Can I retire??

Hello! It’s great to hear that you’re considering your options after accepting a voluntary redundancy. Planning for an early retirement, especially with a family, requires careful consideration of your financial resources and future needs.

Given your current financial situation, here are some points to consider:

1. Current Financial Resources:

   • Investment Property: While this can provide a steady income stream, it’s important to factor in the costs associated with maintaining the property, potential vacancies, and the mortgage payments.
     
   • Share Portfolio: Your $525K in shares could potentially provide income through dividends and capital gains. However, the volatility of the stock market should be considered, especially since your retirement planning might require withdrawing funds during market downturns.
     
   • Superannuation: With $500K combined in super, it’s crucial to remember that access to these funds will be restricted until you reach the preservation age (currently between 55 and 60, depending on birth year).
     
   • Savings: $600K in savings provides a good buffer. This could cover living expenses in the short term without needing to sell investments at an inopportune time.
     

2. Annual Expense Goals:

   • You’ve mentioned a desire to live on approximately $80-90K per year. It’s important to project how your investments, superannuation, and other income streams can sustainably cover these expenses.
     

3. Longevity of Funds:

   • Considering a modest lifestyle, as per the example you might have seen, a couple would need about $720,000 to live modestly for 18 years. For a more comfortable or extended retirement period, more funds would be necessary. Given your current assets and the age of your youngest child, planning for at least 28 years (until your youn

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Hi Shaun,

Given that level of savings, it’s pretty clear that’s enough to cover that level of spending for quite a few years.

There’s essentially 1m of investments here between shares + super, plus an investment property and we aren’t sure how much equity is in there, or the cashflow.

When you say ‘support your kids’ I don’t know if that means financially, or by being there for them in regards to time. If financially, how much does that mean? A sizeable house deposit each, or just using your own home as guarantor. There is really no limit to this, so it’ll depend on the degree to which you want to ‘help’.

The situation is definitely good, and if you continue working part-time, I think you could comfortably manage to support your kids, continue building wealth, and essentially cruise for the next 15-20 years.

Lots of numbers for you to work out though, but things look promising.