Is it time to FIRE - all views appreciated !

[romans2]

Hi everybody,

Long time lurker who’s greatly benefited from the content on this wonderful site.

Thank you to all of you for everything you have shared over the years.

A bit about me, I turned 50 in March, British and live in the UK, DW ‘retired’ 10yrs ago when our daughter was born, have a son who leaves University next year for the world of work after some travelling.

I have a board role at a UK FTSE 250 company, I enjoy what I do but each year I enjoy getting up at 5.15 and the travelling less ! Lost my father at 64 which focuses the mind, reminds me we aren’t here forever and I need to do my best to to ensure we enjoy the fruits of our labour !

Ive had various goals which Ive met and the latest thinking is I will FIRE in 2yrs at 52 but wonder if I need to wait that long, I would love your views ?

Our net worth looks something like this :
--------------------------------------------
£3.85m invested (56% equities)

£200k coin collection (don’t plan to sell but could easily liquidate)

£165k cash

£1.2m house equity (mortgage all but paid off, no plans to downsize for the foreseeable)

-----------
£5m 415k

Of the £3.85m invested 1m 40k is non taxable and the rest is in retirement savings which will be taxable beyond our UK pensions “Lifetime allowance” of £1.5m, its quite complicated but with some smart planning I shouldn’t have to pay tax until until our 70s.

Will receive a joint UK pension of £8k net of tax per annum from age 67.

We will receive an Inheritance of around £150k at some point in the future.

My plan was to continue to invest our ISA (non taxable) maximum allowance of 40k per annum and keep my bonuses next year and the year after to add to the cash sum which we will then use for living costs through to 55. I can access the 1m 40k now (the £2.8m retirement fund only from 55) but ideally don’t want to start draw down from the £3.85 investments until 55.

In terms of cost of living ideally would like to spend £130k per annum up to 55 and then 150k per annum from 55. Significant room to reduce that if needed. Im probably over estimating what we will spend in FIRE but would rather do that to give us headroom.

Ive also read some great articles on this forum about make the most of your “go go years” up to circa 75yrs and Ive seen that in my mother who was very active up to that point, slowed down considerably up to 80yrs and now at 82yrs is happy but spends very little, so im mindful of that.


Apologies for the length of the introduction and I hope it makes sense.

Once again a big thank you for this site and all those who contribute to it ,,

Best

[LiveBelowMeans]

Not sure of all the rules/taxes in England, however it seems like you have enough $$. I would retire now, especially given the relatively young age at which your father died. You can make it work. Time to start enjoying life. Jmho

[The Cosmic Avenger]

Welcome! Just going to respond to a couple of things:

Quote:

Originally Posted by romans2 Lost my father at 64 which focuses the mind, reminds me we aren’t here forever and I need to do my best to to ensure we enjoy the fruits of our labour !

My sympathies. My last boss decided to retire when his father and brother both passed away within a year of each other. I lost both my mother in my late 30s and my father in my mid-forties, which is not that young, but younger than I expected, and that has influenced me, too.

Quote:

Originally Posted by romans2 We will receive an Inheritance of around £150k at some point in the future.

Luckily it sounds like this would be a nice but unneeded boost. Not to get too far in the weeds, but even if this is already being probated, I have learned that you can never be 100% certain of the end result. Life happens.

Quote:

Originally Posted by romans2 In terms of cost of living ideally would like to spend £130k per annum up to 55 and then 150k per annum from 55. Significant room to reduce that if needed. Im probably over estimating what we will spend in FIRE but would rather do that to give us headroom.

It sounds like a good plan, have you run the amounts and spending through FIREcalc? One thing I like about Fidelity's retirement planner is the ability to mark spending as essential or not (food, housing, medical care), and so you know you can cut some of the rest if times get tough. But I think most of us here have a pretty good feel for that.


It seems like you have more than enough to cover what you want to spend. You have £4M in non-real assets, and even if you can't access them all right now, you can consider them one pool and start drawing £120-160K fairly safely. But it sounds like you need to decide if you'd rather stay at it another few years for extra security, or rely on being a little flexible about some spending later on in a worst-case scenario. It doesn't sound likely that it will be an issue, though.

[Mdlerth]

You've got over 4 million pounds at your disposal, not counting two more years of contributions plus some other, minor, potentially liquid assets. You have no debt and you're figuring on spending 130-150 klb for about 23 years, after which your spend rate probably will decline considerably.

You indicate that taxes won't present a significant drag before age 70. I don't pretend to understand how taxes differ in The Scepter'd Isle, but it sounds like you're already FI with a comfortable cushion.

I guess my only question is whether your equity portfolio is, or can be, invested in a manner such that a FIREcalc result would be applicable? For example, if the bulk of your stash is in FTSE instead of NYSE, well, I don't know how comparable the histories of those stock markets are. Perhaps one of the forum experts could weigh in.

But all your other indicators are more than reassuring. Good luck, and I look forward to reading your future posts from across the pond.

[euro]

Ultimately, the correct answer is whatever YOU and your family are comfortable with.
That said, and based on what you have shared, I’d be handing in my resignation letter tomorrow. Time is not replaceable.

[romans2]

Thank you for your input, very sorry to hear about your losses at such a young age, that must have been so hard. Will have a look at Fidelity thanks for that. Your right about another year or two, I can see myself falling into OMY syndrome as I enjoy what i do, the reward is v good, i joined as part of a turnaround 5yrs ago which has gone well, its all my own team and i am loyal to them etc .. just want to get a sense from the members if im good to go now. Thanks again.

Quote:

Originally Posted by The Cosmic Avenger Welcome! Just going to respond to a couple of things: My sympathies. My last boss decided to retire when his father and brother both passed away within a year of each other. I lost both my mother in my late 30s and my father in my mid-forties, which is not that young, but younger than I expected, and that has influenced me, too Thank you for your input, very sorry to hear about your losses at such a young age, that must have been so hard. Will have a look at Fidelity thanks for that. Your right about another year or two, I can see myself falling into OMY syndrome as I enjoy what i do, the reward is v good, i joined as part of a turnaround 5yrs ago which has gone well, its all my own team and i am loyal to them etc .. just want to get a sense from the members if im good to go now. Thanks again. Luckily it sounds like this would be a nice but unneeded boost. Not to get too far in the weeds, but even if this is already being probated, I have learned that you can never be 100% certain of the end result. Life happens. It sounds like a good plan, have you run the amounts and spending through FIREcalc? One thing I like about Fidelity's retirement planner is the ability to mark spending as essential or not (food, housing, medical care), and so you know you can cut some of the rest if times get tough. But I think most of us here have a pretty good feel for that. It seems like you have more than enough to cover what you want to spend. You have £4M in non-real assets, and even if you can't access them all right now, you can consider them one pool and start drawing £120-160K fairly safely. But it sounds like you need to decide if you'd rather stay at it another few years for extra security, or rely on being a little flexible about some spending later on in a worst-case scenario. It doesn't sound likely that it will be an issue, though.

[romans2]

Thank you for your though, the equity element of my portfolio is invested in US, Europe and Asia (weighted more to US) and at a medium risk level.

Quote:

Originally Posted by Mdlerth You've got over 4 million pounds at your disposal, not counting two more years of contributions plus some other, minor, potentially liquid assets. You have no debt and you're figuring on spending 130-150 klb for about 23 years, after which your spend rate probably will decline considerably. You indicate that taxes won't present a significant drag before age 70. I don't pretend to understand how taxes differ in The Scepter'd Isle, but it sounds like you're already FI with a comfortable cushion. I guess my only question is whether your equity portfolio is, or can be, invested in a manner such that a FIREcalc result would be applicable? For example, if the bulk of your stash is in FTSE instead of NYSE, well, I don't know how comparable the histories of those stock markets are. Perhaps one of the forum experts could weigh in. But all your other indicators are more than reassuring. Good luck, and I look forward to reading your future posts from across the pond.

[romans2]

Many thanks for your input, sorry to hear about your losses that must have been really tough. Your right about one or two more years turning into OMY, I joined current business as a part of turnaround which has gone well, very well rewarded, all my own team whom im loyal to. Just want to get feedback on whether im good to go now ..

Quote:

Originally Posted by The Cosmic Avenger Welcome! Just going to respond to a couple of things: My sympathies. My last boss decided to retire when his father and brother both passed away within a year of each other. I lost both my mother in my late 30s and my father in my mid-forties, which is not that young, but younger than I expected, and that has influenced me, too. Luckily it sounds like this would be a nice but unneeded boost. Not to get too far in the weeds, but even if this is already being probated, I have learned that you can never be 100% certain of the end result. Life happens. It sounds like a good plan, have you run the amounts and spending through FIREcalc? One thing I like about Fidelity's retirement planner is the ability to mark spending as essential or not (food, housing, medical care), and so you know you can cut some of the rest if times get tough. But I think most of us here have a pretty good feel for that. It seems like you have more than enough to cover what you want to spend. You have £4M in non-real assets, and even if you can't access them all right now, you can consider them one pool and start drawing £120-160K fairly safely. But it sounds like you need to decide if you'd rather stay at it another few years for extra security, or rely on being a little flexible about some spending later on in a worst-case scenario. It doesn't sound likely that it will be an issue, though.