AMA - Retired at 40

[Amaretire40]

As the title says, I’ve decided to retire at 40, so AMA!

Would you ever consider fostering children whilst retired?

This gives me hope.... I am in similar-ish position barring house equity.
My property value is similar but equity is significantly less tbf if i wasnt shelling out £150k net income in childcare I'd be significantly better off 😅😅😅

Yes i am hoping time in market is my friend...
Also crossing fingers and toes they dont abolish to 25% tax free lump sum at any point... as I plan to keep the mortgage for ages and not pay it off until 65....

Gosh this is very exciting. Is your husband a high earner / does he plan to retire soon....
If we were childfree I'd love to casually work remotely in Porto or whatever for a week or two

It's not enough. Your pension is unlikely to cover your care costs, and even if you halved your property value you've still only got about £20k a year into old age not adjusting for inflation.

You definitely have enough for a gap year or two and to retrain as something worthy and/or fun though.

£300k base, with expected 75-125% bonus.
Im working on the assumption of around £3k a month for spending (which would be far more extravagant than I need), and yes my finances can comfortably cover that.
The big thing which boosted the pot was international postings - I could save for the sizable deposit on the house then the rest was easier to crack.
I considered a phase-out but it just isn’t my style - I’m an all or nothing sort of person and it wouldn’t really work well in the roles I had.

What gets you up in the morning? What do you do all day?

Returns on investments are usually around 5% which would only be £25k a year. Even if it were 10%, 500k is only enough to give you £50k a year gross - how is that enough to maintain what I guess was a decent lifestyle for two people in London?

Have actually considered it - i will revisit it once I’ve ‘reset’ and got a clearer sense of what I’m doing.

So he’s been trying to build a business for years and not made a bean

Happily married?

Exactly this. Just fantasy

Basically you have a million in liquid assets. What withdrawal rate have you modelled your retirement on per year?

£3000 a month is far more extravagant? In London ? In a 1.2 mil house? Hmmm…
seems complete nonsense. How will you be funding your care costs in later life?

Well it’s not a great fantasy

not able to have children
married to man who has been trying to build a business for years but not made a bean
and no idea how she’s going to feel her time but might dabble in a bit of voluntary work

sounds boring really.

Luckily for OP it’s completely made up 🤣

Im working on the assumption of around £3k a month for spending (which would be far more extravagant than I need),

do you live very frugally?

Not sure though
it’s a bit depressing to be made up!

It sounds very much like someone who doesn’t live in London in reality 😆

Yes the £3k a month and far more than i need was a give away

still… it’s not great thread if trying to create a fantasy. Sounds boring and no children despite wanting them and an unemployed husband

Yes, I have. DH has his own too. We expect at some point to get a further £500k (at least) from downsizing and as we aren’t spending significantly the principal remains intact for a fair chunk of time too.

Finance is such a broad term. Which role exactly? Actuary? Wealth management etc? Where did you graduate from and what background did you have growing up. Are you expected to get a large inheritance? (Only child etc)

Good for you OP! Enjoy your retirement! I see the Mumsnet green eyed monsters are out! ‘Someone’s got more money than me so they just must be making it up’. Bore off.

But DH earned much less than you AND has been unemployed and non earning for years?

I’m sorry my honesty is boring

Are you happy? It doesn’t really sound it.

i get impression all is not well in the marriage

Congratulations OP! I’d love to go at 40 - living the dream!

Are any of your friends early retiring as well? Are you telling them all you’re FIREd?

I was in investment banking - front office. I graduated from Russell Group in 2008 so was fortunate to get a spot. I’m from a very working class background - parents worked for local authority. I won’t be getting a significant inheritance.