Advice on early retirement - who's done it? (5 Viewers)

[our poppy llll]

Oh dear, why did you not roll over £20K every year into a Self-Invested ISA in the same investments, and take the interest tax free?

I am not writing this to castigate you, but to educate others into saving in the same way.

I have assiduously every year rolled over my investments into my Self-Invested ISA (originally PEP) and now have all my investments in the ISA free off interest, dividend and Capital Gains Tax.

We are up to the hilt with ISA savings, every year 20k each both pretty and me, it’s the rest that gets hammered for tax and boy what tax. The savings in the monthly interest accounts and the yearly interest accounts are up to the max, I have so many accounts I have to spend a day, withdrawing interest and moving it, to stop me going over the allowances, I think it’s crazy to pay 3.8% interest up to 250k then if you go over, you loose all your interest, so we save 248k in each account, then draw the interest from the accounts and put it into another account, come Jan 31st I have a mega tax bill to pay and it gets bigger every month.

 

[our poppy llll]

thats a lot of savings. why is not in an isa?

I’m up to my hilt with ISAs both my pretty and I.

 

[JockandRita]

I’m up to my hilt with ISAs both my pretty and I.

I'd just love to be able to say, "Yes, we are too".

Cheers,

Jock.

 

[BrochMike]

come Jan 31st I have a mega tax bill to pay and it gets bigger every month.

for your ongoing 'mega' contribution to the government coffers.

It makes me feel less guilty about my goal of paying as little tax as possible during retirement

Edit: I know of lots of charities which would be appreciative of any donation you can muster (thereby reducing your bill)

 

[our poppy llll]

for your ongoing 'mega' contribution to the government coffers.

It makes me feel less guilty about my goal of paying as little tax as possible during retirement

Edit: I know of lots of charities which would be appreciative of any donation you can muster (thereby reducing your bill)

Let’s have a bit of fun, whoo hoo we’ll play “let’s pay less tax” I’m going straight for evasion, well I like standing on the edge.. here is my best reply to mr Taxman.. “you want how much ha ha ha ha ha see ya!
Your turn..

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[BrochMike]

Let’s have a bit of fun, whoo hoo we’ll play “let’s pay less tax” I’m going straight for evasion

Not evasion, just a long term goal of my retirement planning
(although imminent government changes will no doubt make it necessary to review my plans)

my best reply to mr Taxman.. “you want how much ha ha ha ha ha see ya!

I don't think he'll be listening, just standing there with his hand out...

 

[Tykatem]

Pete

 

[alex n]

View attachment 933258


Pete

not happy. you never got our permission to use our holiday picture

 

[nicholsong]

We are up to the hilt with ISA savings, every year 20k each both pretty and me, it’s the rest that gets hammered for tax and boy what tax. The savings in the monthly interest accounts and the yearly interest accounts are up to the max, I have so many accounts I have to spend a day, withdrawing interest and moving it, to stop me going over the allowances, I think it’s crazy to pay 3.8% interest up to 250k then if you go over, you loose all your interest, so we save 248k in each account, then draw the interest from the accounts and put it into another account, come Jan 31st I have a mega tax bill to pay and it gets bigger every month.

So how many years PEPs and ISAs? Did you start at the beginning?

With that sort of money I am surprised you have not put some into EIS and the like.

 

[Otter Spotter]

Oh dear, why did you not roll over £20K every year into a Self-Invested ISA in the same investments, and take the interest tax free?

I am not writing this to castigate you, but to educate others into saving in the same way.

I have assiduously every year rolled over my investments into my Self-Invested ISA (originally PEP) and now have all my investments in the ISA free off interest, dividend and Capital Gains Tax.

But ISas are not protected against inheritance tax , so a mix of pensions and ISAs are probably a prudent option, assuming you have children to leave your estate to.

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[Saucer]

But ISas are not protected against inheritance tax , so a mix of pensions and ISAs are probably a prudent option, assuming you have children to leave your estate to.

Or your hatchback if you don’t have an estate

 

[Minxy]

Or your hatchback if you don’t have an estate

Once the govt gets it's grubby mitts into it and takes their cut 'off the top' it'll turn into a cabriolet.

 

[Burge]

Finished work at 50 that's 16yrs gone in a flash I don't have in excess of £200K in the Bank no where near but I'm happy with my wife of 44yrs & my now Burstner /H .So long I keep waking up I can enjoy my life instead of counting cash .

 

[our poppy llll]

It’s not how much you got, but how you spend it that matters.
If only there was other stuff I’d like to have, it would mean I could spend more!

 

[Dutch 68]

It’s not how much you got, but how you spend it that matters.
If only there was other stuff I’d like to have, it would mean I could spend more!

Have a look at Volkner motorhomes, it will really help you with that task

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[nicholsong]

But ISas are not protected against inheritance tax , so a mix of pensions and ISAs are probably a prudent option, assuming you have children to leave your estate to.

Once the govt gets it's grubby mitts into it and takes their cut 'off the top' it'll turn into a cabriolet.

Or, in the case of UK and Poland, TWO GOVERNMENTS, because the double taxation agreement does not include Inheritance Tax.

I am working on a Trust solution.

 

[Otter Spotter]

Or, in the case of UK and Poland, TWO GOVERNMENTS, because the double taxation agreement does not include Inheritance Tax.

I am working on a Trust solution.

I am interested in whether Poland would recognise a trust, France will not, not sure which other countries do and don’t.

 

[nicholsong]

I am interested in whether Poland would recognise a trust, France will not, not sure which other countries do and don’t.

That might be a stumbling block, which needs investigating.

However after my death and if the capital stays outside Poland I wonder a) will they ever know about it and b) what they can do to recover the money.

All subject to legal advice.

Moving to another country would be a solution.

 

[Puddleduck]

Tired, really just tired of life at the moment and looking at early retirement but only 54 (at end of June) and wife is 56.

For those of you that have done it, Im wondering if you went to an independent financial advisor as part of your research or how did you work out what you could afford?

We did both. Worked out what pensions we had and got the numbers then went to an IFA for advice.

I was medically retired at 53 (?) which was a huge shock and Martin retired at 59.

 

[stewartwebr]

Retired at 50 and have never regretted it. Partner is 8 years older so it made sense, we feel closer together and just love the life we have. We feel very lucky to have been in a position to do it. My advice would be look at your finances yourself and if you feel you can do it go for it. Every time I meet with my financial advisor I can hear my Father saying, if he was any good with finances, he would be the retired one” Guess he has a point.

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[our poppy llll]

So how many years PEPs and ISAs? Did you start at the beginning?

With that sort of money I am surprised you have not put some into EIS and the like.

It was my decision to invest all my money in my business for years and draw dividends and PAYE.
So I limited my PAYE to the maximum allowed before 40% tax, I took the rest as a dividend.
I then saved it. Every spare penny. We had 2 ISAs one each, since 2008 £20k per year each was saved, this is tax free. We saved separately £1.12mil over 25 years, this is now tax free, we retired 10 years ago put a management team in and gifted 45% of the shares, I paid tax. I then sold the remaining 55% to the management team last year. It was valued at £6 million. Again I paid tax. So who needs pensions when the interest alone makes £7500 a month, yes that’s taxed but the capital is not. If the interest rate drops to 0% we plan to draw £3k each per month for 30 years then add private and state pensions to it. We will be happy bunnies..for the rest if our lives. Could we have made more? yes with risk, this has been 100% risk free. So I think I’m doing ok!

 

[our poppy llll]

Have a look at Volkner motorhomes, it will really help you with that task

That was mean, it’s a really fantastic wonderbar Moho, bet id need a HGV to drive it though!

 

[Dutch 68]

That was mean, it’s a really fantastic wonderbar Moho, bet id need a HGV to drive it though!

Easily obtainable, more people should do it, a decent HGV unit is sooooo comfortable ( as long as it’s not an Iveco lol)

 

[TheMachMan]

Just completed our second year of early retirement. We’re under budget for the 2nd year, but did underestimate home repairs and van maintenance. Otherwise it’s been a success, despite high inflation.
Even saw our son through his last year on Uni, so will be up £4.5k next year for starters.
The biggest challenge is to avoid places where you’re tempted to spend!

 

[JockandRita]

However after my death

Moving to another country would be a solution.

A bit difficult Geoff ...................especially after the former. ....................

It was my decision to invest all my money in my business for years and draw dividends and PAYE.
So I limited my PAYE to the maximum allowed before 40% tax, I took the rest as a dividend.
I then saved it. Every spare penny. We had 2 ISAs one each, since 2008 £20k per year each was saved, this is tax free. We saved separately £1.12mil over 25 years, this is now tax free, we retired 10 years ago put a management team in and gifted 45% of the shares, I paid tax. I then sold the remaining 55% to the management team last year. It was valued at £6 million. Again I paid tax. So who needs pensions when the interest alone makes £7500 a month, yes that’s taxed but the capital is not. If the interest rate drops to 0% we plan to draw £3k each per month for 30 years then add private and state pensions to it. We will be happy bunnies..for the rest if our lives. Could we have made more? yes with risk, this has been 100% risk free. So I think I’m doing ok!

Thank you for being so open and "up front" re your financial situation. I do not begrudge you both one bit..............at all, and wish you the very best in keeping what's rightfully yours.

That was mean, it’s a really fantastic wonderbar Moho, bet id need a HGV to drive it though!

No probs our poppy llll. As an experienced and qualified Class 1 HGV Driver, I will happily drive and operate your Volkner for you, anywhere you choose to venture......................................on the proviso that Rita gets to tag along too.

Cheers,

Jock.

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[Brains]

It was my decision to invest all my money in my business for years and draw dividends and PAYE.
So I limited my PAYE to the maximum allowed before 40% tax, I took the rest as a dividend.
I then saved it. Every spare penny. We had 2 ISAs one each, since 2008 £20k per year each was saved, this is tax free. We saved separately £1.12mil over 25 years, this is now tax free, we retired 10 years ago put a management team in and gifted 45% of the shares, I paid tax. I then sold the remaining 55% to the management team last year. It was valued at £6 million. Again I paid tax. So who needs pensions when the interest alone makes £7500 a month, yes that’s taxed but the capital is not. If the interest rate drops to 0% we plan to draw £3k each per month for 30 years then add private and state pensions to it. We will be happy bunnies..for the rest if our lives. Could we have made more? yes with risk, this has been 100% risk free. So I think I’m doing ok!

If you don't have any children I'm available for adoption!

 

[stewartwebr]

It was my decision to invest all my money in my business for years and draw dividends and PAYE.
So I limited my PAYE to the maximum allowed before 40% tax, I took the rest as a dividend.
I then saved it. Every spare penny. We had 2 ISAs one each, since 2008 £20k per year each was saved, this is tax free. We saved separately £1.12mil over 25 years, this is now tax free, we retired 10 years ago put a management team in and gifted 45% of the shares, I paid tax. I then sold the remaining 55% to the management team last year. It was valued at £6 million. Again I paid tax. So who needs pensions when the interest alone makes £7500 a month, yes that’s taxed but the capital is not. If the interest rate drops to 0% we plan to draw £3k each per month for 30 years then add private and state pensions to it. We will be happy bunnies..for the rest if our lives. Could we have made more? yes with risk, this has been 100% risk free. So I think I’m doing ok!

Not questioning your figures…well done, but you must have had some great ISA returns given the annual allowance only increased to 20k in 2017/18 and was as low as 7.2k back in 2008 so some good returns to get your ISA pot to the figures you quote…well done

 

[Minxy]

It’s not how much you got, but how you spend it that matters.
If only there was other stuff I’d like to have, it would mean I could spend more!

Same problem for us, there's very little we actually want or need.

 

[plug]

Tired, really just tired of life at the moment and looking at early retirement but only 54 (at end of June) and wife is 56.

For those of you that have done it, Im wondering if you went to an independent financial advisor as part of your research or how did you work out what you could afford?

If you are really tired with work, depending on your job can you not go on a sabbatical, to really find out if it’s just a long holiday you need or you are really at the stage in your life to call it a day.
I have done the above, and have taken the sabbatical then went back to work and handed my notice in at 62 and have never looked back.
Good luck and enjoy life, like a lot of people on this forum we are the wrong side of 50.

 

[busby]

Tired, really just tired of life at the moment and looking at early retirement but only 54 (at end of June) and wife is 56.

For those of you that have done it, Im wondering if you went to an independent financial advisor as part of your research or how did you work out what you could afford?

I didn't have enough money to need a financial advisor..Retired at 56...Don't know how ..suppose we just did.Been travelling Europe long term since 2000..not gone without anything.First year since retirement we havnt travelled... been incapacitated waiting for new hip since last nov..Gave up waiting and paid for hip replacement last week...reckon we will get away mid sept..Fed up of sitting within four brick walls...Roll on.BUSBY

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