Would you retire At 50 if you came into money?

[Quarks69]

My Work colleague is not enjoying her job at the moment. Sadly her mum died and so she has come into an inheritance which has paid off her mortgage and leaves her and hubby with a clear million. They have no real work pension so this is it. He wants to retire early but he says it’s not enough. As someone who also dislikes her job, I think she should jump at it, life’s too short etc, but she’s not sure. Thought I’d see if you think this is enough to stop work with? Not that I’m jealous or anything 😊

Er, yes!!! Plan is for me to retire at 54, my dp will be 60, funds permitting - as a contrast to most people, covid has been excellent for business and we haven't been able to spend money as much as normal so have been able to save a decent amount in this tax year. Yes we are fortunate.

Depends where you are at 50. When I'm 50 my kids will still be 11/12 ish. My bfs kids will be in their 20s. Different stages of life

@IM0GEN letting agent? 4k!
The standard charge is half the first month's rent for a new tenant (plus any checks like gas the agent has organised) provided you then manage the property yourself.

I'd also allowed for savings towards major repairs. And if your asset appreciates, you can sell some to release capital if you need to. You're 80, you want a round the world cruise on the Queen Mary and to adapt your current home for increasing infirmity, so you have the option of selling a property

@LunaHeather it is about an hour a week usually, if that! We have a trusted builder and plumber who take care of any emergencies.

If a tenant moves out then we go there and stay with friends to do viewings etc.

As we don't have jobs any more it is doable. We have 2 holiday lets where we live too, so one of us would stay here if we needed to go and do viewings.

We clean the holiday lets ourselves, so on a busy week that might mean 4 changeovers, 4 hours each changeover. The rest of it, the admin side, is just a few minutes here and there throughout each day.

Our aim was to stop work in the jobs we didn't particularly enjoy, and we have done that. Our joint income is about £50k.

Moving

Thank you, that's good to know. I'm glad it worked out well for you.

[quote GrumpyMiddleAgedWoman]@IM0GEN letting agent? 4k!
The standard charge is half the first month's rent for a new tenant (plus any checks like gas the agent has organised) provided you then manage the property yourself.

I'd also allowed for savings towards major repairs. And if your asset appreciates, you can sell some to release capital if you need to. You're 80, you want a round the world cruise on the Queen Mary and to adapt your current home for increasing infirmity, so you have the option of selling a property[/quote]
I’m taking about £4K to the letting agent based on the figures in the example given up thread.

4 properties x 900 pcm = 10,800 a year each
Most letting agents charge 10% + VAT = 1,300 per property. That’s actually 5,200 pa.

But let’s assume you find a super cheap but excellent one who only charges 9% - that’s the £4K per annum .

Of course it’s cheaper if you are managing everything yourself. But you need to be very up to date with all the legal issues - ignorance of the law is no excuse. And depending on your tenants - it can be a lot of work.

And that’s without all the current changes for Covid - protection for tenants who are not paying the rent, no routine inspections etc.

I have three properties which I manage myself - two are no bother at all and one is a LOT of work, with frequent changes of tenants, issues with utilities etc.

I’ve spent 6 months dealing with a utility Company about debts left by a former tenant and about common roof repairs ( to a flat in a block with no managing agent ). I’ve had to pay out myself to get the work done and try to get the money back from other owners.

So forgive me if I disagree with you about how easy it will be for the Ops friend to invest her money in property and make a fortune with no work. I’m glad it’s been like that for you but I don’t think that’s the experience of most small landlords.

Well, I was assuming they'd be able to manage the properties themselves. If not, it will cost more.

If you're fit and well and retired, you should be able to find the time to do it yourself and keep an eye on the legal side.

I’d retire the minute I had that much money!

@GrumpyMiddleAgedWoman - I think it’s easy to underestimate how much time and knowledge it takes. In my limited experience, tenants seem to be either no bother at all or a total nightmare, with not much in between.

But I’ve not yet had any of the “ pay no rent for a year and then trash the place before being evicted “ type so I perhaps shouldn’t complain 😬

It all depends on their current joint income and lifestyle. For me personally it would be more than enough for me to retire.
I do have an occupational pension and I could take that early (actuarially reduced) and even if I lived to 100 just using the capital sum I would have a larger income than I do now. So yes, in a heartbeat I would do it.

No. I enjoy my work. Its part time and so is DG and we both enjoy it. Public facing and its what we’ve both done since we started working.

Id happily go to work, and just enjoy knowing its there and use it to revamp the house and garden.

DH not DG

@sessell

Yes! If they've paid off their mortgage then they can easily live on a more modest income. I'd set an annual allowance and have no problem sticking to it. Time is the most valuable thing we have. Why work longer just to buy stuff, most of which you don't need, to impress people you mostly don't like - as the saying mostly goes... I'd happily shake off the shackles of capitalism slavery as soon as I could.

Absolutely agree that time is the most valuable thing we have. I know too many people that died before they could retire or very shortly after retirement. My parents didn’t have much and we grew up on a low family income. They managed, because of a very modest inheritance to pay off their small mortgage (they had a special mortgage to buy their council house as the mortgage was cheaper than the rent) when they were in their 60s and therefore had spare money each month. - they were never well off but weirdly were far more comfortable after my dad retired than they ever were when he was working. My mum died a short while later but even though my dad lived until he was 81 he wasn’t fit enough in his last 5 or 6 years to do very much but he enjoyed his simple life watching old movies, listening to music, reading and seeing his grandchildren and great grandchildren.

It’s all relative. If you have managed to bring up a family on a family income of less that £39k a year then retirement at 50 with £1m in the bank is perfectly manageable. If you are used to £100k plus income a year, have several holidays a year and a new car every 2-3 years then, no, retirement at 50 is unlikely.

No way. I love my job and I'm good at it. Gives me a break from parenting (I'm less good at that). In normal times I loved getting dressed up and going into central London.

I wouldn't but it would give me the breathing space to leave the job I didn't like and find something I enjoyed and maybe part time.

I’m 51 would quit my current job and the drop of a hat and do something more interesting instead

Yes but I’d probably get another part time job or set up a business that I enjoy. My children will both be at University or moved out. I’d like to set up a florist or coffee shop or milkshake bar.

I'd ask for a demotion and a smaller contract. My job (retail) is the only connection I get with people other than husband and kids. Love the social aspect of my job (staff as well as customers).

I am impressed at those of you who already have part time jobs, over 50. Wouldn’t your bosses go for younger staff as they are less hassle and get paid less? Not that they should, of course, it’s just that what you hear.

Maybe OP can start another thread 'If you love your job what is it, how much do you earn and is it possible part time and what's the part time pay?' That would help inheritance and lottery winners and everyone else who cant wait to retire at 30/40/50

Of yes and age of course. I dont know anybody above 50 part time in my industry so I need to get out!!

AirMech

Or the self employed - like me?

Im which way are younger people less hassle?

I would retire at 30 if I could!

AirMech - I am 63, love my job, part time hours - but in retail, which is well known for not paying very high wages ! Plenty of women (and men) over 50 working part time in my organisation (Charity retail) but I'd be lying if I said we were in for the money . But yes, I would happily continue even if I could 'afford' to retire.