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Introducing the LemonFools Personal Finance Calculators

FIRE starts today

Including Financial Independence and Retiring Early (FIRE)
Pheidippides
Lemon Pip
Posts: 60
Joined: November 4th, 2016, 9:07 am
Has thanked: 6 times
Been thanked: 24 times

FIRE starts today

#235874

Postby Pheidippides » July 11th, 2019, 12:41 pm

Yesterday was my last day of work and Australia 126-5 in the Cricket World Cup semi-final - what a start to the next chapter in my life. I've worked for nearly 36 years with 9 days of unemployment and that is that - I am done

I've been actively planning for this day for many years and been "doing the sums" for a few years. My father's death 5 years ago was the kick up the backside I needed to get my finances in order and put me in a position to realise FIRE.

This is not just a report - this is also a thank you to the whole of the Fool

A large part of the reason I am able to achieve this is due to the Fools - both Motley and Lemon - that really were the basis for my financial education. I can't emphasise how much these have changed my life. It may sound like a cliche, but they are not just chat forums, but genuine communities with some unbelievably generous contributors sharing their experience, knowledge and opinion.

With best regards

Pheid

Upcoming:

Soon: Maximise Pension Contributions to use full allowance
55th birthday: take 25% TFLS


Stats:

Age: 54 1/2
LTA: Current estimate will be 99.7%
DB Pension: 9K at 60
State Pension: 10K at 67
DC: SIPP 850K
Cash & ISA: 270K

These are my personal numbers, Mrs Pheid's savings and future DB pensions go on top

Darka
2 Lemon pips
Posts: 225
Joined: November 4th, 2016, 2:18 pm
Has thanked: 449 times
Been thanked: 90 times

Re: FIRE starts today

#235884

Postby Darka » July 11th, 2019, 1:14 pm

Congratulations on reaching FIRE, I hope to do so in the next 4-5 years and frankly I can't wait.

regards,
Darka

JohnB
Lemon Slice
Posts: 601
Joined: January 15th, 2017, 9:20 am
Has thanked: 32 times
Been thanked: 106 times

Re: FIRE starts today

#235891

Postby JohnB » July 11th, 2019, 1:30 pm

Join a happy club. What do you plan to do with all released time, good works, or frittering it away like me?

Watis
Lemon Slice
Posts: 569
Joined: November 5th, 2016, 10:53 am
Has thanked: 43 times
Been thanked: 151 times

Re: FIRE starts today

#235892

Postby Watis » July 11th, 2019, 1:32 pm

JohnB wrote:Join a happy club. What do you plan to do with all released time, good works, or frittering it away like me?


Long distance running, I would have thought.

Watis

Pendrainllwyn
2 Lemon pips
Posts: 157
Joined: November 4th, 2016, 9:53 pm
Has thanked: 74 times
Been thanked: 93 times

Re: FIRE starts today

#235911

Postby Pendrainllwyn » July 11th, 2019, 2:34 pm

Watis wrote:Long distance running, I would have thought.
With a different end I hope.

Congratulations Pheidippides. Enjoy every moment. I hope to follow before too long. I agree with your comments about the community here. I am always impressed with how much people are willing to share their expertise and guidance.

Pendrainllwyn

mickeypops
2 Lemon pips
Posts: 129
Joined: November 4th, 2016, 2:10 pm
Has thanked: 30 times
Been thanked: 78 times

Re: FIRE starts today

#235968

Postby mickeypops » July 11th, 2019, 6:14 pm

Well done that man! Being retired is the best thing ever!

PhaseThree
Lemon Pip
Posts: 54
Joined: June 20th, 2018, 4:37 pm
Has thanked: 5 times
Been thanked: 15 times

Re: FIRE starts today

#235988

Postby PhaseThree » July 11th, 2019, 7:22 pm

Many Congratulations,
I'm in a very similar situation having retired four months ago at a similar age. I'm currently waiting for my 55th birthday in a few months time to release the 25% TFLS and looking at opportunities to pay some class-2 NI to top up my state pension.

Dod101
Lemon Quarter
Posts: 3237
Joined: October 10th, 2017, 11:33 am
Has thanked: 608 times
Been thanked: 1149 times

Re: FIRE starts today

#235990

Postby Dod101 » July 11th, 2019, 7:28 pm

mickeypops wrote:Well done that man! Being retired is the best thing ever!


Depends what you want from life. But first congrats to Pheidippides.

Personally I was given early retirement at the age of 53 with a very nice financial package and it suited me very well because my then wife was actually quite ill and needed my input, but otherwise I would certainly have sought some sort of consultancy overseas most likely because I did not want to retire then. I enjoyed working too much. However I did enjoy my retirement and still do, many years later.

The best thing ever is not necessarily being retired although it may be, depending on your values and on comparing it to the alternative.

Dod

Quint
2 Lemon pips
Posts: 205
Joined: January 22nd, 2018, 3:06 pm
Has thanked: 101 times
Been thanked: 65 times

Re: FIRE starts today

#236019

Postby Quint » July 11th, 2019, 8:48 pm

Well done. Me and the Mrs both walked away from corporate bull 16 months ago (we both worked at the same place, me 14 years, her 27 years. Me 50 wife 55) out the door hand in hand and can honestly say since we have had the best time of our lives, and continue to do so.

In fact the wife went back for a few weeks earlier this year to cover for her replacement who was having a major operation. She said the experience did nothing but confirm that she had made the right decision although she did get a second leaving present :D

MaraMan
2 Lemon pips
Posts: 170
Joined: November 22nd, 2016, 3:30 pm
Has thanked: 38 times
Been thanked: 65 times

Re: FIRE starts today

#236024

Postby MaraMan » July 11th, 2019, 9:00 pm

Congrats and well said. I feel the same way about the Fool communities. I retired early two years ago and haven’t regretted it for a second. I write this looking out over the Pacific in Northern California as we are half way through a one month trip of the Western US, something I could only have dreamed of during my 35+ years of work.

MM

paulnumbers
Lemon Slice
Posts: 291
Joined: November 4th, 2016, 2:15 am
Has thanked: 13 times
Been thanked: 43 times

Re: FIRE starts today

#236032

Postby paulnumbers » July 11th, 2019, 9:43 pm

Pheidippides wrote:Yesterday was my last day of work and Australia 126-5 in the Cricket World Cup semi-final - what a start to the next chapter in my life. I've worked for nearly 36 years with 9 days of unemployment and that is that - I am done

I've been actively planning for this day for many years and been "doing the sums" for a few years. My father's death 5 years ago was the kick up the backside I needed to get my finances in order and put me in a position to realise FIRE.

This is not just a report - this is also a thank you to the whole of the Fool

A large part of the reason I am able to achieve this is due to the Fools - both Motley and Lemon - that really were the basis for my financial education. I can't emphasise how much these have changed my life. It may sound like a cliche, but they are not just chat forums, but genuine communities with some unbelievably generous contributors sharing their experience, knowledge and opinion.

With best regards

Pheid

Upcoming:

Soon: Maximise Pension Contributions to use full allowance
55th birthday: take 25% TFLS


Stats:

Age: 54 1/2
LTA: Current estimate will be 99.7%
DB Pension: 9K at 60
State Pension: 10K at 67
DC: SIPP 850K
Cash & ISA: 270K

These are my personal numbers, Mrs Pheid's savings and future DB pensions go on top


That seems like a pretty great result to me.

Was it worth the 36 years of hard work? A genuine question as I figure I could sort of coast now, working 3 months of the year, and have a fairly poor retirement. Or I could slog myself to death for the next 10 and get myself in a similar sort of position.

Quint
2 Lemon pips
Posts: 205
Joined: January 22nd, 2018, 3:06 pm
Has thanked: 101 times
Been thanked: 65 times

Re: FIRE starts today

#236041

Postby Quint » July 11th, 2019, 10:57 pm

paulnumbers wrote:
Pheidippides wrote:Yesterday was my last day of work and Australia 126-5 in the Cricket World Cup semi-final - what a start to the next chapter in my life. I've worked for nearly 36 years with 9 days of unemployment and that is that - I am done

I've been actively planning for this day for many years and been "doing the sums" for a few years. My father's death 5 years ago was the kick up the backside I needed to get my finances in order and put me in a position to realise FIRE.

This is not just a report - this is also a thank you to the whole of the Fool

A large part of the reason I am able to achieve this is due to the Fools - both Motley and Lemon - that really were the basis for my financial education. I can't emphasise how much these have changed my life. It may sound like a cliche, but they are not just chat forums, but genuine communities with some unbelievably generous contributors sharing their experience, knowledge and opinion.

With best regards

Pheid

Upcoming:

Soon: Maximise Pension Contributions to use full allowance
55th birthday: take 25% TFLS


Stats:

Age: 54 1/2
LTA: Current estimate will be 99.7%
DB Pension: 9K at 60
State Pension: 10K at 67
DC: SIPP 850K
Cash & ISA: 270K

These are my personal numbers, Mrs Pheid's savings and future DB pensions go on top


That seems like a pretty great result to me.

Was it worth the 36 years of hard work? A genuine question as I figure I could sort of coast now, working 3 months of the year, and have a fairly poor retirement. Or I could slog myself to death for the next 10 and get myself in a similar sort of position.

Or try and meet yourself half way.

Kantwebefriends
2 Lemon pips
Posts: 103
Joined: November 5th, 2016, 4:02 pm
Has thanked: 4 times
Been thanked: 4 times

Re: FIRE starts today

#236044

Postby Kantwebefriends » July 11th, 2019, 11:03 pm

LTA: Current estimate will be 99.7%


Bravo. Well done that man.

Alaric
Lemon Quarter
Posts: 3133
Joined: November 5th, 2016, 9:05 am
Has thanked: 9 times
Been thanked: 637 times

Re: FIRE starts today

#236046

Postby Alaric » July 11th, 2019, 11:07 pm

paulnumbers wrote:A genuine question as I figure I could sort of coast now, working 3 months of the year, and have a fairly poor retirement.


Or work on the premise that you never actually retire, just continue on three months a year almost for ever. You would need scarce skills and enjoy what you do for the three months to make that work.

AsleepInYorkshire
Lemon Slice
Posts: 271
Joined: February 7th, 2017, 9:36 pm
Has thanked: 152 times
Been thanked: 104 times

Re: FIRE starts today

#236056

Postby AsleepInYorkshire » July 11th, 2019, 11:47 pm

Pheidippides wrote:Yesterday was my last day of work and Australia 126-5 in the Cricket World Cup semi-final - what a start to the next chapter in my life. I've worked for nearly 36 years with 9 days of unemployment and that is that - I am done

I've been actively planning for this day for many years and been "doing the sums" for a few years. My father's death 5 years ago was the kick up the backside I needed to get my finances in order and put me in a position to realise FIRE.

This is not just a report - this is also a thank you to the whole of the Fool

A large part of the reason I am able to achieve this is due to the Fools - both Motley and Lemon - that really were the basis for my financial education. I can't emphasise how much these have changed my life. It may sound like a cliche, but they are not just chat forums, but genuine communities with some unbelievably generous contributors sharing their experience, knowledge and opinion.

With best regards

Pheid

Upcoming:

Soon: Maximise Pension Contributions to use full allowance
55th birthday: take 25% TFLS


Stats:

Age: 54 1/2
LTA: Current estimate will be 99.7%
DB Pension: 9K at 60
State Pension: 10K at 67
DC: SIPP 850K
Cash & ISA: 270K

These are my personal numbers, Mrs Pheid's savings and future DB pensions go on top

May the road rise up to meet your feet

AiY

Pheidippides
Lemon Pip
Posts: 60
Joined: November 4th, 2016, 9:07 am
Has thanked: 6 times
Been thanked: 24 times

Re: FIRE starts today

#236106

Postby Pheidippides » July 12th, 2019, 10:02 am

Thanks all for the kind words. I had way too much fun yesterday. It can't always be as good as that...

JohnB wrote:Join a happy club. What do you plan to do with all released time, good works, or frittering it away like me?


I have lots of DIY to do for my own house, my daughter's and I run a Scout Group whose hall and grounds need a substantial amount of work. I intend to play golf. Cycling for fitness, rather than the commute. (including the 112m Dunwich Dynamo this weekend),

Watis wrote:
JohnB wrote:Join a happy club. What do you plan to do with all released time, good works, or frittering it away like me?


Long distance running, I would have thought.

Watis


V.funny - I changed my username to Pheidippides as a feeble attempts at a joke. There was a Fool discussion about when to sell shares and I realised and confessed that (at that time) I had not sold a single share for 20 years. To make the point I changed my username as I was obviously in shares for the long run (boom, tish.....I'll get my coat)

I don not run, my feet and knees cannot cope with the impact


Dod101 wrote:
mickeypops wrote:Well done that man! Being retired is the best thing ever!


Depends what you want from life. But first congrats to Pheidippides.

Personally I was given early retirement at the age of 53 with a very nice financial package and it suited me very well because my then wife was actually quite ill and needed my input, but otherwise I would certainly have sought some sort of consultancy overseas most likely because I did not want to retire then. I enjoyed working too much. However I did enjoy my retirement and still do, many years later.

The best thing ever is not necessarily being retired although it may be, depending on your values and on comparing it to the alternative.

Dod


I wanted a clean break. I could have done a curtailed working week, but my role has (HAD - ha!) a large daily and reactive component, and my character doesn't let me not try and stay in touch with what is going on.

paulnumbers wrote:
That seems like a pretty great result to me.

Was it worth the 36 years of hard work? A genuine question as I figure I could sort of coast now, working 3 months of the year, and have a fairly poor retirement. Or I could slog myself to death for the next 10 and get myself in a similar sort of position.


This is a superb question and for me almost philosophical. It revolves around "what is the money for". My motivation was to aim for 55 when I could utilise the tax advantages and the pension freedoms. The fact that it happened a year early is thanks to some unwelcome changes at work and a slight health scare last year that required a couple of months off and a realisation that this "not working" lark was actually quite pleasurable.

To that end it was about making the final pot as large as possible as quick as possible, to maximise the amount of time I have left and at the same time enough money to have the freedom to do do whatever I want.

Regards

Pheid

Shelford
Posts: 33
Joined: November 4th, 2016, 11:43 am
Has thanked: 5 times
Been thanked: 28 times

Re: FIRE starts today

#236271

Postby Shelford » July 12th, 2019, 6:06 pm

Congratulations Pheidippides!

My profile financially and in age terms is spookily very very similar to yours, and I'm looking to go freerange at roughly same time next year (sadly I'm a PLC director and have to give 12 months notice - sigh).

I'd like to swap notes at some point about taking DC pension benefits versus DB benefits. More another time. I'd welcome a short explanation why you are going for a lump sum so quickly given the sequence of returns risk etc etc.

But for today, well done on a great achievement.

Shelford

PS. you have reminded me I need to do my annual state of the nation portfolio review - I am a very infrequent poster!

UncleEbenezer
Lemon Quarter
Posts: 3522
Joined: November 4th, 2016, 8:17 pm
Has thanked: 381 times
Been thanked: 584 times

Re: FIRE starts today

#236325

Postby UncleEbenezer » July 12th, 2019, 10:23 pm

Pheidippides wrote:LTA: Current estimate will be 99.7%
DB Pension: 9K at 60
DC: SIPP 850K

Congratulations on the enviable pot.

But how on Earth is that within the LTA? SIPP 850k leaves you just 200k headroom, and the value of that DB pension can't be far off double that even if it comes without any frills like another lump sum or surviving spouse benefits!

I've just taken my lump sum, and it falls well short of yours. Could buy a 9k pension, but that would wipe out almost all my remaining SIPP pot.

EthicsGradient
Posts: 19
Joined: March 1st, 2019, 11:33 am
Has thanked: 1 time
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Re: FIRE starts today

#236336

Postby EthicsGradient » July 12th, 2019, 11:33 pm

UncleEbenezer wrote:But how on Earth is that within the LTA? SIPP 850k leaves you just 200k headroom, and the value of that DB pension can't be far off double that even if it comes without any frills like another lump sum or surviving spouse benefits!

I've just taken my lump sum, and it falls well short of yours. Could buy a 9k pension, but that would wipe out almost all my remaining SIPP pot.

Usually 20 times the pension you get in the first year plus your lump sum

https://www.gov.uk/tax-on-your-private- ... -allowance

So that would be 180k, just fitting into the allowance.

Alaric
Lemon Quarter
Posts: 3133
Joined: November 5th, 2016, 9:05 am
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Re: FIRE starts today

#236343

Postby Alaric » July 13th, 2019, 12:14 am

EthicsGradient wrote:So that would be 180k, just fitting into the allowance.


The 20 times multiplier introduces arbitrage opportunities by virtue of being invariant by retirement age. Whether the more astute civil servants spotted this isn't known but press reports indicate that the restricted lifetime allowance is creating incentives for senior NHS medical staff to retire early or avoid overtime at the very least.


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