Feeling good

Well, I have processed the final ISA top-up into a Global Index ETF in this year’s account. I have now maxed out my allowance for this year (given the monthly payments left to make 🙂 ) that means that I have a reasonably high savings rate this month given my other expenses, so feeling chuffed!

I have added some extra money into my pension (taking advantage of the high rate tax relief while I can) and now need to look at paying off some of my BTL mortgage. If that is worthwhile?

It would be good if I could squeeze some extra cash out of that each month when I give up my job and become reliant on my rental and investments for income. While I am working, I am trying to snowball the money into FI pots to work for me long-term.

I cannot gain access to one of my pension pots for another 8 years. Its not enough to pay off the BTL but would make a good dent in it. The other two are old skool accounts, one being a company defined benefit scheme – not many of those around now – and I cannot access this until I am 65.

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2 thoughts on “Feeling good

  1. Congrats on hitting the ISA limit; that’s a huge amount of savings which I doubt I’ll get near this year (although did purchase a BTL property where most of the money went!) Seems like you’re in a strong position with your savings rate.

  2. Just came across your site from a comment you left elsewhere. Love the site. It seems there are so many of us who started FI or PF blogging last Summer!

    Anyway with re. to the above – I think you need to sit down and do an analysis of the financials on paying off/denting the BTL mortgage. You need to work out how much money you could be making if you re-invest the money from the accessible pension vs. how much interest you are being charged for the BTL. If the investments are better, then I would stick with that if I were you. As an example, we could have started overpaying our mortgage and we’d be done with it in 15 years. However, given the inexplicably low interest rate we’ve got, investing, even at significantly lower rates of return than we might realistically expect, we’d have enough money to clear the mortgage in about 12 years instead of 15.

    Cheers

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