So obsessed with retirement that I'm finding it hard to live for today

DavidLaGuardia

CLAPTON wrote: »

why do you think that you can invest 80k to get a better return in 15 years that the likely increase in house prices?

Why do you (seem to) assume house prices will outstrip other investments?

Despite house prices perfomming better over the last ten years, Over the past 25 years house prices have not performed even half a well as equities with income reinvested. There are many factors to consider, and everything has its place, but I've often thought as a nation we risk becoming myopic in our worship of property.

jamesd

pcrosland wrote: »

this makes no sense. your eradicating any gains in stocks by having mountains of debt.

This sort of thing does not eradicate the gains from the investments. They can be expected to grow at two to three times current mortgage interest rates.

The expected gain is even larger if a pension is involved. I'm working diligently on paying nothing at all out of pocket to clear my mortgage, doing it all with pension tax relief and employer pension contribution money. And I'll succeed in doing that, easily, I'm half way there already after only a few years. I don't know about you but I like the idea of repaying my mortgage capital without any net cost to me.

What's bad is debt used for inappropriate purposes at costs higher than is necessary and worthwhile for what it's being used for and sometimes if the person taking on the debt doesn't have sufficient provision to handle adverse events like long term unemployment.

Lois_and_CK

Gatser wrote: »

You are NOT alone!

We have been maintaining a "Life Spreadsheet" since our early 20's .... by age 30 we planned to retire at 50.
Legal and personal changes have moved that to 55 ... but the spreadsheet says that is still achievable so the countdown is very motivating!

You HAVE to plan years ahead if you want an "on target" retirement. A friend recently used the analogy of landing a Jumbo Jet.... don't think about the landing procedure one mile before the landing strip!

Good Luck... I hope you have lots of happy spreadsheet columns ahead of you! :T

Thanks Gatser - actually it's your Number thread that has given me a lot of my motivation :-)

Lois_and_CK

jamesd wrote: »

This sort of thing does not eradicate the gains from the investments. They can be expected to grow at two to three times current mortgage interest rates.

The expected gain is even larger if a pension is involved. I'm working diligently on paying nothing at all out of pocket to clear my mortgage, doing it all with pension tax relief and employer pension contribution money. And I'll succeed in doing that, easily, I'm half way there already after only a few years. I don't know about you but I like the idea of repaying my mortgage capital without any net cost to me.

What's bad is debt used for inappropriate purposes at costs higher than is necessary and worthwhile for what it's being used for and sometimes if the person taking on the debt doesn't have sufficient provision to handle adverse events like long term unemployment.

Thanks James, I'm really interested in this interest only approach and using tax free pension lump sums to pay off mortgage at 55. I'm very seriously considering it.

Lois_and_CK

Archergirl wrote: »

I think you are far too pre occuipied with retirement, you may not even reach it!!
Life is to be lived now as well as in the future, try to be more focused about your life now and enjoy what you have, so much can happen between now and then, don't waste now.

True. I've discovered it's a very fine line between enjoying life today and planning for the future. Although I do have a friend who's retirement plan is death before state pension age - I don't want to be THAT unfocused :-)

JoeCrystal

Lois_and_CK wrote: »

True. I've discovered it's a very fine line between enjoying life today and planning for the future.

Not really, just do both! Everything in moderation.

Cheers

Joe