How to plan our financial future? Advice needed
Discussion
Hi All,
New account for anonymity.
My wife and are are trying to work out how to plan our future. We are in the less than usual position of not having any children (and no possible chance to have them) - which makes our planning very difficult.
We are both very late 30s. Are are currently looking at purchasing a bigger house which causing us to ask a lot of questions about what we should be doing with our life now we can't have children.
We are homeowners, mortgage has 290k remaining, house was recently valued at 700k, but with the market as it is, I would estimate 650k is more realistic.
We both earn around 65k a year.
My wife is self-employed.
We have around 350k in high-risk savings. We are ok with keep money in high risk savings, again due to the fact we are child free, we feel it's a risk we are willing to take.
When we eventually retire we are unlikely to have any close family around. This leads to the important question of working out what we should be doing with our money to live the best life possible?
Should we get a bigger mortgage? When we retire, it's jut going to mean we have an asset potentially worth 1 million, but nothing we can do with it. Is it a mistake getting a bigger mortgage to pay off over the next 20 years?
How often do older people really want to move at 65/70, we don't want to do die with all our money in a property and equally when you have lived in a property for 20+ years and get into your later life, do you really want to leave it.
In this difficult situation we have found ourselves in, we are really struggling to work out what we are supposed to do with our finances. I can't find much online (Everything useful is centred around getting mortgages and leaving money to your kids and grandkids)
New account for anonymity.
My wife and are are trying to work out how to plan our future. We are in the less than usual position of not having any children (and no possible chance to have them) - which makes our planning very difficult.
We are both very late 30s. Are are currently looking at purchasing a bigger house which causing us to ask a lot of questions about what we should be doing with our life now we can't have children.
We are homeowners, mortgage has 290k remaining, house was recently valued at 700k, but with the market as it is, I would estimate 650k is more realistic.
We both earn around 65k a year.
My wife is self-employed.
We have around 350k in high-risk savings. We are ok with keep money in high risk savings, again due to the fact we are child free, we feel it's a risk we are willing to take.
When we eventually retire we are unlikely to have any close family around. This leads to the important question of working out what we should be doing with our money to live the best life possible?
Should we get a bigger mortgage? When we retire, it's jut going to mean we have an asset potentially worth 1 million, but nothing we can do with it. Is it a mistake getting a bigger mortgage to pay off over the next 20 years?
How often do older people really want to move at 65/70, we don't want to do die with all our money in a property and equally when you have lived in a property for 20+ years and get into your later life, do you really want to leave it.
In this difficult situation we have found ourselves in, we are really struggling to work out what we are supposed to do with our finances. I can't find much online (Everything useful is centred around getting mortgages and leaving money to your kids and grandkids)
I think you should only get a bigger or more expensive house if that's what you want out of life. There is plenty of choice for things to spend money on.
I would not want to be pinned down by a big mortgage approaching 60.
OTOH, you can probably pay off a larger mortgage early.
I think it's hard to see 20 years ahead in business or careers.
It's harder still to see what you might want or need into retirement.
I don't think a 'plan' is going to survive contact with 'time'.
I would not want to be pinned down by a big mortgage approaching 60.
OTOH, you can probably pay off a larger mortgage early.
I think it's hard to see 20 years ahead in business or careers.
It's harder still to see what you might want or need into retirement.
I don't think a 'plan' is going to survive contact with 'time'.
my 2p.
It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
Puzzles said:
my 2p.
In your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
I'd agree. If your jobs are secure and whether you have a pension that will support you with investments when you hopefully retire early. This comes back to the other thread of 'How much is enough to retire'.In your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
With no kids I'd be taking advantage of plenty of foreign travel with a bucket list of sights I want to see carrying it on through to retirement.
Unless you view the bigger house purchase as an investment to downsize at some point in the future, balanced against the increased mortgage and interest rates I personally se no sense in it. But then I'm not a powerfully built PH director type who needs to 'flex' with a large house.
You've said no kids, sounds like that's a decision made for you - unresolavable medical issue for you/her?
Late 30s in a comfortable financial position seems very early to be thinking about retirement/checking out. Do either of you have any reason to believe you won't have ~30 years of working life + ~20 years retirement after that?
Here and now seems to be a question of what you both want in terms of best life, you clearly have options. Bigger house, car(s), boat, lots of foreign travel, whatever. Obviously nobody can tell you what you/Mrs want or what you should have.
Seems strange you're describing what sounds like an enviable situation as difficult.
Late 30s in a comfortable financial position seems very early to be thinking about retirement/checking out. Do either of you have any reason to believe you won't have ~30 years of working life + ~20 years retirement after that?
Here and now seems to be a question of what you both want in terms of best life, you clearly have options. Bigger house, car(s), boat, lots of foreign travel, whatever. Obviously nobody can tell you what you/Mrs want or what you should have.
Seems strange you're describing what sounds like an enviable situation as difficult.
Why are you looking at purchasing a bigger house? Is your current one too small? If you remained in your current house, could you increase SIPP (or other pensions) contributions instead of paying higher mortgage payments, and then maybe retire earlier? That depends whether or not you want to retire early, of course.
What are the 'high-risk savings'? If you moved to a larger house, could you use some of these savings instead of getting a larger mortgage?
You mention that you don't want to do die with all your money in a property. It may be that a worse scenario is retiring with all your money in property (asset rich / cash poor). On the subject of death, writing wills would be worthwhile if you don't want distant relatives to get your assets thanks to intestacy rules.
What are the 'high-risk savings'? If you moved to a larger house, could you use some of these savings instead of getting a larger mortgage?
You mention that you don't want to do die with all your money in a property. It may be that a worse scenario is retiring with all your money in property (asset rich / cash poor). On the subject of death, writing wills would be worthwhile if you don't want distant relatives to get your assets thanks to intestacy rules.
Puzzles said:
my 2p.
It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
Yes, we probably don’t need a larger property, but like the thought of a nice detached place with a big garden. Currently we have a semi detached in an area we don’t need to live in, so would like to move. It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
Most definitely want to spend it before we go. Yes, need to keep some for care homes etc, something we are trying to work out the best way to plan for.
Puzzles said:
my 2p.
It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
Yes, I think we could buy then downsize, my question is more when would you downsize. I can’t imagine people want to do it in their 60s? If we do it around 50, that’s only 10-12 years away, so paying a premium (stamp duty, etc) to live in a nicer house for 10 years, which over time probably won’t be cost effective. It sounds like you dont need a larger property, but if you really want one you could buy and downsize later. i've seen some of my friends parents do this but my grandparents wouldnt consider it.
in your position i'd look to spend it all before i get too old. that said did you want to save some for care fees?
Phooey said:
You don't want kids. They are horrible.
In your position I would probably look at something like a holiday let either in this country or overseas. I wish I had of done something similar at your age.
A great suggestion and something we like the idea of. Just unsure how to even start with it!In your position I would probably look at something like a holiday let either in this country or overseas. I wish I had of done something similar at your age.
Interesting thread, and without wishing to gatecrash, my wife and I are in a similar position.
Bit older at 52 and 49, but mortgage free, plus a few mortgage free rentals, no kids, own business, toy in garage, nice cars on drive, boat on the river.
Far from rich, but comfortable, to those who say spend it all, what the earth on.
Watching thread with interest.
Bit older at 52 and 49, but mortgage free, plus a few mortgage free rentals, no kids, own business, toy in garage, nice cars on drive, boat on the river.
Far from rich, but comfortable, to those who say spend it all, what the earth on.
Watching thread with interest.
jonsp said:
Late 30s in a comfortable financial position seems very early to be thinking about retirement/checking out. Do either of you have any reason to believe you won't have ~30 years of working life + ~20 years retirement after that?
Here and now seems to be a question of what you both want in terms of best life, you clearly have options. Bigger house, car(s), boat, lots of foreign travel, whatever. Obviously nobody can tell you what you/Mrs want or what you should have.
Seems strange you're describing what sounds like an enviable situation as difficult.
It’s difficult because we can potentially buy a big house, get to retirement and have the majority of our money locked into that house. I do believe I’ll be working for another 30 years, but if I can, I’ll retire earlier! Here and now seems to be a question of what you both want in terms of best life, you clearly have options. Bigger house, car(s), boat, lots of foreign travel, whatever. Obviously nobody can tell you what you/Mrs want or what you should have.
Seems strange you're describing what sounds like an enviable situation as difficult.
Being 70 and being mortgage free with a million pound asset but no freely available funds, seems like the wrong way to go.
Live for the moment and don't over think it (gawd that sounds so naff!!) as long as you don't do anything overly daft or overly stoopid. We are in a similar(ish) situation and that has been the background to our thinking, whether that be in relation to houses, cars, holidays, working hours, career choices, savings, investments, spending, work/life balance etc. That's not meant in a flippant or irresponsible way but just taking advantage of the fact that your decisions won't really impact others in a meaningful way.
You fancy a bigger house and can afford it then go for it. It's hardly likely to be a bad decision and might be the best thing you ever do. In the unlikely event that it wasn't a great idea then sell up and move on. A gazillion things will happen randomly and unplanned over the period between now and retirement and trying to plan and accommodate all the "what if's" will drive you batty.
You fancy a bigger house and can afford it then go for it. It's hardly likely to be a bad decision and might be the best thing you ever do. In the unlikely event that it wasn't a great idea then sell up and move on. A gazillion things will happen randomly and unplanned over the period between now and retirement and trying to plan and accommodate all the "what if's" will drive you batty.
Quattromaster said:
Interesting thread, and without wishing to gatecrash, my wife and I are in a similar position.
Bit older at 52 and 49, but mortgage free, plus a few mortgage free rentals, no kids, own business, toy in garage, nice cars on drive, boat on the river.
Far from rich, but comfortable, to those who say spend it all, what the earth on.
Watching thread with interest.
Nicer boats and cars i guess? mate, you're rich. Ok there is aways someone richer, even if you 'only' have £5m.Bit older at 52 and 49, but mortgage free, plus a few mortgage free rentals, no kids, own business, toy in garage, nice cars on drive, boat on the river.
Far from rich, but comfortable, to those who say spend it all, what the earth on.
Watching thread with interest.
Why do so many "wealthy" people seem to lack imagination? 
Things that I would (possible even will) spend my millions/billions on;
A new FFRR every year
Round the world cruise
Study for my PPL up to an ATPL
Visiting at least two cities on every Continent, travelling first class
Setting up a school in a developing Country and sponsoring kids to become Doctors
Caterham Academy
Paying for a bigger NICU Unit at my local Hospital
Sponsoring an A&E Consultant at my local Hospital
5 scholarships for my former school so kids on FSM get their Uni education funded
Short of a multi-rollover Euromillions it's unlikely that I will achieve most of the above. However if I had spare money (and 4 kids means I won't!) I can think of LOTS of things i want to do....
Things that I would (possible even will) spend my millions/billions on;
A new FFRR every year
Round the world cruise
Study for my PPL up to an ATPL
Visiting at least two cities on every Continent, travelling first class
Setting up a school in a developing Country and sponsoring kids to become Doctors
Caterham Academy
Paying for a bigger NICU Unit at my local Hospital
Sponsoring an A&E Consultant at my local Hospital
5 scholarships for my former school so kids on FSM get their Uni education funded
Short of a multi-rollover Euromillions it's unlikely that I will achieve most of the above. However if I had spare money (and 4 kids means I won't!) I can think of LOTS of things i want to do....
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