Life begins at 35?
Discussion
Steelnads said:
I note some Dave Ramsey influences lurking about here.
Just googled him, it seems like I'm at step 5. Might have to start putting some money away for my 3 year olds university and then looking at reducing the mortgage debt. I started yesterday on the back of this, contacted mortgage co and found I could use the mortgage I have like an offset so I'm putting several thousand into it to reduce the interest. Thanks to the OP for a bit of inspiration! 
Mezger said:
OP congratulations, it's a great achievement and as others have said something you should be proud of and reward yourself and family with a decent holiday and more importantly a fun motor. :-)
I'm in kind of a similar situation (same age), in the sense that we have saved aggressively whilst working overseas which has meant we have a decent deposit/savings. Currently, we own a property in UK which on a good day is worth 160k with 70k remaining on the mortgage. We're fortunate that due to us working overseas and saving hard we have around 550k saved up.
My conundrum is whether to buy a house around 600-650 with a small mortgage and plough the rest of our monthly income into index trackers, or given rates are so low, push for something in the 8-900 range with a view that over the long long term (20yrs+) property should rise to some degree (perhaps not as fast or far as the last 15 years).
Risk averse part of me says, go for the lower mortgage, but, other part says, it would be stupid not to take on more mortgage given rates are historically at a low point borrowing 500k at 1.8% would be quite manageable.
UK mentality seems to be go for the property, "englishmans home is his castle" etc. Reading an interesting book at the moment, called Millionaire next Door (quite US focussed) which espouses a different view, smaller house, focus more on investments and multiple sources of income.
Decisions, Decisions...
No right or wrong answer...everything has an 'opportunity cost' and some of these are intangible, so it comes down to the individual.I'm in kind of a similar situation (same age), in the sense that we have saved aggressively whilst working overseas which has meant we have a decent deposit/savings. Currently, we own a property in UK which on a good day is worth 160k with 70k remaining on the mortgage. We're fortunate that due to us working overseas and saving hard we have around 550k saved up.
My conundrum is whether to buy a house around 600-650 with a small mortgage and plough the rest of our monthly income into index trackers, or given rates are so low, push for something in the 8-900 range with a view that over the long long term (20yrs+) property should rise to some degree (perhaps not as fast or far as the last 15 years).
Risk averse part of me says, go for the lower mortgage, but, other part says, it would be stupid not to take on more mortgage given rates are historically at a low point borrowing 500k at 1.8% would be quite manageable.
UK mentality seems to be go for the property, "englishmans home is his castle" etc. Reading an interesting book at the moment, called Millionaire next Door (quite US focussed) which espouses a different view, smaller house, focus more on investments and multiple sources of income.
Decisions, Decisions...
However, If it was me, I'd be tempted to go for the more expensive property in your shoes. In the right location, you could do very well while taking advantage of these unprecedented low rates, which surely can't last forever. And prices in bricks and mortar are only going one way in certain areas. So treat it as a nest egg, enjoy it with a view to potentially downsize in the future to free up capital. Risk, if chosen right, is minimised.
When we moved, we went for pretty much the top end of our budget. We wouldn't move again by choice only because current place does everything and having a young family, it would be quite difficult + hassles of selling and buying - chains etc.
The Green Triangle said:
Beetnik said:
His kids could have had great memories of all those wonderful holidays they'd had as well as the very nice house they'd lived in. I doubt they'll have fond memories of the security of mum and dad being mortgage free.
I see where you're coming from, but my kids are 1 1/2 and the other just turned 5, so they haven't missed out on much and are still a bit young for those holidays of a lifetime. You could try lion taming ?
Edited by superkartracer on Tuesday 28th February 15:26
Steelnads said:
I note some Dave Ramsey influences lurking about here.
very perceptive, have listened to his podcast a few times but never read the book. He makes some valid points, though definitely feels as if there is a different view generally speaking in US on houses and capital appreciation, guess thats the benefit of Blighty being a small island, as someone once said buy Land they're not making it anymore. The Green Triangle said:
No right or wrong answer...everything has an 'opportunity cost' and some of these are intangible, so it comes down to the individual.
However, If it was me, I'd be tempted to go for the more expensive property in your shoes. In the right location, you could do very well while taking advantage of these unprecedented low rates, which surely can't last forever. And prices in bricks and mortar are only going one way in certain areas. So treat it as a nest egg, enjoy it with a view to potentially downsize in the future to free up capital. Risk, if chosen right, is minimised.
When we moved, we went for pretty much the top end of our budget. We wouldn't move again by choice only because current place does everything and having a young family, it would be quite difficult + hassles of selling and buying - chains etc.
Thanks OP, yes, leaning in that direction for sure, especially if we end up living in the South, no choice as properties are so expensive!
However, If it was me, I'd be tempted to go for the more expensive property in your shoes. In the right location, you could do very well while taking advantage of these unprecedented low rates, which surely can't last forever. And prices in bricks and mortar are only going one way in certain areas. So treat it as a nest egg, enjoy it with a view to potentially downsize in the future to free up capital. Risk, if chosen right, is minimised.
When we moved, we went for pretty much the top end of our budget. We wouldn't move again by choice only because current place does everything and having a young family, it would be quite difficult + hassles of selling and buying - chains etc.
Thanks OP, yes, leaning in that direction for sure, especially if we end up living in the South, no choice as properties are so expensive!
bogie said:
Hes not related to this guy is he? moneymustache.com (must stash) who apparently "retired" by 35 due to frugal living and investing....
no connection, but Mr Mustache is an interesting guy, some good concepts can be learned from his approach. He recently did an interview on Tim Ferris (4h work week guy) podcast, well worth a listen. Essentially the guy built up his investments, paid for his house and lives off investment proceeds, funds his whole lifestyle on $27k USD a year. Mezger said:
bogie said:
Hes not related to this guy is he? moneymustache.com (must stash) who apparently "retired" by 35 due to frugal living and investing....
no connection, but Mr Mustache is an interesting guy, some good concepts can be learned from his approach. He recently did an interview on Tim Ferris (4h work week guy) podcast, well worth a listen. Essentially the guy built up his investments, paid for his house and lives off investment proceeds, funds his whole lifestyle on $27k USD a year. Fair play to the OP who set his own financial goals early on in life and achieved them
Mezger said:
no connection, but Mr Mustache is an interesting guy, some good concepts can be learned from his approach. He recently did an interview on Tim Ferris (4h work week guy) podcast, well worth a listen. Essentially the guy built up his investments, paid for his house and lives off investment proceeds, funds his whole lifestyle on $27k USD a year.
Thanks, I'll check out that podcast. Mezger said:
no connection, but Mr Mustache is an interesting guy, some good concepts can be learned from his approach. He recently did an interview on Tim Ferris (4h work week guy) podcast, well worth a listen. Essentially the guy built up his investments, paid for his house and lives off investment proceeds, funds his whole lifestyle on $27k USD a year.
Think the principles of MR. M M are good if you can scrimp and save to live like that. Reading through the site you will see he has other revenue streams and 'retiring' isn't exactly down to the dictionary definition of ceasing to work. He has said the site now generates over $100,000 USD PA, he also classes retirement as working when he feels like it, doing what he wants (but still earning an income). In all seriousness, what do you do when the mortgage has gone and you have run out of high interest current accounts, etc to stash the cash that keeps coming in each month?
Move it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
Move it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
KTF said:
In all seriousness, what do you do when the mortgage has gone and you have run out of high interest current accounts, etc to stash the cash that keeps coming in each month?
Move it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
I saved up and bought a small terraced to rent out for cash.Move it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
KTF said:
In all seriousness, what do you do when the mortgage has gone and you have run out of high interest current accounts, etc to stash the cash that keeps coming in each month?
Move it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
I'm not sure and its a good question. Been reading and listening to the MMM material and its good and puts a different perspective on things but I'm not sure I want to live life to that extreme. So I'm thinking a balance will work for me. So investments in index tracker Isa for safe cash, appreciating and enjoyable car, a couple of nice holidays a year. Maybe in a while, ill get so pissed off with work that I decide to go more extreme to retire earlier... 25 x annual expenditure seems like a big ask, but I reckon achievable in around 5-6 years....hmmmMove it to ISA wrapped investments, throw it at your pension, upgrade your PH mansion, go on a long holiday, put it all on black?
I am a member over at MrMM. I don't take it as far (if at all most of the time) as the site suggests but its a great way of tracking your progress (forums) and also reading stories of how others FIRE'd it keeps you focused and reading that others can do it - and the key - how they do it.
Sure there are people on there who FIRE by 35 and sit on $5M. There are others who are more "normal" with FIRE into their 50s and $750-$1M.
The markets clearly play a massive part in most peoples plans. I keep going over and over my spread sheets and I trying to trim a year off here or a year off there with better future performance but the reality is its mostly going to be down to luck. The markets have not really done a great deal the last 10 years above inflation. To win you have to be in the game though, that's my hope.
Sure there are people on there who FIRE by 35 and sit on $5M. There are others who are more "normal" with FIRE into their 50s and $750-$1M.
The markets clearly play a massive part in most peoples plans. I keep going over and over my spread sheets and I trying to trim a year off here or a year off there with better future performance but the reality is its mostly going to be down to luck. The markets have not really done a great deal the last 10 years above inflation. To win you have to be in the game though, that's my hope.
red_slr said:
I am a member over at MrMM. I don't take it as far (if at all most of the time) as the site suggests but its a great way of tracking your progress (forums) and also reading stories of how others FIRE'd it keeps you focused and reading that others can do it - and the key - how they do it.
Sure there are people on there who FIRE by 35 and sit on $5M. There are others who are more "normal" with FIRE into their 50s and $750-$1M.
The markets clearly play a massive part in most peoples plans. I keep going over and over my spread sheets and I trying to trim a year off here or a year off there with better future performance but the reality is its mostly going to be down to luck. The markets have not really done a great deal the last 10 years above inflation. To win you have to be in the game though, that's my hope.
I am not trying to be facetious, but i do sometimes wonder why people dont put this amount of energy into finding a career/work that they enjoy.Sure there are people on there who FIRE by 35 and sit on $5M. There are others who are more "normal" with FIRE into their 50s and $750-$1M.
The markets clearly play a massive part in most peoples plans. I keep going over and over my spread sheets and I trying to trim a year off here or a year off there with better future performance but the reality is its mostly going to be down to luck. The markets have not really done a great deal the last 10 years above inflation. To win you have to be in the game though, that's my hope.
I think a lot do part time work once they stop full time work. Its a very US based site though and does not fully translate to the British way of doing things.
We don't really talk about money like they do, we like to keep our cards close to our chest here. There is a big "net worth" culture on there and most people post their net worth in great detail. A lot of big numbers get thrown around at times, but also a lot of genuine people too IME.
Most of the stuff you read on there is regular investment type stuff but you do get the occasional interesting post.
We don't really talk about money like they do, we like to keep our cards close to our chest here. There is a big "net worth" culture on there and most people post their net worth in great detail. A lot of big numbers get thrown around at times, but also a lot of genuine people too IME.
Most of the stuff you read on there is regular investment type stuff but you do get the occasional interesting post.
Firstly well done on achieving your goal,it took me until i was 40 yrs old to pay off my mortgage (im now 49) and when done we downsized from our 4 bed cottage to a 3 bed bungalow to release approx £120k which is now our rainy day money.
Im now semi-retired and work when i want just to keep ticking over and my stress free life is just how i imagined it.
Im now semi-retired and work when i want just to keep ticking over and my stress free life is just how i imagined it.
Edited by noway on Saturday 4th March 18:09
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