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 😊

I thought the idea would be to live off the income from the capital without actually touching the capital?

But those of you who are calculating £1m divided by 30 or 40 years aren't thinking of the money earned in interest by investing this money. She's not going to hide the money under the bed!

@RainingBatsAndFrogs

If they retire at 50 and they live to 90 (very common now) that’s £25k a year.

I’m not sure I would do that. Perfectly good income but hardly a life of riches with which to spend loads of time. I’d rather work more to cover the basics and then be able to live the life of Riley during my hols etc.

You've forgotten the interest being earned on the remainder.

You'd only need a fraction over 2.5% interest/investment return on the remainder to recoup the first year withdrawal before the second year.

But surely they already have pensions in place? The million pounds is extra on top of their existing provision. In which case yes, obviously it’s enough to fill in the gap until their planned retirement date.

Much answer would be no, I'd like to re train, I'd be bored retiring. I'd rather work out how to grow the capital to a state where I could draw income from it

50 and fit is a bit young to have 24 hours a day of "free" time.
so not too young to retire from a job that's unpleasant but too young to fully retire. i would recommend and i have seen several friends in similar situations take on a lower paid but still enjoyable "jobette".

I think I’d go down to one or two days a week, then use the rest of the time for volunteering, my hobbies etc. I’d have a lovely time!

@Mudmudingloriousmud

I thought the idea would be to live off the income from the capital without actually touching the capital?

Yes well with savings interest rates at 0.1%, that’s only £1,000 per year. They’d have to buy an annuity or invest with a draw down payment plan of pulling out 4-5% each year. So capital would be gradually nibbled away at...or munched in chunks if investments go negative returns.

@staceybeaker

I wouldn't because it's too young. But would leave a job I didn't like and do something else instead, maybe part time

This! She can't travel at the mo anyway and has no pension so she shouldn't blow the lot straight away. She might live another 40 years. Interest rates are too low for her cash to give her any sort of income, and she'll be bored to tears stuck at home right now.

@HollowTalk

But those of you who are calculating £1m divided by 30 or 40 years aren't thinking of the money earned in interest by investing this money. She's not going to hide the money under the bed!

One stock market crash could wipe out 30-50% of that million in an eyeblink. And if your living off it, there won’t be enough time for it to recover.

Sorry, I always assume people don't bother with bank's savings I meant stock and shares isa.. I'm a novice and mine is running roughly at 20% and has been with slight correction through covid...

I'd retire. Actually find something I enjoy, and did that- whether it be then retrain (so not actually retire) or hobbies/ life. If I enjoyed what I did, would look to reduce hours, potentially, because life is short and I f I can enjoy it, I would bloody love to.

Plan that's the problem...

Mr money moustache is good on all this...

Spread investing etc so one covered the other and balance with bonds also.

Not in current times when there's feck all to do with my time. I'd rather be working TBH (I really like my job though).

A million? I doubt it. The property type I want is £600K, which I can afford if I sell up but with the proviso that it must generate money-camping, cottage in the grounds, livery yard, for example. I need a buffer of several hundred thou to feel safe, plus people live a lot longer these days, so I don’t think a mil is enough to retire on.

Absolutely not. It’s not enough to live on comfortably forever and 50 is young. I will be there in a few years and can’t imagine not working. I’ve got a good few more roles in me yet!

@Mudmudingloriousmud
Yes! I followed money moustache for awhile.

Yes without a second thought! I’m 50 and could easily fill my days without a job. My dad retired at 50. He sailed round the world in a yacht, climbed the Matterhorn, did a lot of paragliding, travelled loads. Thoroughly enjoyed himself for 25 years. But yes he was too young and should’ve stayed at work for another 15 years!!🤣

Yes, I most definitely would retire early on that. In fact, far, far less than that and I'd still retire. I have so many things I'd love to do instead....

But you have to be the type that can live fairly sensibly. Even though my dad did all those things he’d not have stayed in posh hotels and he isn’t interested in posh cars etc. He invested a bit of money well.

I'd find be a nice PT job, rather than stop working entirely.

Yes.

50 is young, I’d want to do something enjoyable and meaningful

So many opting for early retirement, but in a SAHP thread you see so many questions such as

• but what do you do all day? How boring’
• i can’t imagine not working and not having that professional identity
• don’t you want to model a positive example of being a hardworking parent to your children.

Confused.. is that all exaggerated?

No I wouldn't stop work entirely but I would do a job I enjoy part time. This is in fact exactly what I am doing. We are financially secure with no mortgage a good pension and cash in the bank. I have a job most people would hate but I love it (although I would prefer to be back in the office and not wfh).

I am trying to persuade DH to do the same but he is not ready yet. Coming from a very disadvantaged background he has worked hard and lived frugally all his life and is struggling with the concept of security and letting go. I think he will get there soon but some people do find it hard to change.