Early retirement

[astroboydivx]

So from the late 90's to 2003 property on the Eastern Seaboard doubled. A little later and greater on the West Coast. And between March 2003 and now, the ASX has doubled. Add to that re-invested dividends, a strong wage market and incrementally lower tax rates over the last few years and there is no doubt that many people out there are doing very well for themselves.

Of course, those who don't invest and those who don't have marketable skillsets aren't doing much better than they ever were.

But for those that are, and I'm sure there are many ASF's in this position, are you starting to think about early retirement? Or different life plans than you might have had 5 years ago?

I'm heading into my 30th birthday soon with a net worth of $600 000, and as a public school educated kid from divorced working class parents I'm pretty proud of the numbers that appear in my spreadsheet each month. I have no idea how much my mates are worth but I'd assume they have significantly less. I don't talk about my bank account, nor do I display it. Continually spending alot less than what I earn is one of the major reasons in achieving the wealth I currently have.

It's conceivable that I'll be worth $2m by the age of 40, which to me means reaching the goal of financial independence. Still along way away, and alot of money away, but I think it's worth thinking about now and then.

I'm wondering how many other people are out there in ASF-land getting ready for early retirement, who has it as a major life goal, who will push on in the rat race and who will drop out?

What will you do with your spare time? What will make you get out of bed and out of your pyjamas each morning?

 

[tech/a]

Ive considered it (At 53 I can) and to be honest it scares the bejeezes out of me.

Ive been fortunate enough to have been involved in the last Property and Market booms.

I could sell my Company as well and live happily travelling the globe or chatting on boards,until I die of Boredom.

I personally have come to the decision to NEVER retire as such,but to design a lifestyle which will and can ( already does to a larger degree) incorporate freedom and challenge.
That in itself is a challenge one I'm happy to accept.
The topic is wide an diversified and ofcourse will be answered in as many ways as we as human beings are individually different.

Its a personal challenge one which you wont truely associate with until your in the position to do so.
Like many other of lifes irreversable situations.---you just dont know until it happens.

 

[Stan 101]

Great point... I dropped out of the rat race in early 2005 and it took only 12 months to realise that my goal was to get the hell of this working life. I didn't contemplate the actual retirement all that much. I had concepts but no goals. At early 30s it was just too young for me.
I'm back working basically full time for an employer for several reasons. I need to do something and I really enjoy what I'm doing. I'm taking this time to find a new bunch of skill sets for my next attempt.

Some things I found:

1. As you've mentioned you really neeed to have something to get you out of bed in the morning.
2. When out of bed, not many of your peers are free to hook up.
3. I underestimated the need for daily interaction with people. More just the familiar aquantainces in your day to day work life.
4. I was too young to talk up lawn bowls and talk about my prostate at every spare opportunity.
5. Now the pressure is off in a financial sense, I'm loving work because it is on my terms. I don't need to be there and for me, that was the monkey well and truly off my back.

Here's to you finding your own "Machu Picchu!"

cheers,

 

[Sir Burr]

Hey astro,

D@mn that's a good question.

Life - in my 40's and thinking exactly that. "What if I give up my full time job what will I do with my time". I'd definitely miss my workmates!

Keep fit, go fishing, do some sports, join a golf club, voluntary work, do FA?

F-nose, but my day job bores me shytless.

 

[tech/a]

because it is on my terms

Sums it up really---anything you want as long as its because it is on my terms and your in the position to make it happen!

Stan 101
I'm going to adopt that --thanks.

 

[nizar]

Iv spoken to my friends uncle in Malaysia, who is in his 50s, but very successful, owns several companies both there and in Aust., and he told me he's never going to retire, coz what is he going to do with his time? So basically hes still very actively running his companies. Keeps him busy. But he likes busy.

Same with me. Dont think I'll ever retire, ill always be doing something to keep myself busy, keep the brain working...

And more directly regarding the title of this thread...
How do you define early retirement?
Wats early?
40? 50? 60?

 

[Punter]

Hehehe retire from making money...never....its not about using the money up for material needs(e.g. car, house, boat, clothes, food, travelling/world tours whatever) its the fun in watching it grow that counts 100%

Right guys?...of course its good during good times, but its shocking when you lose...

 

[theasxgorilla]

hehehe retire from making money...never....its not about using the money up for material needs(e.g. car, house, boat, clothes, food, travelling/world tours whatever) its the fun in watching it grow that counts 100%

right guys?...of course its good during good times, but its shocking when you lose...

Oh dear...for me it's exactly about using it up...albeit my "material needs" (as you put it) are admittedly modest by many high-rolling standards.

I want to live my gains.

 

[wayneL]

Oh dear...for me it's exactly about using it up...albeit my "material needs" (as you put it) are admittedly modest by many high-rolling standards.

I want to live my gains.

Yer, agree Gorilla.

We might not be around tommorrow, so while looking after the future, it's important to live today as well.

Good comment about modest needs too. No point spending money on things you don't need to impress people you don't like anyway. (To borrow from the cliche')

 

[Punter]

Yer, agree Gorilla.

We might not be around tommorrow, so while looking after the future, it's important to live today as well.

Good comment about modest needs too. No point spending money on things you don't need to impress people you don't like anyway. (To borrow from the cliche')

For me its also about security. I may be content in simply watching it steadily rise without using it, but it also ensures my long term future(as i am only 22 years old, so have many many years to consume it, and thats probably a certainty as costs are rising).

 

[purple]

For me its also about security. I may be content in simply watching it steadily rise without using it, but it also ensures my long term future

hey hey...security might be a misnomer...tell that to the white landowners in Zimbabwe...they would give you 2 completely different answers pre and during Mugabe.

I wouldn't really fully retire... the excitement of trading would still lure me...but I would give up my day job if my trading is sufficient to cover my needs..

 

[Mousie]

How do you define early retirement?
Wats early?
40? 50? 60?

When you make a decision to retire while able-bodied, that's early.

Don't ever retire. Live life on your terms, but you're only given a life once, so make full use of it to benefit yourself and community through your work.

I never tire of saying "nobody is (and will never be) great without work".

Do you want to gain success only to live it out till you see out your years?

Or do you want to go from success to success, tackling ever more challenges that grows yourself and those around you? In other words, do you want to be GREAT? How much do you want to grow?

Whatever your decision - know that YOU ONLY LIVE ONCE.

Whatever your circumstances, whatever your age, it's never too late to reconsider.

 

[Julia]

A really interesting thread.

I stopped working as soon as I felt confident I could live off my assets essentially because I was exhausted from years of working long hours in a very demanding job. For many years I'd had to travel a lot of the time, and was just fed up with suitcases, highways, airports, planes and hotels. I'd reached the stage where I dreaded having to get out of bed and go and do it all again another day.

At first the relief was immense. I could sleep late, then do just whatever I wanted to as the mood took me. But after a couple of months I began to feel somewhat isolated, and missed the intellectual stimulation of talking with interesting people at work. Also, as someone else has mentioned, your friends are all at work while you are swanning about looking for someone to socialise with you.

The investments go on and need some management, but not enough to constitute a full time occupation.

I thought about going back to work (this after about a year and feeling recovered) but had become used to not having to answer to an employer, not having to fit in with anyone else's time structures, and essentially to do whatever suited me.

So the solution for me was to get involved in the community. There is some paid work with mediation, but most of what I do these days is voluntary and I wouldn't have it any other way. I can do the things I really enjoy with people I like and respect and still have time for a pleasant social life and just having a day every now and again of just not having to talk to anyone. (Remember the introvert/extravert discussion??!)

I guess we will all approach this part of our lives very differently. I have a close friend trying to make this decision at present. She is ill from overwork (and trying to manage a difficult medical condition) but afraid to stop work because for her, a huge part of her identity is tied up in her work. I suspect this is true of many people. They're not really all that comfortable with themselves when removed from "what they do".

 

[tech/a]

and missed the intellectual stimulation of talking with interesting people

And now you have us!!---Perfect.

 

[Kipp]

Remember- retirement doesn't have to be permanent... I think it doesnt hurt to take 12 months out of work (if you have the means) to follow a few interests, renovations, travel change careers- whatever your purpose...
Eventually you will feel the need to work again- and unless your in IT- the workforce don't change too much.

I see myself as working till my 70's but maybe a 3-4 day week. nd preferably my own business. I HIGHly recommend the 4 day working week (with Wednesdays off) then your weekends aren't full of chores (and yo actaully have time to go the bank, dentist etc).

Yes- agree with Julia, nice thread. I like it when the ASF breaks out onto other issues as well...

 

[noirua]

If your able to, it seems much more civilised to take the summer off every year. So, if taking part of a pension early achieves this goal then do it.

 

[ROE]

Dont need 2M to be financially free or any other multi-millions number.. Definition of financially free according to my book is

passive income greater than or equal to Expense.

so if my expense is 2K a month I only need a minimum of 2K a month passive income to be financially free.

so if you come up with a number like 2M net worth and it ties in a 1.5M house I dont think you can retire unless you
sell down buy 500K house and live off the income which then can affect your life style so no retirement there.

 

[krisbarry]

I plan to retire at the age of 60, and for my generation that will be considered relatively young, considering people much older than me now are working into their 60's and beyond

 

[nizar]

I plan to retire at the age of 60,

And what do you plan to do for the next 18 years, as life expectancy is about 78 years ??

 

[krisbarry]

Buy a house