Nicetoknow
Registered User
- Messages
- 83
Hello. Looking for opinions on whether we are off the charts at risk or generally in an ok position - because my own assessment of the situation varies from day to day!
Age: 36
Spouse’s/Partner's age: 38
Annual gross income from employment or profession: PAYE 70000 from employer plus 65000 PAYE from own company - total PAYE 135000.
Annual gross income of spouse: PAYE 70000 plus
Monthly take-home pay: 6000 plus lump of 32000 net at end of year (salary from own company)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving - about 500 a month
Rough estimate of value of home - 925000
Amount outstanding on your mortgage: 650000
What interest rate are you paying?
2.5 fixed for 4 years with UB
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
10000 in shares
20000 in savings
Do you have a pension scheme?
Yes - DC, 20000 balance, have just upped cons to 20%, Employer cons at 8%. I also have Directors pension with balance of 60,000. I expect to contribute 48000 each year for next 5 years ( all going well ).
Partner has DC, balance of 45000, also recently upped cons to 20%. Employer cons at 8%
Do you own any investment or other property? No
Ages of children: 1 and 4
Childcare is 1500 a month
Life insurance:
We both have some cover with work
We have mortgage protection but no Life cover.
We do not have income protection or serious illness. I have company policy that will pay out 400000 if I die.
What specific question do you have or what issues are of concern to you?
We are working really hard, basically two jobs. I can't see us sustaining our current high income for more than 5 years. Our salaries may rise somewhat but we both want to do reduced hours to spend time with our kids.
Our house is old and realistically needs another 100000 spent on it (new roof, windows, rebuild small extension due to a structural issue that isn't going to go away).
Our mortgage is frighteningly large. The repayments are fine for us at the moment because we have the extra income from my own company and we are on a low interest rate. We are thinking that next year and yearly thereafter we will overpay the mortgage by 15000 when we get the lump sum from company but since our balance is so high, those overpayments feel like a drop in the ocean. I was thinking that I could take lump from directors pension at 50 to pay a chunk off mortgage. That is the rational for our pension over mortgage strategy. I feel we shouldn't really have more than 450000 of a mortgage (3.5 combined salary from employment).
We do not want to sell our house although we both get that it's a money drain. We love where we live and it's our forever home.
We both had to retrain during the recession so got started in pensions very late. I worry about having nothing when we are older, which is why we are maxing our pension cons now.
Would appreciate your views. Thank you.
Age: 36
Spouse’s/Partner's age: 38
Annual gross income from employment or profession: PAYE 70000 from employer plus 65000 PAYE from own company - total PAYE 135000.
Annual gross income of spouse: PAYE 70000 plus
Monthly take-home pay: 6000 plus lump of 32000 net at end of year (salary from own company)
In general are you:
(a) spending more than you earn, or
(b) saving?
Saving - about 500 a month
Rough estimate of value of home - 925000
Amount outstanding on your mortgage: 650000
What interest rate are you paying?
2.5 fixed for 4 years with UB
Other borrowings – car loans/personal loans etc
None
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
10000 in shares
20000 in savings
Do you have a pension scheme?
Yes - DC, 20000 balance, have just upped cons to 20%, Employer cons at 8%. I also have Directors pension with balance of 60,000. I expect to contribute 48000 each year for next 5 years ( all going well ).
Partner has DC, balance of 45000, also recently upped cons to 20%. Employer cons at 8%
Do you own any investment or other property? No
Ages of children: 1 and 4
Childcare is 1500 a month
Life insurance:
We both have some cover with work
We have mortgage protection but no Life cover.
We do not have income protection or serious illness. I have company policy that will pay out 400000 if I die.
What specific question do you have or what issues are of concern to you?
We are working really hard, basically two jobs. I can't see us sustaining our current high income for more than 5 years. Our salaries may rise somewhat but we both want to do reduced hours to spend time with our kids.
Our house is old and realistically needs another 100000 spent on it (new roof, windows, rebuild small extension due to a structural issue that isn't going to go away).
Our mortgage is frighteningly large. The repayments are fine for us at the moment because we have the extra income from my own company and we are on a low interest rate. We are thinking that next year and yearly thereafter we will overpay the mortgage by 15000 when we get the lump sum from company but since our balance is so high, those overpayments feel like a drop in the ocean. I was thinking that I could take lump from directors pension at 50 to pay a chunk off mortgage. That is the rational for our pension over mortgage strategy. I feel we shouldn't really have more than 450000 of a mortgage (3.5 combined salary from employment).
We do not want to sell our house although we both get that it's a money drain. We love where we live and it's our forever home.
We both had to retrain during the recession so got started in pensions very late. I worry about having nothing when we are older, which is why we are maxing our pension cons now.
Would appreciate your views. Thank you.