I’m delighted to say we have long-time Monevator reader ‘London A Long Time Ago’ doing her FIRE reveal this month. While our career paths are world’s apart, I was surprised by the echoes to my own perspectives on freedom, self-determination, and how fragile life can be. Few of us will be lucky enough to retire to the glorious beaches of Australia, but there’s still lots to mull over. Enjoy!
A place by the FIRE
Hello! How do you feel about taking stock of your financial life today?
I think it’s been a terrific opportunity to conduct an honest reckoning. I’ve benefited from the honesty of The Accumulator and other commentators over the past few years, so thank you!
Before we go further, I think it’d be useful to explain your Monevator username – you post by the name of London a Long Time Ago – for the context it will give to your life story…
Sure.
My first Australian job was at a merchant bank at age 21. But within 18 months, I was on a plane to London armed with a two-year UK working visa and $30,000 in savings.
London was easy to navigate. I organised an interview on the train from Heathrow, attended it in the afternoon, and started working the next day. I lined up an evening job at another investment bank where I was equally over-paid and under-utilised.
Lunch was free in a private restaurant at the first bank and the second bank paid for my taxi home. I lived in a hostel, and on Saturdays I copied my new backpacking friends and waitressed at a High Street Kensington hotel for the free breakfasts and fun.
Eventually life scaled. A futures and derivatives boss promoted me and offered a sponsorship deal, plus a pay rise in line with my extra evening hours. I dropped the excessive hours, and moved to a Holland Park flat with a latch key garden.
London was playful, exuberant, and safe – Conran restaurants, events at private member clubs, city bars, country off-sites, and bottles of Bollinger alongside other young, high-spirited colleagues.
How old are you now?
49
Do you have any dependents?
I live with a feline. She has the emotional regulation of a psychopath. I love her a lot.
The wriggly spaniel puppy in my Monevator avatar photo belongs to a close friend. My cat and I hosted this adorable canine recently, and despite the puppy fun we have never been so relieved to bid farewell to a guest in our lives.
Whereabouts do you live and what’s it like there?
I live in Melbourne, surrounded by parks and a short drive to the beach. I can walk to the Arts Precinct, ‘G’, the botanical gardens, the Australian Tennis Open, and the Grand Prix.
When do you consider you achieved Financial Independence and why?
2025. It’s taken a while to feel rich enough… I had to practice deaccumulation first.
What about Retired Early?
I retired in 2024.
A local’s view. I wonder why London A Long Time Ago ditched the Central Line and her 9-5?
Assets: super savings
What’s your net worth?
Over $2.5 million. (That’s Aussie dollars!)
What are the main assets that make up your net worth?
Over $1.75 million in shares, cash, and superannuation… Less than I wanted, more than I need.
The majority (more than $1 million) is held in superannuation – only accessible at 60 – split 80% balanced (includes bonds), 10% Australian, and 10% International.
Available funds include $400,000 in a diversified global ETF (separate bucket) and $350,000 (split between Australian ETFs/direct shares and cash), designated as burn money to fund most of the decade ahead.
Cash of $70,000 is available to spend at any time for any reason. I’m in year two of my drawdown phase!
Can you explain to those of us back in the old country more about this superannuation malarkey?
Superannuation – often shortened to ‘super’ – is Australia’s compulsory pension scheme.
Employers contribute at least 12% (from 1 July 2025). Mine was higher. Individuals are able to concessionally salary sacrifice up to $30,000 annually inclusive of employer amounts (paying 15% tax on these contributions).
There is a 15% capital gains tax on returns in the accumulation phase on balances up to $3 million, and 30% CGT on returns above $3 million. However there is nil tax payable if/when funds are converted to a pension phase.
Non-concessional transfers – often from a windfall – are capped at $120,000 per year. Individuals can contribute three years worth if their super is under a certain balance ($1.9 million).
As I noted above my superannuation set-up is 80% balanced, 10% International indexed, and 10% Australia indexed – with ten-year returns averaging over 8% in aggregate and for negligible fees.
What about the Australian State Pension?
A full pension – $29,874 singles or $45,037 couples – is available for Australians age 67 who fall under an asset cap ($314,000 for a single homeowner and $470,000 couple homeowners) with home values excluded.
This Australian pension effectively backstops any superannuation portfolio failure.
Essentially, albeit at the risk of over-simplifying two tests (asset and income), a part-pension is available should funds ever fall below $674,000 for single homeowners or $1.014 million for couple homeowners.
The value of the government pension is scaled progressively. Many people appear to structure assets to qualify for a part-pension, mainly because of other concessions such as a senior healthcare card.
The scenario for renters is a whole other story. Suffice to say it’s desirable not to fall into this camp.
What’s your main residence like? Do you own or rent it?
I live in a two-bedroom flat in a 1920s heritage building, purchased off-plan the same week I returned from London – more than 20 years ago.
My flat took two years to complete. I spent a year in Dublin while it was being redeveloped. It’s unique and stunning. I like it more every year.
Do you consider your home an asset, an investment, or something else?
I consider my home to be shelter. I moved in when I was 26-years old. I covered most of the purchase with cash, but it still took five years to pay off the mortgage (Interest rates were 7%).
I chose not to leverage or future-promise my energy again. However property is the most common wealth building strategy for most Australians. Thanks to former Prime Minister John Howard’s introduction of negative gearing, most of my peers own multiple investment properties.
Negative gearing dramatically boosts asset wealth, given the mix of leverage and tax deductions. It’s also contributed to high property prices, generational inequality, and rental insecurity.
In my case, renting somewhere comparable would probably cost $50,000 a year, with the spectre of a significant increase every two years – assuming the lease was even renewed.
Earning: at what cost…
What was your job?
I’ve experienced two disparate careers – finance and government – both within high stake arenas. My salary has generally hovered somewhere in the 80th percentile band.
Both careers were ostensibly glamorous. I worked for the best organisations and agencies in the best buildings, alongside clever, ambitious, highly efficient and self-directed colleagues.
Both careers provided money, networks, vivid memories and goal attainment, but they also exacted a toll.
First job first please!
My longest role in my first career was at an American investment bank.
Trading floors are high energy, high spirits, and banter, but Australia was a grotesque facsimile compared with London – misogynistic, amateurish, and ugly. I was objectified, even targeted and drugged at a work event, and was generally gas-lit by a veneer of civility into believing I could one day crack the bro-code.
I also had a front row seat to events described by Michael Lewis in The Big Short. The people most responsible for the disaster completely evaded its consequences, whereas my dad retired and his retirement funds halved a week later.
It took three attempts to leave this career path, as I was continually headhunted back. Eventually, my disinterest was total and irrevocable.
I then had a six-year career break. I would liken this juncture to a cerebral switch.
I don’t consider it burn out. But I had a profound disinterest in goal attainment, monetary success, and status. I floated around, googled ‘top 10 hotels’ and holidayed there, had spine surgery, travelled, adopted rescue pets, redecorated, and read books.
I also returned to university, worked part-time in a bar for a year (great job), and completed a new degree. I spent a few hundred thousand dollars from my savings.
But there was that second act to come?
My second career had a much higher bar to entry.
Overall, I’m grateful for my undergraduate degree, the skill set I gained and resulting tenor of my mind. Prized memories include golden moments enmeshed in certain teams. It is an incredible feeling to play a vital role in a cohesive team, amidst other teams within an overall architecture working in concert on something that desperately matters in time-sensitive situations.
‘I just don’t want that for myself anymore’ is a valid reason to stop anything. I’m glad I resigned.
What is – or was – your annual income?
I assigned my final role a $3.5 million value – using the 4% rule – to try to cheer myself up.
How did your career and salary progress over the years – and to what extent was pursuing financial independence part of your plans?
Financial independence has always been a high priority. I was laser-focused on attaining it but never at the expense of legality, ethics, sound principles, and justice.
Did you learn anything about building your career and growing income that you wished you’d known earlier?
Marx’s maxim that: ‘We are our means of production’. No one is exempt from the truisms about power, money, and influence.
Do you have any sources of income besides your main job?
In terms of the recent past, share dividends and interest.
My dad died this year. I will receive a gift after probate.
In terms of the distant past, I made money trading. I thought I had an edge. I stopped when I lost it. I still have carry-forward losses from being stopped out of risk I failed to monitor in 2011!
I’ve never traded since.
Did pursuing FIRE get in the way of your career?
No. It helped. I exercised the optionality it afforded on multiple occasions.
Saving and spending: simple but not simplistic
What is your annual spending? How has this changed over time?
My base spend is roughly $30,000 a year, split fairly evenly between:
(1) Fixed core costs – rates, body corporate fees (what you call service charges in the UK), utilities, insurances, and general home maintenance.
(2) Discretionary staples – food, restaurants, transport, gym membership, pets et cetera.
(3) Luxury expenditure – clothes and grooming, entertainment, redecorating, holidays.
I’m not tethered to this annual amount. If I want something, I’ll pay for it. But I already live well amidst beautiful possessions, so nothing is on my radar right now.
And you’re confident this will see you good for the foreseeable?
No!
My deaccumulation calculation is based on my birthday month – versus the tax or calendar year.
Year one spending (that $30,000) includes the final three months working and retiring in winter. I then spent my first four months re-reading comfort books. Holiday costs were negligible.
I expect my spending to rise or at least incorporate choppy big budget items in the future.
I’m already trying new activities, which is how I discovered Formula 1! (I would hate to calculate how many hours I’ve dedicated to Drive to Survive…)
However my expenditure has been fairly stable for the past five or so years because of work, related travel opportunities, and the fact that Melbourne was the most locked down city in the world during the pandemic (2020 and 2021).
Australia’s 22% aggregate CPI increase from 2020 barely impacted my core expenses, other than increases in grocery prices. This is probably because we have competitive insurance and communication providers, plus the Australian government has countered rising energy costs with household credits.
As UK utility prices appear high, it may be interesting to share granular costs in Australia, for comparison:
(1) Energy (electricity and gas) – $968 (five-year high $1,450 without government rebates)
(2) Water – $950 (stable)
(3) Telecommunications (top brand phone and 220GB internet) – $1,265
(4) Private health insurance (includes dentist, optometrist. and partial physio) – $1,700
As is the case with the NHS in the UK, Australians have access to enviable free medical care and we are able to pick and choose if and when to use private health cover.
Do you stick to a budget or otherwise structure your spending?
I don’t budget, but I do track data. My spending has always been significant in areas, but also negligible in aggregate. In both careers, I probably only ever spent $15,000 annually on luxuries.
In my first career, fun was expensed. Almost everything was free.
Aside from that, I grew up reading. That’s never changed (also it’s mostly free).
Parties, holidays, and restaurants barely move the needle, and anyway, I prefer my cat to travelling at the moment. And I’m Australian so of course I’ve already travelled extensively!
Are you using the 4% rule or some similar strategy to manage your drawdown and spending?
I’m using a dynamic approach. My current approach is to ignore superannuation (accessible at age 60) and aim to spend at least 4% of currently accessible funds (more than $750,000 when factoring in a six-figure sum I will receive from my Dad’s estate).
I’ve found it helpful to assign a fixed amount ($350,000) as ‘burn money’ and to think of the first couple of years as practice, because I predict my spending and personalised asset allocation will alter with time.
My $400,000 portfolio contains some favoured investments, so I’m also ignoring these for the time being. Mental gymnastics works for my neurology.
As previously mentioned, $350,000 is currently split between $280,000 in Australian ETFs and shares, and $70,000 cash. This allocation throws off more than $15,000 a year and I need another $15,000 for my current base spend.
I’m using cash, interest, and franked dividends in this portfolio to shield against sequence of returns risk. (A franking credit is an amount of imputed company tax. Fully franked dividends provide franking credits at the corporate rate of 30% to avoid double taxation. Australian ETFs provide partially franked dividends with proportionate tax credits).
I will use my inheritance to increase the Australian asset allocation within this portfolio.
My Excel calculation is simple – inflate annual spend, use cash, sell ETFs/shares as needed, and deflate interest and grossed dividends appropriately.
‘Seeing is believing’ in Excel. For instance, @TA has frequently commented that sequence of returns and the first annual withdrawal figure profoundly impacts a portfolio’s health and longevity. Market increases and my lower-than-expected first year of spending had a dramatic effect on the penultimate balance (even without the unexpected gift from my Dad).
Should I want something expensive, I’ll add it to the spreadsheet, the numbers will change – but for now, the bottom line is healthy despite the low ($350,000) starting balance.
My second column (more than $750,000) is currently outpacing spending and inflation, but perhaps a few big trips will change that at some point.
Deaccumulating has tax advantages. In my case, Australia has a tax-free threshold of $18,000, followed by 16% until $45,000.
As mentioned, a significant portion of my dividends attract imputation credits, so I receive a tax credit annually. Australia also provides a 50% capital gains discount on share sales. I’ll also ultimately be able to use those carry-forward losses.
What percentage of your gross income did you save over the years?
I only have net income calculations for my second career. In the first two years, my saving ratio was 36% and 29%. Savings then increased to 65% of net income, aided by Covid 19 lockdowns and salary increases.
What’s the secret to saving more money?
I found a dose of anxiety with a dash of comparative childhood poverty highly motivating. It took my parents a couple of decades to build wealth from scratch as émigrés.
Apparently, the best definition of ‘anxiety’ is a disturbed relationship with certainty. If so, I’ve greatly benefited from leaning into my anxiety!
Personally though, I fail to understand how anyone manages to escape anxiety in a neoliberal society, given the absence of safety nets and the political weaponisation of poverty. (See Robodebt in Australia).
Do you have any hints about spending less?
No, I find spending effortless if and when actions are congruent with values.
I believe in ethical farming practices and environmental protection.
I like expensive clothes and shoes, beautiful textiles, art, and some high-end goods, but I try hard to limit excessive consumerism and waste.
Australian food prices doubled in the last five years, but I’m a vegetarian, so doubling the cost of blueberries is not the same as the price of steak. I see no reason to economise on quality food given my low overall spending.
I enjoy the normal things, like new restaurants, but in my opinion real-life riches are much nicer than purchased riches. For me that means Zen walks, dog parks, silly fun with friends and their pets, the library, ocean swims, becoming a beach or pool lizard in summer, sunshine, and reading on a gloomy day with every lamp lit and my cat purring close by.
But do you have any particular passions or hobbies or vices that eat up your income?
I’m still finding my feet post-retirement. This year, I implemented a new ritual whereby I have to try something different and new each and every month.
So far I’ve been astoundingly unimaginative. For instance, getting tickets to Melbourne special events such as tennis (boring) and the Grand Prix motor racing (unexpectedly terrific).
I think my appetite for new experiences is going to burgeon with time!
Investing: a means to an end
What kind of investor are you?
Passive with a home bias tilt.
What was your best investment?
A bank share – Australia is a financial services economy.
Did you make any big mistakes on your investing journey?
Of course! As I said I still have carry-forward losses from 2011. I failed to monitor risk and was stopped out.
I also thought I needed $80,000 for spine surgery, and sold shares at a loss. At the time, I expected to privately fund my ‘elective’ operation after an insurer tried to limit liability and claim the operation was unnecessary. Ultimately, the surgeon and the anaesthetist refused payment, operated, made me whole, and waited for the arbitration case to settle in my favour. It took years, but eventually the insurer paid.
What has been your overall return, as best you can tell?
This question invoked a miasma of disinterest.
At some point, I stopped focusing on metrics and building a perfect portfolio.
I stopped caring ‘how’ – I just feel gratitude and relief that I did!
How much have you been able to fill your tax shelters?
I always salary sacrificed the maximum amount each year into superannuation for the tax concession.
To what extent did tax incentives influence your strategy?
I over-saved in superannuation. The tax incentive explains why.
How often do you check or tweak your portfolio or other investments?
I check monthly when I move funds around to pay bills.
I’m interested in politics, economics and global markets, but less interested in my own portfolio now that I feel safe. I’m busy trying to build ‘life’.
Wealth: …and health
We know how you made your money, but how did you keep it?
I built in stacks: cash, share trading, then property, then shares (in different configurations), then more cash.
I used leverage sparingly and only infrequently via derivatives, so I never risked the bulk of invested funds.
When I needed to exercise optionality, I spent reserves freely as needed, and then rebuilt.
Which is more important, saving or investing, and why?
Saving was key initially. London super-charged my net worth.
I’m pretty sure I earned £45,000 annually in my early London years – including a few thousand extra a year AUD trading. I invoiced as a company.
When did you think you’d achieve financial freedom – and was it a goal with a timeline?
I was trying for conventional financial freedom in career #1, but I couldn’t sustain the effort. I spent a stack of savings in my six-year sabbatical, and had to start again during career #2, although not from scratch.
I was aiming for at least $1 million outside superannuation the second time around. I’m inordinately grateful that I obsessively read Monevator. The Accumulator and The Investor plus commentators were all a positive influence for different reasons. (All errors are my own, of course).
I’m aware I fell short of my financial potential and my achievement-oriented peers. But I feel successful based on my own metrics.
In my opinion financial freedom and good health need to be paired together. I shortened my financial freedom timeline (to a bare bones finishing line) because my health was objectively at risk.
Superficially, I’m glad I left before I acquired dark circles under my eyes – and wrinkles and grooves in my face mapping my unhappiness – or bowing my posture.
I resisted or at least limited using alcohol as a crutch. I stopped SSRIs the week I resigned.
Did anything unexpected get in your way?
Spine surgery because I have always been healthy. My surgeon promised to make ‘me whole’ and he did! I was pain-free from the moment I woke up.
Are you still growing your pot? If so, how? If you’re de-accumulating, how?
I’m still figuring out my post-work ‘life’ and its impact on deaccumulation, hence I’m reading @TA’s No Cat Food posts.
I’m a vegetarian, so cat food is not an option anyway…
Do you have any further financial goals?
It’s too early to say. I’m still quite young. In the future, I might choose to work for a purpose, so I’m not ruling out another career? But presently I can’t fathom in what field.
I’m hyper aware that I should maximise this decade and accomplish travel-related goals – while I’m healthy – and later determine whether I want to restructure my financial assets into a higher-value principal place of residence (PPOR). This is because it costs at least $1 million for high-needs care in a 7-star facility (present day terms), and a PPOR makes an excellent tax and pension-exempt store of wealth and inflation hedge for this purpose.
It also makes sense to maximise this decision on that grounds that I seem to have become a homebody.
You’re quite young to be (sensibly) thinking about later life care…
Dignity in aged-care is purchased, not automatically provided.
The nursing care and level of kindness displayed by staff members to both my parents has been largely exemplary. However the difference in aesthetics, activity options, and chef-prepared meals between a $600,000 and $1 million option is stark.
Hopefully I’ll be healthier than my parents, but I will actively plan for this contingency.
In Australia, aged care is means-tested, but very reasonable for high-needs care. Most individuals choose to pay a bond, which is returned to the estate with a minor surcharge deducted (only recently legislated, so grandfathered for existing residents).
Individuals also pay a monthly fee, but the total lifetime amount payable is capped.
What would you say to Monevator readers pursuing financial freedom?
People reading Monevator will almost certainly pursue their goals with greater élan and resilience. My inner animal was howling and gnashing its tail. I feel an ocean of relief that it’s done.
I was deeply affected by my Dad’s diagnosis. His form of Parkinson’s disease progressed slowly over more than 17 years. He spent his final three years in a high-care facility. He became non-verbal in his final year, so we were slow to spot that he was suffering extreme oral pain. The diagnosis – tongue cancer – added an incomprehensible level of indignity, pain, and cruelty to his final months of life.
His death in palliative care was agonising. He died minute by slow minute over a week.
The enormity of his diagnosis and death were impactful. Time matters. I have enough money now, so I’m going to prioritise friendships, good deeds, interesting books, my calm mind, and a clear conscience.
In the weeds: doing it for yourself
When did you first start thinking seriously about money and investing?
I always cared about money. I wanted economic freedom even in adolescence, which felt stifling.
Politics, markets, and health diagnoses can disrupt even orderly lives. I wanted to be prepared.
Did any particular individuals inspire you to become financially free?
My friends were high achievers and one by one chose marriage and motherhood over careers. None of us define success through corporate or material stakes.
I wanted financial freedom on my terms and achieved it without a partner.
Can you recommend your favourite resources for anyone chasing the FIRE dream?
Aside from Monevator, Money Flamingo for its original premise – save half your desired FIRE amount, then coast for ten years while investments compound and double in the background – and Weenie’s site for her self-reliance, honesty, and determination.
What is your attitude towards charity and inheritance?
I’m inordinately glad that I achieved independence on my own for my self-esteem.
As I mentioned, my dad left me a bequest in his will this year. It felt like a written declaration of love, particularly because he was unable to speak verbally in the end.
My view is that life can be hard and uncertain, so an inheritance is a valuable stepping-stone or safety net, particularly for the generation behind me. My sibling and I will most likely receive a legacy each from my mother’s future estate.
I’ve named the Sheldrick Trust and an Australian sanctuary as beneficiaries in my will, with my sibling prioritised in the first instance.
What will your finances ideally look like towards the end of your life?
I feel as though I’ve been taking stock since retiring unexpectedly early in 2024!
It has taken months to decompress. I would say the prize has been peace and a truly calm state of mind. I feel happy, optimistic, and alive to the infinite possibilities ahead.
My ardent hope is to remain kind, empathetic, and happy in my senior years. I envisage ‘future-me’ funding worthy causes from the pool deck of a Richard Osman-esque retirement complex surrounded by my sea of rescue pets and quirky friends.
Thanks to London A Long Time Ago for a thoughtful and revealing interview. I specially liked the idea of the ‘burn fund’ as a forcing function to switch from an accumulation to drawdown mindset. Do let us know your takeaways in the comments below. Please remember that constructive feedback is welcome, but anything bad-tempered or nasty will be deleted. And be sure to read our other FIRE-side chats.
Lovely post. I also like the idea of a burn fund. I am not sure i could do it, but worth reflecting on. Good luck with solving the conundrum of the RE part of FI/RE and maximising the return on your hard-earned!
Enjoyed that – thank you. First time I have heard of the idea of getting half way there with 10 years to go and then letting time / compounding do the rest. Like that approach.
Very interesting article and also thought provoking. The differences between UK and Oz pension, healthcare and later life care appear pretty substantial and the Oz systems look superior to me. I don’t think we will see meaningful change in the UK, politicians seem to be more interested in bowing to the mass media rather than listening to constituents.
Thanks London I liked that a lot.
Cheers London, your path is such an interesting blend of setbacks and triumph, planning and leaps of faith. It’s heartening to hear you sound so excited about the future.
Four things really resonated with me and I think they’re linked somehow:
“I’m interested in politics, economics and global markets, but less interested in my own portfolio now that I feel safe. I’m busy trying to build ‘life’.”
“I’m aware I fell short of my financial potential and my achievement-oriented peers. But I feel successful based on my own metrics.”
“In my opinion financial freedom and good health need to be paired together.”
“I seem to have become a homebody.”
I guess that FIRE almost inevitably means cutting financial potential short for spiritual gain. (Hopefully.)
I think that’s a harder thing to do that is commonly admitted. Retiring early looks like a soft option but is paradoxically much harder, I think, than carrying on in the same old groove. Peer-group pressure being just one reason.
Building a life is fun but also effortful. I think it needs real imagination and a willingness to reinvent and a willingness to fail. Again, I think most people prefer the devil they know.
I’m just musing really but your homebody comment is the final link in the chain for me. To make FIRE work, you have to be happy in your own skin, in your own company and at home. After all, you can’t spend all your time travelling the world, and there’s no office to go to. But none of that means giving up or turning inwards as your list of past-times and interests shows. All power to you!
@All, thank you for the comments.
@TA, yep!! Self determination is hard and requires more effort than a conventional route. But so far, it is absolutely worth it.
I had a shiny work persona. I was popular and extroverted. I won awards and built an enviable reputation in a challenging environment. I would liken this persona to a glossy Saluki (my pedigree skillset made it all appear effortless).
BUT, whenever I closed my eyes and envisaged my inner animal, I saw a Scottish deerhound infront of a fireplace in a castle situated on a crag surrounded by miles of wilderness.
I was killing that animal. And now we wake up content everyday. My decisions centre on what’s best for this untidy, rugged breathing beast.
I wonder if that’s a worthwhile tip for others contemplating leaving work. Figure out who or what you’re setting free.
Firstly, just wow and massive congrats for stepping off the treadmill at such a young age – the 6-year career break, followed by a brand new career makes it even more of an astounding achievement, just utterly brilliant!
Oh what a problem to have, finding something new to do each month lol – I can’t wait to be in the same situation!
Thanks very much for linking my blog and thank you for reading – we live in very different worlds but I too am pursuing similar freedom, which includes more time to read books! My Goodreads to-read list is at over 350 books and ever growing, and I’d like to make a big dent in that number!
Here’s to no cat food whatsoever (apparently, there’s vegan catfood…) for you that is, not for your furry pals! Wishing you a long, happy and healthy retirement!
Thanks for sharing your story, that was fascinating, especially the specifics on how things work in Australia. I like your approach on spending, I’m in France currently and was just with friends who live here who say that in their very ordinary small town they see people, who aren’t earning loads of money, spend what would seem to us to be significant sums on high end groceries, because in their view, why wouldn’t you be eating the best food available to you?
It’s great to hear of someone taking a different route (first career break, and ‘burn money’ approach) and not expecting to have every last detail of the next 30 years mapped out. Food for thought for those of us of a similar age.
Thank you London, great story.
I’m afraid I might have a bit of a downer on your care home ideas. Its a very raw issue for me right now. My parents live in Australia, and both have dementia (in their late 80s). They can easily afford the very best care homes in their major city but trying to get my mother into any of these has met with endless ‘sorry we can’t meet her needs’, or just not responding at all. They won’t say what the issue really is. It surely can’t be the dementia because these places proudly show off their wonderful dementia care facilities, and my mother is delightful and shows no troubling behaviour. Our best guess is that its because my mother and father made a serious joint suicide threat some time ago, and this is on my mother’s medical records.
We have been forced to accept nearly the cheapest care home in the city for my mother. My father can no longer care for her at home, and my sister and I live far away (UK for me) and our partners & children do not want to move to my parents’ city. I shall be seeing my mother’s new home very soon, and we will continue to re-apply for all the fancier places. Maybe the cheap place is actually OK.
I have no idea if similar things happen in the UK system, but I suspect they might. It’d be understandable if care homes discreetly avoided challenging residents. Does anyone in the UK have similar unhappy experience?
So, having the money for a lovely care home sadly does not guarantee you can get one.
TA did a fantastic series of posts on UK care homes a while ago. I must re-read it.
Sorry if I’ve ruined your dream of an idyllic care home in the distant future.
Great story.
Slightly confused by a few aspects.
Having two finance jobs in London and a weekend job on top. Does this imply you are a genius and find the work easy or that you have heroic energy levels? Or both. I was under the impression that just one finance job was time and energy consuming?
Also the 6 year hiatus after what sounds like a burn-out suggests maybe it wasn’t that easy.
On the second career, is that intentionally left un-described for reasons? Best left at ‘government’? And was the degree in the lead up to that, i.e. as a mature student, or did you do that at 18 like most?
Some aspects sound absolutely horrific, i.e. the drugging, but kudos you were able to excel in the face of all that. I imagine you are quite a character!
The metaphor of the animals is a lovely bit of writing. I’m sure many can relate to that. A feeling that the veneer you present is out of kilter with the machinations within..
Nice piece – I do love these FIREside chats. For anyone approaching brink decisions they really help clarify there are lots of flavours of satisfying life out there post RE.
Things I find interesting:
1 You seem to say your work personality wasn’t the real you. That must really be hard over the years.
2 Defining needs over theoretical “wants” seems to be the key to the whole equation. We can all want lots of buffer for possible and even unforseeable things but in reality knowing enough about ourselves to know what we really need and will still make us happy is crucial.
3. It seems to me Aussie superannuation is superior to our UK setup which governments just can’t seem to stope interfering in. Taxed moderately on entry, tax free on payout – brilliant. No vulnerability to possible future tax rates and fiscal drag on tax bands, no worries about RMDs and enables state pension to act as a true safety net.
4. My father’s death was also a powerful motivator for me – it’s my best data point as to my late life and points toward living while not crumbling.
@London – great imagery. That’s gotta be a powerful way to keep your eyes on the prize.
@Eadweard – that is a very sad situation. Nothing similar came up IIRC in the social care series’ comments. Mostly it was about being able to find the cash.
BBBobbins – your point 4 is very powerful. I feel exactly the same way as I watch the declining fortunes of my parent’s generation. The time is now.
@LALTA:
Another fantastic fireside chat. Thanks for sharing.
You sure have packed in a lot of things and managed to have a relatively short working lifespan (to date) too – well done!
I see @Rhino (#11) has already asked some of the things I would have, so I will not repeat them. FWIW, I know one person who took a second (or possibly even third) degree after he retired. Having spent all/most of his working life in engineering his final (AFAICT) degree was in divinity. Some people seem to like to collect such things, seemingly especially Austrians? If you ever get a chance to visit Salzburg, the St. Peter’s Cemetery* has several headstones with names like Prof. Dr. Dr. X – fascinating.
I found the Aus costings interesting – and thanks for these. OOI, I guess there is some variability in such things as rent/house prices across Aus too, or is that not as extreme as in the UK?
Lastly, many thanks for clearing up the cat/dog puzzle; isn’t it funny the things some people notice?
*probably best known as being the inspiration for a scene in The Sound of Music film where the von Trapp family hid from the Nazis.
@TI:
Thanks for all your behind the scenes work. I got just a hint of the scope of this as @LALTA did drop a hint a wee while back in a comment that she had been “on the couch” for want of a better phrase!
@Rhino – Among other things the government job episode is somewhat identifiable from a privacy perspective, so @London left/edited out the details yes. It was that or put it behind a paywall potentially but I didn’t really want to do that here. Hope this helps. 🙂
London – thanks for sharing your story. You sound like a fascinating person. A lot resonates – inc the difference between career and spirit animal (although I’ve somewhat brought the two closer together over the years).
@ Eadweard
Strangely, heard the same from some friends last night (UK) who’d be been shopping around for care provision for elderly relatives. Care homes, regardless of what facilities they offer, don’t want residents with complex care needs as they are less profitable apparently.
@Eadweard, it must be unimaginably difficult trying to organise care from the UK.
Homes screened my dad too. We found Mecwacare for him (lots of high needs patients). Have you looked at this one (homes in Malvern and Prahran, etc)?
My mom chose a newer place (higher price) that opened after my dad had entered care. It has chefs who cook to order, a private restaurant and beautiful aesthetics. The nurse and carer ratio is incredible. Patients (customers) look observably more polished, ie hair, pressed clothing etc, and staff members are noticeably less stressed and rushed. The extra half a million is noticeable. But the kindness of carers is the same. They deserve accolades for the roles they perform.
@Rhino, I was heroic! (Haha, more like idiotic).
Remember , I didn’t know anyone at the start. And I was highly motivated. Those first jobs off the plane were DA roles …
Some Aussies choose FIFO work in the mines for their first property. London was my (easier) version of that …
My second career was completely different. And yes, deliberately not covered.
@Weenie, thank you so much for your congratulations (haha, to the vegan cat food tip)! I really, really like your blog because it details the consistent, effort-full, micro steps that culminate in economic freedom. Also, there are so few female writers. And even fewer single people! It’s like tripling the difficulty component!
I can’t wait to celebrate your future fireside chat. Sending you my best wishes always!
@Al cam, Oh my gosh! Yes!! The fireside chat process is intense, but thoroughly worthwhile.
@TI starts with a 10,000-page questionnaire (slight exaggeration), which he then massages into a financial memoir for participants. It’s a brilliant way to confront your past, present and future in a holistic, hand-held manner. I highly recommend it!
@Tetronimo, thank you. I can’t understand why we all wouldn’t embrace a fluid, flexible, dynamic approach. Ermine’s latest post is about ‘enough’. He aptly remarks that ‘new post-work-you’ will most likely be a completely different version of yourself. Therefore financially model ‘enough’ (ie base spend). But perhaps allow for dynamic spending to account for new enthusiasms. And re-run each year, as though from scratch, while keeping an eye on the changes to penultimate balance.
Personalising deaccumulation has been a game changer for me. It illustrated that even a meagre ‘burn-money’ balance lasts an unbelievably long time (especially if asset allocation is configured for dividend yield growth and to shield against forced selling).
Thanks, I hadn’t seen Ermine’s latest. I’m impressed that his range extends to Buffy references.
Completely agree about personalising decumulation. My attitude changed once I could see how a DB pension floor (something I have in common with Ermine) became even more ‘valuable’ by adding a DC pot for early years flexibility.
The years between now and the above, I’m less sure about. But you’re right, it’s mainly convention that steers us towards working continuously until we have more than enough.
@LALTA:
Thanks; glad you enjoyed the process.
Could you please say a bit more about Super (from 60) and the interaction with the Aus State Pension equivalent from age 67 please? For example, are you required [by law] to buy an [indexed] Annuity from your Super funds for at least the full Aus State Pension amount by no later than age 67? Otherwise, how do the authorities ensure that the Aus State Pension is a backstop and people do not game the system, by, for example, giving away/spending down all their Super assets in the period between ages 60 and 67?
Thanks in advance.
Thanks so much for a great share in this Fireside chat! And all the best to you enjoying some decompression and you time.
So appalled you had to experience shocking work behaviour – yet in otherwise brilliant workplaces. My God it was rife when I look back. Things do seem to be changing for the better…
Some great life lessons and sentiments expressed with real economy. A very enjoyable read – thanks so much for sharing.
Interesting read, thanks for sharing.
Different lives but I found a lot of the underlying currents and themes resonated with my own experience.
Robodebt scandal looks pretty dystopian, I suspect our DWP / banking data sharing alliance could head the same way.
London,
Thank you for another great story. It is fascinating how people on the FI/RE journey have different personalities, different challenges and different pathways. There is always something to learn in seeing other people’s journeys.
Having retired so young (well compared to me anyway!), I wonder what the next phase of your life looks like. Your 6-year sabbatical suggests that you have the internal resources to find and hold your purpose. So many who early retire become lost. Often with very damaging effects on their health and wellbeing. In one of his posts, @Ermine talked about the importance of having a ‘hinterland’; things outside your career that you enjoy and devote time to. Perhaps in a few more years you can come back and tell us how you have spent your time and where you have found satisfaction.
I think we are so focused on reaching the goal that we don’t talk enough about what we do with the FI (especially if it is for many years). I have seen friends fall apart quite quickly after retiring, unable to deal with the sudden loss of structure. Something we all need to face and have a plan for.
@Al cam, from age 60 once you meet a condition for release (ie leaving a job), you can spend your personal superannuation anyway you want – you can even withdraw the entire balance! But to access the tax-free advantages, most people switch it from accumulation to pension mode within the superannuation system.
In this phase, the govt mandates a minimum withdrawal percentage (starting at 4%) which increases over time to encourage spending. This is to discourage people from fearfully hoarding funds. You can even get a new job (and start another new accumulation super account).
You can use super to buy anything but assets other than a PPOR count towards the Australian pension assets test (so caravans, holiday homes and SVUs count). However, you could conceivably spend frivolously (ie travel) and reduce your assets to the cap by age 67 to then receive a govt pension if you’re perverse enough?
From age 62, you can give $10,000 away freely each year from superannuation and still receive a govt pension if your assets fall under the max cap.
But if you give away more than this, the govt deems you still possess the asset (to ensure people don’t hand over money to heirs and then claim a govt pension).
I think I’ve covered the ‘gist’ of the existing rules – there’s a little more nuance of course. Hopefully, above is helpful.
Only outliers make a mockery of the system. I think there’s one notorious individual with a few 100 million in super. But most Australians get by on a mix of super and the govt pension (without ever trying to unfairly ‘rort’ the system).
@LALTA:
Thank you very much.
I think I get the gist – so very helpful.
As seems pretty normal for pensions: the devil is in those pesky details.
And I learnt a new bit of Ausie slang too!
@LALTA:
Thinking a little more about the additional details you provided, it occurred to me that (barring anything nasty) you should be pretty well set from 60. Primarily this is down to Supers [increasing] minimum mandatory annual withdrawals (c. $40k PA tax fee, today). The partitioning of your “now” money then neatly falls into [in my words] that required to navigate the Gap to 60 and [lifetime] Reserves. I also note you have opted to hold your Gap money (your $350k ‘burn money’) as a mixture of cash, Australian ETFs, and shares, and that this currently throws off about half of your annual spend* too. This is definitely a notable pragmatic arrangement** which could easily be finessed or even radically altered as you go along. A very interesting approach. So far it certainly looks like this could play out well for you and you will most likely only spend a fraction of your ‘burn money’ crossing the Gap to starting your Super. Nice plan, which I hope I have summarised about correctly?
*presumably the $400k Reserves might also throw off some money too;
**not SWR, or Floor & Upside, or time segmentation, or even risk wrap. FWIW, for my Gap phase I went with full on [static] flooring – which came at a significant opportunity cost; which, incidentally, I only estimated after the event
@Al Cam, precisely! In a decade, the $400k and $1M will potentially have doubled, so $2.8M (more including my dad’s gift).
The $350K burn money will be an effort to spend, because dividends increasingly close the spending gap.
Ermine suggests spending increases with capacity. But how? I have ‘stuff’ plus private memberships and an expensive gym (tennis court on city roof, steam rooms, etc). Domestic flights are cheap. Friends own boats. Cars aren’t interesting …
All this to say that it’s hard to get fired up about another career (at this time). But I predict I’ll earn another qualification and try something new again in a year or two?
F/up, equity risk doesn’t faze me at all because I’ve held it since my twenties. I’d rather take steps to avoid ever being a forced seller again.
I’m sanguine in downturns. During COVID, I refused to enter negative returns for superannuation into my spreadsheet. I made the market catch up to my estimated returns a year later (haha, which it exceeded)!
I think it’s fine to defy rules if you’re confident in your allocation and risk settings. We’ll see though. I’ve been wrong in the past (2011). I’ve given myself room to pivot if needed.
@LALTA:
Bar anything nasty, I agree that it looks more likely than not that you will arrive at the start of your Super better off than you are now, both nominally and in real terms too*. FWIW, when I got to that point (in real terms) I was just a handful of percentage points down – and that was mostly down to the inflation upturn of ’21 to ’23.
At the outset, I definitely did not expect this to be my outrun (to that point) – but you live and learn! I took an extremely safe passage across my Gap and was just very conservative in pretty much every other way possible. I do not regret my chosen path**; but it is always interesting to review things with the benefit of hindsight.
Go well – and will you keep us updated?
*with your spending probably having increased, but probably not excessively overall (and you will almost certainly have experienced at least one “spendy” year if my experience is anything to go by)
**other outcomes are always possible
Fantastic Fireside Chat yet again. Really appreciate you sharing your story LALTA and letting us all celebrate your success! All the best for a really enjoyable future!
@LALTA:
Although not exactly equivalent to your scenarios ‘burn money’, I found this recently at Retirement Researcher (Pfau, et al) and thought it might be of some interest: https://retirementresearcher.com/building-a-social-security-bridge/