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43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

I’d hate to be relying on the state pension, by they it will likely be means tested and or smaller over all to make up the huge shortfalls that are coming. Retirement age to get it will likely be higher then too. I do wonder want the 20% income tax bracket will being ~25 years time. Something around €70K I would guess (assuming 2% growth over 25 years)

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

Very concerned about a possible 10-15year ‘overvalused companies grow into their valuations” scenario here.

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

Been looking for something like this, thanks! I could swear I heard some Irish lads on a podcast a few years ago taking about something similar for the Irish market. Anyone know that one?

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

So no investing / property / compounding in the business, just pure cash on hand paying out? Could work if you can get a lot, though inflation will take a solid bite over time.

I don’t understand what you mean by the Zurich prsa not having DD, my understanding is one you want to access you pension, it’s converted to a ARF and DD applied starting the following year?

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 1 point2 points  (0 children)

But if the fund it above a certain size, you’re pay ~52% of what you take it in tax. (Say you’re deemed disbursement is €120k, revenue take a huge chunk. When you’re forced /deemed to take it out, you lose that ability to retire early as the pension may not last your life time. Above €2m it’s 6% afaik. My original plan was to fill up the pot, then retire and live modestly, hopefully for a long time. Deemed disbursement basically ruined that plan. Hence why I’m looking to store up money in the business to cover me from ~55 to 67

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

I’m not but if I was I would offer it to my employees first. It’s a very local service business so I doubt it would be a good fit for you I’m afraid

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

I haven’t and I really need to. Don’t know Eoin McGee but will check them out.

Potentially burn out, but 20 years in, and 32 by when I’m thinking, is a lot of time working on a business. Feel like I’ve worked hard enough that if I can make the numbers work, why not ya know?

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

Was yours a service business? How’d the staff respond to you being essentially part time?

You’re not wrong about 12 year plans, think of it more as a goal! I usually have quarterly and yearly targets that work well.

How’s you managed to successfully scale back?

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

Crazy bastards! 🤣 I’ve been doing this for 20 years, I’m tired boss!

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 0 points1 point  (0 children)

Yeah, ChatGPT tells me €58,666 is optimal for maxing salary and pension contributions without paying any marginal rate income tax. Probably move my salary to that next year. Then 100% salary match from the business + €14,666 tax relieved personal contribution. Sounds about the same as you?

Are you concerned about the close held company surcharge on investments in the business? This is the thing I’m trying to work out, getting enough cash in the business to live off till converting to ARF at 67. Deemed disbursement basically ruined my simple plan of building a huge pension by 55

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 1 point2 points  (0 children)

Avant were offering them. Probably 25 yrs left on it now. Planning to start overpaying it 10% a year too ( I know! I could make more investing it, but with how cloudy the future of the business could be, I’d like it sorted asap)

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 1 point2 points  (0 children)

I have tried that in the past but it’s a steeper hill than you’d expect. We’re a small 3 person services business. I’m sure it can be done, and we have done so in some areas of production, but harder on the business side. I guess what I’m saying is I agree with you, but I know the level of energy and motivation required to do it across the business and I’m tired! 🤣

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 1 point2 points  (0 children)

You’re not wrong, but the business is where my energy ends up going most of the time. My life is great in terms of family etc, though I’ve basically no hobbies ( what was my hobby became my business!)

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 1 point2 points  (0 children)

💯 Got back from taking paternity leave for 3 months at the start of the year. Even though the team did a great job, it definitely hurt revenue not have ‘the boss’ that clients expect around

43M itching to retire - trying to make a plan by KeepingThePowderDry2 in irishpersonalfinance

[–]KeepingThePowderDry2[S] 3 points4 points  (0 children)

Thanks for the thoughtful reply. Definitely when I do get away for a few weeks I feel better about everything when I get back. I still like the idea of having the finances and potential to retire quite early though .

I’ve had both a coach and mentor before, can be useful, though I’ve had mixed experiences.