Retiring early – How did you do it ?

Holidays are our weakness. Lots of places yet to see, hoping to have another 10 years left in us.

I have already picked up cheap Ryanair flights for just over €30 each way for April and May. Join up to chain hotel rewards for special offers. Accor, Melia etc. With points and specials, you can get a hotel room for less than €100. We are paying €85 per night for half board in a Melia hotel in April, south of Barcelona. We use Tripadvisor to find ways to get from airport to hotel. 90% of the time we use local bus. We very seldom use a taxi unless it's an early morning flight.

I enjoy doing this and shopping around. Lots of people don't and I can understand that.
 
Ceist Beag said:
You might not think it is that impressive, but believe me there are not many who could get by so cheaply. I think we are quite good on budgeting for groceries and we spend at least 3 times what you spend. We are a family of 5 but still even with just 2 of us I doubt we could get close to that. Fair play.
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In fairness, I am not buying for children. Happy with meat and three veg. Curry. Lots of salads. We really don't buy many things in a packet. Loose vegetables, maybe meat in a packet from the Lidl freezer but no real processed foods. No fizzy drinks. Buy our Cadbury's when it's on special at €2 for 200 grams. (Normally €3.35). We have been known to buy 20 bars of these at a time, then use the Dunnes Stores voucher to get a further €10 off. Buy our annual stock of booze in November when the supermarkets are practically giving it away.

Lots of people would prefer to be on the golf course or a day out at a Spa. We are low maintenance but enjoying what we do.
 
I am thinking back to my student and backpacking days. I had plenty of time to shop & cook, and I lived off almost nothing u comparison to now. But still got to enjoy the activities that interested me at the time. It all depends on your hobbies of choice, and your required level of luxury or ability to DIY. Also don't forget the ability to do things at off peak times reduces their cost significantly.
 
Two people one retired and one semi retired. One in university no grants and excluding this for purpose of comparison. Three other children who visit plenty so food will include for a family of six. Both non drinkers/smokers.

Mortgage 3,396
Car repay 4,423 on one car. Have second 05 car.
Life cover 1,320 two lives
Eir phone 1,316 b/b plus 4 Tesco PAYG (paying for 2 kids)
ESB 1,008
Prop Tax 312
Health Ins 2,826 for 2 adults +1 young adult
Car Tax 990 (800 on 05 car)
Car/House 1,268 insurance
Dining out 1,078
Car fuels 3,506
Oil heating 1,100
Food 6,442 Lidl/Aldi 90%
Clothes 1,108
Car repairs 896
Refuse 318
Holidays 3,060 all DIY
Doctors/Meds 2,569 family of 6
Cash various 2,528
Sundry 5,233 too numerous to mention / house repairs

Total 45,000

Reckon at best the most I could shave off this when mortgage is done in 5 years time and perhaps once car loan is paid off and hold onto that and not replace or get rid of one car is between 5k and 10k. If that situation existed now excluding mortgage, second car costs I would be coming in at approx 35k. So I have to admire your figures Laramie.
 
Leper said:
Everybody's situation is different. We were always used to relatively low wages with no bonuses anytime. Mrs Lep had to give up work on marriage and spent over 20 years rearing our kids and then returned to work. We had the occasional overtime but like many we were screwed with 3rd Level fees + accommodation and no grants, we paid every cent of income tax due like most and couldn't afford a tax advisor, the car was nearly held together with sellotape. I could go on and on (Before somebody says it I'll say it myself "You usually do!").

If you are used to plenty you may have some difficulty settling to retirement as you'll most likely have less income. I don't begrudge anybody of high income while working or in retirement provided it was earned above board. When you weigh everything retirement is the better optiion. No more gridlock, no more hassle, no crying, take as long as you wish with everything, read what you like, watch television whatever you wish and when you wish etc. We spend so much time in Spain that I'm fearing a letter from Spanish Revenue - come to think of it, if we acquire a residencia we could end up paying less taxes - perhaps our time to pay less has come?

Summary of Above:- Cut your cloth to suit your measure.
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Hi Leper, maybe you have posted this before, but I'm interested in hearing about your spending more time in Spain,,?(time of year, places you go, accommodation, budgets,) I'm approaching retirement myself soon and would like to get away to Spain or Portugal for longer periods etc,
 
The best way for most is to max out there pension Tax breaks early in our working life ,

Retiring early may be your choice or underline health Issues may be the deciding factor,

I invested in pension from early in my working life on an average enough wage (AVC )+ compamy/employees scheme,
I could stop them if I wanted to ,Which I did for a while
To be honest I don't buy into paying off your mortgage and leaving tax breaks unclaimed,
once I hit 55 it is a great feeling to know I had enough to pack work in whenever I wanted to,
 
Shelby219 said:
Hi Leper, maybe you have posted this before, but I'm interested in hearing about your spending more time in Spain,,?(time of year, places you go, accommodation, budgets,) I'm approaching retirement myself soon and would like to get away to Spain or Portugal for longer periods etc,
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My own brother purchased a property in Spain about 20 years ago. He spends about 6 months there. Never in July or August as it is too warm. He does it kind of different. A month in Spain followed by a month in Ireland. This means that he pays for a lot of extra flights but he constantly watches Ryanair for bargain flights and snaps them up when he can.
He purchased a second hand car there. He leaves this parked in an out of the way car park from Malaga airport. He pays a reasonable sum for this. His property has a small garage where he can park his car.
 
I'm with Laramie. Most homes have waste as far as food is concerned. Less food waste = More money wisely spent and even less on refuse collection. I bet Mr and Mrs Laramie had their backs to the wall for nearly all of their married life. I bet they got no 3rd Level Grants and were not any kind of burden on the state.

There is less income now, but true soldiers like the Laramies fight on to the end.
 
Reading this and all quite interesting. Would love idea of freedom to retire between 50 and 60. In private sector, 36 yrs old, irish life pension with 5pc employer contribution. Have just upped my pc contribution in last year or so. Understand the benefit of marginal tax relief but irish life managing my money long term doesn't inspire confidence. Pot is worth 17pc more than contributions at the mo. Have no idea if its performing as it ought. Will have mortgage cleared on forever house in next few years. Idea of buying a 2bed rental with cash is attractive perhaps when property comes back down again in next few years. Any advice on how to manage irish life??
 
Another option for going abroad, which I hope to use (and has been agreed by my wife amazingly) is to do house swaps.

Our house is one of those that doesn't like being vacant for long periods of time, something is bound to fail/go wrong or just seize up (a bit like myself). I suggested to my wife that we could do house swaps, where we can live in other parts of the world for a few weeks/a month at a time, and our house is lived in as well. The prevalence of good websites for this makes it a viable option.

Also, it keeps down the costs as accommodation is paid for (Without having to either own or rent a property abroad), and normally transport is supplied, e.g the use of a car. All we have to pay for is flights.

So, in our retirement, I can see us using this method for a few years, to travel at reasonable cost.
 
Giving this thread a wee bump to see if there are any other posters out there prepared to share their experiences on the subject of how they managed to retire early?

I’m still reasonably confident that things will turn around within the 7-10 year timeline I am working to. A little, maybe a fair bit concerned at the trajectory my pensions have taken but I’m staying the course.
 
garbanzo said:
Giving this thread a wee bump to see if there are any other posters out there prepared to share their experiences on the subject of how they managed to retire early?
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Hit net worth target at 39 and probably the main contributors to getting there faster were:
1. switching from employee to self-employed contracting
2. investing heavily in USD and US stocks up to around 2010 when € was strong
3. then buying a city-centre apartment after the crash here
 
garbanzo said:
Giving this thread a wee bump to see if there are any other posters out there prepared to share their experiences on the subject of how they managed to retire early?

I’m still reasonably confident that things will turn around within the 7-10 year timeline I am working to. A little, maybe a fair bit concerned at the trajectory my pensions have taken but I’m staying the course.
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A correction should be expected every few years. It shakes out the weaker companies from your index and gives an opportunity to buy units in your pension at a lower price. With 7-10 years to go I wouldn't be overly concerned. People get into difficulty when they try to time the market and make switches to their pension when they should have left it alone.
 
garbanzo said:
Giving this thread a wee bump to see if there are any other posters out there prepared to share their experiences on the subject of how they managed to retire early?

I’m still reasonably confident that things will turn around within the 7-10 year timeline I am working to. A little, maybe a fair bit concerned at the trajectory my pensions have taken but I’m staying the course.
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Garbanzo, Conan's post on page 1 of this thread is worth reading imo if you haven't already
 
And now is a very good time to see how much money you may actually need, as (if you are lucky), you are working from home, going to the supermarket for 1 trip and eating meals at home, and not buying any unnecessary stuff like more clothes, shoes, or anything on-line.
My life at the moment is pretty close to how my parents spend their retirement, so it is a good indication of to lowest level of money you need. Not saying I would keep this up indefinitely, but it sets the lower level, or minimum needed.
 
Yes, its a good exercise for the lower level.

strange thing is, a lot of people will have amassed all that disposable income over the course of the crisis period, so a good opportunity to see what its going on.

Have not retired yet, but its coming soon. We do a lot of walking, and i have a few hobbies, and have been looking at some voluntary work. As someone mentioned above, you can travel very cheaply when you are flexible. We are good savers, and the only area we’d spend a lot on, is eating out, we don’t spend much on cars, which a lot friends seem to do consistently. As has been said, ya can’t do it all.

Finances are good. Mortgage cleared last year, have both been maxing pension for about 10 years. Thats been interesting, as you just adjust to the new available disposable income, which we have.
None of that it stopped us doing some big holidays in the US, and Europe, and a big home revamp about 7 years ago. Apart from the mortgage, we have not had a loan for anything, since about 2010, and we will never borrow for anything, ever again. Good bit in savings and kids college/other kids expenditure is all taken care of.

The most recent crash had an impact of about a 14 % pension fund value drop, but not as much as most, as was conservative’ish anyway. Not that concerned as it will come back in time.
 
Interesting reading everyone’s thoughts and opinions. I don’t know much about pensions but do my best to learn as much as I can.
I’m 33 years old with two small children and working in private sector (pharma) on a wage of just under 57k. OH no just under 30k he’s 34.
I am currently paying 10% pensions into a defined benefit company scheme and 10% avc and employer contributes 3%.
Can’t afford to pay more at the moment due to the following:

Bought a house 15 months ago and still trying to get our finances back on level ground. We went through a phase of having no money for months.
Childcare-we have a 4 and 7 year old in primary school so loads to pay for after school and the numerous breaks that are attached to bh in the school year and summer.
Loan- we have a 3 year car loan which we are half way through paying and a bank loan.

Any one have any words of wisdom to someone like me? Plan is to clear the loans in the next 15-18 months as we did hope to have another child but seeing the figures regarding the cost is making me have a rethink

ETA I so have the options to buy company shares and just opted in (started working there a year ago)
 
MsCutha said:
Any one have any words of wisdom to someone like me? Plan is to clear the loans in the next 15-18 months as we did hope to have another child but seeing the figures regarding the cost is making me have a rethink
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Have #3, you'll never regret it.


MsCutha said:
ETA I so have the options to buy company shares and just opted in (started working there a year ago)
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Don't buy company shares. Unless you are very lucky, like working for Apple in the 1990s, you will do better with a diversified portfolio. So put it into your pension.
 
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