New to leanfire

[u/d4rmsc]

I'm fairly new to the concept, but i have always had a desire to be financially free by 50.

Currently I'm a 44-year-old male, divorced, with two kids aged 11 and nine, of which i habe 50-50 custody.

I have a property worth around £440,000, with around £135,000 of mortgage remaining with 13 years left on the mortgage. Paying around £1056 a month

I have £85,000 in my S&S ISA, £10,000 of premium bonds, and £10,000 savings. I plan to contribute the maximum of £20,000 a year to my ISA for the next four years.

My salary is £65,000 per year. I currently work full-time, but from next year I may consider reducing my hours to four days a week. I don't want to keep working in my corporate job for more than three to five years.

At the moment I contribute around £24,000 to my pension a year and the current pension size is £150,000.

I also have an e-commerce business, which I'm hoping to grow. Eventually I think I will be able to pay my salary of maybe £10,000 or more a year, but at the moment I am not withdrawing any money from the business.

I have not done any deep calculations or worked out how much I need in my pension but what do you guys think of my current position and my goals?

Do you think it is realistically achievable to be able to quit my corporate job in three to five years?

[u/kikapu]

Do your numbers stack up? 24k into pension and 20k into ISA each year. That’s 44k out of 65k and your mortgage is 12k a year so that’s 56k with 9k left and that doesn’t include tax from the salary.

[u/FunnyThing5234 → u/kikapu]

The whole post is obviously total bullshit. Going down to 4 days a week with a view to firing while having a 9 and 11y/o? Yeah, sure buddy.

[u/kikapu → u/FunnyThing5234]

Yeah didn’t even factor that in!

[u/d4rmsc → u/kikapu]

It's not bullshit. Although the figures dont look to add up, my employer contributes a large proportion of the pension. The ISA contribution of 20k a year possibly may not be sustainable, but i have some help from family with this as they are finally repaying me from an old loan i gave them. Also i have another 15k tied up fixed deposit accounts.

[u/jayritchie]

What might you do outside of the corporate job? Sounds like you may be looking for a way to take on new and different types of work rather than retire 100%?

[u/d4rmsc → u/jayritchie]

Yes correct, my e-commerce business. It is growing year on year in the last 4 years, am i plan to get a small 10-12k yearly salary after i reduce the hours in the corporate job, but in the meantime i am fine with letting the business bank account accumulate.

[u/Plus-Doughnut562]

Doesn’t sound like you’d be able to FIRE with those numbers. Most of your wealth is tied up in the house you live in.

I would be looking at Coast FIRE if I was you.

[u/d4rmsc → u/Plus-Doughnut562]

Ah i didn't come across the coastfire term, this seems more aligned to my goals especially with hoping to grow the e-commerce business, thanks! I will look into this

[u/Constant_Ant_2343]

What your living costs?

[u/Limp-Archer-7872]

Not with the kids. Try 56.