Retired — and still paying off the mortgage

[northernladyuk]

Online Etymology Dictionary

Yes I know mort is from Latin. Gage is a Germanic word.

[ChimpMaster]

For our personal circumstance, paying off the mortgage was the correct decision. You should always look to clear the debt with the highest % rate first, and as we had no other debt the mortgage was the one to clear.

Since we cleared the mortgage we have built up a war chest of multiple hundreds of £'000s which sit in other investments. We can do this because every penny we earn now, once we have paid food etc, goes straight to the war chest.

What investments do you (or will you) use to generate residual income?

[MarillionFan]

What investments do you (or will you) use to generate residual income?

I recommend Zopa. Love it.

[AtW]

I recommend Zopa. Love it.

Zopa is arse in Russian

[northernladyuk]

Zopa is arse in Russian

MF is cunt in English.

[Fronttoback]

0.74% Interest Only Offset Mortgage for me. I own three properties, two rented out which cover the mortgage payments on all three properties & have all of the cash to pay them all off but in higher paying interest accounts/shares/ISAs/P2P companies & a massive pension pot.

I have a passive net income of 1.8k per month, contracting is just for the shits & the giggles.

If you liquidated everything- how much are you worth then (excluding pensions)?

[Fronttoback]

For our personal circumstance, paying off the mortgage was the correct decision. You should always look to clear the debt with the highest % rate first, and as we had no other debt the mortgage was the one to clear.

Since we cleared the mortgage we have built up a war chest of multiple hundreds of £'000s which sit in other investments. We can do this because every penny we earn now, once we have paid food etc, goes straight to the war chest.

We're low risk investors. But our low risk investments are going to allow us to retire 12-15 years earlier than most, have a couple of gap years, have some amazing holidays and be happy.

Unlike others though we don't have kids so don't have to worry about leaving money for those who outlive us. Once we retire, we'll be spending our money until the day we die - I'm hoping on my last day I'll be spending my last penny

How much cash are you expecting to need per year once you retire?

At what age are you going to retire?

[Whorty]

What investments do you (or will you) use to generate residual income?

We have it invested in a few different places at the moment. When we retire though, we'll be selling the main house and buying a smaller place. Current assumption is a final home of around 300k with cash/investments between 7-800k. We'll then draw down on that for the rest of our lives. Pensions kick in at 67. Will leave us about 3-40k per year to spend up until retirement age, then add another 30k on that for the rest of our lives. Should be enough

Once we early retire we'll use risk free savings vehicles to protect our capital - we won't need investment income, just a little return to offset inflation.

[Fronttoback]

We have it invested in a few different places at the moment. When we retire though, we'll be selling the main house and buying a smaller place. Current assumption is a final home of around 300k with cash/investments between 7-800k. We'll then draw down on that for the rest of our lives. Pensions kick in at 67. Will leave us about 3-40k per year to spend up until retirement age, then add another 30k on that for the rest of our lives. Should be enough

Once we early retire we'll use risk free savings vehicles to protect our capital - we won't need investment income, just a little return to offset inflation.

Can I ask how old your wife is?

[Whorty]

How much cash are you expecting to need per year once you retire?

At what age are you going to retire?

We recon we spend no more than £25k a year today to live. This includes all household bills plus a Europe holiday each year. If we go long haul then add another £10k for that type of holiday. When we retire, we really only need the same but I recon we'll have at least £5k each year more until we reach 67, then when pensions kick in we'll have another 25-30k.

We should be able to do this from 55 (8 years time). Could probably do it now but there would be risks to this as 8 years less earnings, and 200k spent from savings over that 8 years, would put us right on the edge. Plan is to work 50% for the next 8 years - this should cover all our spending over the next 8 years and put a bit extra into the pot.

Coming from not affluent backgrounds we have learnt to save and spend sensibly. Neither of us had money as kids (and hence won't be getting any inheritance from parents) - this has instilled in us never to over borrow and respect money.

We know we are lucky in some ways but we have worked hard and long hours to get where we are today. Plus not having kids has saved us a fortune compered to our breeding friends.