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43 minutes ago, wish I could afford one said:

I agree with that but also find it a little sad and wonder how much of it is institutionalisation / the boiled frog / etc along with needing the money to buy stuff.  Now that I don't need the money I'm trying to find out but I freely acknowledge I'm finding it difficult so far.  That said I wouldn't change it for a second as in the 9 months or so since I first FIRE'd I've learnt and experienced so much.

Forgive me if nosy but out of interest roughly how much did you make to become independent? Do you have  dependants?

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39 minutes ago, the_dork said:

Forgive me if nosy but out of interest roughly how much did you make to become independent? Do you have  dependants?

When I FIRE'd late last year I had £1.3M of total wealth with no debt.  Out of that I still need to eventually buy a home along with sweat the assets remaining for yield to live off.  Since then it's grown to a little over £1.4M.

I give a lot of detail away on my blog so to protect the innocent I don't really go into my family so much.

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2 hours ago, wish I could afford one said:

I agree with that but also find it a little sad and wonder how much of it is institutionalisation / the boiled frog / etc along with needing the money to buy stuff.  Now that I don't need the money I'm trying to find out but I freely acknowledge I'm finding it difficult so far.  That said I wouldn't change it for a second as in the 9 months or so since I first FIRE'd I've learnt and experienced so much.

Yes, would agree that institutionalisation has a lot to do with it, amongst other reasons....fear of the unknown, fear of not knowing how to fill the extra time, fear of not receiving a monthly payslip on due date that would cover monthly financial responsibilities undertaken that matches that said amount ..... The thought of being self-employed or having an unstable or an erratic income would see that some people will always continue doing what they have always done, until unforeseen circumstances forces change onto them......they might just say looking back, that it was the best thing to have happen to them.....;)

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35 minutes ago, the_dork said:

Thanks for reply, that's seriously comfortable

I'm naturally frugal and on bad work days wonder if could retire by sweating out 500k assets, I think a single man could but bit negligent with kids

I've assumed that for a long early retirement that an annual withdrawal rate of 2.5% of wealth at FIRE + circa 0.2% of investment expenses with the rate then uprated annually with inflation is 'safe'.  If you're interested this is my musings on it from way back in 2014.  Using that as a guide £500k would give you an annual 'income' of £12.5k. 

In my case I also bought some personal psychology into it which also brought dividends into the mix.  This was how I thought about withdrawal rates as I went into retirement in November 2018. 

The Accumulator over at the excellent Monevator had a look at it more recently using a number of puts and takes:

https://monevator.com/what-is-a-sustainable-withdrawal-rate-for-a-world-portfolio/

https://monevator.com/how-to-improve-your-sustainable-withdrawal-rate/

After working those 2 posts he settled on the much publicised 4% Rule including expenses but there are definitely some puts and takes with that.  Using his methodology you might be closer to £500k sweating £20k annually.

Of course this is not advice, DYOR etc etc.

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20 hours ago, TheCountOfNowhere said:

Speaking to a friend who lives in Sussex yesterday....

Several things were said that pricked my interest.... 

1) they've extended their house, can't afford to move, blaming stamp duty. 

2) all the neighbours are extending, same reason. 

3) there's something happening with 'the market' and they're a bit worried. 

4) banker friend has lost his very highly paid job with no prospect of a new one.  He's heading for a costly divorce because his wife's not happy with this/him. 

Was an interesting hour!!!! 

I pointed out the stamp duty level wasnt the issue, the prices were... He seemed confused. 

If this is a measure of what's happening amongst the middle classes in South England then reality is starting to bite. 

 

Look at the prices I said.... Its a massive bubble.... You could see him brain starting to overload 

 

If your house is worth £x and you want to buy another house worth approximately £x prices aren't the issue just transaction costs - the biggest is stamp duty.  Of course if you want to move up price is more important.

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50 minutes ago, wish I could afford one said:

I've assumed that for a long early retirement that an annual withdrawal rate of 2.5% of wealth at FIRE + circa 0.2% of investment expenses with the rate then uprated annually with inflation is 'safe'.  If you're interested this is my musings on it from way back in 2014.  Using that as a guide £500k would give you an annual 'income' of £12.5k. 

In my case I also bought some personal psychology into it which also brought dividends into the mix.  This was how I thought about withdrawal rates as I went into retirement in November 2018. 

The Accumulator over at the excellent Monevator had a look at it more recently using a number of puts and takes:

https://monevator.com/what-is-a-sustainable-withdrawal-rate-for-a-world-portfolio/

https://monevator.com/how-to-improve-your-sustainable-withdrawal-rate/

After working those 2 posts he settled on the much publicised 4% Rule including expenses but there are definitely some puts and takes with that.  Using his methodology you might be closer to £500k sweating £20k annually.

Of course this is not advice, DYOR etc etc.

Sorry for hijacking thread but thanks again for the really interesting links.

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4 minutes ago, wish I could afford one said:

The Monevator site is excellent.  Anybody who wants to really own their personal finances needs to read it regularly IMHO.

Agree, good sound advice......got to have a plan, although not all plans go to plan, but without one will be relying solely on a wing and a prayer......?

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10 hours ago, TheCountOfNowhere said:

Bingo...we have a winner. 

 

This is exactly why its a problem. 

 

https://forums.moneysavingexpert.com/showthread.php?t=5429523

 

The loons are happy to buy £1m for a new build persimmon style home but dont have 50k to pay tge stamp duty. 

 

All those extensions will be using extended mortgages id wager. 

Some of the posters over at MSE really love you Count, did you know that? Over there they want to save money on everything, EXCEPT houses. (To be fair most of the hard core posters giving "advice" (which is always Buy Buy Buy and Buy again) are probably mortgaged to the eyeballs)

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1 hour ago, dances with sheeple said:

Some of the posters over at MSE really love you Count, did you know that? Over there they want to save money on everything, EXCEPT houses. (To be fair most of the hard core posters giving "advice" (which is always Buy Buy Buy and Buy again) are probably mortgaged to the eyeballs)

Did they not work out the count left over a year ago? 

The count is dead...long live the count. 

 

I will say this...the count left not in a small part due to some of the abuse he received for asking for lower house prices. He realised how awful the UK will be when the collapse comes and how much worse it will be if it doesnt.

 

Ill keep posting the facts, the mse trolls can keep praying to the god of lust and money 

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On 14/07/2019 at 18:09, TheCountOfNowhere said:

....,,,..///....

If this is a measure of what's happening amongst the middle classes in South England then reality is starting to bite. 

 

Look at the prices I said.... Its a massive bubble.... You could see him brain starting to overload 

 

GREAT post Count.   Great post.

 

The R E A L I Z A T I O N............ It's like a really, really slow motion car crash.☺️

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20 hours ago, wish I could afford one said:

I also knew it was a big risk but it was a risk I could easily and comfortably take to find out.  I also knew once I pulled the plug I had 6 to 12 months to experiment before I couldn't return to the type of work/job I do.  Being back in a new role it's fast looking like I'm going to be comfortable walking away from it permanently next time around.  So this time it really is about what next rather than looking back.  That then means focus will be on getting good access to the right family/friends which is not so easy as they are spread a little globally and then go from there.

Not sure if you've read my last post but 'giving something back' is pretty much what I am thinking.  I thought maybe some workshops/training around personal finance given I have 10 or so years of it stored in my brain currently.  Quickly coming to the view on that topic that if one is interested in this stuff then you probably don't need my help and if you're not then it's probably a horse to water type problem...

I was in a similar position - working in finance, seeing the writing on the wall, fed up with the politics, etc. Bailed out at 50 and drew on advice from folks like you and others (thank you). I did contemplate going back to work a few years later at the same level but they wouldn't have me! I missed that lesson.

I'm pretty happy not working. I started a degree knowing that I would never have to pay the money back. I cook about 1000 different recipes so no dupes for three years. They're all loaded up into Excel so I can easily pull out recipes to make use of leftovers, outdated food and yellow sticker items. I can watch the TDF, Olympics, World Cups all day! If I get bored then I dabble in some genealogy or go to a gig (new band every month).

Re the last bit, I agree with Si1, but if you mention numeracy or maths then you'll lose them. Perhaps that could be your challenge? Develop a program for 15-18 yo's. Compare the cost of their take-aways with making it themselves and then show them how they can use that money to buy the companies they admire (whatever is in vogue at the time), and how those companies then pay them. Rinse and repeat, then buy the BMW (3yo, etc) rather than rent it. Hopefully by then they will realise that it makes more sense to go for a Honda Jazz!

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