Last role of the dice!

richard101

Hi All,

I'm after some long-term financial advice. My goal is to provide for my family when I'm too old to.

My whole life I've been the main provider, and am worried about my inevitable decline (for my family).

I'm 54, earning about 96k, have no savings, a tiny pension, and no
mortgage. I'm remarried and we have a two year old daughter. I pay 500pm rent for a nice modern apartment.

Before I list some ideas I had, I would like to say something about my employment. I'm an IT consultant. Working as an employee of an umbrella company for 400pd. Its a precarious life with no guarantee's after my (typical 3 month) contract ends.

Having said that, I have enjoyed living this nomadic life for over 10 years (mostly for less money) and was very able to pay the mortgage etc of my first marriage.

Here are some of my ideas ...

1. We've met with a mortgage adviser from Nationwide and they seem happy for us too join a saving scheme whereby I save a 5% mortgage deposit with them over 6 months. In theory they can supply a mortgage up to a 75th birthday.

2. Having had two canal boat holidays. I like the idea of buying a broad beam Narrowboat for a fraction of the cost of a bricks & mortar (maybe 30k to 60k). Unlike bricks and mortar the value would (slowly) depreciate. And no matter how humble a house - it normally comes with electricity and plumbing by default.

3. Remembering my goal is to provide for my family when I'm not able to. I could just get a generous life insurance policy, and go for a gradual decline in earnings with no thoughts of retirement (This is my 'default' plan if I cannot decide).

4. Pensions are meant specifically to provide for old age. I could go "full-on" with my current pension (and other?), isas, and other savings schemes.

5. I could return to permanent employment where I estimate my earnings would be between 40k and 65k. I could choose an employer with a generous pension and max my contributions.

Advise please

Ricardo

ACG

Provide - what do you mean?
An income? A mortgage free home?

How can you earn £90k a year but have no savings if your rent is £500 a month?

You could go and buy a couple of BTL properties and rent them out? They will provide an income even if you can not work. They do take some managing especially if you get bad tenants but it could be an option.

lonestarfan

So do you have any assets at the moment eg a mortage free property?
I'm not clear if you do or not as you say you could comfortably manage the mortage on the first marriage.

McKneff

The best thing you can provide for you family is the knowledge of how to provide for themselves.


All you are doing at the moment is teaching them that they can free load off you.


How old are they.

moneyistooshorttomention

The first thing, I would say, is to deal with making sure they have a secure roof over their head.

In your position, I'd be doing the best I could manage to buy a home (preferably a proper house, but I take your point that even a canal boat is better than nothing). If you can manage to buy a proper house okay, then "go hell for leather" for getting shot of the mortgage on it by paying it back asap.

Age isn't particularly on your side..as you will be aware...which makes it all the more important to pay any mortgage back asap (ie just in case of major health problems).

I know that one of the financial decisions my parents made that I fully agreed with was that there was some sort of life cover set-up accompanying the mortgage (when they had one) and that meant that if my father had died/been killed (I'm an ex-military kid) then that mortgage would have been paid off and my father would have ensured his wife and children at least had a secure roof over their heads.

My mother, on the other hand, made sure she paid back that mortgage just as fast as she possibly could and I followed her lead and got shot of a 25 year mortgage in 13 years in the event.

It helps a LOT to know you own your own place and that the mortgage is gone (or at least negligible).

Definitely the single best thing you can do to protect them.

You are on very good money..so throw as much of it as you can in that direction.

EDIT: Choosing a permanent employer is also a very good idea (particularly with the increasing risk of ill health on getting older) and maxing your pension with them is a very good idea indeed. I chose a permanent type employer. I do have to say I was bored outa my skull personally and permanent type employers do have a much greater tendency to try to "drive staff out" that they don't require any more by deliberately trying to make life so unpleasant for them that they resign "of their own free will"...so, if there is the slightest risk of that, then you need to be strongwilled not to fall for it. Having said that....taking any decent opportunities to max your pension with one proved very well worthwhile for me personally and I am so glad I did that (whilst being aware that they "closed the gates" on the opportunity to do so that I personally took after I had safely had the sense to do so).

bris

Earning 96k and have nothing with just £500 rent, pull the other one.

fairy_lights

Does your wife work? you've made no mention of her income.
If you're earning 96k but only pay £500 a month in rent, then you must be left with a hell of a lot of disposable income.
What other outgoings do you have?
if you tightened your belt and saved hard for a few years you should be able to put enough away to buy a house outright.

MobileSaver

In November 2014 you say:

richard101 wrote: »

I'm 54, earning about 96k, have no savings, a tiny pension, and no mortgage. I pay 500pm rent

In May 2014 you said:

richard101 wrote: »

I earn 39K in I.T. and am paying 500pm rent. I have no savings, and a 6.5k bank-loan.

That's rather a large discrepancy...

Lord_Baltimore

............^......

richard101

Thanks all. Its possible my 400pd doesn't really add up to much pa. What with no holiday pay, no sick pay, no pension, no benefits, and no training. And I'm due my first (hopefully impresive looking) wage-slip at this rate anytime soon.

Living on a boat is my favorite at the moment. It seems to be the quickest route to rent free and dept free. I just need to square it away with my Mrs (full time housewife and mother BTW).

Guest101

A: I assume u run a company, and have an accountant?

B: Assuming you work 5 days a week, that's 2k a week, 8kish a month. So after your 500 rent and let's say 1000 bills etc, where is the other 6.5k??!!

C: u day u had a mortgage, what happened with that?