37andhappy
Recycles dryer sheets
- Joined
- Jun 24, 2008
- Messages
- 187
I am 37, have been working damn hard since graduating. Actually I have also been partying pretty hard during this time also, so the biggest thing I am initially looking forward to is being able to get more sleep! Also looking forward to being able to exercise more, and also to being able to stay out at night to any time I like! And travelling to other countries, without the need to check emails, and counting the days down until I need to be back in the office....
I have had a reasonably good income, especially the last 10 years of my career, and I invested it pretty well. Net assets are now valued at USD 4.1m, consisting of properties in Australia, New Zealand, Hong Kong, Singapore, and stocks in relatively high-yielding primarily blue chip companies. Annual investment income from these various assets, after tax and other costs is approximately USD 160,000, with the underlying assets (and the income) keeping pace with inflation.
One of the biggest issues I faced when planning to retire is "how much is enough?". Asking friends produced a really wide range of answers. Some (who had retired already) are living on much lower incomes, whereas others (the guys partying every night, driving fast cars, drinking champagne and buying designed clothes etc, suggested that one would need USD 10mil or more of assets to retire.)
What I did, while still work, is put all of my monthly salary into an account that I did not touch, and then as a test, tried to live only off my investment income (which goes into several accounts in countries where the assets are based). I did this for a year, to see whether I would have a gain, loss, or break even on my "retirement income".
The result - my monthly expenditure averaged out at 9USD a month, totallying 108K a year, leaving me with 52K a year surplus.
So, my thinking is that I can now retire, and especially if I move to a lower cost country, where housing and food is cheaper, I can live a nice life. Any surplus, I can either reinvest (most likely shares or bonds), or just and accumulate as cash and spend when a good opportunity comes along.
A final comment - my spending of 9USD a month may sound high compared to some people who have posted here. It consists roughly of 3.7K per month for housing, and the remaining amoung for food, drinks, partying, travel, clothes, utilities etc. It would be lower if I lived in a cheaper location. Part of the problem is that many of my friends are still working, and this I do spend quite a lot in nice restaurants and nice hotels etc.
Some final, final comments. I am not at all worried of "what will I do when I retire". There are so so many things I want to do (many which do not require large amounts of money) and I am looking fwd to getting started!
I have had a reasonably good income, especially the last 10 years of my career, and I invested it pretty well. Net assets are now valued at USD 4.1m, consisting of properties in Australia, New Zealand, Hong Kong, Singapore, and stocks in relatively high-yielding primarily blue chip companies. Annual investment income from these various assets, after tax and other costs is approximately USD 160,000, with the underlying assets (and the income) keeping pace with inflation.
One of the biggest issues I faced when planning to retire is "how much is enough?". Asking friends produced a really wide range of answers. Some (who had retired already) are living on much lower incomes, whereas others (the guys partying every night, driving fast cars, drinking champagne and buying designed clothes etc, suggested that one would need USD 10mil or more of assets to retire.)
What I did, while still work, is put all of my monthly salary into an account that I did not touch, and then as a test, tried to live only off my investment income (which goes into several accounts in countries where the assets are based). I did this for a year, to see whether I would have a gain, loss, or break even on my "retirement income".
The result - my monthly expenditure averaged out at 9USD a month, totallying 108K a year, leaving me with 52K a year surplus.
So, my thinking is that I can now retire, and especially if I move to a lower cost country, where housing and food is cheaper, I can live a nice life. Any surplus, I can either reinvest (most likely shares or bonds), or just and accumulate as cash and spend when a good opportunity comes along.
A final comment - my spending of 9USD a month may sound high compared to some people who have posted here. It consists roughly of 3.7K per month for housing, and the remaining amoung for food, drinks, partying, travel, clothes, utilities etc. It would be lower if I lived in a cheaper location. Part of the problem is that many of my friends are still working, and this I do spend quite a lot in nice restaurants and nice hotels etc.
Some final, final comments. I am not at all worried of "what will I do when I retire". There are so so many things I want to do (many which do not require large amounts of money) and I am looking fwd to getting started!