£4,200 net income per month and can't get a mortgage!

[Deleted User]

To be honest, i was more think along the lines of being able to provide a nice standard of living for my children now when they are young, rather than when i'm in my 40s

You can't take the money with you once you've gone

Thrugelmir

ringo_24601 wrote: »

Not everyone is obsessed with paying off their mortgage ASAP you know...

Paying down the mortgage quicker is one of the best ways of saving money. Should form part of an overall MSE attitude to money.

The_J

ringo_24601 wrote: »

To be honest, i was more think along the lines of being able to provide a nice standard of living for my children now when they are young, rather than when i'm in my 40s

You can't take the money with you once you've gone

Absolutely not bud, I appreciate I have been a bit lighthearted before but this is 100% what I believe, with the way things are going university fees, rent etc. are going to be a fair bit more in the future. Not to mention petrol from being the family taxi to parties or even buying them a car.

I strongly urge you to pay your mortgage off as soon as you can, then all your earned income is yours to play with in the future. You're not tied to anyone and you can be a great financial support at the most important part of your kids lives (in your 40s) when they are preparing to leave the nest and set up for life.

This is from someone who speaks to people like you every day, hell, people probably richer than you who are struggling. I'm speaking to them in their 40s and they are borrowing more on their mortgage to fund the above.

Thrugelmir

ringo_24601 wrote: »

To be honest, i was more think along the lines of being able to provide a nice standard of living for my children now when they are young, rather than when i'm in my 40s

You can't take the money with you once you've gone

There's a reasonable chance that you'll be in retirement for 80% of the years that you will be in full time employment for.

How do you intend funding your lifestyle then?

mildred1978

Thrugelmir wrote: »

There's a reasonable chance that you'll be in retirement for 80% of the years that you will be in full time employment for.

How do you intend funding your lifestyle then?

Eh?

Even if you only work 40 years, retiring at 60, the vast majority of people don't see 92.

Thrugelmir

mildred1978 wrote: »

Eh?

Even if you only work 40 years, retiring at 60, the vast majority of people don't see 92.

Many people do not have continuous employment all their working lives.

One in three babies born this year are expected to live and see being a 100.

[Deleted User]

Thrugelmir wrote: »

There's a reasonable chance that you'll be in retirement for 80% of the years that you will be in full time employment for.

How do you intend funding your lifestyle then?

I was hoping my pension/downsizing/savings might be part of that solution

The_J

mildred1978 wrote: »

Eh?

Even if you only work 40 years, retiring at 60, the vast majority of people don't see 92.

They certainly will do if they are 20-30 now and healthy.

Thrugelmir

ringo_24601 wrote: »

I was hoping my downsizing might be part of that solution

For the foreseeable future I personally wouldn't bank on house price inflation. If anything its the smaller rather than larger units that will hold their value. As many will choose this route to release equity with little in the way of alternative savings to fund retirement.

mildred1978

The_J wrote: »

They certainly will do if they are 20-30 now and healthy.

Utter carp.

It's a gamble. You could die the day after you retire. You could live to be 110. In reality something in between is likely, but how close to either end can't be predicted. Similarly you could be maimed at 35, and if all your spare cash went into a pension you'd be screwed for at least 25 years.

I like to spread the risk. I have 15 years in a frozen civil service pension which will pay out when I'm 60, I'll continue paying into a private pension through my company to reduce tax liability, and maintain (hopefully) a few hundred £k in liquid assets (offsetting and in high rate savings accounts and ISAs) just in case.