Looking beyond mortgage-free

Aberdeen22 · 20 February 2019 at 1:08PM

Hello all

This is the first time I’ve done a post here so sorry if it’s in the wrong place! Long time reader of the website and forums, just resurrected a long forgotten user account to ask this question !

My OH and I have been overpaying on the mortgage for the last 5-7 years (got it in 2009), putting every extra bit of money we could spare on it (including when lucky enough to get a bonus etc). We’re now in the place where, fingers crossed if nothing goes wrong, we could finish paying off the mortgage before the end of this year.

So my question is...how have others then planned what next re planning for the future financially? We are in our 30s, no children, some health issues so getting to a place where we can take a step back and focus on health and a quieter pace of life would be ideal. It’s partly planning for the possibility of needing financial security should circumstances change that has pushed us to focus so hard on paying off over the years.

So, how have others that have reached or are reaching the mortgage free point planned for the next step?? Have you piled more money into pensions, spoken to a financial advisor, put more into just a savings account?? I’d really welcome any shared experiences or advice - and I know we’re very lucky to be in this position relatively early on.

Working_Mum · 20 February 2019 at 1:44PM

Well done!!

I am not mortgage free r even close but I have a plan to be able to have choices by the time I am 55 in 3 years time. I have a pension and I own most of my home!!

I would maybe set some time aside to seriously think about what you want your future life to look like, what kind of money you'll need to live that life and when you want to start living it!!

Once you have a plan or a vision for that I would get the best advice possible and work towards that goal.

I have a brilliant IFA and he has been worth his weight in gold and has enabled me to make some smart decisions.

Aberdeen22 · 20 February 2019 at 6:33PM

Thank you! And that’s very good advice. How did you find your IFA? And what sort of fees are involved in a consultation with him? If you don’t mind sharing of course.

Good luck with your goals too - sounds like you’re setting up for a great retirement!!

Working_Mum · 21 February 2019 at 1:22PM

I had an IFA when I was married - my ex-husband met the director of a company via Round Table or something in the late 90's. This director continued to advise my ex-husband and his new wife when we divorced so I felt I couldn't stay with him BUT his firm was the most recommended in the area I live so.....I swallowed my pride and asked to see another director within the same company.

It has been amazing because my IFA "gets me" and is a smart and educated guy and has been beyond brilliant.

I asked around my friends and business associates when I started "thinking" about retirement and all suggested the original company!! It was fate I am sure!

I believe you can search for IFA's in your area via a website - this may help you:-

https://www.moneysavingexpert.com/savings/best-financial-advisers/

As I have written this I have realised that it has been fundamental that I had a good rapport with my IFA. He has given me amazing advice to help me achieve my goals.

I haven't paid a fee per se with my advice - I transferred a final salary pension pot to them and there was a huge chunk of money which they receive a small rolling annual percentage fee on.

I have taken life assurance with them and again there were commissions relating to that.

I have always had the choice of either paying a fee or rolling with the annual percentage - I am a self employed single Mum who has an ex-husband who is rather flaky with money so I have always gone for the rolling percentages option as I never had hundred of pounds available to pay hourly fees. I discussed all of my choices and options and went with what I could afford.

I would recommend making contact with each firm and suggesting a coffee etc - time limit them to half an hour so you can get the vibe of who you are going to be working with. You need to feel you can trust them and that they know their onions to enable them to guide and advise you properly.

I am very much a creative brain thinker (so had no issue with the vision!) but I have benefited enormously from my IFA straight line, logical thinking (and knowledge of the various products which are best for me).

Good luck!!

Aberdeen22 · 21 February 2019 at 1:30PM

Thank you, really interesting suggestions there. Will take a look at that link as a starting point. Sounds like it was a good match for you!

Looking beyond mortgage-free

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