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  • FIRST POST
    • nellis10
    • By nellis10 19th Feb 17, 10:37 AM
    • 1,315Posts
    • 3,072Thanks
    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 Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
Page 5
    • edinburgher
    • By edinburgher 14th Mar 17, 12:02 PM
    • 10,574 Posts
    • 54,855 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
    • 1,315 Posts
    • 3,072 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 Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 14th Mar 17, 1:52 PM
    • 10,574 Posts
    • 54,855 Thanks
    edinburgher
    So what happens if your Mum needs to go into a home?
    • nellis10
    • By nellis10 14th Mar 17, 2:29 PM
    • 1,315 Posts
    • 3,072 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 Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 14th Mar 17, 3:48 PM
    • 10,574 Posts
    • 54,855 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
    • 1,315 Posts
    • 3,072 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 Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • nellis10
    • By nellis10 24th Mar 17, 4:14 PM
    • 1,315 Posts
    • 3,072 Thanks
    nellis10
    Things wot I have done today to become a millionaire...
    I AM NOW DEBT FREE!!!

    Pay day today, with bonus and I've paid off all outstanding debt - 2900 all gone!!!!


    WOOHOOOOOO!!!!!!!
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • ab_saver
    • By ab_saver 24th Mar 17, 9:55 PM
    • 333 Posts
    • 802 Thanks
    ab_saver
    Congratulations!!
    House fund: 1610 / 10,000 _1000 emergency fund #208 - 110/ 1000 _
    • nellis10
    • By nellis10 25th Mar 17, 6:44 AM
    • 1,315 Posts
    • 3,072 Thanks
    nellis10
    Thank you 😊

    I am now officially skint lol. Gotta make a bit less money stretch a little bit longer in April but so happy to have all plus balances (apart from mortgage) in my YNAB budget. Even if those balances are small lol 😁
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • EatingTheElephant
    • By EatingTheElephant 25th Mar 17, 7:25 AM
    • 875 Posts
    • 4,398 Thanks
    EatingTheElephant
    Congratulations on being DF
    • TallGirl
    • By TallGirl 25th Mar 17, 9:33 AM
    • 4,011 Posts
    • 8,302 Thanks
    TallGirl
    Just spotted your diary congrats on your progress so far and your birthday I'll be 47 in Aug so roughly same age. Really interesting thoughts about pension versus mortgage overpayment versus investing I've been glued to the savings board for months now and it's a minefield.

    Thought it might help you to but I went with an IFA originally right at the beginning of my mortgage free journey to essentially make sure we had enough pensions and also look st life insurance. We had no kids though. He charged us 800 for a glossy document and didn't nothing else no recommendations nothing. Useless indeed.

    Fast forward when I inheritaget a large sum I found an IFA through a friend and he's been a god sent. He's charges are very reasonable and I'm now doing the pension top up and investing. I'm not saying you should use an IFA right now but for Pensions SIPPs etc they can be helpful and the charges really aren't that much.

    Being mortgage free is amazing I did it nine years early and benefitted hugely. You sound like you have a good sense of what you want and where you want to go so stick with it and you'll get there. Life does throw some curveballs and you also need to live so update your house and enjoy it even it it means an extra year or to added to the mortgage. You'll get the pleasure out of it.

    Enough waffle from me I'll subscribe look forward to see the progress.
    • nellis10
    • By nellis10 25th Mar 17, 10:12 AM
    • 1,315 Posts
    • 3,072 Thanks
    nellis10
    Just spotted your diary congrats on your progress so far and your birthday I'll be 47 in Aug so roughly same age. Really interesting thoughts about pension versus mortgage overpayment versus investing I've been glued to the savings board for months now and it's a minefield.

    Thought it might help you to but I went with an IFA originally right at the beginning of my mortgage free journey to essentially make sure we had enough pensions and also look st life insurance. We had no kids though. He charged us 800 for a glossy document and didn't nothing else no recommendations nothing. Useless indeed.

    Fast forward when I inheritaget a large sum I found an IFA through a friend and he's been a god sent. He's charges are very reasonable and I'm now doing the pension top up and investing. I'm not saying you should use an IFA right now but for Pensions SIPPs etc they can be helpful and the charges really aren't that much.

    Being mortgage free is amazing I did it nine years early and benefitted hugely. You sound like you have a good sense of what you want and where you want to go so stick with it and you'll get there. Life does throw some curveballs and you also need to live so update your house and enjoy it even it it means an extra year or to added to the mortgage. You'll get the pleasure out of it.

    Enough waffle from me I'll subscribe look forward to see the progress.
    Originally posted by TallGirl
    Thanks TallGirl! Everyone is telling me I need to enjoy myself as much as save for the future, so I've decided to break down all extra income into 3 pots: Living Now & Updating House, Mortgage and Investments - that way I will feel as though I am making headway on all 3 fronts )
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 25th Mar 17, 11:12 AM
    • 10,574 Posts
    • 54,855 Thanks
    edinburgher
    I always think about it as the legs of a stool - it usually makes sense to have at least 3

    Congrats on paying down your debts.
    • nellis10
    • By nellis10 25th Mar 17, 1:22 PM
    • 1,315 Posts
    • 3,072 Thanks
    nellis10
    I always think about it as the legs of a stool - it usually makes sense to have at least 3

    Congrats on paying down your debts.
    Originally posted by edinburgher
    Now, if only each of those legs was worth a million pounds lol
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
    • edinburgher
    • By edinburgher 25th Mar 17, 6:19 PM
    • 10,574 Posts
    • 54,855 Thanks
    edinburgher
    Now, if only each of those legs was worth a million pounds lol
    Originally posted by nellis10
    Stradicharius?
    • nellis10
    • By nellis10 10th Apr 17, 12:22 PM
    • 1,315 Posts
    • 3,072 Thanks
    nellis10
    Things wot I have done today to become a millionaire...
    Well, the remortgage went through at the end of last month...
    Rate changed from 3.74% to 1.94% fixed for 2 years with unlimited overpayments in that time.

    The only !!!!!! is, they don't do online servicing of the mortgage account - but monthly text messaging will allow me to see all the details I want and I will keep track in a spreadsheet.

    Keeping the mortgage payments fixed at 500/month so increasing the OP by about 60 overall.

    Hope everyone is doing well?
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 1170/8000
    Mortgage Free by 2023!!
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