This summer flew by, and I don’t even know what happened with the autumn. It’s almost Christmas, people, Christmas! Which I’m looking forward to spending in my underpants, seeing as we’re not going to entertain this year (thanked be the gods!).
I need a holiday. Yes, another one.
See, that’s why I’m certain I’d make an excellent early retiree. There’d be none of that what-shall-I-do-with-myself-slash-work-experiment bullshit. Are you bored staying at home? Get a dog. Take up scrapbooking. It beats the commute. I hate the commute. There, I said it. I love living in Surrey – the fresh air, the green wide open spaces – I only wish Surrey was in central London.
Enough moaning though. Let’s get on with taking stock of the third quarter.
Savings rate: 50%
I went off the rails with spending this summer. The occurrence itself isn’t unique, but the sheer magnitude of it is. Not good.
In case anyone wondered why I reduced my savings rate target to 50% this year (from 60% the year before), it’s because I’m overpaying the mortgage a little more than usual.
The tracker deal I got late last year has been working out alright so far with the Brexit uncertainty keeping the BoE rate low, and I’ve been making hay in this sunshine by utilising the unlimited overpayment feature. There isn’t much to invest in anyway at present, with the markets at record highs and the pound not that far off record lows.
Anyhow, the year to date savings rate is still 57%, so Pass.
Property wealth: reduce the mortgage by £45k
In progress. Might not happen, but we’ll see…
Pension wealth: use up all available allowance
Financial wealth: Emergency Fund & Freedom Fund
The Emergency Fund is full, and the ISA allowance is now fully utilised and invested.
My portfolio distribution is beginning to resemble what I’d like it to be…
… and my Freedom Fund is slowly catching up with the overall progress to financial independence. I’ll need this pot of money to live on before I’m old enough to draw my pension, so it’s kinda important 🙃.
The Freedom Fund is 60% world equity, 20% government bonds, 10% property securities and 10% gold. It’s not very adventurous, I know, but if I’m going to retire in 5 to 6 years, then the investment profile of this interim stash needs to be pretty tame. It’s different with my pension. I won’t be able to access it for a while still, and so I can afford to take more risk there.
Tax: pay no more than £47k of income tax in 2018/19 tax year