How am I fixed?

How_am_I_fixed?

Hello,

I know from reading a lot of posts here that you will need a fair amount of info from mr in order to advise me.

First of all I am bi-polar and as such at times I cannot see the wood for the trees when I try to assess my financial situation.....I am at the point at the moment.

On the face of it I think our (I am married) future is ok but then I can't seem to relax without worrying about the future.....the only thing I can see from this outlook is that it is putting a strain on the marrage as my wife needs to keep me propped up all the time these days.

Anyhow this is our financial position.....

I am 55 (was retired early under ill health...had a stroke)
Income £14k FS Pension

Wife 61 Has a FS Pension albeit small £5k plus 1/3rd of full SP

Investments add up to £200k (S&S Isa's, cash Isa's, Fixed rate bonds, investment bonds and shares).

This money came from a £350k (£326k net) inheritence, this also allowed us to pay off the mortgage and pay for a new (indulgence) car, this will last us at least 12 years.

I have worked out our annual outgoings (car ins, conts/building ins, council tax, utilities) and put that figure into an account and draw on it each month.....the outgoings are small £198 pm, as such the annual figure has been covered by the interest from the FR Bonds when they have matured.....now that the rates have dropped the interest can be topped up by my pension in required.
We have also put the dividends from shares into this account as in the past two years it has covered our winter utility bills.

This means our pensions can provide our day to day expenses...and still some left at the end of the month.

I have two step kids (grown up), we decided that as the interest rates are going to be low for some time by the time we go maybe there wouldn't be too much left for them.

As a result, when the house nextdoor came on the market we bought it, this way at least when we go there are two houses which they can decide either to rent out or sell.

Having the second house also means that if need be we can produce extra income by renting it out, at the moment it's there when family want to come and stay.

The running costs of this second house is in another account and is drawn on monthly too.

So the question is "How am I fixed"?....I just worry about the future in that it is stopping me/us from dipping into the capital and as a result we are living off our pension income (ok but no luxuries).

I would like to know your thoughts and am I being too fretful about the future?

When I'm ok I can see that probably we are in a VERY fortunate position but when the demons of doubt are about all I can see is a future where we may need help and had we not spent the money we could look after (financially) ourselves.

My attitude changes are becoming a strain on my wife for sure and that then makes things worse.

Your thoughts please!

Thank you.

Freecall

What a fantastic open question.

I await replies with interest.

fiesta04

It appears to me that you have it well sorted.
Of course no one knows what will happen in the future, but you are in a good position.
Good luck for the future.

F4

How_am_I_fixed?

F4,

Thank you for your reply, it's the kind of reply that is good for me as it can only read one way.

I have learnt from reading the forums that:

1, We are in a fortunate position

2, Hopefully we have done the most we can (without too much risk) to preserve the capital.

Most of what we have done with the capital has been done by reading what others have done with theirs...so thank you MSE.

I know that (as my wife tells me) I am the sort tp worry if I have nothing to worry about and that the glass is always half empty.

I just call myself a realist!

But I do realise that I can sometimes take this attitude too far, hence that is why I wrote the original post...I'm not one really for broadcasting our business but in this case it was pointless not doing so.

So thank you F4 for helping .

bigadaj

Just a couple of points I noted.

Your daily expenses seem to be lumped into a current account, possibly annually, it would be better if this is the case to keep in an interest bearing account at say 3% and set up a standing order monthly, this might focus your mind better being more similar to a salary or pension payment.

The other issue is the second house, this just appears to be an overhead at the moment and the outlook for property prices is generally flat. If you are comfortable with that then thats fine, however currently no income and limited potential for capital appreciation sound like it doesn't make a great investment. Also this would indicate that in terms of asset allocation you are heavily biased to Property over shares, bonds etc

In general you are probably in a far better financial situation than the average person so try not to let it bother you too much.

Archergirl

I think you could make a list of all the positive points of your finances and read them through when you are feeling doubtful, you can make more money if you needed to by renting out the house next door.
Maybe you do need to enjoy your money a little and perhaps go on holiday, ever thought of a cruise, we had one last year and loved it!!
None of us know what the future holds so sometimes we need to live a little in the present.
Good luck and good health xx

savingmummy

Sounds like you`ve worked hard, and got some great things from it - well done and well deserved!
I`d be tickled pink to be in your situation.

Good luck with the future.

How_am_I_fixed?

Wow!!

THANK YOU ALL...I must seem silly that I am worrying the way I do when you have all been so positive, your collective answers are very
encouraging.

Now I'm getting an ear bashing from the wife (who I can assure you is happy that you are saying exactly what she has been for a while) telling me "See... people are telling you that you/we have been sensible.....now take the advice and lets start enjoying our confirmed position".

Bigadaj: I have got the "Expenses Account" as I call it in a Lloyds Vantage A/c which I pay in and take out 1k a month to get the interest 3%.

I / we take your point on the second house, we thought however that the sum in the bank may not grow too much over the years. At least leaving two houses in 20 years (maybe!) they hopefully would have gained value without much risk and it gives the kids the option of renting them out (and keeping them in the family for their kids) or sell them.

I agree at the moment the second house is an overhead but it's one that when we did the sums takes a small % of our income. It's easy to keep an eye on being right nextdoor too.... certainly this idea would not have been an option had it not been so.

And if need be it can become a cash generator should we require it....just not sure if I am the sort of person to be a LL though..see worrying already.

Should in a while the demon of doubt return I have your posts to fight it with, thank you all for that valuble ammunition.

I know my wife shares the thanks too.

Archergirl

Don't forget the holiday lol xx

savingmummy

Not silly at all.
I will never have what you have however hard i try to stay positive.

BUT had i found myself/find myself in your situation i`d probably still worry, sometimes its easy to think `we`re fine` then something gives you a wake up call to make you feel a bit doubtful.

calypso_rhapsody

I echo the support that you are getting - your position is much much better than many people will achieve in their lifetimes. So enjoy!

One thought does occur to me - have you talked to your step sons about their attitude to money? Personally i would rather my parents spent what they need to enjoy life and let me look after my own position. I would not be at all surprised if they would rather you and their mum had some fun in your retirement (that holiday or whatever) than spent too much time worrying about their inheritance .... but then there are some grasping kids out there so i might be wrong!