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Peering over the hill...
Comments
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The May Update
The weather in May really had no idea what it wanted to be - hot, sunny or wet, so it went for a creative mix, sometimes all at the same time. Bit like the stock market.
Usual money stuff first; gossip, tea and biscuits follow...
Mortgage
End 2020 £87,985
May 2021 £84,661
Change £3,324
%Change 3.8%
Overpaid £3,265
May 21 OP £52
The goal for 2021 is to pay off £10,000, with a view to paying it off in full in 9 (stretch of 8) years. We’re scheduled to pay £8K off through normal payments. I will look to make between 2 and 4 extra payments throughout the year. Our NW mortgage is structured so that if you OP by at least £500 you get to either instantly reduce eth term or monthly payment.
Currently at £316 of the £2,000 target for 2021 and nicely in the £85s!
EF/Cash
End 2020 £24,550
May 2021 £27,850
Change £3,300
%Change 13.4%
Target £27,300
In May 21 £667
The plan for 2021 is to add a month to the EF and continue this every year going forward. This will enable early retirement if needed (although not by much!).
Each month I aim to open a new 12 month high interest (lol) account to try and maximise the EF savings. This will ultimately provide a years buffer, the excess will be held in PB, etc.
Due to the low rates on offer, when the Marcus matured, we moved £5,000 into PB, rather than opening a new monthly account. With average luck, we should “win” 4 times a year, which would match or beat the current high interest savings rates on offer. That £100 (4x £25) works out at 0.64%.
Pensions
End 2020 £221,400
May 2021 £247,300
Change £25,900
%Change 11.7%
Target £350,000
In May 2021 £2,886
Pension (as dividends if taken today)
Annually £5,114
Target £8,761
Monthly £426
The state pension would be added on top of that (another £9K at today’s rate).
This could be boosted by drawing down on the capital, etc.
The big ii pension portfolio is managed on the same philosophy as MrsG, except it currently has triple the number of funds in it. These all do the same job as the Vanguard funds but pay better dividends and are all long term holds. Still continuing to rebalance, which have been timed around dividend dates. Where transaction costs have been incurred, they have been covered by the incoming dividend payment. As it stands today, it should pay £9,700 in annual dividends, which combined with the state pension is our minimum pension requirement. There are 4 more investments that are now significantly overweight, rebalancing these (one per month) should see the dividends increase by a further £300 per year. All dividends are reinvested using the monthly free regular investing feature.
We are mortgage neutral with our savings, so if needs be, at least the mortgage is covered.
Grogged Towers News
In late breaking news, I’ve been offered a new role within the company, moving from a mixed operations/strategy role into a more strategy one. It’s being touted as a promotion, but so far seemingly without the money or trappings (you know the electric sports car, slow women and fast martini’s – no, hang on, that’s the re-runs of James Bond I keep catching 5 minutes of…).
We also bought a new three seater sofa (sofa logically Hetty if you need to know), which has replaced our very old two seater charity shop recliner. It was starting to finally show its age (or metal ribs and seat filling to be exact), one day it was comfortable, the next like sitting on corrugated steel.
I can’t say we’ve done much this month, the unpredictable weather has thwarted many a plan (especially the half-hearted ones).
We did go for a pub lunch yesterday, which we think is 17 months since we last went to a pub (Christmas 2019). So that is one item ticket off the bucket list!
In gardening news we splurged on a handle, brush head and combined hoe/Freddies hand from nightmare on Elm tool from the wolf’s interchangeable garden tool selection. Our first purchase from them and one which should last us forever, as I suspect we’re not built to the same quality…
For square eyed readers, Love, Death and Robots has dropped a second season (how down am I with the chilled/cool/trendy* kids/yoof/people* [*sad what age does to you, I was young once you know and had all my own teeth, but only transfer sticker tattoos…]), well worth a watch if you haven’t seen it already. A short anthology series about, er, love, death and some with robots. Each one is between 10-20 minutes in length.
Stay safe,
G.
If it's not adding up, compound it!5 -
Good balance of progress and living in the nowAchieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £171.8K Equity 36.37%
2) £2.6K Net savings after CCs 10/10/25
3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
(If took bigger lump sum = 60.35K or 47.6%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
5) SIPP £5K updated 10/10/252 -
This week we converted a spare bedroom into a laundry room courtesy of the Swedish store.
Also bought a set of loaf tins, 1lb to 5lb, the 5lb tin looks more like a flower bed than a loaf tin. 😲If it's not adding up, compound it!5 -
a 5lb loaf tin?!
Rule 7: If you're not changing it, you're choosing it.
MFW 2020: 1 Jan £92903.90 ~ OP £536.80/£500
MFW 2021: 1 Jan £89281.21 ~ OP £404.62/£500
MFW 2022: 1 Jan £85579.20 ~ OPs on hold.2 -
I want to eat that orange loaf cake...Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £171.8K Equity 36.37%
2) £2.6K Net savings after CCs 10/10/25
3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
(If took bigger lump sum = 60.35K or 47.6%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
5) SIPP £5K updated 10/10/251 -
It was just as cheap to buy the set as buy one...coldcazzie said:a 5lb loaf tin?!
I can't see us using it, unless at Christmas as a pot for the tree...😮If it's not adding up, compound it!1 -
It was just as cheap to buy the set as buy one...coldcazzie said:a 5lb loaf tin?!
I can't see us using it, unless at Christmas as a pot for the tree...😮If it's not adding up, compound it!2 -
Oh my goodness a 5lb loaf tin!! Would it even bake? Nice to have a laundry room sounds lovely. CM3
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Hope you are okAchieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £171.8K Equity 36.37%
2) £2.6K Net savings after CCs 10/10/25
3) Mortgage neutral by 06/30 (AVC £27.9K + Lump Sums DB £4.6K + (25% of SIPP 1.25K) = 34/£127.5K target 26.6% 10/10/25
(If took bigger lump sum = 60.35K or 47.6%)
4) FI Age 60 income target £17.1/30K 57% (if mortgage and debts repaid - need more otherwise) (If bigger lump sum £15.8/30K 52.67%)
5) SIPP £5K updated 10/10/250
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