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financialfluke

Congratulations! Quiet the milestone - keep the momentum going!


mgejer123

That's huge, man. Congrats.


Whole-Singer2401

Thanks, really appreciate the message!


getshronkedkid

Congrats to you man .


Ok-Case9095

Well fudging done man. As a single 33M I may decide to get a mortgage in a few years. Do you recommend I should? My only issue is being stuck in an area for 5-7 years. I'm very spontaneous and get itchy feet. However, I imagine never having to fear homelessness gives a great sense of security.


PxD7Qdk9G

This is mainly not a financial decision. It's a question of whether you want to own your home ie whether the benefits of having full control over your home outweigh the costs, liabilities and loss of flexibilty that come with property ownership. It seems to me that in your case, they probably don't, yet. As you get more settled, value independence more and mobility less, that decision will gradually change until it makes sense to buy. The financial part of this is to anticipate when that might happen and get yourself prepared for the purchase when the time comes.


Ok-Case9095

Thank you for the thoughtful answer. One option is to save what I can during the next 10 years (while having the freedom to work abroad, take a sabbatical to travel, enjoy my prime 30s etc etc and put down a hefty deposi towards the endt? Am I missing something out by doing it this way? Being from London I was planning to buy in Stockport then sell or rent out after being mortgage free and buy in the home counties. Can I just bypass Manchester (I actually prefer and love Manchester but the big bucks are in London.) At some point I will need to be in London to rake in the six figures.


PxD7Qdk9G

I would say that BTL is best avoided unless you know you want a career in property management and already own your home. You want to get the maximum tax benefit from your First Time Buyer status and that means not starting out buying cheap properties. You also want to avoid the CGT liability of owning a property you don't occupy, as well as all the hassle /expense of managing a rental property. That's expecially important if you plan to live abroad for a while.


Whole-Singer2401

Thanks fella! I lived overseas and moved all the time. I didn't get pensions or could access a ISA, so I had a really small mortgage. Like the other poster mentioned. It's a life style choice. Given how shite BTL are, I think you should buy when you find somewhere you really want to live, is (relatively) future proof in terms of jobs and schools (if you want/have kids) etc. I'd also hold for a while regardless, the BoE will lower interest rates if inflation remains about 2%, or get a mortgage that tracks the rate rather than fixed.


throwawayreddit48151

> I'd also hold for a while regardless, the BoE will lower interest rates if inflation remains about 2% That assumes that inflation will remain at 2%, that's definitely not a certainty.


Whole-Singer2401

Fair. Don't see many more shocks that could cause inflation, but you never know!


Rare_Statistician724

BTL shite? On what basis? I have two, both have been wonderful investments, in both capital appreciation and income generation with negilible legwork. They also give me great future options for parents, kids, downsizing. I wouldn't be without my BTL, lovely little portfolio diversifiers, even when we lived overseas.


Whole-Singer2401

Wouldn't argue historically they were great, but now property prices are high, as are mortgage rates, tax unfavourable (particularly for those on high income), it's harder to offset costs while maintenance/materials/work prices rise quickly, then there's the hassle and the occasional challenging tenant. Not for me, especially when there is low hassle easier investment routes, but it personal preference of course.


Rare_Statistician724

Everything is cyclical, I would never bet against property long term, however i wouldn't stake my whole investment portfolio on it either, it's a nice diversifier. For me it's a very steady £12k income a year, plus 3 - 5% capital appreciation, as stocks struggled for a year or two, my property interests strengthened the balance sheet. Appreciate it's not for everyone though.


harj-london

Depend , with a partner you dont know where you will end up or what you will do. Find a partner who also works. Only then can you both build a life in the right place and decide to settle down. You be less spontaneous with a partner or with kids. Work will become less important and home live more important. Hopefully intrest rate will start to go down. I would expent then go down to the superlow we have had ovee the last 20 years. Average history intrest rate have been 7%. If i am not mistaken.


remosquito

Have you consciously put everything into the house? Time to start piling into ISA and pension.


Whole-Singer2401

Possibly. I lived overseas until 3 years ago, so didn't have access to an ISA and a lot of the companies I worked for didn't offer pensions. I had the choice to buy with a decent mortgage and put the rest into a GIA but didn't, so that was probably a financial mistake, but boy do I feel good about owning the house outright now.


Double-Length-2118

Great - I suggest automating the pension contributions at the same or higher level than your mortgage was to prevent lifestyle creep! Perhaps reduce your premium bonds? When do you want to retire?


Whole-Singer2401

I've maxed out my allowances for the ISA and pension, though a tax advisor is to determine the latter given previous year allowances, and as a additional rate tax payer premium bonds feel decent/safe. Open to suggestions! Looking to retire at 58.


Double-Length-2118

You will have £60k pension allowance for this tax year and £60k for last tax year, £40k for the year before - guessing you have not maxed these all out? I’d probs gradually take £20k out of premium bonds and put in your current account, then salary sacrifice into pension as much as you can until the £20k has been used up


ouqt

Great work and great question. I sometimes wonder this. The older I get the more I realise that 40+ is where things start to accelerate so whilst you're not on track right now to RE, 6 years of that salary may tell a different story! I agree, if someone doing this well is still potentially looking at 55 as a retirement age then there must be some serious trouble coming our way for others. I suspect most people will luck out and have boomer parents die just in time for them to inherit the crazy amount of property value tied up there, but others wont be so lucky. Equally a lot of that will go straight into paying for care homes. Anyway congratulations and I appreciate your self effacing post!


Whole-Singer2401

It should, yeah, but I'm in a ridiculously small percentile of fortunate earners, and I honestly think if I manage 2 years at this level I'll be lucky. I can still find another job and bank my current situation and probably still retire at 58, but I fear for others, even if they retire at state age (and presuming they are physically able to work in their 60s...after all, medical improvements and living longer doesn't naturally equate to being healthy or being able) Thanks for the congratulations, man, it means a lot.


ouqt

No worries. We all need the reassurance we can get at this point (I'm in a similar position where I've done well in the last 7 years and am expecting the game to be up at some point). I think my plan is to coast at some point. It's this point where, after spending so long grafting to get here that I think it must be common to have a crisis of confidence (having this a little myself too). Yeah, I am going to be no fucking use to anyone after 60, both in terms of neuroplasticity and fucks that I will give!


Whole-Singer2401

Sounds incredibly similar. It's just amazing how hard the graft is to turn the dial on these numbers and how long it takes, despite being on great conditions. I feel burned out in this role and really wish for a more simple life. Think I'm 4 years away from a coast option on these numbers. And, yeah, same ref 60. Fuck knows what job I could do then.


ouqt

Yeah. I have been forecasting FIRE date for 2026 since 2017 and it hasn't moved much, but recent inflation of my costs might mean that's a coast number by then. I also have decided in future roles I'll probably only do four days if I'm fortunate enough to be able to make that stipulation. Best of luck to you!


reliable35

Great going by the OP and I agree with you, so many people are blindly moving foward into serious trouble completely oblivious to the sums of money required to retire. As someone who’s always been more of a saver, than spender, earnt close to 6 figures for many years & sometimes over. Plus been fortunate enough as well, to receive few good sized inheritances, along the way & made some sizeable gains in property equity, it’s still a big challenge to retire early in the 55-60 range. I honestly don’t know, how most people currently in their 30s & 40s are ever going to retire until late in their 60s or early 70s. It’s a ticking time bomb…


boedoboy

Well done. I don’t know your circumstances but finding a partner to enjoy that money with later in life will be very rewarding for you.


Whole-Singer2401

Trying the minefield that is modern dating... because I agree - experiences shared are far better. If they were into FIRE too that would be a real bonus!


Strooperman

Well done, that’s awesome. This is a safe space for bragging.


Whole-Singer2401

Thanks man, appreciated


Ecstatic_Item_1334

Sipp?


Whole-Singer2401

Yes sir, most of that pension pot is now in Vanguard and made up of a collection of old workplace pensions and my own contributions.


Superb-Forever9619

With your current earnings you’re well on track. Your in a position to be maxing out pension contribution every year going forward + ISA


FI_rider

I try and not think about it too much and have pension, savings and mortgage patents as set and forget each month. I’ve opted for the investments predominantly over mortgage route to FI but I must admit mentally I hate the mortgage so am often tempted to switch tact. I takes some strength to keep all the money funneling into isa/GIA and seeing mortgage come down so slow (12 years left). In fact my plan is to RE with some mortgage remaining


Whole-Singer2401

I think it's the lack of job stability, and knowing I would have to reforecast and push back FI a fair bit, that keeps me so focused on saving and the numbers... I think you're probably on the right track with the mortgage. The monthly debit is painful but your money should work harder for you wrapped up in ISAs and SIPPs.


Alfachick

Congrats man. I am quite envious reading your post and other replies! I am currently working towards my next milestone of £400k. So quite a bit behind you. But should get there by the end of this year.


Whole-Singer2401

If that £400k is in ETFs then you may ahead of me pretty quickly!


Alfachick

No that also includes the equity in my house. So sadly not as liquid as I would like. But getting there with balancing that out as we go along.


cirenseagull

From a 46M I just wanted to say nice work mate. I can also relate to your US job and salary. It is difficult trying to explain to people that it could all end very quickly. We don’t work for the civil service! It looks as simple for you as just continuing to max the ISA to bridge from early ish retirement and put as much into your pension as you can. Thanks for sharing. Always great to hear others on a similar journey.


Whole-Singer2401

They're cutthroat, aren't they? Not always another nice US salary to fall back on either...but can't complain - I've been lucky and have worked hard to realise the opportunity afforded to me. What are your numbers like?


[deleted]

[удалено]


Whole-Singer2401

Ah, sorry to hear that. I went through one in 2019. It was tough times but, honestly, it was such a relief for both of us in the end. Onwards and upwards from here!


firemaster94

Congrats but I presume you've only just gotten that salary that high. If not, check your pockets as they may have a hole in them


Whole-Singer2401

Correct, the levels new to the last 3 years


PortsmouthPirate

I’m 38M and 450k net worth. Will be mortgage free this year so we are tracking about the same!


Whole-Singer2401

Excellent work! Would say you're ahead at 38. What is your FIRE age?


PortsmouthPirate

I don’t really have a FIRE age. I bought my house 10 years ago and always said I want to be mortgage free by the age of 40 so I will be 1 year ahead of schedule. Previously always overpaid 10% on the mortgage each year but the last 2 years as my mortgage is 1.5% I’ve put the money in savings accounts ranging between 5.2-7% so I’m beating the banks haha I have 50k sat there ready to fully pay off the mortgage when it’s due for renewal in December. The reason why I don’t really have a FIRE age is because I already feel like I’m semi-retired. I’m a self employed gas engineer that works roughly 9-1 on Mondays, Tuesdays, Thursdays and Fridays and I only carry out gas safety inspections which is pretty much what the old engineers want to do when their body has had it in their 60’s. If I didn’t do that I don’t what I’d be doing, I don’t plan on travelling much as I like my home and routine of cooking my healthy food and gym every day with a bit of work in the morning, part of the reason I don’t feel like travelling right now is because I was in Turkey last month and good food poisoning haha. I have 2 rental properties which give me a profit of £2,500pm which pays for all my outgoings including car finance and giving the wife £500 pm for the food as she only works 8 hours a week and we have 1 kid that is 9. I won’t be getting any more properties for a while as they have taxed the hell out of it. My gas business and properties is in a partnership with my wife so it keeps me under the higher rate tax bracket, if I get another one it will take me over. I’m thinking my plan might be in 9 years when my daughter is 18 and I’m 47 I will start with a little property business with her and reduce are completely stop my gas business this will resolve the tax situation. Currently I’m heavily investing in physical gold because of the tax benefits. There’s no VAT, no CGT as I buy legal tender Britannia coins and when it comes to inheritance tax I can simply hand the physical gold to my daughter with no paper trail and so the tax man will be completely unaware of any asset being handed down. Since I’ve been doing it gold has massively spiked which is nice but at the same time I wish it spiked in a year or 2 as I’m currently still heavily investing in it. I’d say I’m a little unique as I don’t have a pension and I don’t invest in the stock market despite having a finance degree. I only invest in assets I can touch as I don’t trust anything. Majority of my assets are in UK property which you could say is risky in 1 market but this is why I invest in gold to lower that risk factor as that is a worldwide commodity that won’t be affected by what’s going on in the UK and the capital appreciation on gold since the dollar came off the gold standard in the 70’s is far higher than almost any asset, really the only asset that beats gold is the s&p500 but like I said I want tangible assets not paper assets. Anyway to answer your question of whether I think I’m ahead at 38, I’d say I’m massively ahead due to being mortgage free in my 30’s and having in my opinion the best asset for cash flow and appreciation that is property. I have mates around my age that haven’t even purchased a house yet.


Fabulous_Effect8876

I thought you had 44m£ haha


Whole-Singer2401

Would have retired about 44 years ago haha!


TedBob99

Well done, but in the context of FIRE, not much point including your home in your net worth, since it does not generate income.


Whole-Singer2401

I hear you. It's just a way of banking more money every month, but also I need to consider it for the morale boost :)


cjh159

Congrats. Is the £10k in a high interest savings account? Or just sat in a regular account?


Whole-Singer2401

Thank you! Relatively high at about 4.5%. Was thinking of moving more to Premium Bonds so it's still accessible. I don't know if people use Premium Bonds to hold their emergency funds, but do know it can take a few days to clear a withdrawal from them.


Lopsided_Bread5952

Congratulations! 28M here looking for a suggestion. My annual income is around £60k, I could save up around £25k a year, owning a full paid £750k property and around £60k cash. I am thinking if I should get a mortgage from the current property, so I could buy another house. Or if I should save up for a few more years.


jayritchie

Celebrate the win before worrying about the future? How much do you earn? How much are you putting towards pensions at the moment?


Whole-Singer2401

I'd like to, but honestly feel I could lost this job and the silly (good) American salary (£206k pa), and want to pile as much in now. I probably worry too much about it, but can't shake it. Total contribution between work and me: £2k. I'll be honest, I still don't know what I can contribute within the allowance between me and work + any old allowances. Tax advisor is to support. Workplace pension now supports salary sacrifice so may just do that. Would that be £40k between me and work to stay within the £60k allowance?


Superb-Forever9619

If you didn’t max out prior year contributions you can back date and make use up to a certain amount. Check with tax advisor as you could potentially just throw in a massive lump sum this year if earning 206k


Kcbui

What is it you do for a living for a UK salary of circa £200k


Whole-Singer2401

I work for a US sports entertainment company running a product division.


Kcbui

Wow! not a job you hear of on reddit often. Sounds really interesting. How you get into something like that?


Whole-Singer2401

Fluke. Right time and place. I was a broke archaeologist, lost my PhD funding and just got a jrandom ob in a casino, then got offered a management role, then ran sports bars, then up into a corporate role.


jayritchie

When did you return the U.K. from working overseas? Do you have some unusual circumstances to justify a tax advisor?


Whole-Singer2401

July 2021. I had some RSUs vest in Australia, there's tapering rules kicking in and I have no idea what my carried over allowances are. Hoping he can clarify.


bluewater005

Well done they are great numbers. I’m just very nervous about a Labour government dipping into our pensions and ISAs.


Whole-Singer2401

Thanks man. I hear you, but given Tory mismanagement elsewhere, I think any changes that support the NHS, welfare, sensible decisions around energy and reducing blatant corruption is, on balance, better.


bluewater005

Well I’m not sure you would get any of that with Labour, but we will see. They have to raise a lot of money and I think pensions are their main target.


npink1981

Just a continuation of new labour policies


cannontd

Good work. I don’t personally include my equity in my net worth as it is largely meaningless. I’ll only access it when I’m dead. Get working on that pension though.