FIRE Through The Mortgage - MF by 55 - LATEST

enthusiasticsaver

I have just read your diary, skimmed quickly I am afraid so apologies if I have missed something.

We too prioritised paying off our mortgage from quite young when our daughters were small and for the same reason you are. Early retirement. Husband retired last year at 58 and I retire the end of this year at 57. We went a few years later than planned due to helping daughters through university, one through a PHD and both buying their first houses plus wedding, first grandchild etc. Now they are settled we decided it is time to give up the rat race last year.

We did as you are doing and overpaid the mortgage, saved and invested but primarily prioritised pension savings as it gave us free money in form of tax relief (especially OH as a higher rate tax payer), employer contributions and I have a LGPS which I overpaid into as I worked part time for a good many years. I also have a personal SIPP. By the time we decided to retire we were investing 33% of our income in pensions and investments. We paid the mortgage off when my OH was 50 and I was 48 so 8 years mortgage free before retiring.

I wonder if prioritising your pension rather than a BTL would be better especially with the now punitive stamp duty on BTLs? If you are focused on the dream of FIRE then it can be done. We also prioritised holidays with family over flashy cars, new houses and did not waste money (as I saw it) on loads of clothes, shoes, make up, coffees out etc. We budgeted and saved for holidays, replacement car and home improvements. No debt beyond a mortgage or the odd 0% for new furniture.

It can be done and I hope you achieve it as you seem really focused.

Firegirl

Thanks for popping by enthusiastic saver!! It's amazing to see your story there because you are exactly where I would like to be when I'm your age.....And the lifestyle we would like to live. I.e. Spending money on holidays and making memories rather than having stuff that we don't need. I do think you're right about the buy to let financially but you know when there is something you've always wanted to do and you know it's something you want to do in your lifetime. My husband is the same too. Saying that I don't want to put all my eggs in one basket so I am looking at pensions now too. I have a meeting set up next week with an IFA so hopefully that will get the ball rolling. Now I'm self employed I don't have the bonus of company matching. I need a financial makeover really!!!:rotfl:

It's hard sometimes to decide.....to do what's financially sensible or do what makes you feel financially happy. E.g. My mortgage rate is very low and I have funds in my offset mortgage account. I know that's no the most sensible place for it to be but it makes me settled that it's there and specifically it's in my head untouchable!

So looking forward to my first pay from the contract this Friday!!!! Work is starting to get major busy so the next few months are gonna be mental!!!! Brace myself!:)

enthusiasticsaver

Exciting times indeed and I will pop by from time to time to see how you are doing. I agree keeping a lot in your mortgage offset fund is probably more for a "peace of mind" thing rather than being the most sound thing financially. It will probably get better returns being invested as I am sure an IFA will tell you. I can understand why you do it though as it is your home and my naturally risk averse investment style would prioritise paying off the mortgage over investing for future profit.

All I would say is pensions are the most tax efficient way of saving but being self employed you will have to sort this out (rather than your employer) and don't forget NI contributions for state pension.

My brother has MS too and if you have the same type of MS as him tiredness and being busy impacts on his health so watch that too

Firegirl

Yes, I really have to watch my health and keep stress levels down and take holidays when I need them instead of being tempted to fight on for the cash! I have quite a lot in stocks and shares and I feel like that's me at my limit there. I know a pension will be stocks and shares too so I'm gonna save to a pension and also save to my offset mortgage. Then at some point if we decide to buy to let the money is there too.

You must be really excited about retiring!!!

Firegirl

Sig updated

A_Frayed_Knot

Firegirl wrote: »

Sig updated

Well done:T . . . but you know what that means . . . .

You need to ebay more for . . . . . £45 :eek:

Firegirl

I know AFK- my husband reckons I would sell him if I ran out of stuff!!!:rotfl:

A_Frayed_Knot

Firegirl wrote: »

I know AFK- my husband reckons I would sell him if I ran out of stuff!!!:rotfl:

Hope you told DH, he is priceless

Firegirl

Absolutely AFK! I told him he's a rare breed!:rotfl:

Firegirl

Good news for MFW

http://www.bbc.co.uk/news/business-41141453

:j:T