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  • FIRST POST
    • nellis10
    • By nellis10 19th Feb 17, 10:37 AM
    • 1,308Posts
    • 3,034Thanks
    nellis10
    MFW & Retirement Planning on a Single Income
    • #1
    • 19th Feb 17, 10:37 AM
    MFW & Retirement Planning on a Single Income 19th Feb 17 at 10:37 AM
    Hi everyone,

    Longtime lurker/infrequent poster and all round fan of MSE back to post a wee diary to become mortgage free and plan for retirement in the next 15 years!

    I've recently been panicking about retirement and putting figures into the pension calculator and it is scaring me senseless!! So much so I don't know what to do first. But DF/MF is the first step!

    A little bit about me:
    I'm 46 (very soon!), divorced mum of 1 tween boy.
    I have a house worth about £80K with a mortgage of £67K.
    Mortgage currently 17.5 yrs remaining at 3.74%
    Going through remortgaging with First Direct for a 2 year fixed at 2.29%

    I currently pay £500/month towards mortgage of which £436 is actual repayment and the rest is a little overpayment.

    I have a car I own outright (just!!) which is 7 years old and runs fine.

    My house needs a lot doing to it, but I got central heating and rewiring last August and so I have some 0% debt (£3450) that I am paying off (central heating costs - I had NONE in the house just storage heaters, and a new boiler) at £550/month and I hope to have this paid off by June (if I get my bonus this March)

    I am following the Dave Ramsey Baby Steps so once the debt is gone, I am putting the £550/month into my Emergency fund for the rest of the year. I already have £1000 in EF as Baby Step 1.

    So from January 2018 my plan is to throw the £550 at the mortgage and be mortgage free some time in 2023.

    Then I plan to use the £550/month to invest for 15 years until I am 67/68 and can retire.

    So basically the sooner I am DF and MF, the sooner I can get my retirement plan underway and retire sooner than the state pension age of 67.

    Wish me luck!
    Nat.
    Last edited by nellis10; 20-02-2017 at 1:10 PM. Reason: Clarification
    Nat
    Goals:
    Baby Step 1 = £1000 EF
    Baby Step 2= Debt Free by Jun 2017 £550/£3450
    Baby Step 3 = Full EF £0/£9000
    Mortgage Free by 2023!!
Page 5
    • edinburgher
    • By edinburgher 14th Mar 17, 12:02 PM
    • 10,402 Posts
    • 54,181 Thanks
    edinburgher
    I'm a binary man

    You talk about reducing the % equities that you hold as you approach retirement.

    Some very solid research suggests that in retirement, you'd be better off increasing the % equities you hold to increases the chances of a positive outcome for your portfolio.
    • nellis10
    • By nellis10 14th Mar 17, 12:10 PM
    • 1,308 Posts
    • 3,034 Thanks
    nellis10
    I'm a binary man

    You talk about reducing the % equities that you hold as you approach retirement.

    Some very solid research suggests that in retirement, you'd be better off increasing the % equities you hold to increases the chances of a positive outcome for your portfolio.
    Originally posted by edinburgher
    Ahhhhh.

    Hey has Bowlhead written a book or Dunstonh?
    They seem very solid people (again I assume no gender on either of these blokes ) when it comes to being pragmatic with their advice. (As do you too and I appreciate it!!)

    I have a lot to learn, but really all I want to do is set and forget...a bit like my pension. If that means I don't cream the absolute best out of the market...that's OK...as long as it means I can live fairly comfortably.


    I do have another issue.
    When Dad dies (he's 75 but has had 20 years on a quad bypass) mum loses most of their pension, and doesn't get full state.

    Clearly I want to help as much as I can, but I'm thinking of buying their apartment (only about £90K) which should give mum a much better income for at least 10 years after Dad dies.

    So...out of all my wild schemes and projections and wot nots...I need to price in being able to buy mum's place to free up the equity for her.
    Nat
    Goals:
    Baby Step 1 = £1000 EF
    Baby Step 2= Debt Free by Jun 2017 £550/£3450
    Baby Step 3 = Full EF £0/£9000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 14th Mar 17, 1:52 PM
    • 10,402 Posts
    • 54,181 Thanks
    edinburgher
    So what happens if your Mum needs to go into a home?
    • nellis10
    • By nellis10 14th Mar 17, 2:29 PM
    • 1,308 Posts
    • 3,034 Thanks
    nellis10
    So what happens if your Mum needs to go into a home?
    Originally posted by edinburgher
    If she is anything like me, it's off to Dignitas!
    And I am only half joking!
    Nat
    Goals:
    Baby Step 1 = £1000 EF
    Baby Step 2= Debt Free by Jun 2017 £550/£3450
    Baby Step 3 = Full EF £0/£9000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 14th Mar 17, 3:48 PM
    • 10,402 Posts
    • 54,181 Thanks
    edinburgher
    Heh and I always joked that my care home plan was a high bridge and a good bottle of Whisky
    • nellis10
    • By nellis10 14th Mar 17, 4:40 PM
    • 1,308 Posts
    • 3,034 Thanks
    nellis10
    Heh and I always joked that my care home plan was a high bridge and a good bottle of Whisky
    Originally posted by edinburgher
    There is no way I am burdening me, my child or my community with a dolally version of myself. Once I can't cope with basic daily tasks, regardless of age, it's time to say sayonara!
    Nat
    Goals:
    Baby Step 1 = £1000 EF
    Baby Step 2= Debt Free by Jun 2017 £550/£3450
    Baby Step 3 = Full EF £0/£9000
    Mortgage Free by 2023!!
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