difficult to get the balance right ?

clean_cotton

Yes you guys are right, I do need to read more which I will start doing, especially as I have more time on my hands. 

I did look into FIRE a few years ago and found it all inspiring and I think that lead me to pay my mortgage off (in 6 years) which I was really proud of. 

Sorry I should have said, we are civil partners so we have some protection if one dies, but I will get a will sorted. 

Since the mortgage was paid off, I work part time and my partner (who is the teacher) works 4 days a week. This isn't for any actual reason other than, I would rather work less. 


I will get on and start reading what I can.

Anonymous101

Impressive that you paid your mortgage off in such a short period of time, I take it you actively chose to do this rather than invest? Quite a hot topic in FIRE circles that decision.
Self education on financial matters is possibly the best use of time you could make. I'd think it carries a much better return than ones day job!

clean_cotton

Yes I chose to pay the mortgage off rather than invest, and in hindsight, I accept that investing might have been better. I went too far with it to be honest, as I needed a new car the month I paid my mortgage off but had no money left (as was desperate to get balance cleared) so took a small loan and of course the rate was higher than what my mortgage was. 

I should have put some money aside at the very least. 

It is fantastic being mortgage free at 35, it really is, but I could have been wiser with my money...... But I want to make more informed and active decisions moving forward and genuinely, just reading the responses I have so far, has given me loads of homework to do, and I will do it. 

Im on the 'The Escape Artist' website now and also reading basic pension articles as suggested. 

I forgot about the FIRE movement -its what triggered me overpaying the mortgage originally, so its nice to refresh on it all. 

ggmf

In addition to your wills, think about POA's too.

Thrugelmir

clean_cotton said:

We want to retire in 18 years (or at least have the option) and we would have

1. My pension of £100,000
2.Teachers pension lump sum of £75,000
3.Teachers pension income of £16,000 PA
4. 18 x 50g of Gold (thought we could sell them each year for a holiday) 

One of you is only going to be 53. Therefore not all this funding is going to accessible. 

To maximise your personal tax allowance when drawing an income , why bother with physical gold?  Might as well buy an ETF and obtain the tax relief on the way in. 

clean_cotton

Thanks Thrugelmir - what is ETF?

[Deleted User]

The 2015 teachers career average pension does not have an automatic lump sum. The final salary scheme up to 2015 did. You or your partner may have accrued some lump sum up you 2015. I. Not sure about £75000 worth though. Taking the career average part at 55 would only pay 56% after actuarial reduction and the final salary part about 81% assuming you had service pre 2007 and NPA of 60. If you go early you have to take both both parts together. If you go at NPA for the final salary part I believe you can defer the career average part . Check TPS website. It is very informative. 

[Deleted User]

Pension pot of of £100000, £25000 tax free plus £2250 p.a. assuming 3.5% annual drawdown. However if you both have full state pensions the pension income for both of you would be about £36500 at 68 (assuming TP of 16000, 2 x 9100 state pension and the 2250) but a lot less if you both went 10 years earlier! 

Thrugelmir

clean_cotton said:

Thanks Thrugelmir - what is ETF?

For example, not a recommendation per se. 

https://www.wisdomtree.eu/en-gb/products/ucits-etfs-unleveraged-etps/commodities/wisdomtree-physical-gold

mcooke999

My advice, as soon as possible get rid of your car loans as these are just a massive drag on your wealth building potential. Buy reliable used cars instead with cash and !!!!!! what anyone else thinks. 

Secondly forget buying gold, waste of time an effort. Instead just concentrate on lowering your monthly expenses as much as possible (see above point!!), Increasing your income as much as practical and investing the difference wisely. 

Do some or all of the above and you won't regret it.