Mortgage Free: The final countdown

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  • savingholmes
    savingholmes Posts: 27,580 Forumite
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    Still heading in the right direction. It is encouraging to the many of us who remain some ways behind where you currently are!
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • mark55man
    mark55man Posts: 7,936 Forumite
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    Thank you SH - doing these diaries certainly helps me and if it helps others than that makes me feel good.  Although would not claim to be a role model, and I do understand its easier to juggle these things when you are not on the breadline.  If I just accepted my fate of working until 65 I could be a lot better off now.  Its just I want to retire early and reasonably comfortably so you have to do the hard miles early.  As you can see from above occasionally you need to recalibrate that balance
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • savingholmes
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    I am similar. I could have a so called higher standard of living or I could have more free time earlier in life. I too want that.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • mark55man
    mark55man Posts: 7,936 Forumite
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    edited 30 September 2023 at 11:09PM
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    Just took some time on an overcast Saturday to read through, and some lessons
    • One main target at a time (for me firstly was a matching investment pot, secondly to create that pot as cash assets
    • Don't worry too much about individual months but accept its a year by year thing 
    • Likewise accounting blips are OK so long as your basic premise (targets, tax and a sound accountability/reporting approach)
    • Respond to family and national issues slowly but with consideration of short vs long term 
    • Balance the advantages of higher interest rates for savings with the certainty of mortgage OPs
    • As inflation isn't a problem with mortgages (if anything a plus if your pay rises to match) a cautious non cash investment strategy can be used
    • Aiming for MF when older has advantages (eg pension accessibility) but I would much rather have done it early and more traditionally MFW - your later self will thank you
    • Although tax and pension are both infinitely complicated the subset that applies to most people (tax bands, tax rebates) etc are simple and accessible BUT BE VERY CAREFUL the consequences of pension mistakes can be expensive 
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • savingholmes
    savingholmes Posts: 27,580 Forumite
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    mark55man said:
    Just took some time on an overcast Saturday to read through, and some lessons
    • One main target at a time (for me firstly was a matching investment pot, secondly to create that pot as cash assets
    • Don't worry too much about individual months but accept its a year by year thing 
    • Likewise accounting blips are OK so long as your basic premise (targets, tax and a sound accountability/reporting approach)
    • Respond to family and national issues slowly but with consideration of short vs long term 
    • Balance the advantages of higher interest rates for savings with the certainty of mortgage OPs
    • As inflation isn't a problem with mortgages (if anything a plus if your pay rises to match) a cautious non cash investment strategy can be used
    • Aiming for MF when older has advantages (eg pension accessibility) but I would much rather have done it early and more traditionally MFW - your later self will thank you
    • Although tax and pension are both infinitely complicated the subset that applies to most people (tax bands, tax rebates) etc are simple and accessible BUT BE VERY CAREFUL the consequences of pension mistakes can be expensive 
    I like your lessons.

    I find one main target easier too - although admit to split my focus between building an EF and boosting AVCs

    Totally with you on the individual months and not over-worrying about accounting blips

    I am at times over-generous to family - so that part resonated. Loans not being repaid is a bugbear. It's this - and the temptation to spend savings - that has led to me putting £ into AVCs as then it is locked away and freer from temptation or even expectation to raid

    I wish I'd focused on a joint MF and AVC strategy much earlier - but was too busy dealing with past sins in the form of debt and crisis management of various undiagnosed conditions. Despite all that - like you - I have final salary or career average pensions and so am in a much stronger position than many.

    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • mark55man
    mark55man Posts: 7,936 Forumite
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    Thank you - One investment thing I'm considering is now you can get cash products that return 5-6% - I may reconsider my cash-like / non cash strategy.  With a view - given my mortgage rate is 2.1% - of truly being cash neutral - Just for that final certainty!!.
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • mark55man
    mark55man Posts: 7,936 Forumite
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    My Dec 23 mortgage will be £52K owing.  My target is to have matched this with cash savings by end Dec 23

    Report back for start November 23. targets are £45K Cash - £7K Pension TFLS (Tax Free Lump sum)  

    Current status against targets

    * Cash - £39.3K/£45K  -  £5.7K to go  (Oct £5.2K to go) - Going backwards £500 - but some planned spends 
    * Pension TFLS - £5.3K/£7K  -  £1.7K to go (Oct £2.5K to go)- £800 increase

    So £44.6K out of £52K target at 31/12/23 - Leaving £7.4K to go (Oct £7.7K). 

    Not a great month and only 2 months to go to make targets this year and not looking that likely 
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • savingholmes
    savingholmes Posts: 27,580 Forumite
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    Hi Mark - I hope you aren't too disappointed. You gave yourself pretty hefty targets. It sounded like you were planning to work a little bit longer in one of your recent posts - will that help you balance things out?
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • mark55man
    mark55man Posts: 7,936 Forumite
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    I am planning to go in May- June at the latest as my plans to see my bro in a different time zone are pretty much set for June.  I was toying with March but I do need a but longer.  I will look back positively, it just suits me to keep the targets high 
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • Cornish_mum
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    Hi Mark, we have also just had a backwards month (cost of living biting and stock market falls). Found your advice not too worry about bad months very helpful. Thank you CM
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