February Review

As usual I’ve got last month’s figures in brackets for comparison. I’ve got my Defined Benefits Pension in there based on twenty years worth of money if I start drawing it at 60. I track how I’m doing with my mortgage balance compared to my AVC balance. The reason for this is that I made a decision to mostly stop overpaying my mortgage. Instead I use that extra money to put more into my AVC fund. So hopefully I’ll start to see my AVC fund increase in value and more slowly my mortgage balance come down until they meet at some point and I have enough in my AVC fund to clear my mortgage when I retire. That’s the plan anyway.

Debts

Mortgage £88,443,23 (£88,933.02)

Assets

Cash £26,496.43 (£26,841.91)

Defined Benefits £137,586 (£137,586)

AVC’s £17,360.11 (£18,132.06)

Shares £75,798.37 (£82,111.70)  

House £278,089 (£269,000) 

Total £535,329.91 (£533,671.67)

Net Worth including house equity

£535,329.91 – £88,443.23 = £446,886.68 (£444,738.65)

AVC Fund vs Mortgage Balance

£17,360.11 – £88,443.23 = -£-71,083.12 (-£70,800.96)

We all know the markets are down. The world is going to hell in a handcart and there’s not much we can do about it. Apart from some minor adjustment to my strategy, which I’ll talk about in a moment, I’m just carrying on the same as always. Yes my shares are down, but then that’s the same for everybody. I’m still putting money in each month to investments, so no change there. The one good thing about the state of the markets is that it seems to have cured me of my daily habit of checking my Vanguard account. It used to be my treat to myself after work. It’s more trick than treat now, so funnily enough I’ve not checked it for weeks!

Based on recent Bank of England base rate increases, including yet another one yesterday, I was starting to get a bit jittering being on a tracker mortgage. Yes, it tracks the base rate exactly, so for a long time I was only paying 0.1% It’s hard to argue with that. We now have an alternative staff mortgage which is a discounted fixed rate. If you go over to that you can never revert back to the base rate tracker. I absolutely love my  tracker mortgage, but this month I bit the bullet and moved over to the discounted fixed rate. I’ve tied in to a 5 year fixed rate at 1.49% Considering the base rate is already up to 0.75% I’m more and more convinced I’ve done the right thing. There’s no way I’ll be in a position to pay my mortgage off before the five years is up (I wish!) so I reckon it’s a good call. I feel like I’ve future proofed my mortgage nicely there and it will help me sleep at night without worrying about future rate rises.

Photo by Karolina Grabowska on Pexels.com

As a result of that application I found out the index valuation for my property rather than relying on the Zoopla estimates that I’ve been using up till now. Not that an index val is necessarily all that accurate, but I’m happy to go with the higher figure. As my plan is to use the cash lump sum from my AVC fund to repay my mortgage when I retire I have slightly increased the amount of AVC’s I’m putting in each month. I can’t really afford an increase, but I’m sure I’ll manage somehow, I always do!

Not much else to say really. The figures are rubbish, but in the grand scheme of things there’s more important things happening in the world. At least I’m not getting bombed, so I’m counting my blessings. I’m readjusting my mindset to a potentially slighter later retirement age. I was thinking 58 was definitely possible, with 57 being potentially achievable with a following wind. I’m now thinking that maybe I should pace myself for retiring at 60, and if I can go earlier then fantastic. I think if I have the expectation of going at 57 and then I have to work an extra 3 years then that will feel awful. Much better to over achieve I think rather than grumping my way through an extra three years of work that I didn’t think I was going to have to do.

Without further ado let’s move on to how I did in February against the goals that I set myself.

  • Continue to follow my marathon training plan PASS I’m now half way through the plan and although I’m slow as anything I’ve done all the miles that I’m supposed to up to this point
  • Find an ultra training plan and figure out how to combine this with the marathon plan PASS I’ve found a plan with the best name in the history of the world. It’s the couch to 50k plan. My race is 55k, so I need to tweak it slightly, but I’ve started already and so far am managing to combine the marathon and ultra training
  • Walk at least once a week PASS I’m doing twice a week. Once for 90 minutes and one for just under an hour. This is not a chore, I absolutely love it. Particularly nice now the nights are getting a bit lighter
  • Do 2 lessons a day on Duolingo Spanish PASS I’m doing great with this. I’m really enjoying it and feel that I’m definitely making some progress
  • Watch at least 4 episodes a week of Betty en NY in Spanish PASS I actually watched more than this. This has become my go to boxset. Crucially I don’t have an English language boxset on the go, so if I fancy some down time watching telly I just stick this on.
  • Finish setting up spreadsheets with alternative retirement dates and how much I need to have in investments (Finally a FIRE goal, yay!) ALMOST! I’ve done up to retiring at 56. I’ve still got the retire at 55 spreadsheet to do, but quite honestly that is such a fantasy spreadsheet that it’s barely worth doing. I’ll get around to it at some point, but honestly there’s no rush
  • Go to the cinema and watch The Godfather (It’s always good to have a fun goal, and considering how much I love this film I have to take advantage of it being on the big screen for an anniversary showing) PASS And I even saw the second one at the cinema too. I didn’t manage to make it there for the third one, but it was fabulous to be back at the cinema

Reading that back I’m pretty chuffed with myself. I’ve worked hard this month. I do feel that I’ve pretty much just worked, run, done Spanish and slept. My house is chaotic, I’m constantly chasing my tail and despite getting to bed early I feel like I’m not getting enough sleep. I’m doing it though. I’m on track with my training plans and as long as I can stay injury free I should be good to go with both the marathon and ultra.

There’s not much time in my life for much except work and running just now. My goals for March are going to reflect that, so they’ll be very similar to last month’s

  • Follow marathon training plan
  • Follow ultra training plan
  • Complete half marathon race
  • Trip to Ipswich to do parkrun (sorry I mean to collect my son from university, even if Ipswich is 50 miles in the wrong direction. That is absolutely nothing to do with needing an I for the parkrun alphabet challenge!)
  • Watch 16 episodes of Betty en NY
  • Set up retire at 55 spreadsheet
Photo by RUN 4 FFWPU on Pexels.com

That’s more than enough to be getting on with. There are only so many hours in the day after all. 2022 seems to be turning into the year for running. I’ll focus on that, get some of my 60 for 60 goals ticked off and then turn my attention to other things next year. I probably need to stop entering so many races though. It’s starting to get beyond ridiculous. I’m sure there’s worse hobbies to have though.

8 thoughts on “February Review

  1. Great post, you sound so motivated! I’d love to see an example of your spreadsheets with alternative retirement dates if you’re happy to share please. I’d like to do one (or three!) of my own but I’m not sure where to start.

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      1. I love your comment that your spreadsheets are not fit for human consumption! I feel the same about mine. I’ve had a few people ask me about my dividend tracking spreadsheet, so I actually created a separate one to send out to people as mine was…not fit for human consumption!

        Liked by 1 person

      2. I understand. It’s not really the detail I’m looking for but rather how to go about the calculatons – can you recommend any spreadsheets/calculators I could use to get started on exploring different retirement ages please?

        Liked by 1 person

      3. It’s really difficult to know where to start isn’t it? As I have a defined benefits pension I’m really just looking to invest enough to top this up. Although it does need rather a lot of topping up! And then when my state pension kicks in I’ll need even less. I found the traditional 4% rule didn’t really work for me as it had me saving a lot more than I needed, which I definitely didn’t have time to do before I wanted to retire. I’ve gone down the very basic route of literally calculating how much money I will need if I live to 100 to top up the amount of money I know I’ll definitely be getting from pensions to a level that I’m happy to live on. I’ve then used the Candid Calculator “How Much” calculator to try and work out when I’m likely to reach the figures that I need. I’m sure there’s much better ways to do this, but it works for me.

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  2. My FIRE spreadsheet still has me retiring at 55, which is now looking like a dream rather than possible reality! Even retire at 56, which is less than 4 years away for me is looking more like a stretch target than anything else so I may do a retire at 57, which will be more realistic, although I still want to aim for 56.

    Well done on getting back on track with your marathon training – although I can’t compare at all, I’ve done my first bit of ‘jogging’ (it’s not fast enough to be deemed running lol) on the treadmill so that’s progress for me!

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    1. 57 is amazing though Weenie. I think we sometimes forget what an achievement that would be.
      Well done on getting on the treadmill. It’s tough to get back to exercise post covid. And you are a runner not a jogger. It’s a state of mind thing rather than a speed or distance thing!

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  3. Thank you, that’s really helpful. The 4% thing isn’t great for me as I’m in my late forties so don’t have the time to save big bucks before I retire (wish I had found the FIRE movement earlier!) But better late than never 🙂

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