#3 – March 2019 – State of play

OK, so the first foray into reporting on my finances for all 2 of you following me currently. I’m using a spreadsheet provided to me to track my net worth, and “Liquid Freedom”. Gotta love that phrase.

First things first, the number I pay most attention to is Excluding House. When this hits 700k-800k, I’m outta here. I’ll spare you the calculations, but essentially this should enable us to live off 3.5-4% Safe withdrawal rate, not factoring in State Pension.

It seems some way off, and it is, but with current projections, I’m hoping I can get this licked in 15 years (ie. when I’m 55). We have 24.5 years left on the mortgage, but I want to overpay that to get that done in 15 years too. We have 5 year fixed at 1.91% and do not want to overpay at this point in time since the money is better off elsewhere, but once that 5 years is up, I will look to overpay by 1k per month to shave 10 years off. Of course we do not know the conditions on interest rates in 5 years time and so if there is potential to remortgage at a similar interest rate, we would likely not overpay. Either way, the long term plan is to downsize when the kids are old enough to move out (ie. in 19-21 years time), and reclaim 150-200k on the equity to add to that 146k as it is now. The rest will need to come from saving, investing and quite probably some inheritance. Not a nice prospect, but it has to be considered as possible during the next 15 years with both parents in their mid-70’s.

The eagle-eyed amongst you will notice some orange numbers, mainly based around my wife’s pensions. This is because she has no clue how to track these numbers. After initially asking her to get online logins for all of them, she has lost the bit of paper with everything written down(!). We’re currently in a very long drawn out process of getting her to organise all of these, find out the correct numbers (not estimates) and then move them all into a SIPP so we can (hopefully) maximise the earning potential by moving into low fee, passive investments, as I had done with my Fidelity SIPP.

I’ll go into each of the below Investments over the course of this blog I’m sure. Some I like, some I’m not so sure about.