We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

The Edcawber Principle

Options
1129130132134135244

Comments

  • VDOT47
    VDOT47 Posts: 277 Forumite
    My reason for also wanting to be MF (or at least close to it) is that my logic is as follows. It would be all very well having a lovely pension pot in place by 55/60, but if the income you can draw from that is only, for the sake of argument, £25k pa that is no good to me if we still have £2000 pcm mortgage payment as the pension drawdown would be swallowed up by the mortgage and there would be nothing left to live on! On the other hand, if we were mortgage free then £25k pa would probably be just enough to live on.
    Original Mortgage (Feb '17) £269,995
    Current Mortgage (End 11/19) £226,790
    End Date November 2039 Original End Date February 2042
  • I allowed myself to OP the mortgage, even though it wasn't a particularly efficient use of our money, for a different reason. Reducing (or obliterating) that monthly obligation reduced our monthly nut down to a level that the disaster scenario of both of us being out of work for a reasonably long period of time wasn't really all that big a deal.

    I guess I chose short term near absolute security over long term efficiency. I am overly cautious though. So long as there's an emergency fund, credit availability, and insurance in place, I'd say that Ed's approach is the more sensible one!
  • Karmacat
    Karmacat Posts: 39,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Loving the discussion, so powerful, and so reasoned, and so informed when people are still in the middle of their mortgages. More power to all your elbows :)
    2023: the year I get to buy a car
  • edinburgher
    edinburgher Posts: 13,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    VDOT47 wrote: »
    My reason for also wanting to be MF (or at least close to it) is that my logic is as follows. It would be all very well having a lovely pension pot in place by 55/60, but if the income you can draw from that is only, for the sake of argument, £25k pa that is no good to me if we still have £2000 pcm mortgage payment as the pension drawdown would be swallowed up by the mortgage and there would be nothing left to live on! On the other hand, if we were mortgage free then £25k pa would probably be just enough to live on.

    I appreciate that POV. Our current plan would see us drawing down approximately £3k/month 60-68 (ample money to meet our obligations including mortgage). At 68, we become MF and collect £2-3k/month. We'll either be as well off, or suddenly "rich" and able to help the family some more :)
    I allowed myself to OP the mortgage, even though it wasn't a particularly efficient use of our money, for a different reason. Reducing (or obliterating) that monthly obligation reduced our monthly nut down to a level that the disaster scenario of both of us being out of work for a reasonably long period of time wasn't really all that big a deal.

    I guess I chose short term near absolute security over long term efficiency. I am overly cautious though. So long as there's an emergency fund, credit availability, and insurance in place, I'd say that Ed's approach is the more sensible one!

    Bar the EF, we're in the position stated. That's problematic, but I just keep touching wood as we've both worked 20 years without redundancy :o That's intentional. I work in the public sector (commitment to no compulsory redundancies, strong union) and Mrs E works for a private sector segment that isn't going anywhere (has been around in some form for a thousand years or so)!
    Karmacat wrote: »
    Loving the discussion, so powerful, and so reasoned, and so informed when people are still in the middle of their mortgages. More power to all your elbows :)

    I believe that each generation (or perhaps time period) has unique advantages. I doubt we'll ever see rampant house price inflation or massive equity growth for the rest of my lifetime. I think the advantage for those of us living now is the benefit of hindsight, ease of research into different investing approaches and the ability to stitch together a bit of everything to reach a happy conclusion to our careers :)
  • edinburgher
    edinburgher Posts: 13,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Ooft - there goes the mortgage payment! :D

    £4.84 paid off a CC.
  • edinburgher
    edinburgher Posts: 13,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    £5.67 paid off a CC. In a spring cleaning sort of mood today - will attempt to get rid of some of the crap from the garage! :rotfl:
  • rtandon27
    rtandon27 Posts: 5,601 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ...In a spring cleaning sort of mood today...

    Must be that kind of day! - I've just had a fridge clean out & contemplating a cupboard or two as well!
    4 YEARS 10 MONTHS DEBT FREE!!! (24 OCT 2016)
    (With heartfelt thanks to those who have gone before us & their indubitable generosity.)
    ...and now I have a mortgage! (23 AUG 2021)
    New projection - 14 YEARS 10 MONTHS LEFT OF 20 YEARS (reduced by 15 mths)
    Psst...I may have started a diary!
  • edinburgher
    edinburgher Posts: 13,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    rtandon27 wrote: »
    Must be that kind of day! - I've just had a fridge clean out & contemplating a cupboard or two as well!

    Realised I need a skip for the garage, started weeding, then it rained torrentially for 5 hours! I guess it wasn't meant to be. Hoovered and tidied up a bit instead :)
  • edinburgher
    edinburgher Posts: 13,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    £4.98 paid off a CC.

    Took DD to Edinburgh zoo. We had a fabulous day out, but it certainly wasn't MSE (although was budgeted for). Worth it to give Mrs E some time off :)
  • teapot2
    teapot2 Posts: 3,527 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Glad you had a great Dad/DD day - very important and as you say its not MSE at the zoo but worth it for the memories :cool:
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.