When do you stop working / making money ?

[jamesbrown]

So 14 months later, 47, got the passive income up to 27k per year, plus squirrelled away 60k into the company warchest to date where I pay myself and the missus 1.5k a month, so that should be a basic 45k for the year. Contract runs until end May and have said I wont extend any further as they keep dicking me about.

Increased pension to 400k, 300k in cash, 1.1M in properties, mortgaged to 600k, so now works out at 1.2M in equity and i have to say, it doesn't feel anywhere close to enough.

I want to retire at 55, so I reckon adding 40k * 7 = 280k to the pension, with growth at 5% gets me to 800k or so.
I'd like to increase the cash up by maxing ISA's out each year (myself and wife), so that's closer to 600-650k

and then ideally reduce the mortgages, but not too fussed about those as the idea is to increase the cash amount ahead of the mortgage (based on what ever the lowest interest rate is)

I think 100k a year is the number to aim for.

You can't eat your property or even roll it up and slide it in between sasguru's ass cheeks as he warms up the punters on ugly night at nlady's (every night is ugly night at nlady's, but I digress).

I'd be looking to reduce that property exposure given where we are, esp. if its daan saaf.

But, yeah, 1.2m isn't nearly enough, especially after Comrade Corbyn gets in and double especially if you have kids that are planning to blow your wad on Foundation Art & Design at De Montfort, which I predict they are.

[pjclarke]

My most recent contract just ended before Easter. I was offered an extension [working away from home, staying in a Premier Inn 3 nights a week, waking up to a view of the car park as opposed to the view from my Derbyshire Dales home. Job satisfaction, well let us just say sub-optimal.].

Reviewing my options, the financials look like:

Self and spouse defined benefit pensions: £17,255 pa.
Home Equity: £325K
Defined Contribution Pension pot (2xSIPPs, plus couple occupational pensions): £225K
Cash & ISAs: 97K

The SIPPs and ISAs are invested in a combination of UK equities and corporate bonds, invested on a High Yield, Buy-and-Hold basis, currently yielding about £8k pa.

Between us, the median time to the State pension is 9 years, which will be, assuming no State meddling, another £17k a year.

So, I declined the offer of an extension, and today is, I, think, Day 2 of my real retirement, aged 56.

I could go back, my skills are current, the market is strong.

But knowing that 'work' is now 'optional' is extraordinarily liberating.

[Fred Bloggs]

My most recent contract just ended before Easter. I was offered an extension [working away from home, staying in a Premier Inn 3 nights a week, waking up to a view of the car park as opposed to the view from my Derbyshire Dales home. Job satisfaction, well let us just say sub-optimal.].

Reviewing my options, the financials look like:

Self and spouse defined benefit pensions: £17,255 pa.
Home Equity: £325K
Defined Contribution Pension pot (2xSIPPs, plus couple occupational pensions): £225K
Cash & ISAs: 97K

The SIPPs and ISAs are invested in a combination of UK equities and corporate bonds, invested on a High Yield, Buy-and-Hold basis, currently yielding about £8k pa.

Between us, the median time to the State pension is 9 years, which will be, assuming no State meddling, another £17k a year.

So, I declined the offer of an extension, and today is, I, think, Day 2 of my real retirement, aged 56.

I could go back, my skills are current, the market is strong.

But knowing that 'work' is now 'optional' is extraordinarily liberating.

Congratulations. Yes, it's quite amazing really that having given up completely on UK contracting, I'm now earning more than I ever did whilst effectively being paid to be on vacation, hanging around the office a few hours a day ready for when someone has a problem. Very cool

[milanbenes]

Congratulations. Yes, it's quite amazing really that having given up completely on UK contracting, I'm now earning more than I ever did whilst effectively being paid to be on vacation, hanging around the office a few hours a day ready for when someone has a problem. Very cool

I did the calculations 11 years ago, wanted to understand what I needed and by when

at the time I made a very detailed expenditure table, listing expenses fixed and variable, and totals for monthly and yearly, it was then possible to derive which monthly expense was the highest percentage of the total and play with the numbers to see, if it ever became necessary, which expenses could be reduced, eg, cheaper car every 5 years etc - very very useful exercise and recommend others to do it

my calculation showed I needed 40,000gbp/year, so then it's just a case of guessing life expectancy, then life expectancy minus age now times

Milan.

[Fred Bloggs]

I did the calculations 11 years ago, wanted to understand what I needed and by when

at the time I made a very detailed expenditure table, listing expenses fixed and variable, and totals for monthly and yearly, it was then possible to derive which monthly expense was the highest percentage of the total and play with the numbers to see, if it ever became necessary, which expenses could be reduced, eg, cheaper car every 5 years etc - very very useful exercise and recommend others to do it

my calculation showed I needed 40,000gbp/year, so then it's just a case of guessing life expectancy, then life expectancy minus age now times

Milan.

I have a slightly different agenda. My kids will never be as lucky as I have been in earning money. That's fact. I have gone the extra mile(s) and pretty much set them up. They have no student debt, they have a flat each with no mortgage, they have a pretty well funded SIPP and new cars. I've done my bit now and the next few years are for me. But essentially, I'm on the same path but enjoying myself at the same time as earning the best salary I could ever have dreamed of.

[Crossroads]

Quite late to this thread, but it's a subject close to my heart and I definitely spend far too much time fine tweaking my various financial models!

Me? Early 40's, no financial dependents, no debt and passive income of around £3k/month from property. Another £750k-ish wrapped up in various accounts (inc Ltd) and probably not making the best return it could. Private pension of about £1k/month (current prediction) to kick in at 55. State pension after that if it still exists.

I know the nest egg should see me through to an unlikely age 80 without selling any of my properties, so it is there for emergencies, turning the rest into £5k/net/month is doable. I've done flash cars and big houses, no particular boxes left to tick other than making the best use of my time.

Current thinking is to stay with present client co for as long as they will have me - it's pretty good from a work/life/money/nice people point of view and I've given up chasing the best rate of the biggest project to the expense of everything else.

If they boot me out tomorrow I'll be having a break before I decide what to do, and that could end up being a very long break indeed... it is nice to know that I'm only working because I enjoy it (well, some of the time at least!) and that it is just topping things up and allowing the odd extra splurge on holidays that might otherwise be reigned in.

[Fred Bloggs]

Quite late to this thread, but it's a subject close to my heart and I definitely spend far too much time fine tweaking my various financial models!

Me? Early 40's, no financial dependents, no debt and passive income of around £3k/month from property. Another £750k-ish wrapped up in various accounts (inc Ltd) and probably not making the best return it could. Private pension of about £1k/month (current prediction) to kick in at 55. State pension after that if it still exists.

I know the nest egg should see me through to an unlikely age 80 without selling any of my properties, so it is there for emergencies, turning the rest into £5k/net/month is doable. I've done flash cars and big houses, no particular boxes left to tick other than making the best use of my time.

Current thinking is to stay with present client co for as long as they will have me - it's pretty good from a work/life/money/nice people point of view and I've given up chasing the best rate of the biggest project to the expense of everything else.

If they boot me out tomorrow I'll be having a break before I decide what to do, and that could end up being a very long break indeed... it is nice to know that I'm only working because I enjoy it (well, some of the time at least!) and that it is just topping things up and allowing the odd extra splurge on holidays that might otherwise be reigned in.

Well done, at early 40's you likely have a great future awaiting you. All things being equal etc..

[ChimpMaster]

Well done, at early 40's you likely have a great future awaiting you. All things being equal etc..

You forgot to repeat how you're on the best salary ever that you could have dreamed of on a paid vacation.

[ChimpMaster]

Crossroads, you're doing really well, so good on you for planning so well. You could easily engineer a situation where you no longer have to work. Took me a very long time to get there myself but 3 sprogs have meant a huge challenge in future financial planning. I will of course have to get them through school/Uni at some point so can't quite take the finger off the trigger yet.

We all make our own choices though!

[BR14]

You forgot to repeat how you're on the best salary ever that you could have dreamed of on a paid vacation.

And how big his cat's bolloks were