Financial crossroads
Discussion
I've been wondering the last few months where to move forward with regard to my savings/shares/property and general all round investments, so what better place to come than the mighty Pistonheads. Contrary to many people's understanding I feel among all the bull***t and boll***s posted you can get some very very helpful pointers and advice, so I thank you all.
As the title says, I just feel I'm at a crossroads, I normally have a good direction of where to go, but seem to have come to a stop, with no real idea of which way to go. I'll jot down below any info I feel may help you guys offer some suggestions.
I'm 47, married, no kids, own business, earn approx 50-60k a yr, wife works, earns 36-40k a yr.
Home we live in is worth 330k, mortgage of 95k, it's one of the offset type so we have a limit of 150k , so could in theory get 55k at the press of a button. Interest rate on this mortgage is 0.75%
We have 40k of cash savings,sitting in the mortgage Acc, so in effect earring 0.75% interest.
Approx 10k in shares.
Neither of us have any form of pension.
No other debt at all.
My company has no debt, approx 100k in bank, we part own the unit we use outright, 50/50 with my brother who also uses it for his company, value of unit is 250k so 125k is ours. Company assets and goodwill approx 200k.
BTL one is a 2 bed flat, owned outright 50/50 with my mother, value is 200k, and my share of rent is £485 a month.
BTL two is a 3 bed house, value 160k, interest mortgage of 100k which costs £194 a month, rent income is £610 a month.
BTL three is a 2 bed bungalow , worth 170k shared 66/33 with my mother, in my favour, my share of mortgage is £460 and my share of rent is £450, interest rate is 4.2%.
BTL four is a 2 bed cottage ,worth 200k, owned outright with my brother, 50/50, my share of rent is £400 a month
BTL five is a one bed flat, worth 160k, owned 50/50 again with my brother, my rent share is £395
I also own some land , 50/50 with my brother, we are in process of building 4 houses, should walk away with approx 300k before tax if all goes well.
And there we have it, my life on a page. I want to do something with the 40k of savings, as its earning nothing where it is, torn between throwing in a pension, or paying off most of the mortgage on the BTL bungalow that's 4.2%.
Don't really want to buy any more property, 5 tenants is enough to deal with.
I have a cheap way, using the offset mortgage to borrow money, 0.75% at present, and wondered if I could make this work for me in any way, or indeed use any of the equity I have in any of the properties in the same way, to grow my investments .
So many things going round and round in my head, yet I don't really know which way to move forward, as I said earlier, any pointers much appreciated .
As the title says, I just feel I'm at a crossroads, I normally have a good direction of where to go, but seem to have come to a stop, with no real idea of which way to go. I'll jot down below any info I feel may help you guys offer some suggestions.
I'm 47, married, no kids, own business, earn approx 50-60k a yr, wife works, earns 36-40k a yr.
Home we live in is worth 330k, mortgage of 95k, it's one of the offset type so we have a limit of 150k , so could in theory get 55k at the press of a button. Interest rate on this mortgage is 0.75%
We have 40k of cash savings,sitting in the mortgage Acc, so in effect earring 0.75% interest.
Approx 10k in shares.
Neither of us have any form of pension.
No other debt at all.
My company has no debt, approx 100k in bank, we part own the unit we use outright, 50/50 with my brother who also uses it for his company, value of unit is 250k so 125k is ours. Company assets and goodwill approx 200k.
BTL one is a 2 bed flat, owned outright 50/50 with my mother, value is 200k, and my share of rent is £485 a month.
BTL two is a 3 bed house, value 160k, interest mortgage of 100k which costs £194 a month, rent income is £610 a month.
BTL three is a 2 bed bungalow , worth 170k shared 66/33 with my mother, in my favour, my share of mortgage is £460 and my share of rent is £450, interest rate is 4.2%.
BTL four is a 2 bed cottage ,worth 200k, owned outright with my brother, 50/50, my share of rent is £400 a month
BTL five is a one bed flat, worth 160k, owned 50/50 again with my brother, my rent share is £395
I also own some land , 50/50 with my brother, we are in process of building 4 houses, should walk away with approx 300k before tax if all goes well.
And there we have it, my life on a page. I want to do something with the 40k of savings, as its earning nothing where it is, torn between throwing in a pension, or paying off most of the mortgage on the BTL bungalow that's 4.2%.
Don't really want to buy any more property, 5 tenants is enough to deal with.
I have a cheap way, using the offset mortgage to borrow money, 0.75% at present, and wondered if I could make this work for me in any way, or indeed use any of the equity I have in any of the properties in the same way, to grow my investments .
So many things going round and round in my head, yet I don't really know which way to move forward, as I said earlier, any pointers much appreciated .
Ginge R said:
Quattro,
A decent planner would take weeks to get something half decent for you. Is 'moving forward' really as much as issue as where you want to end up?
Not really sure where I want to end up to be honest, retired at 55 would be nice, but I'd never get the wife to do the same, lives for her job. Sadly I expect to work until I drop. A decent planner would take weeks to get something half decent for you. Is 'moving forward' really as much as issue as where you want to end up?
With no kids it's not as if we are building up for their future.
I have an incomplete spinal injury, so although I can just about walk at the moment, with help from crutches, I know that very soon ish, 5-7 yrs I will be in a wheelchair full time.
I know a financial adviser is the way to go, I did speak with one a few yrs ago but he really only suggested what I already knew.
Thanks for all the tips and pointers folks, in particular Ginge, I think you have exactly highlighted the problem I have, I just don't know where I want to be, so am wasting my time asking for help on how to get there. Lol.
Having a wife who is so indecisive she struggles to decide on what tv channel to watch, let alone where she wants to be in 15/20 yrs time doesn't help.
Replying to some of the other posts, I do know I need some kind of hobby/interests, I need something in my life to give me a buzz, I've been there with fast cars (GTR, S3 and seven replica), I've tried flying, gliding, owned a boat, track days, fishing, and pretty much everything else between. Yet nothing that I want to go back to.
I used to love driving but don't even really enjoy that anymore.
I already have a top spec wheelchair and hand cycle , considering ordering a mountain trike to enable me to get out and about in the countryside more.
Basically it appears I'm a grumpy git with no interests in anything, who has no idea of what he wants or how to get there, to be continued I think.
Having a wife who is so indecisive she struggles to decide on what tv channel to watch, let alone where she wants to be in 15/20 yrs time doesn't help.
Replying to some of the other posts, I do know I need some kind of hobby/interests, I need something in my life to give me a buzz, I've been there with fast cars (GTR, S3 and seven replica), I've tried flying, gliding, owned a boat, track days, fishing, and pretty much everything else between. Yet nothing that I want to go back to.
I used to love driving but don't even really enjoy that anymore.
I already have a top spec wheelchair and hand cycle , considering ordering a mountain trike to enable me to get out and about in the countryside more.
Basically it appears I'm a grumpy git with no interests in anything, who has no idea of what he wants or how to get there, to be continued I think.
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