Can I Live On This Amount

[stevewool]

I have had a few weeks of work and its been going bad, the other day i had to bite my lip of i would have told them to stuff the job and i would have walked out,

Deep down i know i cant but could i tell there where to go and just pack up and move knowing i am never going back ,

So i did a calculation on what i may have in cash, 

INCOME  from rental, £350 to £450  a month

PRIVATE PENSION 1    £170              a  month

PRIVATE PENSION 2            £120          a month

I cannot claim my state pension for another 10 years so thats not included in my figures

 

Savings    £50,000

 

 

So monthly income would be around  £650 to £750,

There would be no rent to pay out of this figure, just the cost of living and enjoying ourselves,

Those of you who live out there maybe on less maybe on a lot more too, what do you think on what i have coming in,

I cannot see the income changing much at all until my state pension kicks in and that could be £500+ extra per month,

The only thing that could change for definite would be the saving pot the longer i stay here in England the more savings we shall have 

I am not into flash stuff at all, i love my photography and thats going to keep me busy, in other words i am a tight git, 

What are you views

[davewe]

There's a long thread on this topic as I am sure you know. Since I can't deal with pounds, I converted to USD and see that your monthly would be about $1200 and your savings is about $80000.

 

The answer from my point of view is how do you want to live? You say you're a bit tight, which is good. Not sure where you are gonna live - so that's a big issue. Another issue I would ask is what will you do with your savings? Invest it and take out 4%/year, which is standard retirement advise in the US? If so add $267/month to your monthly fund for a total of $1467.

 

Bottom line, since you don't have rent this is doable, if you are not living in Manila or maybe Cebu City. But I always reverse the question. Take the amount you will have and determine where you can live on that. You can certainly do it, though you may not have a lot for any luxuries or extensive travel.

 

Good luck!

[robert k]

Steve, since rent is not coming out of the amount, I think you would do fine, with trips and diversions but not just one long vacation. I believe you are into photography? I hope you don't get exhausted because I believe the Philippines is one continuous photo op.

 

As for continuing to work and build the nest egg, everyone gets to decide when it stops (except for me because it came from an abrupt suprise end). I would not wait and work until I was in an unassailable position because that time will never come. Of course we have a care for those we leave behind and should leave them in good shape when we pass but should we work until the grandchildren are taken care of cradle to grave? If one can leave the immediate members of their family in good shape, I think that is the best we can do and the future will be up to them when we pass, you can't make enough money that they can't spend it. I have never heard of anyone saying on their death bed that they wished they had just worked another 10 years. Another thing I have noticed is that your perspective about your work changes after you stop. You look back and say how did I ever put up with that, then you smile.

 

In JJ Reyes post elsewhere where he spoke about needing 80% of what you make to retire in place was true for me, I spent 20% of what I made just so I could continue earning. This will probably vary for everyone.

 

Like Jack Peterson says elsewhere, (paraphrasing) you have what you have and you budget to stay within it. I will add that if one dips into the nest egg, it should be for durable goods, the gifts that keep on giving, probably what you do right now.

 

Just an observation but I wonder (from my already wrecked disabled condition) why people wait until they are wrecked to retire? I remember work stress, it came from office BS, not from my job performance and eventually it got to the point I would pull over before arriving at work and throw up on a daily basis. I started not carrying my phone and would just communicate with the office through notes carried by people headed that way or the office would send someone to deliver a message or to see how far ahead of shedule I was since I didn't have to deal with their BS but not everyone can get away with this. Stress will shorten ones life and one may not have to worry about running out of money. Just something to ponder.

[BrettGC]

Just an observation but I wonder (from my already wrecked disabled condition) why people wait until they are wrecked to retire?

 

Exactly why I'm in the process of setting myself up to leave the rat race at the tender age of 46.

Edited September 25, 2014 by BrettGC

[jpbago]

INCOME  from rental, £350 to £450 a month

PRIVATE PENSION 1    £170 a  month

PRIVATE PENSION 2     £120 a month

 

Are these 3 income streams 100% guaranteed? Likely not. Renters come and go with possible repairs needed. Company pension plans go bankrupt.

Is your wife working? 10 years is a long time to wait for the state pension. If all goes well, then you can do it but you should plan for the unexpected.

[robert k]

Steve does have a nest egg and I think the character  to keep out of it unless necessary and it could tide him over if his property does not rent for some time. If the nest egg is never to be touched under any circumstances whatsoever, then the nest egg may as well not exist.

[Dave Hounddriver]

Renters come and go with possible repairs needed

 

It was my past experience that when the landlord is a long way away the tenants don't pay and don't respect the house.  I learned to never rent from a distance unless I had a property management company taking care of it.  That means a huge drop in income and even so, the property management company still expects the landlord to come back and take care of any 'major' problems.

 

Bottom line, I would never count on the income from one rental, far away, as my primary source.  Why not sell the place and buy a couple rentals here in Philippines in wife's name?  

[JJReyes]

The amount you need in retirement is usually less than during your working years. Expenses that can be readily eliminated include the cost of commuting to work; having lunch outside of home; end of the day drinks with your co-workers; and the expenses associated with raising children. Depending on the nature of your employment, you might be buying more expensive clothes that won't be necessary in retirement.

 

When making the budget calculations, focus on the lifestyle that is acceptable. The retirement income should be sufficient to pay for it plus some money set aside as a reserve fund for emergencies. 

[Jack Peterson]

 Why not sell the place and buy a couple rentals here in Philippines in wife's name?  

 

 

 Triple like, so very Positive Dave.  

[scott h]

Topics like this are so subjective, but very very important to someone thinking of making the big move at the later stage of their life (I know it was to me). IMO the answer really depends on the quality of life one expects upon retirement. Does a person want basically to make the move and have essentially the same perks as in his home country? Is he willing to make sacrafices? If so? What?

 

The answers will vary so much, all I can really say is what MY experience has been.

 

We saved and built up a pretty good nest egg. Sold our home in the states, took the profit and built a new home on property my wife inherited (so housing is a wash). Our total current income is 40%-45% of our working income. Having said that, with the exception of a few personalized items (carne asada burritos, cheap fresh milk that sort of thing) our quality of life has not changed a bit.  

 

That was my BIG BIG determining factor for the move, could I keep my standard of living with out having to continue working.

 

Just my 2 centavos