obsession, but get started and keep it going. It will pay dividends, now as well as in the future.
When people are thinking of retiring early, it suggests to me that they are in the wrong job.
You are very well paid and you have plenty of assets.
One or both of you could change careers or employers to do a job you really want to do. You can afford to do so.
Brendan
Depends on your point of view.....do we work to live or live to work?
I'd imagine the primary motivation for most is maximising salary and then getting out of the rat race as early as possible. It is easy to say to find a job you love, but are there really that many out there?
Maybe it is more retire from their career at 55 and do something else defined by their own choice?
do we work to live or live to work?
That really is the point.
If you are working in a stressful job which you don't enjoy, then making a lot of money doesn't justify it.
I think that it's worth asking yourself the question why are you working so hard and why do you want to retire?
It might be because they want to spend more time beekeeping and that is fine.
But it's often a symptom of the wrong job.
Just make sure to ask the question.
Brendan
Getting a big salary often involves having some sort of specific or niche skills, it's not so easy to "change careers" - even if you are willing to accept the salary decrease and uncertainty, which is itself another form of stress. Accepting the stress, pocketing the salary and aiming to get out early is a valid strategy.When people are thinking of retiring early, it suggests to me that they are in the wrong job.
You are very well paid and you have plenty of assets.
One or both of you could change careers or employers to do a job you really want to do. You can afford to do so.
Brendan
Wasn't always this level. Significantly increased in last 2 - 5yrsWith combined income of over 300k per year where has all the money gone over the years? Or has the income gone up recently?
When put so plainly this does cause me to question spending. However we keep a fairly detailed log of annual expenses and can account for all of the expenditure.You need to look at your spending. You say a net income of 12k per month (doesn’t account for bonus?) and saving 4.5k, spending 7.5k seems high for family of 4 with young kids?
Thanks FreelanceIn general, you appear to be in control and in good shape. Definitely stick to the plan to clear the PPR mortgage. And continue maxing out the pension contributions.
Just a few comments:
You mention: A "nice to have" would be one or both of us stepping back or retiring in mid-late 50's. - Depending of course on circumstances and relationship status, it often makes a lot of sense if both retire at the same time, or in reasonably close succession (a year or two apart). Not much fun if one is retired and the other continues the daily drudge - limits your opportunities to do things together, travel together, holiday together etc. Appreciate that you will still have a teen in the picture at that stage, but maybe firm-up on a goal such as "both retire between 59 and 61, future circumstances permitting".
Given your substantial bonuses, is there any possibility of having these treated as employer contributions to you pension ? It is sometimes possible to do this without running foul of the salary sacrifice rules.
Are you sure that you are maxing out your pension contributions. I've seen people assume that the age relates pension contribution % rates to salary, whereas revenue actually allow this to be calculated based on Net Relevant Earnings including salary, bonuses and value of many benefits in kind including many allowances. The difference can be significant.
Fitness, strength and wellbeing. All other things being equal, your 60s could well be some of your best years. Based on your current earnings trajectory, you shouldn't have too many money worries. You family will be raised(ish) and you should have a lot of freedom. But to maximise the benefit you need to be in good health when you get there. Now would be a good time to start including (if you both haven't already) fitness in your plans. Diet, gym, strength and fitness coaching, Pilates, Yoga, hillwalking etc etc. the list is endless. It doesn't have to become an obsession, but get started and keep it going. It will pay dividends, now as well as in the future.
Food for thought.I think that it's worth asking yourself the question why are you working so hard and why do you want to retire?
I have only started a pension recently, and feel it is low for my age. I had viewed the properties as long term holdings that would provide monthly income during retirement. Is this foolish?There’s around €115k equity in Property 1, earning around €2,500pa, after tax. Financially, it would make more sense to realise the equity and pay it off the PPR mortgage @3% (which is likely to rise when your fixed-term is over).
You’ve around €55k equity in Property 2, earning around €300(!)pa, after tax. Again, it makes more sense financially to realise the equity and pay it off the PPR mortgage.
So, I think you should sell both rentals and pay down your PPR mortgage. Actually, I think you should just clear the PPR mortgage.
Otherwise, keep maxing out your pension contributions and stick with a 100% allocation to global equities.
Once the mortgage is gone, any after-tax savings can be kept on deposit.
Keep it simple.
You might also think about starting bare trusts for your kids and utilising the small gift exemption to fund same.
Fair enough.I think we could continue to max pension and clear PPR in next 4-years without selling.
Thought about that when tracker started to rise. Landed on riding it out for a while, tracker might fall again and if keeping property for the longterm the current rates might be just a 3 or 4 year blip.Fair enough.
I wonder would it be worth fixing the mortgages on the rentals? The interest on the trackers is really hurting your net returns.
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