What are your plans for your money after mortgage paid?

ailuro2

Hi all- I'm wondering what plans I should be making for after we're mortgage free?

Having all that lovely money to spend every month will be great, but tbh we don't really want to spend it all, we'd like to use some to generate an income for later years- we will both be 40 when our mortgage finishes, it will mean an extra £500 per month to spend.:D

A bit about us-
We both work for the same company, and it has recently been announced we will be swopping to defined contributions from defined benefits pensions in 2009,so some of the extra money will go there.:mad:
We have a dd who will hopefully be going to Uni in around 10 years, so we need to plan for that too.
Both jobs pretty secure, place should be open at least 10 years.


So- to pick everyone else's brains for good ideas, what have been your best ideas on this?

Invest in a property and rent it out until dd is old enough to use it?
Buy a bigger house to allow downsizing when we are older?
Put the money into ISAs and leave it there?
Use it to reduce working hours and spend more time with family?
Go on lavish holidays every year and forget about the future?
Something else?

Redbedhead

We would seriously think about a holiday home, preferably somewhere we can use but is also rentable.

I wouldn't buy a bigger house unless you actually want a bigger house!

comping_cat

My main reasons for wanting to be mortgage free are because i am a single mum, on a really low income - and i really want to be able to help my children when they are older. Im very aware, that once my children hit 18/19 i wont get as much help with tax credits, maintenance etc so if i can get rid of the mortgage, the money i lose there, will be made up by not having the mortgage payment.
DS will be 18 in 7 1/2 years time, and although i know i really dont have much hope in paying the mortgage off that quickly (im looking at about 10 years at the moment, unless i can find some new ways of earning money) but it sure will be a big help, knowing that the mortgage is almost gone, and if im struggling, i could maybe reduce my payments.
Of course, if the children dont need any extra help - then the money will be mine, and i think a good holiday, and maybe actually have some savings would be wonderful!!!

baz8755

I too am facing the same question.

I am 37 and as of this month I am mortgage free. This has mainly been achieved by putting in a lot of overtime and stoozing, and I said that I would give up both theses activities when I was mortgage free.

I am married with no kids and we are more than happy with our house.

I would like to splash out on a big TV, Car and holidays but as I am so used to being careful with money my attention is being drawn more towards ensuring security and a good standard of living during retirement.

I have increased my pension contributions and maxed out my ISA's for the year. I have pondered about seeking out other forms of investment including buy to let etc...

As I see it I have several options
- Keep doing the overtime and invest and plan for the future
- Keep doing the overtime and enjoy the money
- Give up the overtime and enjoy the extra freedom.

It seems that being mortgage free is not the end, its merely just one small part of a greater plan

evab_2

why do you have to be rude Sloppy Saver, people do what's best for them and we should encourage anyone trying to pay off what is for a lot of people their biggest asset. Who says you're going to get to retirement age? Anything could happen between then and now, so you do what you want and don't slag off others for their own dreams.

Lotta_Littlies

sloppy_saver wrote: »

To retire. Unlike the many Mortgage Free ASAP clowns, .... You morons.

It would be nice to read a post from you which doesn't include insulting others.

Lotta

comping_cat

sloppy_saver wrote: »

To retire. Unlike the many Mortgage Free ASAP clowns, I'm paying my mortgage off over a reasonable timespan so that I have the resources to not only be mortgage free, but to also be totally financially self-reliant when I am old.

That entails making a broad spectrum on investments, not just in a single asset (my home), but in pensions, ISAs, Funds, Shares and property (both domestic and retail).

After 10 years of squeezing every penny to puy off their mortgages, these dumbasses will have a house paid off. I will have a proportion of my house paid off, a proportion of my pension investment paid, used up 10 years worth of ISA allowances and have had many years growth on my savings and investments.

Ask yourself who is the better off by the time we retire. You morons.

When i retire, i will prob be better off - i will have no mortgage, a pension and will've had plenty of time to build up some savings - i will also have been able to help my children through university (should they choose to go) and maybe even help them on the housing ladder when they are ready - i hardly think that makes me a moron or a dumbass!!!!

baz8755

Although the tone of Sloppy_Saver is somewhat derogeratory their approach may well be vaild but I do not believe that there a right of a wrong answer.

Consider this very simple scenario.

Two people decide to invest £1000 a month

Person A has a mortgage of £100K @ 6.5% and they are paying £1000 a month off the mortgage. They will pay off the mortgage in 13-14 years.

Person B pays the 6.5% mortgage interest and invests the remainder at @ 6.5%. They will have saved £100K in 12-13 years.

Obviously this is a very simple model and one could argue about what returns you get on investments, tax relief on pensions, inflation etc. But I believe the straight answer is that Slopy_saver could potentially be better off at retirement if they make it.

However the whole point about paying off the mortgage is surely the satisfaction and knowing that the biggest monthly bill is now banished:j

So please no more arguments, lets just let people pursue their own goals.

KarmaPolice

sloppy_saver wrote: »

Ask yourself who is the better off by the time we retire. You morons.

Charming as always.

Can't you accept that different people have different goals and different situations? I know that I am feeling very pleased with myself that I have shaved 10 years off our mortgage by paying an extra £250 a month so don't diss anyone who isn't following your method.

Redbedhead

sloppy_saver wrote: »

To retire. Unlike the many Mortgage Free ASAP clowns, I'm paying my mortgage off over a reasonable timespan so that I have the resources to not only be mortgage free, but to also be totally financially self-reliant when I am old.

That entails making a broad spectrum on investments, not just in a single asset (my home), but in pensions, ISAs, Funds, Shares and property (both domestic and retail).

After 10 years of squeezing every penny to puy off their mortgages, these dumbasses will have a house paid off. I will have a proportion of my house paid off, a proportion of my pension investment paid, used up 10 years worth of ISA allowances and have had many years growth on my savings and investments.

Ask yourself who is the better off by the time we retire. You morons.

You make valid points in your arguments, but then spoil it with name calling and petty remarks like your closing line. It is unnecessary and people are less likely to notice your sensible remarks because of it.

lizzie12_2

sloppy_saver wrote: »

To retire. Unlike the many Mortgage Free ASAP clowns, I'm paying my mortgage off over a reasonable timespan so that I have the resources to not only be mortgage free, but to also be totally financially self-reliant when I am old.

That entails making a broad spectrum on investments, not just in a single asset (my home), but in pensions, ISAs, Funds, Shares and property (both domestic and retail).

After 10 years of squeezing every penny to puy off their mortgages, these dumbasses will have a house paid off. I will have a proportion of my house paid off, a proportion of my pension investment paid, used up 10 years worth of ISA allowances and have had many years growth on my savings and investments.

Ask yourself who is the better off by the time we retire. You morons.

Flip in heck, thats a bit much.........

Everyone does what they think is best for them with the odd tip off here.