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Thread: Anyone else planning to retire early?

  1. #1
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    Anyone else planning to retire early?

    Last year I retired aged 40. And although that seems odd for South Africa - more and more are retiring younger in the States and around the world. For me it was the realization of a few things, the biggest being that I would happily forgo a new BMW/holiday home/ yearly oversea holiday/ect ect if it meant having every day to do want I want.

    It was not all my own decision - my one shop that had done very well with no competition suddenly had two of the chain stores move into town and sales plummeted - so I closed it immediately. And after closing that one down I did some maths and figured with all my stock turned into JSE stock, I could just - with a bit of luck, live on the dividends. But there where quite a few what if's - but so far, everything has gone better than expected - might even allow myself a 10% "increase".

    My budget is tight - but as dividends generally increase quicker than inflation, theoretically I should do better the further I go down this path. I also plan to try make the odd buck with my hobbies down the line - hopefully enough for an overseas holiday every 5 years or so.

    These days my time is spent playing in my workshop or garden, doing online courses, knocking a tennis ball around and reading - today, as it's a tad hot, will be editing some photo's and carrying on with some courses.

    Anyone else planning to cut back and retire early?

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    Diamond Member HR Solutions's Avatar
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    the biggest being that I would happily forgo a new BMW/holiday home/ yearly oversea holiday/ect ect
    WHY ? I love my work and don't see why I should have to forgo the above (if I can help it). I work hard for the little things in life along the way for my family and myself.


    My budget is tight - but as dividends generally increase quicker than inflation, theoretically I should do better the further I go down this path. I also plan to try make the odd buck with my hobbies down the line - hopefully enough for an overseas holiday every 5 years or so.
    I suppose everyone for their own. If this is what drives your boat and you are happy with it. Personally I enjoy working, I enjoy new challenges and trying to gain the rewards from it I think I would haven driven myself nuts if I had retired at the age of 40
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    Diamond Member AndyD's Avatar
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    I was unofficially planning retirement when both my sons are out of the nest, probably another 6 or 7 years away. I went through a major restructuring a few years ago where I sold off a couple of parts of my business so I could have more family time and me time, the proceeds have been squirreled away so financially I could possible afford it but I just don't feel the need at the moment.
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    Gold Member Houses4Rent's Avatar
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    I certainly to no not intend having to work to generate an income to bring food on the table until or even beyond the 65 year mark as most have to. Only 5% percent can retire financially independent at retirement age. I could probably retire already now (If I would be able to find a capable person running my business), but its too much fun to do it myself and make it even more successful. My kids are still very young though (5 and 7).
    However, I would not bank my income on the JSE, but invest all in residential property globally. A bit more crash proof than the JSE I reckon.

    Also keep in mind that as we become older medical costs will go up exponentially and our life expectancy is going up to. Some say the first person who will turn 150 is already living amongst us.
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    Quote Originally Posted by Houses4Rent View Post
    I certainly to no not intend having to work to generate an income to bring food on the table until or even beyond the 65 year mark as most have to. Only 5% percent can retire financially independent at retirement age. I could probably retire already now (If I would be able to find a capable person running my business), but its too much fun to do it myself and make it even more successful. My kids are still very young though (5 and 7).
    However, I would not bank my income on the JSE, but invest all in residential property globally. A bit more crash proof than the JSE I reckon.

    Also keep in mind that as we become older medical costs will go up exponentially and our life expectancy is going up to. Some say the first person who will turn 150 is already living amongst us.
    About a 1/3 of my holdings are listed property, and half of that is overseas. And most of the companies I have shares are mid to large caps which generate substantial portions of there profits outside south africa. Not too worried about a crash - dividends are a portion of company profits NOT market sentiment.

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    Diamond Member wynn's Avatar
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    I've been planning to retire for the last 43 years, I took out the correct policies all those years ago but after 20 years I hit a wobbly and could not afford the premiums so I lost all my input, since then I have hit a number of wobblies and reckon I will have to work until I drop.

    If I knew 40 years ago what I know now instead of policies I would have invested in 'Unit Trusts', which I subsequently have done, so when I hit those wobblies it does not affect my investments and I can resume saving between times.
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    Diamond Member HR Solutions's Avatar
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    Its all very well and ok to retire at 40. But if you retire at 40 then you must have plenty of money to still be able to do the thing you enjoy in life. I would def not retire at 40 and have to cut down or skimp on anything. I don't see the point of that at all
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    Diamond Member AndyD's Avatar
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    I think a lot of it depends on your personal definition of retirement a whether or not this means you have some profitable hobbies or not.
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    I'm 30, but don't think I would be able to retire so young.

    I have my own practice and I love my job and what I do. I have good residual income coming in every month. Two years ago I was home for a month and I was very bored.
    You miss 100% of the chances you never take

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    Platinum Member Neville Bailey's Avatar
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    My definition of retirement is the freedom to do whatever you want to do (follow your passions, hobby or even work), without HAVING to work.

    In other words, complete financial freedom.
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