bunty109's 109 months to mortgage freedom

bunty109

Oops! Long time, no posts! Been plodding on with usual OPs. Nothing spectacular but.....

OH looks like he may be taking voluntary redundancy. The package is really good and if he can find other work so we don't need to set in to the money then a large OP would be possible. So at the moment, we're looking at lots of options and self-employment looks a possibility. This is raising tonnes of questions, not least about how to set things up as a sole trader and how much he'd need to pay into a pension and how.

It's all very scary but exciting at the same time.:eek::T:eek::T:eek::T

Kittenkirst

Hi Bunty! What exciting times with the redundancy &swirling through all your options, fingers crossed for everything to go as you want & get that big OP too!

bunty109

Kittenkirst wrote: »

Hi Bunty! What exciting times with the redundancy &swirling through all your options, fingers crossed for everything to go as you want & get that big OP too!

Thanks! i guess one of the first steps is to get some help from an Independent Financial Advisor about the pension (biggest worry after getting some work!). Anyone got any tips about how to source a good one? I can't say I know anyone who could recommend someone.

bunty109

So, it looks as though OH is biting the bullet with the redundancy so it's going to be a busy few weeks getting everything sorted.

March is bonus month (yay!): will have to sneak some extra OP but will save a whopper until we're 100% certain of his work plans. If things go as planned, I'd like us to focus on trying to pay the mortgage by the time our current fix finishes (June 2021)...but that is a real dream at the moment.

In other news, looking forwards to a trip to Spain in early April and a nice night out tonight ������

bunty109

Been very busy sorting for life after redundancy for OH. He's already sorted setting himself up as a contractor and has some work starting as soon as he leaves.:j

Looking at our finances with a financial advisor has been enlightening. Essentially we need to take a serious look at OH's pension: only ever paid what his company has taken each month and that's not likely to give us the pot we want in his retirement. So, rather than pay a chunk of the mortgage, the advice is to put a lump sum into a pension. We had a long chat and given the low interest rates we've also been advised to put a chunk into a stocks and shares ISA which should grow more than our interest rate: it can come off of the mortgage later and gives us an emergency fund.

So a whopping OP looks deferred, but I am still determined to continue the overpaying we have been doing and sneak through chunks where we can. :T:T:T

Kittenkirst

Wonderful news about OH and the contractor work lined up!seeslike its working out well

AnotherJoe

bunty109 wrote: »

Looking at our finances with a financial advisor has been enlightening.

Essentially we need to take a serious look at OH's pension: only ever paid what his company has taken each month and that's not likely to give us the pot we want in his retirement.

So, rather than pay a chunk of the mortgage, the advice is to put a lump sum into a pension. We had a long chat and given the low interest rates we've also been advised to put a chunk into a stocks and shares ISA which should grow more than our interest rate: it can come off of the mortgage later and gives us an emergency fund.

So a whopping OP looks deferred, but I am still determined to continue the overpaying we have been doing and sneak through chunks where we can. :T:T:T

Obviously it wasn't an enlightening enough chat.

Like many posters in this forum, paying off the mortgage has become an end in itself, with no consideration given to the longer term financial consequences for you and your family.

:eek:

bunty109

AnotherJoe wrote: »

Obviously it wasn't an enlightening enough chat.

Like many posters in this forum, paying off the mortgage has become an end in itself, with no consideration given to the longer term financial consequences for you and your family.

:eek:

Fair point, Joe. And if the verdict (once the numbers have been crunched) are that we need to reduce overpayments to pay into pensions then we will. I'm optimistic that we're in a position to be able to manage getting the pension pot we want whilst still sneaking in the overpayments though. To me, getting rid of the mortgage is important: my father was rendered unable to work ever again at the same age I am now and the mortgage was the main worry. So I don't see it as an end in itself, I see it as an asset to access if required (and better if you own the lot!)

bunty109

Well, that's us back from a short break to see my parents in Spain: eaten too much, drunk too much but had the loveliest time :):)

OH finishes his job next week and starts his first contracting role the day after. He's set up his own company and as he'll be invoicing monthly in arrears it means we'll need to dip into the redundancy money for a month or so until we've got some money in. However, this was expected and we can repay ourselves as and when. It looks like we'll stash a chunk of cash into his pension rather than the mortgage, but we're still keen to get the mortgage down. So, as long as OH can earn what he has been we can continue to OP and maybe look to increase the current payment (we've some outgoings that are ceasing). I'll probably stash the money in a separate account for a while just until we know how his contracting is going to work out. It's looking promising though: his industry is a boom one for contractors at present so he's hoping to make some hay whilst the sun shines.

I'll get a small pay rise this month: will OP that this month and when I see what it equates to I'll probably start an AVC on my pension. I've decided that I like my holidays too much not to be planning for them when we've retired!

bunty109

Well, month end and the OP this month is a tad over £800: better than usual thanks to my small pay rise and TCB.

OH has started his consulting and seems to be enjoying himself. Company have promised to pay him promptly so that's good: still need to sort an accountant so that's a priority next week. May sees a reduction in outgoings so there's more we could chuck at the mortgage (even with keeping an eye on the pension Joe), but it's going to be kept to one side until we're certain about OH's work plans for the year. So we'll still to the usual OPs , Tilly Tidies etc and see where things take us.

Best friend is visiting tomorrow: haven't seen her in ages as she lives in South Africa. I'm really looking forward to seeing her and catching up :beer: