2020++ - smiling and waving and looking so fine

mark55man

In slightly exciting news, as I was updating my signature I realised that my Mortgage Neutral Pot + My EF is now greater than my CC4 + Mortgage, so within the constraints of my buckets ie EF, MN, Mortgage and CC I'm now asset positive or I suppose you could say debt free.  

Feels good - but not quite as good as being actually MF and not having a balance on my CC so I will address the CC on payday and then start to focus on being genuinely MF (in a more concrete, actual accessible savings vs net mortgage and not hidden away in the shifting fortunes of my retirement pot sort of way)

every milestone is a good thing, even the ones you stumble upon, its just some are more important

enthusiasticsaver

Well done on being debt neutral. What is the plan to repay the mortgage or are you letting it carry on into retirement?

mark55man

I have 3 years fix at 2.1% then 1 year at SVR.  I now have a hypothecated pot inside my pension in safe investments equal to the balance (Mortgage Neutral). 

I will probably work for another 15-18 months at which point my actual mortgage balance will be about £45K.  I will then use a mix of savings and tax free withdrawals and my OH mandatory lump sum to fund it for another year while I see what retirement feels like and without triggering MPAA should I (v. v. unlikely) decide to go back into work.  At that point (Jul-25) the balance will be about £25K.  I will then likely the trigger my DB pension a few years early (I am not from long lived stock) and use that money for mortgage repayments and continue drawing down (taking income) from my pension for living costs but keeping income under the higher tax band.     

Building the savings aspect is probably my focus for the next 18 months, as I can easily find 1-2 year fixed rates at 5% or so - well in excess of the mortgage rate, so no rush to overpay even small amounts.  Also there is an early repayment charge, so no incentive to clear it early.  My minimum target is to have enough (about £15K) put aside by Jan 26 so that I can repay the last chunk which will be at SVR if that seems a good idea.

I do have 4 kids to get married and 3 to help buy their own houses so none of the above is set in stone.  At the start of this diary I had a 5 year plan, but that plan only has 2 years to run - so is a bit more certain.  I haven't really looked at 5 years from now - but maybe will have a ponder over Christmas.

Great question @enthusiasticsaver - writing this helped me clarify this strand of my plans.
 

enthusiasticsaver

That makes sense if you have a fixed rate at 2.1% now it is easier to get better savings rates. As you say you have four children to help become financially independent and weddings/house deposits are expensive.  We paid our mortgage off quite a few years before retirement then focused on university costs/weddings/post grad courses  and house deposits for our 2 daughters  and we retired shortly after grandchildren started arriving.  Having a 5 year plan is what got us through although I did a 5 year and 10 year and initially planned on retiring after 10 years maximum at age 63/64 but we went at 58 so after 5 years.  Be prepared to be flexible on the plans. 

mark55man

Thanks ES - yes I wish I had been a bit more organised for my own kids at Uni - I see from your signature that you have set up the 1p challenge, well done - I'll have a look as every little helps. 

I am not sure if you have intentionally removed line breaks / formatting.  If that is not intentional then adding [br] will break the line and [br][br] will add clear space  

ohdearhowdidthathappen

All sounding very organised

I love 'Last Christmas' too, other faves are the Mariah Carey one and Chris De Burgh's 'A spaceman came travelling'  

alt80

I’m struggling with hearing about Christmas and end of year / new year etc. so been trying to avoid everything that isn’t work. @ohdearhowdidthathappen thank you, the American approach is how I think it should be here but what do I know ha.

@mark55man My dad filled my car with petrol the day I went to uni and after that the only way money has changed hands between my parents and I is me sending them money so as a parent I find it inspiring to read you, @enthusiasticsaver and in ‘real life’ some of my older staff and mentors in business have been able to support your children through early adulthood. It’s a lonely road alone and not just about financial help but being there for your kids. My parents weren’t, not their fault or anyone else’s but a reminder we all live with consequences of the choices we make in life.

You’re doing great, though we are on different paths I 100% admire what you’re doing and reading about you getting ever closer to your goals is brilliant, always makes me smile. Big pat on the back mate.

enthusiasticsaver

mark55man said:

Thanks ES - yes I wish I had been a bit more organised for my own kids at Uni - I see from your signature that you have set up the 1p challenge, well done - I'll have a look as every little helps. 

I am not sure if you have intentionally removed line breaks / formatting.  If that is not intentional then adding [br] will break the line and [br][br] will add clear space  

Yes do come over and join the challenge.

Thanks for the info about the line breaks and I will give it a go. The ambassador disclaimer takes up a lot of space so that limits how much I can spread the signature out though but I didn't know that is how you start a new line. 

enthusiasticsaver

@alt80 sorry to hear you are struggling with all the Christmas festivities although I think they are generally muted this year because of everything else going on. 

My parents were incredibly supportive of us and my mum still is very generous. We have tried to pay that on in financial and practical help and I know my DD who has children wants to carry that on as they get older.

 It is a shame that your parents did not help you much as a young adult but you have built up a successful business and you should be proud of yourself for that and also being in a position to help them. Hopefully your son will also learn from your experience and have your money management skills rather than theirs. Even with the large amount of initial debt you had you have turned it around and have it under control. After a few very critical posts on your first thread a few years back   I honestly thought you would flounce off and we would never hear from you again. You took it on the chin though and your attitude to money seems completely different and that has spilt into other areas of your life. Glad you stuck around. 

mark55man

I agree with ES - happy Christmas @alt80 - and a prosperous new year.  I appreciate your insight + you have many things going for you that I don't - even if it means you have a wilder ride - I loved raising our kids with my OH, but its fun when they are older as well