At what age do you plan to retire?

[ChimpMaster]

I've been contracting since 1999 and it has easily been one of the best decisions I ever made. The current plan though is to leave IT contracting as a present to myself on my 40th birthday and then my wife and I are going to rent the house and slowly circumnavigate the world with our two children. I may choose to come back to IT if I need the money later in life but I may just stay on the boat and write yachtie articles for magazines. If I did come back to IT though I'd want to be fully retired by my 55th.

If you rent your house out for, say £1,000 a month - can you survive on that? Especially considering that you have 2 kids?

[ChimpMaster]

No kids - never liked the blighters and fortunate to find a woman who felt the same way. I guess that's the clincher.

Investment plan was get rich slowly. Started an EPP as soon as I started contracting in 1987 which I paid up 10 years ago. Maxed our PEPs and ISAs since 1987 and year on year increased the proportion of our income invested.
Most investment is in unit and investment trusts (some inside and outside ISA/PEPs) with a small amount held as cash on deposit in high interest accounts.

Paid off mortgage 5 years ago which released that money for investment too.

Current investment/savings ratio to income is around 66%. The 33% we're left with is plenty enough to live on, take regular holidays, drive decent enough cars and keep updated with the latest gadgetry. Net worth including the house (est. £320,000) around £900,000 I would guess.

Aiming to get that to around £1.6m.

Sounds similar to what I wish to achieve but I've only been contracting 3 years. Then again I'm in my early 30s so have some time yet, but can't see myself contracting past the next 2 or 3 years. 2 more and I will be OK by my plan.

I tend not to look at value in terms of net worth. It's good to know as a figure but don't you find cash-flow is what you're really aiming for?

You have a good spread of investments, so I'm guessing you can produce about £2,000 residual income a month (after taxes).

[AlfredJPruffock]

If you have nothing to give to the World
Then the World will dispense of you

If you doubt this - look at the number of people who die within 2 years of retirement

Me ?

I will be tinkling and tuning ivroies till I drop - no retirement for moi

[ChimpMaster]

Ummm yes Alfred - thank you very much for that.

By "retirement" the general concensus here is that it does not imply sitting idle awaiting death, but instead having the choice to do other things with your life other than work 5 days a week. There are contributions that can be made other than working for money.

[AlfredJPruffock]

Ummm yes Alfred - thank you very much for that.

By "retirement" the general concensus here is that it does not imply sitting idle awaiting death, but instead having the choice to do other things with your life other than work 5 days a week. There are contributions that can be made other than working for money.

Aye TM

...just kidding - but in fact - do what you will - we are ultimately only awaiting Death.

There - bet that brightened up an otherwise dull afternoon !

Folks - dont try the above at home

[wendigo100]

if you do that you wont get a job again

in IT, your finished at 40

Eh? I'm past that and I'm enjoying my best spell!

[wendigo100]

Nearly everybody I know was going to retire at 50. So far, none of those who reached 50 managed it.

[LGDT]

Ummm yes Alfred - thank you very much for that.

By "retirement" the general concensus here is that it does not imply sitting idle awaiting death, but instead having the choice to do other things with your life other than work 5 days a week. There are contributions that can be made other than working for money.

Exactly. That tended to be the view of previous generations. The current 50+ age group has come through 3-4 decades of relative prosperity and have wider horizons than the generations that came before.

For my part when I wake up in the morning I can think of 10 things I could do rather than go to work. Retiring at 50 will give me the chance to do those things and live financially independently.

[lukemg]

Have to agree with many posts on here, key is to be in a position where you can pick and choose to work, or not, depending on what is around. Last thing you need is to be scraping around late 50's, desperate to get into any old role and moaning how everyone is ageist etc.
I am out at 55, regardless of how much money I have, if need be I will liquidate property assets and rent somewhere. Takes a long time to get through 300k even at 1500/month, especially when backed up by substantial income from pension/investments. Not ruling out working, but it would be under my terms, not because I had no choice.
Why do I need to die with 700k in assets ? I am all for passing a bit on to the next generation but have to see myself right.
3 score and ten is probably all I can hope for given family track record, so no chance I am working for 3 score and 5 !!

[AlfredJPruffock]

Good for you LM - enjoy the fruits of your labour - I woudnt bother about inherintance - give the young ones money and they would just blow it all - best the money is spent wisely - ie you blow it all instead.

Right choice in my book - you cant take it with you !