Age: 48
Spouse’s/Partner's age: 45
Annual gross income from employment or profession: 90K+10K bonus
Annual gross income of spouse: 90K+20K bonus
Monthly take-home pay circa 7.5k after all deductions, incl. pension deductions and SAYE schemes
Type of employment: Permanent
In general are you:
(b) saving?
Rough estimate of value of home: 700K
Amount outstanding on your mortgage: 340k
What interest rate are you paying? 2.8%
Other borrowings – None
Do you pay off your full credit card balance each month?
Yes
Savings and investments: circa 70k (25K in bank, rest in company shares as a result of company share schemes and at various vesting periods of 0-3 years)
Currently saving circa 1.5K - 2K a month across 25% cash savings, 75% company share schemes.
Do you have a pension scheme? Yes, I am maximising the contribution limits for my age. Current pot circa 320K.
Spouse contributing 6% (incl. employer contribution)
FYI: Spouse came out of a Defined Benefit pension after 12 years and is currently in a defined contribution plan. Plan is to increase to max for age.
Do you own any investment or other property? Yes - Rental Income looking after mortgage, mgt. fees, taxes and upkeep for both. Nothing left over but property not costing us anything out of our employment income.
Property worth circa 340K, mort circa 170K. Tracker mortgage. 2,000K per month income.
Spouse: property worth circa 200K, mort circa 130K. Tracker mortgage. 1,100 per month income (should be more but caught in rental zone)
Ages of children: two kids, ages 6 & 6. Childcare costs currently 1,300K a month.
Life insurance: Mortgage protection & death in Service
Spouse: Mortgage protection & death in Service
What specific question do you have or what issues are of concern to you?
Some relevant emotional comments first:
* Current financial aim is to be retired by 65 but looking to make it earlier or at least have the option, no earlier than 60 though. Spouse aim is to retire at 60.
* Spouse hates being a landlord (accidental) so is selling up - non-negotiable.
* I'm not so set on being a landlord anymore (also accidental) so also considering selling up. Head is telling me not to sell as it's a great investment and tracker mortgage and I always saw it as a pension income. And will help aim to retire at 60 rather than 65. However, emotions of being a landlord (current great set of tenants moving out but I have had my share of bad ones) is telling me to get out.
* It's only in the last 2 years that we have heads above water and are in this position of saving (previously had other big loans to service, and recent promotion had led to significantly more income). So was happy for the last two years to take a breather to enjoy having my head above water: monthly savings % of income could probably increase and assist early retirement if we curtail our spending more.
* Putting this on paper has egged me towards an independent financial advisor - I'm all over the place, rightly or wrongly I don't know.
So keeping in mind that we are in parallel, and will continue to, saving monthly 1.5K - 2K into various Company Shares schemes (75%) and cash into bank (25%) AND I'm currently contributing max pension for my age into company scheme and spouse will do the same shortly: my questions are:
1. Will definitely have cash of 70K incoming (sale agreed). What to do with it so it's working for us?
2. If I sell (offer in but I don't have to take it), what to do with 160K so it's working for us?
Options for both 1 and 2 as I see them:
- Invest - but in what? (I'm automatically financially risk averse - have been burned on shares in the past - but can be persuaded be a little more riskier if logical)
- Pay off subset of PPR mortgage? And if I do that then opt for lower mortgage repayments for next 17 years and save the difference or reduce the term? Or both?
- Also want to extend house (circa 170K). Get extra mortgage or use these savings?
- Don't be crazy and take emotional thoughts out of investment property and assume next tenants will be good ones and keep investment property.
However, looking explicitly at the question I have presented: what are the thoughts?
Spouse’s/Partner's age: 45
Annual gross income from employment or profession: 90K+10K bonus
Annual gross income of spouse: 90K+20K bonus
Monthly take-home pay circa 7.5k after all deductions, incl. pension deductions and SAYE schemes
Type of employment: Permanent
In general are you:
(b) saving?
Rough estimate of value of home: 700K
Amount outstanding on your mortgage: 340k
What interest rate are you paying? 2.8%
Other borrowings – None
Do you pay off your full credit card balance each month?
Yes
Savings and investments: circa 70k (25K in bank, rest in company shares as a result of company share schemes and at various vesting periods of 0-3 years)
Currently saving circa 1.5K - 2K a month across 25% cash savings, 75% company share schemes.
Do you have a pension scheme? Yes, I am maximising the contribution limits for my age. Current pot circa 320K.
Spouse contributing 6% (incl. employer contribution)
FYI: Spouse came out of a Defined Benefit pension after 12 years and is currently in a defined contribution plan. Plan is to increase to max for age.
Do you own any investment or other property? Yes - Rental Income looking after mortgage, mgt. fees, taxes and upkeep for both. Nothing left over but property not costing us anything out of our employment income.
Property worth circa 340K, mort circa 170K. Tracker mortgage. 2,000K per month income.
Spouse: property worth circa 200K, mort circa 130K. Tracker mortgage. 1,100 per month income (should be more but caught in rental zone)
Ages of children: two kids, ages 6 & 6. Childcare costs currently 1,300K a month.
Life insurance: Mortgage protection & death in Service
Spouse: Mortgage protection & death in Service
What specific question do you have or what issues are of concern to you?
Some relevant emotional comments first:
* Current financial aim is to be retired by 65 but looking to make it earlier or at least have the option, no earlier than 60 though. Spouse aim is to retire at 60.
* Spouse hates being a landlord (accidental) so is selling up - non-negotiable.
* I'm not so set on being a landlord anymore (also accidental) so also considering selling up. Head is telling me not to sell as it's a great investment and tracker mortgage and I always saw it as a pension income. And will help aim to retire at 60 rather than 65. However, emotions of being a landlord (current great set of tenants moving out but I have had my share of bad ones) is telling me to get out.
* It's only in the last 2 years that we have heads above water and are in this position of saving (previously had other big loans to service, and recent promotion had led to significantly more income). So was happy for the last two years to take a breather to enjoy having my head above water: monthly savings % of income could probably increase and assist early retirement if we curtail our spending more.
* Putting this on paper has egged me towards an independent financial advisor - I'm all over the place, rightly or wrongly I don't know.
So keeping in mind that we are in parallel, and will continue to, saving monthly 1.5K - 2K into various Company Shares schemes (75%) and cash into bank (25%) AND I'm currently contributing max pension for my age into company scheme and spouse will do the same shortly: my questions are:
1. Will definitely have cash of 70K incoming (sale agreed). What to do with it so it's working for us?
2. If I sell (offer in but I don't have to take it), what to do with 160K so it's working for us?
Options for both 1 and 2 as I see them:
- Invest - but in what? (I'm automatically financially risk averse - have been burned on shares in the past - but can be persuaded be a little more riskier if logical)
- Pay off subset of PPR mortgage? And if I do that then opt for lower mortgage repayments for next 17 years and save the difference or reduce the term? Or both?
- Also want to extend house (circa 170K). Get extra mortgage or use these savings?
- Don't be crazy and take emotional thoughts out of investment property and assume next tenants will be good ones and keep investment property.
However, looking explicitly at the question I have presented: what are the thoughts?
