AMA - Retired at 40

[Amaretire40]

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

Well simply that you can afford to never work again. You are financially independent.

Thanks!
Yes, have told friends - most knew it was part of the plan as have always been quite open about it. None are quite there themselves yet but a number have certainly made a few changes particularly around pensions.

What a petty and nasty comment @Devilla

Well done OP. I so wish I had the financial knowledge in my early 20’s starting out in my career. Getting to your 40’s in a really demanding career and thinking, I have to do this for another 20 years. It must be such a wonderful feeling to have the option of deciding not to carry on or working less.

That poster was saying it was all made up and a fantasy

I think it would be fun to choose what to do next.
I love my job so would probably do it for free if I retired . In fact I already do it in a voluntary capacity on top of my day job

I have friends who have worked in finance then retired young and they have built happy and rich lives for themselves afterwards . I couldn't have done the intense stretch they went through but I can see it's a different way to a work life balance

I think this is bloody marvellous OP. Well done on a disciplined and successful life. I am on a high salary but didn’t make similar decisions and I regret that. But good for you!!

People who say Russell group boil my piss

You are 40! You must know that you can't stay 'retired' @Amaretire40

You could live another 50 years, 60 even. All your cash from your 'stocks and shares' and 'investments' are not going to last. Unless you're a multi millionaire, no-one is retired at 40.

Why would anyone want to be anyway? Yeah, working for 'the man' is shit for many people, but most people (if they came into some money) at just 40, would invest it into a small business venture/going self employed. No-one is going to 'retire' at 40 and never do anything again, except their hobbies. And as I said, most people wouldn't be able to do it financially.

I am definitely not jealous, and would find this life fruitless and boring.

@Amaretire40 - This was my husband’s goal too. Then he met me and had 3 kids 😂😂😂. So he has changed his goal to 50.

Well done OP. I’m happy for you. I’m sure you have plenty of other interests that can/will keep you occupied. My husband also did very long hours (still does albeit not as much) and it’s hard work so happy for you!

Same! I work with charities and do some “work” but don’t charge them. I’m lucky enough that I can do that.

And also agree I don’t think I could have ever done the same long hours for years and years! My husband has been doing them since he graduated and still does (he’s 40 now).

When you start a thread, or post on a thread, it automatically goes onto your Threads I'm Watching.

I think that’s where I’m up to.. I wanted to stop but I’m not too sure what I’ll do next. I already do some community stuff, so expect to continue / increase that. I’ve found it very hard to think about what I could do as the day job was so intense, so I’m giving myself the time to reset.
Ive always been jealous of people who love their job - good for you!

Why?

@Amaretire40 fantastic, good for you and kudos that you managed to save so much so quickly. I can imagine that sort of work leads to burn out. Also think it's great that you're not just head long trying to make as much as possible and living a crazy lavish lifestyle. I think a working class upbringing never leaves you!

I've got a similar pension amount to you and am mortgage free. I won't be able to downsize as recently divorced so the downsize has happened already! Thinking I might be able to retire earlier than I imagined but only by a few years.

I hope you find something fulfilling to occupy you. If you're good at gardening and growing veg, why not start a charity or CIC to help those on low incomes grow their own and maybe learn to cook with it?

I am not sure I would be comfortable to retire on £500k of investments though. The people I know who did it had a lot more.
And my pension pot is £450k now and I don't see that as enough to retire on, I am planning to keep paying in steadily with the goal of retiring at 60

Why do you think it’s fantasy?

i know a couple who were investment bankers in their 20’s. Made millions.

had kids kid 20’s and now their work and all 3 go to private school (3 different schools that suit each child).

They literally work for themselves managing their investments now.

If you’re savvy enough it’s doable.

OP o would enjoy your retirement by looking into hobbies, can you travel with your hobby? Maybe attend craft fairs if you like making stuff you could sell etc.

what about listening to readers at local schools or the library?

This just doesn’t seem that much to retire at 40! But I guess it depends on lifestyle.

Yes I don't think you should try and rush into anything. Taking some time out first sounds sensible. And opportunities/ideas might come up that you can't even imagine right now
I had no idea the amazing charity I work with even existed until one day I spotted a tiny advert on FB!

Thank you!
Indeed - Some of the community stuff I support (albeit on the admin side) is in this sort of field, and I can certainly imagine ramping that up.

But she hasn’t made millions has she?

Good for you! I’m also 40 and would love to do this if I could. If people ask you what you do for a living, will you use the term “retired”? I expect people would be quite surprised by it, given your age, not that it matters. Like you said, “unemployed” implies it’s not by choice, so I can’t really think of a better term to use.

If she’s in finance then she must have run the numbers and I reckon it could work on a very modest lifestyle. But she could have another 50 years to cover.

Funny because even chatGPT says it’s crazy 😆

If we entirely remove the property lever,
your liquid bridge fund is strictly £500,000.
Because you cannot touch your £400,000 pension for 17 years, relying purely on this £500,000 portfolio makes a full retirement at age 40 highly vulnerable to failure.

I still think it’s doable. There’s a whole FIRE movement built around this kind of strategy and people do ‘retire’ and live very frugally. She could of course always go back to work if it doesn’t work out, but that becomes harder the older one gets. I would probably go part time if it was me, but that’s also because I’d miss aspects of work and actually succeeding at retirement can be quite challenging - lots of people lose their way and go downhill when they stop work.