They became millionaires and retired at 31. They think you can do the same

[Tapori]

On 25/07/2019 at 21:36, Travisher said:

Just a couple of  words for all who have contributed to this thread. Thank you!

I did voluntary contributions to my pension, as big as I could for 18 years. I paid off the mortgage with savings and some inherited money. Rather than get used to the increase in money available to spend I added what I had been paying on the mortgage to my pension VC.  At the age of 60 I was pushed out of my job  and found nobody wants a 60 year old IT manager.  I have 2 teenage sons, one at private school and one at Uni. I shall look closely at FIRE as a concept since while I haven't touched the pension my savings have been dwindling at a rate of about £20kpa. I get paid a few hours working for a charity but actually do far more because it is fun and some delivery driving which helps with the cash flow. The main issue is the damage to ego, especially as an NDA prevents me from publicly saying "I told you so"  to my ex boss as they get exposed by the tide going out. I might not be retiring very early but then again my father made it to 97, so perhaps potentially having a third of my life ahead is early enough.

AVC was smart. Good for you. Hope your sons look after you and do well.

1 piece of advice if not to sound too intrusive or dreary and patronizing; Please if you haven't already done so, sort out a will and pension wishes (How it is to be distributed). Can be touchy, but always I've seen that it's better to hear any grievances wishes or concerns whilst you are in good health and so  arguments about your assets are less once you leave this world (Hopefully for a very long time yet!)

Currently seeing lots of issues cropping up in London esp. over property wealth and the kids fighting. Parents bought pre-current HPI,working class, retired, property shot up to a million, kids with spouses and relations et al squabbling etc etc

[houseface2000]

On 25/07/2019 at 11:04, wish I could afford one said:

No, that's not right.  To become FIRE you need to have a high savings rate which you then use to convert Human Capital into Financial Capital.  A high salary enables you, for equivalent spending, to have a higher savings rate so you can potentially get there faster.  There are plenty of huge salary earners who are broke at the end of each month.  For example the person who earns £20k and saves £10k while having the life they want will get to FIRE far faster than the person who earns £100k and saves £10k.

I also used to absolutely love my work and then over the years it gradually became a job I didn't enjoy so much.  The sad thing is like the  boiled frog I didn't even notice the transition.  Can you fully control your work?  Even if you can why not save/invest in parallel as it will certainly give you options later.

Thing is after tax and pension I earn £1400 so there is little left when you include travel (I'm lucky enough to get 2 months off a year) even doing simple things and consuming little there is no way I could save £700 a month. I'd need to clear £2400 for that to happen then the jobs look high pressure middle management, sales or IT I just couldn't do it tbh 

[Travisher]

On 30/07/2019 at 03:10, Tapori said:

AVC was smart. Good for you. Hope your sons look after you and do well.

1 piece of advice if not to sound too intrusive or dreary and patronizing; Please if you haven't already done so, sort out a will and pension wishes (How it is to be distributed). Can be touchy, but always I've seen that it's better to hear any grievances wishes or concerns whilst you are in good health and so  arguments about your assets are less once you leave this world (Hopefully for a very long time yet!)

Currently seeing lots of issues cropping up in London esp. over property wealth and the kids fighting. Parents bought pre-current HPI,working class, retired, property shot up to a million, kids with spouses and relations et al squabbling etc etc

Thanks for that. Yes, wills and pension sorted.

I'm aware of  bad behaviour of relatives. Thefts from the dying by those supposedly caring for their kin. Even a suspicion of attempted murder where the police could not pursue as the intended victim was too frail to be a witness and unlikely to survive the time it would take to prosecute. Sometimes I wonder if we are not slipping back into Dickensian times where waiting for a rich relative to kick the bucket is considered the norm.

[scottbeard]

32 minutes ago, Travisher said:

Sometimes I wonder if we are not slipping back into Dickensian times where waiting for a rich relative to kick the bucket is considered the norm.

To the extent that the boomer generation has been a bit over-provided-for*, I think this genuinely will only work its way through as they gradually die off.

* and yes, I realize not all of them, and yes I realize not necessarily all of their own fault, but by any measure this generation has more than those above or below

[Pop321]

1 hour ago, Travisher said:

Thanks for that. Yes, wills and pension sorted.

I'm aware of  bad behaviour of relatives. Thefts from the dying by those supposedly caring for their kin. Even a suspicion of attempted murder where the police could not pursue as the intended victim was too frail to be a witness and unlikely to survive the time it would take to prosecute. Sometimes I wonder if we are not slipping back into Dickensian times where waiting for a rich relative to kick the bucket is considered the norm.

Interestingly my cousin (boomer who massively inherited everything from ‘the family’ ie our grandfather when he was about 35 years old) made the comment that many of his friends are waiting for inheritance. And some of those waiting are in their mid 60’s and relatively well off. 

Whilst my cousin can’t really judge...he was spot on. Examples of people putting their lives on hold for a greedy inheritance despite already able to live comfortably. 

Very different for the younger generation who don’t own a home..

It seems to me inheritance brings out the very worst in ‘some people’.

[scottbeard]

56 minutes ago, Pop321 said:

It seems to me inheritance brings out the very worst in ‘some people’.

Frankly money brings out the worst in most people.

I'm not onside with everything in the Bible, but I do agree that "the love of money is the root of all evil".

[Glental]

The generational wealth transfer can definitely mess things up. My cousin is in his 30s, has wife and kid but has never worked properly, no skills or qualifications and still lives at home. My uncle earns decent money and is continuing to work in his 70s and pays for everything. Even though my cousin will inherit a house and cash I doubt it will last long.