Moneymakeover Mid working life check-in - Am I on the right path?

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matrixworld

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Age: 36
Spouse’s/Partner's age: n/a

Annual gross income from employment or profession: 128k

Monthly take-home pay:
From employment: 6100e (200e to ESSP, 250e AVC)

Type of employment: e.g. Civil Servant, self-employed: Private

In general are you:
saving: 2.5k
1,330e towards extra mortgage payment
1,250e investments

Rough estimate of value of home: 380k

Amount outstanding on your mortgage: 121k

What interest rate are you paying: 2.1%

Other borrowings – car loans/personal loans etc: No

Do you pay off your full credit card balance each month? No credit cards

Savings and investments: 172k

Company stock: 30k (100k yet to vest)
cash: 12k
Crypto: 90k
Stocks: 30k (mix of SP500, commodities etc) but in 2 separate accounts?

Do you have a pension scheme: Yes, Zurich, 95k so far

Do you own any investment or other property?
No

Ages of children: 2 and 8

Life insurance: Mortgage protection

What specific question do you have or what issues are of concern to you?

I've reached the ripe old age of 36 and decided i need to check-in and see where i'm at. Keep me honest guys.

My questions are below:

1. I have 2 separate stock accounts (degiro) for both kids, i plan on adding each month until they are 21, am i better combining these into 1 account or keep as is?

2. I'm paranoid about my pension, should i have more in the pot at this age? Admittedly i max out my contribution but could throw more AVCs at it.

3. My mortgage term will end soon but we need to renovate the house in a few years. Should i throw much at the mortgage to pay it down at term end or keep cash for renovation? In theory i could save some of the cash for the renovation after paying a lump off the mortgage but it might be a grind, renovation will cost around 100k.

Any overall tips are greatly appreciated. I realize I'm exposed a lot with the crypto but only 11k was initially invested.

TIA
 
Your AVC is 250 when it could be more like 2500. Over the next few years the SFT is going up to 3m and you're one of the few that can reach it. Max out the AVCs. Put the pension into all equities and enjoy the ride. Incredible position at 36
 
matrixworld said:
Admittedly i max out my contribution but could throw more AVCs at it
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I dont understand this. If you're maxing it out you'd have no capacity for more avc, unless you mean sans tax relief? Given your gross salary, if you're maxing then you can't be doing more. Can you clarify this 1
 
Large disposable income, reasonable LTV, low interest rate, substantial taxable investments, 172% (before CGT) of renovation cost covered - I’d be maxing AVCs over paying down your mortgage. The mortgage will still be manageable if the interest rate is refixed at c. 3% in the future.

Mortgage will be gone in a few years but substantial tax relief forgone.
 
Well diversified assets there, well done. I wouldn't be afraid of keeping the crypto. Could go to 1m and you don't need that 90k really. A small cost basis punt given it only cost you 11k. I don't hold any crypto and the natural urge when you don't is to poo poo it as not a traditional investment. But its proved most wrong to date and might continue to do so...
 
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Without needing to know the details of your family, will there be maintenance payments out of your income? Or a potential pension adjustment order ? You didn't mention childcare costs either. No need to respond on this but worth considering. Whatever arrangements are in place now might not always be the case.
 
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Larder13 said:
Well diversified assets there, well done. I wouldn't be afraid of keeping the crypto. Could go to 1m and you don't need that 90k really. A small cost basis punt given it only cost you 11k.
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Usually when you invest you have a target return or an exit point, one would assume an 8x return on your money should be well above any reasonable expectation.
 
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