Hello from the haddock

getmore4less

Smoked_Haddock wrote: »

Iris, yes, that was the reason for posting on here really. It's difficult to know what to do. But posting here has already revealed to me some things our IFA did not tell us. It is coming clearer but I have said enough probably.

Mortgage free wannabees - a great tip on the retirement thread (& apologise if as a newbie I am teaching anyone to suck eggs) it may make more sense to overpay your pension than your mortgage. Payments into your pension are subject to tax relief, whereas mortgage payments are not. Your lump sum is tax free and you can use it to pay off the mortgage.

Be carefull there are a few that seem to think EVERYONE can do ok with investements.

Debt free is part of retirement planning, ploughing it all into pensions can backfire if the income dries up before you can get at the pension money.

As I said before the SOA, Budget and plan are the things you need.

You need to control your finances not have them control you.

One thing that struck me was the life work ballance you seem to have lost.

The other problem is that our large mortgage makes me want to take on more assignments, to write more, to spend the evenings and weekends promoting our second business. But not in a good way, just to make money to fund our life. Which is back to front.

This got me thinking but forgot to post.

If you have something you can do that is high profit immediately for the hours spent that is probably where to focus now.
eg promoting the business is a longer term investment/return a single assignment frees up the future

eg:
If you can do a £10k assignment how much extra time would that be?

So looking at that £433k mortgage over say 25 years @ 4%, £2285pm total £685,660

That £10k buys you.
Nearly a year of the term and asaving of £15k on top.
or
reduces the monthly payment by £50pm to spend elsewhere or work that little bit less each month and saves an extra £6k


Its all about trade offs, being in control and control comes from knowledge.

Whats coming in and where is it going.
whats the minimum I need for the long term plan, what doies the extra buy me, time now or in the future

It might start out as a 25/30/35 year plan till 65-70 but thats ok its the starting point.

Its a plan that will work, then start working on the trade off from a position of controll.

Don't work your buts of just because you can have good reasons for doing it make sure you are getting the returns from your investments

This extra asignment what does it buy me.
Bigger pension
money off the mortgage(shorter big plan)
A week off with the kids in the summer
A nice meal for the wifes birthday.

Same with the second business, 5 hours extra week what does it get you?
What do you want it to get you, could you employ someone to make you money or free up your time.

Also look at what is going out, that sky package who is watching it do we need it, what does that £25pm saving get us in return.

Cars can be a big drain and it is easy to get out of control because you think you need something better/newer than you actualy do, a modern car will do 10-15 years easy of you pick well and keep maintained.

Iris_Blue

Personally I don't think its the mortgage that's the real problem here.

mummalove

Iris_Blue wrote: »

Personally I don't think its the mortgage that's the real problem here.

Agreed. Sorry I missed the 'deleted' posts from earlier, may have helped understand more.

Smoked_Haddock

You seem like kind and wise people, thanks for your time and for your thoughts. Getmore4less, that is a detailed post which I have read twice and am still chewing over. Mummalove, I think you are right, maybe the mortgage is not the main thing, maybe it is more a question of balance and priorities and direction. We're flailing a bit right now. Life has got a bit monochrome. We both work about 60 hours per week and this has squeezed out other stuff. A bit frazzled.

We bought a very expensive house but, looking back, can't quite work out what we were thinking. Perhaps because we work hard and have earned quite highly, just saw it as logical to buy the same sort of house as most of our colleagues. But it's crazy- we have rooms that we simply don't use & have mothballed. Country views, which for 6 months of the year we don't even see because we leave and return to the house in the dark. No close neighbours to share a moan or a laugh with. Wild animals making noises in the night...

We're thinking about selling this place and moving back into town. Maybe moving back to a more balanced life. It is a big financial decision, because we'd be down about £50k on transaction costs and I suspect would take a hit on what we can get for this house. Still, some you win.

Sorry about deleting those posts but I really don't want to say too much, yet at the same... it wants to come out...

originalmiscellany

Hey Haddock - sounds like you've progressed in the past few months - well done on that - and turning this "oil tanker" around - although it takes several miles for an oil tanker to start moving, even though you've told it to change 3 miles before!

You're right about being careful what you post, so only post what you're comfy with. Have you (forgive me if I've missed what you've posted) spoken to your other half yet re your worries over finances? Sounds like getting your other half on board is a key step to progression.

Keep up the good work though Smoked Haddock/Red Herring

Smoked_Haddock

Just wanted to update those of you who were kind enough to post. I was a bit stressed back in March, calmer now.

Getmore4less, yours was a great post which has helped me to look at personal finance from a different angle. Thankyou.

We are currently looking at all the options.

Cheers, Haddox

Smoked_Haddock

PS mortgage now £429k....