Hi,
I’m maybe 6 months into the journey and turning up the dial on getting the wife and I to grow our moustaches. I’d like your thoughts on a few points I’m trying to get my head around please.
First; we are two UK based, 31yr old accountant and self-employed physiotherapist. We have a 2yr old child, taking home ~£82k after taxes, currently saving around 45% (optimising all the time as expenses drop off, ie the hired car). I’ve targeted 55% saving rate to be achieved by the turn of the year. We bought the house we are in, mortgage at 3.54% interest rate. We have around £50k in cash, trackers and P2P lending. Only borrowing is the mortgage.
1. I heard Mad FIentist say on his podcast that he was indifferent between monies that were invested inside a pension and those that are not. (I assume as he is still happy to work, as and when he chooses whilst being FI) I’m trying to get my head around this, in the UK pensions cannot (currently) be accessed until you are 58yrs old. This concerns me, as while I can save a great deal of tax by filtering money into my pension its ‘locked up’ until many years beyond when I want to be FI. Therefore what is the current thinking amongst those with bigger moustaches on how I should consider my splitting between the two?
2. What do the moustaches think of the idea of (when up for renewal in late 2017) converting my mortgage into Interest Only – and investing the difference for growth. My home is in the north of Scotland and is and will continue to be negatively impacted by the issues in the oil industry, I’m not sure if this makes a difference really, but it certainly adds to my anxiety and I basically don’t expect or have a particular desire to ‘profit’ from the future sale of my house. So if I was interest only its value can fluctuate and I’m just living in it really rather than feeling like I’m ‘investing’ in it!
I think that’s it for now – really appreciate your thoughts.