Part 177

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss the different paths to funding retirement.  Also, the arrest warrant for Putin, and a busy end to the week.

Weekly Update

An item of news that came up late in the week was the arrest warrant issued for Vladimir Putin, or as some people pronounce his name, Pew-Pew-Pewtin (you also need to do the finger guns whilst doing this).  Although this is welcome news, it probably will not achieve anything in the short-term.  It does, however, keep the pressure on Russia as they become even more isolated in global politics.  It’s looking increasingly likely that this war will only end when Pew-Pew is removed from office.  That day can’t come soon enough.

I was also surprised to see that Gary Lineker will be returning to Match of the Day.  I fully expected the BBC to double down and for this to drag on, but in this case I was wrong.  What will be interesting to see is whether Lineker continues to be a vocal critic of Darth Sunak and Darth Braverman.  

We’ve had a busy end to the week as we saw Dara O Briain on Thursday, and then attended a classical music concert on Friday.  Dara O Briain was great, and we laughed long and hard.  It wasn’t quite as good as the last time we saw him but it was still a really good show.  The concert on Friday saw two pieces performed; Beethoven, L.: Cello Sonata Op.5 No.1, and Beethoven, L.: Cello Sonata Op.5 No.2.  We enjoyed the performance but the venue was not the most comfortable.

On Saturday evening we went to the theatre to see The Good Person of Szechwan.  I knew nothing about it beforehand and both Oana and I absolutely loved it.  It was utterly batshit crazy but made some powerful points about capitalism, gender inequality, the nature of good, evil, and altruism.  It’s up there as one of the best pieces of theatre we’ve seen.  

Customer Service

Yes, it’s that time again…

I sometimes wonder if I’m being too demanding with customer service, and this is what leads to so many bad experiences, but I don’t think this is the case.

Wayfair and DHL

A couple of weeks ago we ordered my Dad a new rug for his new apartment.  It was due to be delivered on March 9th.  This didn’t happen, but it wasn’t a big deal.  DHL then emailed to state it would be delivered on March 10th.  This didn’t happen.  Again, not a massive deal.  On March 13th it was again due to be delivered.  It didn’t happen.  Then, the tracking information updated to show it was due to be delivered on March 10th.  For those keeping track, this would have involved time travel.  I then contacted DHL but got nowhere.  I then contacted Wayfair and explained I wanted to cancel the order, as it was now the 14th and we were all going to be working and unable to accept the delivery.  Wayfair explained they could only cancel the order once we’ve received it.  

I can understand deliveries being delayed, and if we’d been kept in the loop it wouldn’t have been an issue.  However, we’d purposefully waited in for the delivery on the 9th, 10th, 13th, and 14th of March by this point.  Our post room has items stolen from it, and if DHL simply left the parcel it was likely we’d never see it.  This is why we’d arranged delivery when we did.  All Wayfair kept saying was they could only cancel when we received the order, ignoring the fact that we would not be able to receive the order.

I explained our concerns and was assured that DHL would a) ring our buzzer, b) would not leave the parcel with a neighbour or in the post room, and c) would keep us fully informed and attempt to redeliver another day if we were not in.

Now for what actually happened.

DHL dropped the parcel in our postroom without ringing our apartment.  They claim I signed for the parcel.  I didn’t.  Fortunately, it wasn’t stolen but it’s still extremely frustrating that our instructions were not followed.  If the parcel had been stolen, we’d still be dealing with this now.  We received no real apology from either company.

On the face of it, this is a fairly minor issue; an item was delivered late.  It’s the lack of effective, clear communication from both companies that is annoying.  It’s the fact that for days no one could say where the item was, or why it hadn’t been delivered.  It’s the fact that only after shaming both companies on social media that the issue was resolved.  

Bupa

I’ve used Bupa for private health insurance for years and they’ve mostly been great, but this week saw me encounter so much unnecessary bureaucracy that it left a bitter taste.  Last year, after the refurb of our apartment that saw me singlehandedly assemble all our new furniture (I had some help with the bed though) I developed tennis elbow.  My GP said it was tennis elbow and referred me to the practice physio, who agreed it was tennis elbow.  So, I rested the elbow as much as possible.  Fast forward to the last few weeks and both elbows are now causing me discomfort.  So, I had a phone call with Bupa’s physio service.  They agreed it was tennis elbow and referred me to see a physio in person.  He also stated it was tennis elbow and recommended I have shockwave therapy.  He also suggested I call Bupa back to inform them about this treatment as it often needs to be authorised differently.

I called Bupa and explained the situation.  They asked if I had been given a diagnosis.  I replied, “the physio says it’s probably tennis elbow.”  Because I used the term “probably”, I opened up a massive can of worms.  Bupa stated that as there was not a definite diagnosis they might not be able to authorise the treatment.  The conversation went like this:

Me: I’ve been told that diagnosing tennis elbow is mostly a process of elimination, so how certain do you need the diagnosis to be?

Bupa: It would have to be a scan.

Me: but a scan can only be requested by a consultant under the policy, no?

Bupa: that’s correct.

Me: So, you want to pay £250 for an appointment with a consultant, then hundreds, maybe thousands, for a scan and all the associated costs for the hospital and radiographer, and then another couple of hundred pounds for the follow-up, just for the consultant to say, “it’s probably tennis elbow”?

Bupa: erm… yes.

Me: Ok, so let’s backtrack a little.  I’ve seen my own GP, two physios in person, and spoken with your own physio team on the phone, and everyone agrees it’s tennis elbow, but to authorise a slightly more expensive treatment, you need someone else to say it?

The conversation continued for some time, and in the end, I gave up, called back, and got the treatment authorised.

Virgin Money

A few weeks back I mentioned I had a complaint with Virgin Money about a credit card.  Well, they’ve contacted me to explain some of the background about how the issue occurred and to offer me some compensation.  Whether this results in a change to how they offer their credit card, I don’t know.  However, the compensation was a pleasant surprise.

It really does seem that whenever you deal with a business now, you are just bracing yourself for something going wrong.  It’s not that I’m doing anything unusual.  Take Wayfair and DHL; it was a simple online order.  How can it go wrong when DHL pick up the item from point A, and deliver to point B?  It’s not like I’m asking a pizza restaurant to make me a curry; delivering items is what DHL do.  It’s literally their only job.  

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab).

What Am I Doing?

TV: The Boys (Amazon), Picard (Amazon).

Audiobook: The Millionaire Next Door by Thomas Stanley and William Danko.

I’m halfway through season one of The Boys and it’s good fun for the most part.  A couple of characters who are supposed to be annoying are, but not in the way intended.  It’s more like I find the performer annoying and want them to go away.  There are a few people that do this for me no matter who they play.  The first one to come to mind is Tom Yates from House of Cards.  Each time he appeared on screen, I checked out.  The actor had a small part in The Crown, and yes, it was the same effect.  For Oana it’s Juliet from Lost, who also plays Anna in The Expanse.  I just asked Oana for more examples, and she said she had hundreds, so stay tuned for a possible bonus post in the week.

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £63,514.85 (-£3,508.56). 

Fuck It Fund: £100.00 (no change).

Pensions: £55,826.30 (-£3,180.28). 

Residential Property Value: £228,006.00 (no change). 

BTL Property Value: £147,133.00 (no change).

Total Assets: £532,580.15 (-£6,688.84).

Debts

Credit Card: £0.00 (no change).

Loans: £9,700.00 (no change).

Residential Mortgage: £178,674.86 (no change). 

BTL Mortgage: £105,001.75 (no change).

Total Debts: £293,376.61 (no change). 

Total Wealth: £239,203.54 (-£6,688.84).

Investment Income in 2023: £458.81 (target £8,500).

I came across a formula in The Millionaire Next Door to suggest what your net worth should be.  The formula is (Age x household income) / 10.  For me the resulting figure is £253,500.  I’m a little off that figure but at least I’m in the general area.  It’s important to remember when faced with formulas or statements like this, that it’s just an opinion.  

Our BTL has been listed for rent again.  We’ve already got a full list of viewings booked in for this coming week, so I’m hopeful it will be tenanted by the end of the month.  

I’m thinking of opening a new stocks and shares ISA in the new financial year.  My current provider is good, but the fees are starting to bite.  I’ve checked out Vanguard and they have much lower fees.  The only downside is that you can only get Vanguard funds when your ISA is with Vanguard.  With my current ISA provider, I am invested in other stocks and funds that I don’t want to give up.  As a result, I’m thinking I’ll keep my current ISA open and let it continue to generate income, whilst investing purely in the new ISA with Vanguard.  

Replacing Income

I was asked recently what my goals are in terms of replacing my income.  The short version involves three stages of income replacement; 

  1. Covering my basic needs from investment income.
  2. Replicating my current standard of living from investment income.
  3. Improving my standard of living from investment income.

However, the long version is, well, longer.  

Most FIRE devotees follow a similar path; invest in Vanguard global funds and let the gains compound, before cashing in units in their funds to pay for retirement.  It’s a safe, well-trodden path.  But what if we did something different?

My plan involves buying assets that generate income and using that income to buy more assets that generate income, and so on, and so on.  The downside to this approach is that you can end up leveraged because the best asset to generate income is property.  The upside to this approach is that you can leave a sizable estate behind when you pass.  I don’t plan on having kids, but I want to leave the world a better place than it was when I arrived.  Assuming my loved ones are already gone, I’ll be leaving my estate to charity; animal charities and something to help children from poor backgrounds complete higher education.  If I was to take the standard approach to FIRE, then my estate would be greatly diminished after decades of drawing on the capital.  I know that safe withdrawal rates are supposed to be, well, safe, but it just doesn’t feel right for me.  

There are several stages to my plan.  The first stage involves replacing my income until I can draw upon my pension.  Assuming I don’t invest anything further to my pension, and I let it grow until I’m 60, using a conservative rate, it would still result in a decent annuity equal to roughly a third of my current salary.  If I tweak that projection to include contributions at my current level, then the annuity I could purchase would replace my current salary.  

It’s important to note that these projections don’t account for inflation, and there is any number of things that could change between now and then.  However, like with many things in life if you follow a logical, structured process then the results take care of themselves.  

It’s my hope this year will result in me earning £8,500 in investment income.  I think I’ll probably fall slightly short but still increase on last year, which is the main thing.  If I follow the process of buying assets that generate an income, and use the income to buy more assets, then the results will come; it’s just a matter of time. 

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

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Part 176

Hello and welcome back to Mortgage Advisor on FIRE.  This week; wealth generation and how important it is to have wealth building in the background.  Also, thoughts on Gary Lineker, MH370, Star Trek, and an important couple of questions for our time; who is your favourite alien and who is your favourite robot.  Oh, and Nadine Dorries embarrassing herself again.  

Weekly Update

I’ve posted many times recently about how customer service seems to be getting worse.  I had another example of that this week, but don’t worry, I won’t cover the same ground again.  Suffice it to say, I spent almost three hours on the phone trying to sort something that should have only taken an hour at the absolute most, and then I had to spend another hour writing an email detailing all the failings on that call to the company.  My day off in the week was pretty much taken up by this, and it’s not like you can just instantly switch off the stress caused.  

Gary Lineker

I don’t generally mind Gary Lineker, but I understand why some don’t like him.  Anyone who has strong opinions is always going to divide public opinion.  Gary recently tweeted his thoughts about the Tory government’s policy on immigration, asylum seekers, and the small boats crisis.  This has put his job as presenter of the football show Match of the Day in doubt, as the BBC has guidelines stating its presenters and journalists have to be politically impartial.  Once again, I understand the need for this impartiality.  If our media is not politically neutral, then we don’t have free media, we have instruments of propaganda.  However, is our BBC really impartial?

Several people have used examples such as Andrew Neal, and Fiona Bruce, shows such as Mock the Week and Have I Got News For You, to demonstrate that the BBC is far from impartial.  They have a point.

I agree with much of what Lineker has said about this government’s policy.  I also believe that the BBC should be impartial.  So where does that leave Lineker?

Well, almost every single employer will have a rule, guideline, or contractual clause stating that employees are representatives of the employer and must act in such a way that does not damage their reputation or “brand”.  Whether you act in such a way whilst “on the clock” or not is mostly irrelevant.  This is why people can, and do, lose their jobs for behaving inappropriately in their free time.  It’s not about free speech, no matter how much people try to frame it as such.  Free speech does not mean you get to say what you want with impunity.  If this was the case, then hate speech would not be a crime.  Ultimately, Lineker took on the job with the BBC with his eyes open.  The BBC’s guidelines around impartiality are well established, if not always fairly applied.  

So, where does it actually leave Lineker?

I suspect this will end up with him leaving the BBC by “mutual consent”.  The fact that, after the announcement was made he would be stepping down from presenting Match of the Day, many other pundits, presenters, and commentators also stood down in solidarity meaning the BBC had to pull a lot of its weekend sporting content probably means the working relationship between Lineker and the BBC is untenable.  I can’t see how the BBC can back down and maintain any credibility.  If they back down now, then what happens when another presenter or journalist tweets something that is seen as politically biased?  The BBC has handled this poorly and I don’t think they can do anything other than double down on their current stance.  That means, from the BBC’s perspective Lineker has to go.  

The thing is, assuming Lineker is let go he would be a star signing for any other sports network, whether that’s Sky, BT, or someone else.  With the perception being that the BBC forced him out, who would want to step into the limelight and present Match of the Day?  This could result in a drastic reworking of BBC’s football coverage.  Whatever your opinion on this, you have to agree it’s fascinating watching it unravel.  

Nadine Dorries… It’s been a while…

It’s been a fair few weeks since I ripped the Tory party a new one.  However, I couldn’t let this one slide.  Look at her tweet from March 10th.  

Now let’s look at some of the comments…

It’s almost like she can’t stop embarrassing herself.

Snow

In other news, just in case you missed it, it snowed.  

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: MH370 (Netflix), Picard (Amazon Prime).

Audiobook: The Secret Life of Groceries by Benjamin Lorr.

We watched the Netflix documentary on the disappearance of MH370 in one go.  It was interesting and led to a lot of debate amongst my friends.  No one could agree on what they felt the most likely outcome was.  My suspicion is that the plane was mistakenly shot down during military exercises in the area.  My theory is that the plane was damaged by this accidental attack, turned back in the direction of Malaysia and due to damaged instruments got lost and crashed in the Indian Ocean.  The obvious issue with this theory is that there’s no evidence to support it, and something this major would be difficult to keep secret, considering that hundreds of military personel would be witnesses to such an event. 

Picard was much better this week, and this was mostly due to one scene in which Captain Shaw tells the story of how he first met Admiral Picard.  It turns out Shaw was present at The Battle of Wolf 359, as a young officer onboard the USS Constance.  The ship suffered critical damage and the crew attempted to abandon ship, but there was only room on the lifepod for ten crew, and fifty were still alive.  Shaw only escaped because he was chosen at random, and it’s clear from his actions in the show that he’s still struggling with PTSD from this battle.  This scene was incredibly powerful, and although Shaw was being hostile to Picard, you could empathise with him.  I wonder how powerful new Trek fans found this scene, because it relied on people having a deep knowledge of Trek history.  The Battle of Wolf 359 was the defining moment of modern Star Trek.  Were it not for this battle, we wouldn’t have Sisko in charge of Deep Space Nine, nor would we have the Defiant-class ships.  In universe, Wolf 359 shook the Federation out of the complacency of its ‘golden years’ of peace and prosperity.  It led to the creation of a new, advanced fleet of ships which would later prove vital in the Dominion War.  Star Trek has seventy years of history to draw upon, and I love these call backs to earlier stories.  

Robots and Aliens

When I was getting a haircut recently, the staff were talking about sci-fi, specifically their favourite robot and favourite alien from TV, film, books, comics etc.  Oana and I got talking about this as we tried to work out our favourites.  For me, the robot one is easy.  It’s got to be Optimus Prime.  I know what some of you are thinking, ‘Prime is an alien robot!”  Yes, technically all transformers are aliens and robots, but as the tagline from the cartoon goes, “robots in disguise”.  I rest my case.  

My favourite alien is probably Rocky from Project Hail Mary.  I had completely forgotten about Rocky until my I asked my Dad the question and he suggested Rocky.  It was a great suggestion.  Oana feels that Rom, the brother of Quark, from Deep Space Nine is her favourite:

Oana’s favourite robot was Bumblebee from the Transformers franchise.

Some other suggestions from friends include Q, also from Star Trek, and the Quagaars from Red Dwarf (this last one was a nice blast from the past).  

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £67,023.41 (-£2,072.23). 

Fuck It Fund: £100.00 (no change).

Pensions: £59,006.58 (+£360.07). 

Residential Property Value: £228,006.00 (no change). 

BTL Property Value: £147,133.00 (no change).

Total Assets: £539,268.99 (-£1,712.16). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,700.00 (-£100.00).

Residential Mortgage: £178,674.86 (no change). 

BTL Mortgage: £105,001.75 (no change).

Total Debts: £293,376.61 (-£100.00). 

Total Wealth: £245,892.38 (-£1,612.16).

Investment Income in 2023: £458.81 (target £8,500).

Income Generating Assets and Wealth

I was chatting with a friend, who is also following a FIRE plan, about how our wealth is being built in the background even when we are not thinking about it.  This led to us both looking at how much our overall wealth is increasing monthly, weekly, daily, hourly, down to the minute.  Yes, we are obsessed.  

As we discussed our figures, it highlighted the differences in how we assess our respective total wealth.  I pointed out that our calculations did not describe how much wealth is being created by our assets, as some of the “growth” in our wealth comes from regular investments we make.  For example from Week 138 to Week 139 my ISA jumped in value from £40,671.19 to £59,888.69, but this was mostly due to an investment of £18,775 I made in June 2022.  So, how do I work out how much pure growth my ISA has experienced?  The simple solution seems to be to look at the starting value and end value of a period of time, and work out the difference minus contributions I’ve made to the ISA.  

The 2022/2023 financial year is almost at an end.  The first post I made in this current financial year was Part 128.  At that time my ISA was valued at £42,188.83.  The current value is £67,023.41; so the difference between those two figures is £24,834.58.  If I subtract my £20,000 investment in the current tax year, I’m left with £4,834.58 growth.  Assuming that growth is averaged out over a 49 week period (there’s roughly three weeks of the financial year left), the figures for growth look like this:

Per Month: £439.50

Per Week: £98.66

Per Day: £14.09

Per Hour: £0.59

Per Minute: £0.01

Now, this is just my ISA when viewed through a specific set of criteria.  When I looked at the whole picture, from Week 70, the numbers look very different.  Why Week 70? That’s when I settled on a standard method of calculating my total wealth.  In that time my total wealth increased from £106,756.04 to £247,504.54.  The growth looks like this:

Per Week: £1,340

Per Day: £191

Per Hour: £7.97

Per Minute: £0.13

Is there a point to all this working out?  Not really.  It’s just fun, for some of us at least, to look at the numbers from time to time.

That’s all for this week, so thanks for reading. 

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 175

Hello and welcome back to Mortgage Advisor on FIRE.  Some thoughts on pensions, wills, and a disappointing time at Peddler Market.

Weekly Update

I don’t know where the week has gone.  Normally through the week I’ll make brief notes for what to talk about at the weekend, but there’s not a huge amount going on at the moment.  I have a cold, and I’m trying to sort out an issue with the company that’s due to fit our new kitchen.  

Last weekend we had an electrician who subcontracts for the kitchen company come to our apartment to check out the job and give us a quote.  He was an asshole.  He was rude and hostile.  The way he spoke to us and looked at us was, frankly, bizarre.  This was our final straw for dealing with this kitchen company.  Since we first enquired about getting them to supply and install a new kitchen, we’ve had some doubts.  They’ve not been great at communicating, and several promises they’ve made have not materialised.  We had paid a deposit of £800 which we were verbally told would be refundable until the work starts.  So, imagine our surprise when we called them to cancel the job and get our deposit back when we were told this was not possible.

We were very close to cancelling anyway but then we’d have the stress of finding another company from scratch.  So, we’ll proceed for now as it’s the path of least resistance.  

Over the last few weeks I’ve been feeling increasingly frustrated at, what I perceive, to be a lack of real progress on my FIRE journey.  I feel as though I should be further along.  I know, rationally, that I’m doing quite well.  Granted, I’m not going to achieve FIRE by the end of 2023 which was my initial goal when I started in 2019.  However, I’m in a much better financial position than I would have been had I not started this project.  What I really need is to get another BTL property on the books because then it will start to snowball when property prices start increasing again.  

On Saturday we went to Peddler Market, an event that runs each month with street food and live music.  The food this time was very disappointing, and probably the worst we’ve had in all the years we’ve attended.  We saw one vendor, The Spicy Biker, and the menu seemed interesting so we ordered a chicken curry and a portion of onion bhajis.  They told us it would take around twenty minutes.  We thought it was strange for street food, but figured they were just a little busier than expected.  The food ended up taking over forty minutes; arguably a long time to wait even in a restaurant but when you’re talking street food it’s an age.  If you can’t serve your street food more quickly then something is wrong with your process.  To add insult to injury the food was poor.  The curry was inedible, but the bhaji was decent.  £20 for what we had was not good value for money.  

We tried another vendor that was serving satay chicken but we both took one mouthful and spat it back out.  The flavour and texture was just strange.  I had some fries from a different vendor that were decent but on the whole it was not a successful evening.

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: Three-Body (YouTube)

Audiobook: Sea of Tranquility by Emily St. John Mandel; The Burning Land: Last Kingdom Book 5 by Bernard Cornwell.

I love Emily St. John Mandel’s books.  I started with Station Eleven, then The Glass Hotel, and now Sea of Tranquility.  I love the threads that weave through these books connecting them in surprising ways.  There’s something so atmospheric, and almost melancholy about her writing.  I can’t get enough of it.  

We only have two episodes of Three-Body season one left.  On the whole I’ve enjoyed it.  The show has remained quite faithful to the book, but the first half of the season could definitely have been trimmed down.  I saw a preview of Netflix’s adaptation which looked expensive but it was telling that most of the cast were western, when the series is based in China with a predominantly Chinese cast.  I don’t see how the story can be transplanted to the west without losing its soul, but I guess we’ll see when Netflix release their version. 

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £69,095.64 (-£876.86). 

Fuck It Fund: £100.00 (no change).

Pensions: £58,646.51 (+£536.29). 

Residential Property Value: £228,006.00 (no change). 

BTL Property Value: £147,133.00 (no change).

Total Assets: £540,981.15 (-£340.57).

Debts

Credit Card: £0.00 (no change).

Loans: £9,800.00 (no change).

Residential Mortgage: £178,674.86 (-£486.94). 

BTL Mortgage: £105,001.75 (-£13.99).

Total Debts: £293,476.61 (-£500.93). 

Total Wealth: £247,504.54 (+£160.36).

Investment Income in 2023: £458.81 (target £8,500).

No major news or developments this week.  Sadly I didn’t win the million-pound prize on the Premium Bonds, but there’s always next month.  Once our BTL is tenanted we will probably increase the payments towards that mortgage slightly as a hedge against property values dropping.  

The model we want to follow for our BTL investment is the Buy, Rent, Refinance model, whereby the increased equity in the property value can be released to fund the purchase of another BTL.  The last couple of years have been difficult for a number of reasons, but we have funds already in place for a second BTL purchase, and it’s just a matter of finding the right property.  The major difficulty we have in finding a property is that both my investment partner and I work, more or less, 9-5.  Trying to get viewings on properties outside these times is challenging.  

Pensions

Although I’ve been paying into pensions for years, it’s only recently that I’ve started paying close attention to my pension accounts.  I have a work pension to which my employer makes substantial contributions.  I also have a SIPP which I invest a little into each month.  A couple of weeks ago I changed the funds my work pension invested in, which should result in a more aggressive investment approach.  Pensions are a long-term investment and should not be overlooked when planning for early retirement.  I may not be able to get my hands on the money in my pension for some time, but between now and then it has a lot of time to compound.  

Have you checked out your workplace pension scheme? Are you getting the most value out of it?  Does your employer increase contributions if you also invest more into the scheme?  Do you understand what your money is invested in?  You should be asking all these questions when it comes to looking at your pensions.  If your employer will pay more into your pension to match your own increased investment, you are leaving free money on the table by not taking advantage of that offer. As always, before you make any changes to your investment strategy make sure you understand what you are doing, and that you understand any/all tax implications.  

I started tracking my pensions in Week 70 and in that time the value of my pensions have increased from £42,806.15 to £58,646.51.

Our Will

Oana and I finally passed the adult milestone of having our wills drawn up.  We used Fogwill and Jones in Sheffield, and their service was great.  Their communications were clear and prompt, and the whole process was much easier than I feared it would be.  The total cost for our wills was £300, which I think is reasonable.  

Having a valid will is so important even when your financial affairs are simple.  It’s even more important when, like Oana, you are not on speaking terms with your family.  Now she can rest easy knowing that her wishes are clearly laid out in writing.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 174

Hello and welcome back to Mortgage Advisor on FIRE.  This week I look at some projections for the next few years, and provide more updates on our BTL.  Also, some thoughts on autism following the recent BBC documentary.

Weekly Update

My recovery from surgery is pretty much complete.  It feels so good to have this issue behind me, and for the first time in a long time I feel I can look ahead without a health issue overshadowing everything.  My priority now is preparing for my next DipFA exam.  I don’t feel as though I’ve been able to prepare well, and I’ve just moved the exam back two weeks to give myself a bit more time.  Assuming I pass this exam, I’ll just have three more to complete.

At the start of the week I had a very poor interaction with the agent managing our BTL.  They were incredibly rude on the phone, interrupting me and almost shouting down the phone.  I was ready to cut ties with them, but they’ve managed to redeem themselves.  As I mentioned last week the tenant who moved out left the property in a bit of a mess.  It was not just dirty, but there was damage to the walls and some of the blinds and curtains.  Our agent has discussed the damage with the tenant and has secured their agreement to not only keep the deposit in full, but also for the tenant to pay something towards the excess damage.  The tenant will be paying back the extra amount in installments, and we’ve already received the first payment.  

On Saturday Oana and I went for lunch with my Dad, and then we made the fatal mistake of going to Meadowhall for some shopping.  I hate Meadowhall at the best of times.  As an autistic person, it’s just too much to face for extended periods.  My Dad is also autistic and finds that place stressful as well.  I’m not quite sure what it is about Meadowhall as other shopping malls are fine.  There’s a massive one in Bucharest that I enjoy visiting when I’m in Romania, but it’s much more chilled out even when busy.  There’s a smaller mall in Sliema, Malta, that I like looking around also.  So, it’s not all malls that lead to stress, but Meadowhall for me is in a league of its own when it comes to stress.

Autism

I don’t talk much about my autistic experience in this blog, but I have mentioned a few times that a major motivator for my FIRE project is the fact I’m autistic and I get burned out in the world of traditional work.  Social interactions exhaust me, but I do enjoy the company of other people.  I’m not anti-social; I just have limited mental stamina when it comes to socialising.  

The recent BBC documentary series Inside our Autistic Minds led to a lightbulb moment regarding my own past.  I’ve found that a lot of people who are identified as autistic later in life have a series of these moments where something from their past suddenly makes sense when viewed through the lens of being autistic.  Anyway, back to my past.  I hated much of school.  I just never felt like I fit in.  Then, when I was fifteen/sixteen I became fairly popular.  I was out drinking and clubbing each week, and had a series of girlfriends, and was generally at the centre of my social circle.  By the end of sixth-form I was done.  I was mentally drained.  I didn’t know what it was at the time, but I no longer felt like I fit.  Friendships that seemed effortless, suddenly became strained.  

After a year out I went to university.  Once again I was popular, with an active social life.  Eighteen months in, I was done.  It was like I hit a wall.  I ended up dropping out of university.  I then got a job with a health insurance company, and it was the same pattern; good social life, and then eighteen months later I burned out again.  I had a few weeks off before starting university again.  You can guess what happened next, right?  This time I made it through to the end of university, getting a first in my dissertation and coming agonisingly close to a first in my degree overall.  The fact remains that, my girlfriend and a couple of lecturers aside, I’m no longer in regular communication with anyone I went to school or university with.  It’s a shame because there are some people I went through school with, and through university with, who I really cared about.  If you are one of those people I went through school or university with and you want to get back in touch, please do reach out.

Back to my original point… What I now realise is that I was masking all that time.  The popular guy, out drinking and clubbing?  That was all a mask; a personality constructed to try and fit in.  Again, this is so common in autistic people.  Had I known then what I know now, I would have gone about things much differently.  I would have taken time out to make sure I never hit that wall of mental exhaustion.  There’s no point torturing myself about it though; I could drive myself crazy thinking “what if”.

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: Three-Body (YouTube), Inside our Autistic Minds (BBC).  Picard (Amazon).

Audiobook: The Lords of the North: Last Kingdom Book 3 by Bernard Cornwell.

Three-Body has improved from episode twenty onward, but I still think thirty episodes is far too much.  The Netflix adaptation will probably have far fewer episodes, and end up rushing through important plot points, but maybe I’ll be surprised.

We’re two episodes into Picard season three.  I thought the first episode was decent enough, but the second episode was quite poor.  Basically, nothing happened.  It felt almost entirely like filler, and after two episodes of a ten episode series that heavily promoted the fact it was a reunion of The Next Generation cast, we’ve only had Picard and Riker interact with each other, a short video message from Dr. Crusher, and a glorified cameo from Worf.  

There are some positives from Picard though.  The show is visually stunning, and the Titan-A looks beautiful.  I also think the captain of the Titan, Liam Shaw, is an interesting character and an entirely different type of Starfleet leader.  Hopefully the show gives us more of what was promised next week.

I’ve got to admit that no nu-Trek has really done it for me.  I’m very much a TNG-era fan of Star Trek.  The problem with the recent Trek shows is that the writers don’t seem to understand what they are writing.  Take Discovery, for example.  At the end of season two the ship and crew are transported almost a thousand years into their future.  They arrive a few decades after “The Burn” which resulted in the destruction of almost all ships that used dilithium (part of the FTL engines that many powers in Star Trek use).  The idea was that the galaxy has regressed to lots of regional powers now that interstellar travel is much more difficult.  This, in itself, is a good basis for a story in the Trek universe.  The problem is that it ignores the fact that, whilst many powers used dilithium, many did not.  So, to accept the story at face value you have to hand wave away literally decades of previous Trek stories.  

In a universe where there are god-like beings all over the galaxy, it would have been a simple enough exercise to come up with some other event that made interstellar travel more difficult.  Off to the top of my head, they could have had a story involving Omega (a molecule introduced in Voyager that can rip the fabric of space apart over vast distances) in which someone is experimenting with the molecule and it creates branches of impassable space throughout the galaxy.  Or, maybe an extradimensional race scoops up all antimatter in the galaxy.  Or perhaps the Q continuum changes the laws of physics.  There are so many possibilities that don’t mess with what’s already happened.

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £69,972.50 (+£354.08). 

Fuck It Fund: £100.00 (+£50.00).

Pensions: £58,110.22 (-£1,416.89). 

Residential Property Value: £228,006.00 (no change). 

BTL Property Value: £147,133.00 (no change).

Total Assets: £541,321.72 (-£1,012.81). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,800.00 (no change).

Residential Mortgage: £179,161.80 (no change). 

BTL Mortgage: £105,015.74 (no change).

Total Debts: £293,977.54 (no change). 

Total Wealth: £247,344.18 (-£1,012.81).

Investment Income in 2023: £458.81 (target £8,500).

Some more investment income dropped in this week, and one of my dividend paying stocks announced how much will be paid out later this year.  I’m expecting two payouts in 2023, and the one just announced will pay me approximately £1,350.  The announced dividend is a slight increase on the year before, and assuming the second payment of 2023 follows that same trend, I should receive roughly £800 in that second payment.  This would account for almost a quarter of my 2023 investment income goal.  

Our BTL will be relisted from 6th March, so I’m hopeful of having it tenanted by the end of March.  

Total Wealth

As many FIRE followers do, I spend a fair amount of time thinking about ways to make money, as well as running projections on how my overall financial position will develop over time.  So, I decided to run a projection for the next three years.  For the purpose of the projection I assumed overall annual growth of 10% on my investments, with my debts reducing by £6,000 each year.  I was pleasantly surprised with the results, which would see my Total Wealth exceed £400,000.  It’s important to note that these projections assume I will not acquire more BTL property, which is probably unlikely.  Still, it’s an interesting exercise.  

I’ve been looking at my ISA contributions for when the new financial year starts.  I don’t think I’m going to use up my whole annual allowance as soon as the new year starts.  Instead, I think I’ll invest monthly and start accumulating funds for our next BTL purchase.  Although I could throw everything I’ve got at my ISA and then sell stocks when I need the money for a BTL, it means that the allowance for that financial year would be used up.  So, it makes more sense to keep the funds in Premium Bonds.  If, at the end of the 2023/2024 tax year I have spare cash, I can then use up any remaining ISA allowance before the 2024/2025 year opens.  

That’s all for this week, so thank you for reading.  Please remember to like, comment, and share.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 173

Hello and welcome back to Mortgage Advisor on FIRE.  BTL updates, and some more awful customer service.  Also, a successful surgery which comes as a huge relief.

Weekly Update

I had my surgery on Monday and it went much better than the first attempt.  This issue with my kidney stone has been ongoing for a few years, and the surgery was put back in 2021 and 2022 due to covid in the wider world, and because on two occasions I tested positive for covid too soon to the planned date of surgery.  I was called in at short notice  for surgery on January 3rd this year, but the procedure did not go well.  The surgeon could not get to the stone and had to fit a stent in the channel that connects the kidney and bladder.  I was also not put to sleep for the operation, which is the normal way of doing things, but was instead given a spinal injection that left me paralysed from the chest down for several hours.  It was not an experience I wanted to repeat.  Following that operation, I was in a rough way for a few weeks after.  The stent was causing aches in my back and side, and I was (sorry to be blunt) urinating blood for a long time after.  So, all things considered, I was not looking forward to the second attempt.  

When I arrived at the hospital on Monday it seemed as though the staff were more aware of my anxiety and I was given a private room, rather than being in a busy ward.  I was first on the list for surgery, and the anaesthetist (a different one from the first operation) was happy to give me a general anaesthetic.  I was also surprised that many of the patients had people with them, as I was under the impression that visitors were not allowed.  I messaged Oana and she came up to the hospital to keep me company.  I was taken to the operating theatre at 13:30, and was back in my room at 15:15.  At first I was worried that the operation had not been successful, but it was soon confirmed that the stone and stent had both been removed.  I had a cup of coffee, and Oana fed me some gluten-free biscuits.  By 17:00 we were ready to leave and ordered an Uber.  

It’s a short distance from the hospital to our apartment.  As my Grandad used to say, “it’s a ten-minute walk if you run.”  At this time of day, it takes longer to drive the distance due to traffic than it does to walk, but I was not strong enough to walk as the anaesthetic was still making me a bit woozy (it’s a word, spell check hasn’t picked it up).  However, for the whole journey, our taxi driver decided to preach to us that his god was real and could have prevented the earthquake in Turkey and Syria.  Oana and I just looked at each other.  What has happened there is horrific, and when people try to twist these tragedies to suit their religious agenda it makes me angry.

When I came home from the first operation I was not in a good way.  I was vomiting and could barely face any food.  I’m convinced much of this was due to the spinal injection.  This time I had a voracious appetite.  Oana made us a curry, with side dishes of rice, potatoes, and salad.  Following this, I had ice cream, chocolate, crisps, and more cookies, and then I slept.  

Although I’ve felt much better than I did following the first operation, I’ve not been what I’d describe as “well”.  I’m easily tired and find myself sleeping a lot.  This seems normal for me when I have a general anaesthetic, with this being the fifth time I’ve experienced it.  I’m just so relieved that the operation went well, and that the pain and discomfort I was in have ended.   

As the week came to an end we received another delivery of Lego, and it’s been keeping us busy.

Customer Service

I firmly believe that customer service is, on the whole, getting worse.  It seems that every time I have to deal with a business something goes wrong, even if that interaction involves no person-to-person interaction.

2023 is going to be an expensive year for us.  We have the following things happening: a two-week cruise, a weekend in Manchester for a gig, a weekend in London for a gig, our kitchen being replaced, and a possible week away later in the year.  I was thinking of the most cost effective way of handling this because the vast majority of my spending goes on an AMEX card that I earn airmiles on.  However, if the balance is not paid up in full each month the interest is pretty high.  Some of these things we have coming up will take a few months to pay down, so I thought I’d pay on the AMEX and then get a balance transfer onto a 0% card.  Sounds easy enough…

I decided to go with Virgin Money.  At the application stage they ask for the card number of the card you are transferring your balance from.  AMEX cards always start with the number “3”, Mastercard with “5”, and Visa with “4”.  So, Virgin knew this was an AMEX right from the start.  My application was accepted.  I received three further communications confirming it was accepted.  Then, a fourth communication stating it was, once again, accepted but with further details regarding my balance transfer.  In short, they could not do the balance transfer because it was an AMEX.  

The fact it couldn’t be done isn’t what annoyed me.  It’s the fact that they had all the information at the start, then confirmed several times it could be done before deciding it couldn’t.  I called Virgin Money and explained I no longer needed the card, and that I also felt it was only right that they remove the credit search as I felt it had been done unnecessarily as the product I was applying for was not as described.  The agent seemed to agree but stated, after speaking with a manager, there was nothing they could do.  So, I’ve gone down the formal complaint route.  I’ll probably drag this out to the ombudsman once I receive their final response letter because fuck them.  

The fun and games doesn’t end there though.  I have a relatively new Nespresso machine and the other day I went to make a coffee but four capsules from the same sleeve were not accepted by the machine.  I couldn’t reuse the capsules as they’d been pierced.  The next capsule was fine though, as were several coffees I made after.  So, it’s obviously an issue with the few capsules from that sleeve and not the machine.  Had it been just one capsule I’d have left it, because it happens from time to time.  I was a bit miffed at wasting half a sleeve though, so I called them up.

The first ten minutes of the call were spent with someone doing something and occasionally they’d ask me to wait for a moment whilst they check something.  Then, they said they had to transfer me to technical support.  I was then blindly transferred to another colleague in the same department, meaning I had to run through all the information again.  After another ten minutes they said they wanted to run some tests on my machine and have me run a cleaning cycle.  I had already explained several times the machine was working correctly both before and after the incident with the capsules, so it was not a machine issue.  Eventually I just gave up.  All I’d asked for was a partial credit for those four capsules, which equates to about £2.50.  I just explained to the agent it was not worth all this time for four capsules.  I wasn’t rude, aggressive, hostile or anything like that, I just explained I’d not been on the phone for 25 minutes for something that honestly wasn’t worth the time.  

Finally we come to the dipshit of the year so far; British Gas.  Later in this post you will find out that my BTL transfer has been cancelled, but for now you just need to know that it’s been cancelled.  Anyway, my investment partner who was going to move into the property was looking at getting the prepayment electric meter replaced with a smart meter.  The prepayment meter has been in there since we bought it and our tenants have not chosen to replace it.  My IP contacted British Gas to enquire about them fitting a smart meter when he moves in, taking great care to explain that the property was currently tenanted.  Someone at their side got a bit carried away and decided to take over the supply of gas and electricity whilst our tenants were still in the property.  To compound their mistake, they stated it couldn’t be corrected for several months.  So, as of right now it’s not clear which company is providing the gas and electricity.  Also, because the electricity is on a prepayment meter, if we top it up with the key we have from the old provider, will it still work?

The tenants have moved out and there was no issue raised about their supply.  As for who is providing electricity and gas right now, we have no clue.  British Gas keep asking for meter readings though.  I can’t see how this is legal because if I was to move into that property today, I’d need power to the property.  There must be some provision for this set of circumstances that is better than, “wait a few weeks or months” for British Gas to get their finger out.  

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: Three-Body (YouTube), Inside our Autistic Minds (BBC).

Audiobook: The Pale Horseman: Last Kingdom Book 2 by Bernard Cornwell.

Earlier in the week I was told about a show on the BBC, Inside our Autistic Minds.  It’s a two-part show, with the second part airing this coming week.  The first episode followed two autistic people; a young, non-speaking autistic man, and a young autistic woman.  Both of them came across well, and their bravery at opening up to the world was humbling.  It was a very emotional show and I’ll admit I teared up at times.  The young man who couldn’t speak communicates through a tablet.  He was articulate, intelligent, and frustrated at not being able to take part in conversations in real time.  As he opened up about his life, he was almost poetic.  I’m looking forward to the next episode.  

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £69,618.42 (-£1,023.03). 

Fuck It Fund: £50.00 (no change).

Pensions: £59,527.11 (+£956.67). 

Residential Property Value: £228,006.00 (no change). 

BTL Property Value: £147,133.00 (no change).

Total Assets: £542,334.53 (+£147,066.64).

Debts

Credit Card: £0.00 (no change).

Loans: £9,800.00 (no change).

Residential Mortgage: £179,161.80 (no change). 

BTL Mortgage: £105,015.74 (no change).

Total Debts: £293,977.54 (+£105,015.74). 

Total Wealth: £248,356.99 (+£42,050.90).

Investment Income in 2023: £310.46 (target £8,500).

BTL Stuff

So, a funny thing happened, the transfer of my BTL was called off right at the very last moment.  Basically, I was selling my share in the BTL to my investment partner and they were going to live there.  However, the more they thought about their living situation, the more uneasy they felt about moving into that house.  So, they asked if I’d be ok cancelling the transfer, and I was.

By this point, the tenants had moved out of the property and the agent had contacted us to explain they were very unhappy with the state the property had been left in.  We feared the worst, remembering how badly the previous tenant had trashed the property before moving out.  It cost us several thousand pounds to put the property right, and we were worried our investment was for nothing.  Having seen photos of the state of the property, it could have been much worse.  The main issue is that it’s filthy; the tenants did not clean up after themselves.  Also, there is a smell that seems to have permeated the house.  Another point that has pissed me off relates to some building work we had completed, to prevent moisture from coming into the property from outside.  The builders we hired, on the recommendation of the agent, do not seem to have completed the work to a satisfactory standard as moisture is still entering the property in the same location, as the picture below shows:

I’m hopeful that we can get the repair work done quickly so we can get this property back on the market.

It’s important to point out that my finances look better than they are, as I still have the money from my investment partner that was payment for my share of the BTL.  That money will be returned but, because I’d already invested it, it will be some time until I return it in full.  

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 172

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss a strategy for free money.  Also, some thoughts on Coast FIRE, and more Lego sets ordered and built.

Weekly Update

It’s that time of the week again when I’m prepping for surgery on Monday.  I have been trying to get a date sorted on the private route but the earliest I could be seen would be April, and I’m in increasing levels of discomfort, so I’m just going to have to bite the bullet and have the operation on Monday.

I’m still apprehensive about another spinal injection, but I might just need to suck it up and do it.  This kidney stone issue has been hanging over my head since 2019 and it needs sorting as soon as possible.

We had some more Lego delivered this week, which we’ve assembled.  Pictured below are sets #10313 and #10280.  We’ve also ordered some more sets that should come next week.  One of them, The Great Wave (#31208) has been out of stock for a while.  I received an email on Friday evening stating it was back in stock, and within a few minutes I’d ordered it.  I’ve just checked now (8am Saturday) and it’s out of stock again.  It’s a very popular set, it seems.  

Another set I’ve ordered is The A-Frame Cabin (#21338).  I would love a house like this eventually, preferably in a small village in the Norwegian fjords.  

Free Money

Do you want free money?  I’m guessing you do.  Who wouldn’t?  Well, the other day I was thinking about investing and I had a light bulb moment.  I’ve investigated, and it seems like my idea is fine and does not break any rules or regulations.  There are three factors you need to be aware of initially:

1 – Income that is generated from investments held in a stocks and shares ISA is tax-free.

2 – As a basic rate tax-payer, I receive a 25% tax rebate on investments made to my SIPP.  

3 – The tax rebate is payable so long as my investments in the SIPP are covered by my earned income (I checked this point with my ISA and SIPP provider).  

Some of you will have already worked out the strategy I’m referring to, but if you haven’t I will explain with an example.

Let’s say you have investments in your ISA and you receive £100 income.  You can take that income out of your ISA and not pay any tax on it.  You can then invest that money into your SIPP, and your SIPP provider will claim the 25% rebate, turning your £100 into £125.  

It’s important to remember that money held in a SIPP is not as readily accessible as that held in an ISA, so this approach is not suitable for everyone.  Also, once money is taken out of an ISA it cannot always be reinvested in the same tax year, as you are subject to the £20,000 annual subscription limit.  Also, there are limits on what you can invest in a SIPP and still receive the tax benefits.  My provider explained that if you are earning £20,000p/a, you cannot invest more than that into your SIPP and claim tax relief, as all investments have to be covered by an earned income that at least matches your SIPP contributions.  I.e. if you invest £30,000 into your SIPP in a tax year, your earned income has to be at least £30,000 for that tax year.  

I can’t stress the point enough that this approach may not be suitable for everyone, and if you pay tax at a different rate it may impact the benefits available, and the laws that apply.  Before following any investment strategy you must complete your research and seek advice tailored to your circumstances.  

This strategy demonstrates something that I’ve often said in this blog; money is a game, and if you know the rules you will be much more successful.  The problem is that when I try to explain this strategy or explain how passive investing works, people seem interested but then just go back to making the same financial mistakes they’ve always made.  The most common question I’m asked when people find out about my finances and plans, is how can I afford it?  The answer is pretty simple, but not many people like hearing it; no kids, no cars.  Almost everyone I know in my age bracket has kids and cars, and I’m not judging anyone who chooses to start a family.  There are two factors at play; planning and prioritising.  Children are expensive, but rather than waiting until they have a solid financial base, many people have kids and use credit cards and loans to pay for them.  I find the habits of people, and their cars, to be more frustrating.  So many people I know will spend a huge sum each month financing a new(ish) car.  They’ll keep it for a couple of years, and then trade it in for something else that costs “just a little bit more”.  It’s like replacing your perfectly decent iPhone with a brand-new model every few months.  It’s financial madness.

Cars are money pits.  The average commute to work in the UK is 27 minutes (thank you google).  Assuming that the average person uses their car for four hours per day (I think this is probably a huge overestimation) then, for this example we can say that the average car is not in use for roughly 84% of the time.  Some estimates suggest cars are not in use for 95% of the time.  Why would anyone spend hundreds of pounds every month on something that is hardly used, when there is a much cheaper alternative?  Why would someone break the bank to pay for an Audi, for example, when a Dacia has the same number of wheels and performs the same tasks?  I understand that many people need a car, but the blunt truth is that many people spend more money than needed on a brand, and then complain they have no money.  

If you want to build wealth, the processes involved are not complicated, but they will require a fundamental rethink of everything you think you know about money.  

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

I’m going to have to cancel my distance challenge for 2023.  My health problems are getting in the way.  I might revisit it at a later date.  

What Am I Doing?

TV: Three Body 

Audiobook: The Last Kingdom: Book 1 of The Last Kingdom series.

I’ve listened to some excellent audiobooks over the past week.  The End of Men by Christina Sweeney-Baird was excellent.  It’s a story of a plague that sweeps the world killing only men.  The style reminded me of World War Z (the fantastic book, and not the film) with the story following a wide cast of characters around the world.  I also finished a French book, The Anomaly by Herve le Teller, which suffered from a great premise, an excellent start and middle, and a somewhat disappointing end.  

We have also started watching the Chinese adaptation of Three Body, based on the Three Body Problem series by Cixin Liu.  Regular readers of my blog will be familiar with this series, as I’ve mentioned it several times.  We are six episodes in and thoroughly enjoying it.  The first season is over thirty episodes long, which is unusual when compared to many US and UK shows.  There is a US version in the works for Netflix but I’m not holding out much hope.  So much of the story is rooted in Chinese society and culture, and the Netflix adaptation seems to be ignoring that.  If you want to watch the Chinese version, the series is free to watch on YouTube, but just be prepared for lots of adverts.  

Financial Update

Assets

Premium Bonds: £38,000.00 (no change). 

Stocks and Shares ISA: £70,641.45 (-£144.85). 

Fuck It Fund: £50.00 (no change).

Pensions: £58,570.44 (-£745.12). 

Residential Property Value: £228,006.00 (no change). 

Total Assets: £395,267.89 (-£889.97). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,800.00 (-£100.00).

Residential Mortgage: £179,161.80 (no change). 

Total Debts: £188,961.80 (-£100.00). 

Total Wealth: £206,306.09 (-£789.97).

Investment Income in 2023: £310.46 (target £8,500).

No major changes this week, just the usual fluctuations in the stock market.  Later this month I should have a better idea of what dividends will be forthcoming in the first half of 2023.  

Coast FIRE

I was doing some number crunching after talking with a friend who is also following a FIRE plan, and I was pleasantly surprised by what I found.  The first point relates to Coast FIRE, which is where you have a pot of money saved and you are happy to just let compounding gains increase the size of that pot until retirement with little, or no, extra investments being made.  So, as a quick calculation, if I lumped my pensions, ISA, and Premium Bonds into a single pot and assumed a mid-range growth rate of 4.5%, by the time I could draw my state pension, the overall investment pot could be worth £588,000.  Assuming a 4% withdrawal rate, it would provide an annual income of around £23,500.  Not bad, especially as this calculation assumes no further contributions are made to these investment pots from my income.

Assuming that I continue to contribute to my investments for a further decade, and then let my investments coast, the numbers are even better with the final pot totalling just under £900,000.  Compound growth is so powerful.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 171

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss the sale of my BTL, and explain briefly how mortgage interest is calculated.  Also, more health problems, and thoughts on The Last Kingdom.

Weekly Update

The planned surgery on Monday didn’t happen.  I was feeling too rough on Sunday evening into Monday morning, and so it’s been pushed back.  I think the stress of a possible spinal injection, and hours spent waiting around in a busy NHS ward was building up in my mind.  I’m not afraid of hospitals, but I find the waiting around, the hustle and bustle, and the fact that the procedure itself is not exactly fun, all incredibly stressful.  The fact I’m autistic adds to this to create a perfect storm of stress and anxiety.

I’ve been exploring the possibility of being seen privately but for some reason the urologists in Sheffield all seem busy, and the earliest I could be operated on would be April.  I don’t think I can wait that long.  So, I’m waiting to hear back from the NHS about a new date.

We’ve booked another little trip for later this year as we’re going to see Kygo in London.  It’s not my favourite type of music but Oana loves it, and it’ll be nice to have a couple of days in London.  

I finished up the week with a trip to hospital with Oana.  On our way back into town we stopped for a meal at a Turkish restaurant we like.  They serve a meal of chicken cooked on a skewer with rice and salad.  It’s simple food but fresh and very tasty.  On Saturday I met my Dad and we decided to brave the local shopping centre, Meadowhall.  We had a coffee, bought a few bits, looked in the Lego shop, by which point we’d both reached our limit with the mall.  There’s only so much I can take of crowds of people aimlessly meandering around, with all the noise, flashing lights from the signs on stores, and the smells coming from shops like Lush.  It’s an autistic nightmare.

Gluten Intolerance

For as long as I can remember I’ve struggled with gastrointestinal problems.  I’ve had test after test to try and identify what the hell is causing my symptoms, including tests for gluten intolerance which have all come back negative.  It’s been awful at times dealing with this.

A few weeks ago I happened to notice that my symptoms were much improved.  The only thing that had changed was that I’d not had any bread or pasta for a few days.  A lightbulb came on inside my head.

I had a chat with my GP who ordered more blood tests but for the first time I had something explained to me.  The GP stated that the tests for gluten sensitivity are not completely reliable, and it’s not that uncommon to get a negative result even though you are sensitive to gluten.  She said I should try avoiding gluten for a while, and then reintroduce it, and see what differences I notice.   Also, it’s possible for gluten intolerance to arise, or worsen, at any age.  Well… Fuck.

What I’ve noticed over the last few weeks is that if I have gluten, I have a bad time of it for a few days after.  This includes stomach cramps and back aches, indigestion, and a host of other problems.  As one often does when confronted with a health issue, I turned to google.

A couple of other things I’ve learned about eating gluten; it can cause tiredness and mental fog, and can lead to permanent damage to the gastrointestinal system.  Well… double fuck. 

It’s clear I need to do more research, and I’m going to look for some subreddits which might be helpful.  If you are reading this and have any advice about avoiding gluten, and strategies to cope without gluten, I’d appreciate any suggestions or advice. 

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger, and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

I’m going to have to cancel my distance challenge for 2023.  My health problems are getting in the way.  I might revisit it at a later date.  

What Am I Doing?

TV: The Last Kingdom.

Audiobook: Khaos: Infinite Timeline by Jeremy Robinson.

This week we finished the final season of The Last Kingdom, and it was incredible.  This show should be more popular, considering the success of Game of Thrones.  I don’t say this lightly, because for a time Game of Thrones was excellent, but overall The Last Kingdom is the superior show.  Where Game of Thrones started a little weak, peaked halfway through its run, and then declined, The Last Kingdom started strong and just got better and better.  I’ve read the first ten books of The Last Kingdom, and I’m going to start them again from the beginning soon.

Financial Update

Assets

Premium Bonds: £38,000.00 (+£18,000.00). 

Stocks and Shares ISA: £70,786.30 (+£879.91). 

Fuck It Fund: £50.00 (no change).

Pensions: £59,315.56 (+£2,003.88). 

Residential Property Value: £228,006.00 (no change). 

Buy-to-Let Property Value: £0.00 (-£147,133.00). 

Total Assets: £396,157.86 (-£126,249.21). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,900.00 (no change).

Residential Mortgage: £179,161.80 (-£433.31). 

Buy-to-Let Mortgage: £0.00 (-£105,015.74). 

Total Debts: £189,061.80 (-£105,449.05). 

Total Wealth: £207,096.06 (-£20,800.16).

Investment Income in 2023: £285.46 (target £8,500).

Huge changes this week as the transfer of my BTL completes.  I’ve received payment in full which explains the boost to my Premium Bonds.  Several thousand of the payment was taken out of my FIRE project to pay for some upcoming trips and work to our apartment, but even with that my finances are looking quite healthy.  

The impact to my wealth figure looks negative but it’s purely an artefact of how the numbers are calculated for a mortgaged property.  When you have a joint mortgage, most of the time, each person is wholly and jointly responsible for the debt.  So if one person decides to stop paying, or if they die, the remaining party is still responsible for 100% of the debt.  That’s how I’d calculated it on my FIRE spreadsheet, so despite me getting full payment for my share of the property, it looks like I’ve lost money.  I could have used my share of the debt and value for the purposes of this blog, but it seemed unusually complex so I opted for the simpler option.

I’ve put most of my payment into Premium Bonds because I’ve already used up my ISA allowance for this financial year.  Once the new year starts in April, I’ll have a decision to make about how to use those funds.  

Although I’ve sold my BTL, it doesn’t mean I’ve given up on BTL completely.  I will look for more property in the future, but it will probably not be until 2024 at the earliest.  I want to see what happens with the EPC laws that are due to come into effect in 2025, and I also want to see some sanity restored in the mortgage market.  

My residential mortgage rates are coming to an end soon.  I have multiple sub-accounts with four different rates.  The bulk of my mortgage (£130k+) is on a fixed rate of 0.81%, with the remaining balances on rates between 2%-3%.  The 0.81% rate is ending in January 2024, with some of the other rates ending in July and October this year.

If I was to switch to an available rate now, my monthly payment would increase by a couple of hundred quid.  We can absorb that increase but I’d rather not have to.  There are plenty of people, though, who are already at the absolute limit of what they can afford.  In situations where you literally can’t budget any more effectively, then you need to seek expert help.  One thing I would stress is do not bury your head in the sand.  If you are struggling to pay your mortgage, contact your lender and explain the situation.  Lenders have a duty to help as much as possible, and repossession is an absolute last resort. 

In the coming months I expect that we’ll increase our mortgage payments to try and bring the balance down more quickly.  This means that increases to interest rates are somewhat mitigated, because interest is typically calculated daily.  If you bring your balance down faster, the interest is charged against the lower balance, for example…

A £200,000 mortgage over a term of 25 years, with a rate of 5% produces a monthly payment of £1,170, of which interest makes up roughly £834.  This means that the mortgage debt would reduce by (£1,170 – £834) £336.  The following month, the mortgage balance is £199,664, meaning the interest portion of the monthly payment is £833.  This is why many people say that in the first few years of the mortgage you are mostly paying interest.  Over time, your mortgage payment may stay the same but as the balance reduces the amount of that payment which is interest reduces.

Using the same example, but with a term of 18 years, the figures look like this; the monthly payment is £1,406 with £834 of that payment being interest.  The mortgage balance comes down by £572, meaning the balance in month two is £199,428.  As such, the interest in month two is £832.  

When you look at the difference month-to-month, it doesn’t look like more than a drop in the ocean.  The thing to remember is that even the largest ocean is made up of drops.  If you can afford to pay more off your mortgage, it will reduce the balance and reduce the interest charged.  

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 170

Why FIRE?

I find “why” to be one of the most useful questions I can ask myself, as it can strike to the heart of the matter in ways “what” or “when” simply can’t. In Japan, Sakichi Toyoda developed the Five Whys for use within the Toyota Motor Corporation. The idea is that you can drill down to the root cause of an issue by asking Five Whys. Wikipedia gives the following example;

credit: https://en.wikipedia.org/wiki/Five_whys

There’s no specific reason for there being five whys, and you should not be fixated on always asking why a set number of times. It’s the principle of asking the question until you arrive at the simple, core truth.

I recently asked “Why?” on the FIREUK subreddit. Some of the responses were interesting, and I’ll share some of them here. I’ve grouped them into themes I saw repeated.

Fear

Hate Working/Feeling Undervalued

Wanting to be left alone…

FIRE seems to be gaining more and more followers, and I can’t say I’m surprised. It used to be the case that most people I knew were content or satisfied with their employment. Almost everyone I’m friends with, or related to, is seemingly unhappy in work. It’s strange, and worrying for the future. If more people retire early, then the economy could be in serious trouble. An aging population, which doesn’t pay much, if any tax, alongside a significant number of younger people retiring early and further reducing the money paid in tax, will make it difficult for the government to balance the books.

What’s the answer?

For a start, I think we need to move away from the 35-40 hour work week being considered normal. Covid has shown that many companies can make major changes to their ways of working at short notice and still thrive. If we decided, as a society, that a maximum 30 hour working week, for the same money, was the new normal, would it really cause harm? Or would it result in a happier, and healthier, population?

Weekly Update

I’ve heard from the hospital and I’m having the second part of my kidney stone operation on Monday.  I really, really don’t want to have a spinal injection again.  I’ve tried to explain why to a few people, but it’s difficult to put into words.  I’m sure there’s a word for what I’m about to explain, and if you know what it is, please let me know.  

When you have an injury, and it’s painful, and sometime later you think back to it and it’s almost like you’re back there and can feel the pain all over again.  It’s similar to when you throw up and then later when you think about what led you to vomit, you start feeling sick again.  Someone suggested it’s a form of PTSD.  I think that might be a bit extreme, but it’s in the same sort of ballpark for what I’m describing.  Anyway, I’ve had a couple of spinal injections over the years and it’s a horrible experience.  Whenever I think back to it, it’s like my back seizes up again and I can feel the needle in my back.  Even as I’m writing this, I’m uncomfortable.  The operation should be done under general anaesthetic and I think I will push for that this time.  The reason I was given for not having general anaesthetic the first time was because of my weight.  I was just over what they felt comfortable with, but having thought about it, when I was weighed at the pre-op assessment, they weighed me as I was wearing all my clothes, with my phone, wallet, and keys in my pocket.  Also, since the pre-op last year, I have lost some weight. 

On Friday night we had a friend over for dinner who we’ve not seen since 2018.  It was touch and go whether he was going to make it as he’s not been feeling too good recently.  In the end, he was able to come over and we all had a good catch-up, talking about holidays, tv, money, and conspiracy theories.  Hopefully, it will not be another five years until we meet up again.  

Saturday saw us go for lunch with my Dad to Juke & Loe @ The Milestone.  I had salmon gravlax for starter, with beef and bone marrow for my main, with a honey and malted milk parfait for dessert.  All three of us enjoyed every course.

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger, and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: The Last Kingdom (Netflix).

Audiobook: Tribe: Infinite Timeline by Jeremy Robinson.

We’ve just about finished season four of The Last Kingdom and we’ve really enjoyed it.  Although it deviates a little from the books, it’s remains faithful in spirit.  I’ve also just finished Tribe by Jeremy Robinson, which is my second time reading it.  Surprisingly I’ve not really enjoyed Tribe this time around.  It’s strange because I’m generally a big fan of Jeremy Robinson. 

Financial Update

Assets

Premium Bonds: £20,000.00 (+£200.00). 

Stocks and Shares ISA: £69,906.39 (+£2,690.65). 

Fuck It Fund: £50.00 (no change).

Pensions: £57,311.68 (+£941.65). 

Residential Property Value: £228,006.00 (no change). 

Buy-to-Let Property Value: £147,133.00 (no change). 

Total Assets: £522,407.07 (+£3,832.30). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,900.00 (no change).

Residential Mortgage: £179,595.11 (no change). 

Buy-to-Let Mortgage: £105,015.74 (no change). 

Total Debts: £294,510.85 (no change). 

Total Wealth: £227,896.22 (+£3,832.30).

Investment Income in 2023: £285.46 (target £8,500).

We now have a date for our tenants to move out, and they’ll be leaving in two weeks.  This means that the transfer of ownership will be going through fairly soon.  I keep changing my mind about how I’ll invest the money when it comes through, but I can’t do anything with my ISA until the new tax year starts as I’ve used up all my allowance for the current financial year.

On the subject of my ISA, I was chatting with my friend who came over on Friday about investing.  He also wants to be out of the rat race, and I was explaining that regular, passive, investing will bring financial comfort but it takes time.  It’s not a get-rich-quick scheme.  I started looking at the overall gains I’ve made from my ISA since I set it up.  In total, I’m £17,390.75 in profit.  That’s not a bad return.

If you have spare money, building wealth is not complicated.  It’s based on simple concepts and you just have to be patient, and resist the urge to tinker with your investments too frequently.  Although I still believe that property will be an important part of my FIRE plans, I’m slowly coming to the conclusion that the ISA is going to be a much bigger part than I originally realised.  

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 169

Hello and welcome back to Mortgage Advisor on FIRE.  A strange one this week as I’d put together a whole blog post which, on reflection, may have caused me some problems.  So, I ended up deleting a thousand or so words and tweaking what was left.  No, I will not comment on what was deleted.

Weekly Update

I had an interesting meeting about my apartment’s service charges this week.  You may remember a couple of weeks ago I wrote about how the charges have increased by almost 50% in just a couple of years.  Well, one of the people with some units in the development reached out to me to see if we could meet up to discuss some of what is happening behind the scenes.  It was fascinating and worrying in equal measure.  I can’t go into too much detail until some of these issues are resolved, but if you are paying service charges and are concerned about how your money is being used I would suggest you get involved with your local management company.  

I returned to work this week following my enforced absence as I recover from surgery.  It’s frustrating because it now looks as though I’m going to wait until mid-February for the next operation.  This means I’m going to struggle to get my teeth stuck into anything significant before I am in the hospital again.

On Saturday I went for lunch with Oana at Lucky Fox, a fried chicken place.  I had the “chick ‘n’ waffles” and Oana had “chick ‘n’ fries”.  We probably ordered a bit too much, but it was goooood.  My waffles came with cinnamon butter and maple syrup.  Now, there’s no Earthly reason why waffles, fried chicken, cinnamon butter, and chicken gravy should work, but they do and it was an almost spiritual experience. 

Following lunch we went to the Millenium Gallery and looked around the From Sky to Sea exhibit.  There were some great pieces on display.  I love the sea, and those close to me know that, in my mind, nothing compares to the feeling I get from being by the coast.  Some of the paintings helped bring that feeling of peace.  I can’t wait for our cruise later this year… 

I’ve decided that I’m going to resume my DipFA studies.  I’ve been debating whether or not to pick it up again for a while, but after speaking with Oana and talking through our plans for the coming months and years, it feels like a sensible decision.  

My Home Office

It’s starting to come together at last and is feeling like a chilled-out space for work.  I’ve got lots of stuff dotted around the walls and shelves but it no longer feels cramped and claustrophobic.  This week I’ve finished three new Lego sets; my Optimus Prime, Lunar Lander, and a fun birdhouse model.  

Oana has done a great job organising everything and making it a nice space to not just work, but for us to chill out in when we want to listen to some music and work on various bits and pieces.  

Health

My recovery from surgery is going well.  I’m just impatient to get the final procedure completed.  My elbow, which has been a source of intense pain for months now, finally feels like it’s getting better.  To help with exercise whilst I wait for my elbow to heal, we’ve bought an exercise bike.  Hopefully, it will fulfil its primary purpose and not end up as a laundry hanger.

A friend of mine and Oana’s was talking to us the other day and he said it was a shame I’ve not been able to do much exercise recently.  In his words, I seemed so much more content, and alive, when I was in my groove at the gym.  It’s true, weight training always does wonders for my mental health.

How To Support Mortgage Advisor on FIRE

If you would like to show your support, please consider making a donation to my virtual tip jar at my page on Buy Me A Coffee.  You can use the link below, or click on the picture to be taken to my supporter page.  

https://www.buymeacoffee.com/davidscothern

Alternatively, please consider sharing this blog on your social media.  Shares are the most valuable commodity for any blogger, and the most difficult thing to earn.  

Thanks, as always for your interest and support.

2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: The Last Kingdom (Netflix)

Audiobook: 9/11 The Conspiracy Theories by David Gardner.

We’ve started The Last Kingdom again as we’ve only seen the first few seasons.  I still need to read the last few books in the series as well.  I’d forgotten how strong the show was almost from the start.  

I’ve found 9/11 The Conspiracy Theories interesting, although some of the more fanciful theories are more than a little batshit.  There are some who believe that the planes hitting the towers were nothing more than holograms.  Some of the more plausible theories relating to 7 World Trade Centre are not easily explained away, such as how it came down so uniformly.  One theory suggests that explosives were planted throughout the building during a refit of the building’s elevators.  With any conspiracy theory, there are two main questions I always ask; why? and who?

The first question, why, is often fairly easy to answer.  The answer is almost always related to money.  The second question is where most conspiracy theories fall down, in my opinion.  Take the moon landings as an example, or the idea that the Earth is flat.  So many thousands of people would have to be in on the secret for it to collapse under its own weight.  Do I believe we know the full story behind 9/11?  Not a chance.  Do I believe it was a false flag operation? Almost certainly not as too many people would have to be in the know.  Was it a major failure of intelligence?  Probably.  Generally, the more extravagant and far-reaching the conspiracy theory, the more people have to be involved, and every extra person involved makes it that much more likely that the conspiracy will implode. 

Financial Update

Assets

Premium Bonds: £19,800.00 (+£450.00). 

Stocks and Shares ISA: £67,215.74 (-£501.27). 

Fuck It Fund: £50.00 (+£50.00).

Pensions: £56,370.03 (-£786.83). 

Residential Property Value: £228,006.00 (no change). 

Buy-to-Let Property Value: £147,133.00 (no change). 

Total Assets: £518,574.77 (-£788.10).

Debts

Credit Card: £0.00 (no change).

Loans: £9,900.00 (no change).

Residential Mortgage: £179,595.11 (no change). 

Buy-to-Let Mortgage: £105,015.74 (no change). 

Total Debts: £294,510.85 (no change). 

Total Wealth: £224,063.92 (-£788.10).

Investment Income in 2023: £220.46 (target £8,500).

Not much to talk about financially this week.  There always seems to be a lull between the New Year and the new financial year.  This lull, coupled with the imminent transfer of my share in the BTL, means I’m in something of a holding pattern for now.  Once the money comes through for the BTL, I’ll be able to start planning the next phase of my FIRE project. 

When I first started planning for FIRE, I believed I could hit my targets by the end of 2023.  Had it not been for *deep breath* Brexit, Covid, The War in Ukraine, Truss-Kwarteng, then I believe I’d be much further along.  I joked to Oana at lunch on Saturday that I’ve had enough once-in-a-lifetime events to last, well, a lifetime.  Assuming no other major events, I’m probably still 2-3 years away from being able to FIRE.

It’s interesting to look back at how my plans have evolved.  Initially, the plan was for us to retire to Romania, where we had Oana’s family, and many mutual friends.  Unfortunately, the complete breakdown of our relationship with her family killed any chance of that.  I mean, we could still do it, but one of the major reasons for choosing Romania was so Oana could be close to her family.  Now, we are dreaming of Spain.  We love the language, the culture, and the weather.  It will be more complicated than Romania as we will not have the same in-built support network, but it’s our current dream.  Maybe it will not be possible, but the FIRE plan is not wholly dependent on the destination.  Maybe we will end up in Spain.  Maybe in Canada.  Maybe in Malta.  It just needs to be somewhere else.

Like I always say, my FIRE plan is flexible.  The process is more important than the end result.  I can control the process of investing, and if I stick with it the result will take care of itself.  

Thanks for reading, and have a great week. 

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern

Part 168

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss the drop in property values, and the probable recession we may find ourselves in.  Also, the usual financial updates, a bit of Lego, and some good food this weekend.

Weekly Update

I’ve spent most of the week still recovering from my op the week before.  On Monday I was not feeling in a great way and I called the helpline number I was given if I had questions about my recovery.  I was asked to come up to the hospital immediately for some scans.  It appears that the stent I have between my kidney and bladder is causing irritation, but I can’t have the stent removed until I have the next operation.  I was originally told that it would take place 2-3 weeks after the first one, but it looks like that timetable has been pushed back a week or so.  The sooner it’s done, the better.  

I’ve tried to get out and about for some light walks but I have no energy, and the pain and discomfort are, well, uncomfortable when I walk.  I’m itching to get back to some sort of normal routine.  Once I’ve got this kidney problem sorted I’ll be on the countdown to the summer, where I have a Coldplay concert and a two-week cruise around Norway to look forward to.  It sometimes feels as though life is just waiting for the next thing to start, as we wait for the next holiday, the next event, the next birthday, and so on.

Speaking of birthdays, it’s Oana’s birthday this weekend.  Although she’s not feeling hugely excited about getting older, I’m incredibly proud of her.  She came to this country when she was just 18 years old, and having grown up in a fairly affluent household she had never had to work for anything herself.  Armed with no experience, she carved out her own life, and all her successes are her own.  She’s earned an undergraduate degree, postgraduate qualifications, professional qualifications such as CeMAP, and a whole list of other certificates and awards.  She’s financially comfortable and independent in her own right.  Everything she has done, she’s earned herself through hard work, an iron will, and a determination to stand on her own two feet.  Everything she has achieved is in spite of those who’ve tried to hold her back, and despite having a lot of shit thrown her way over the years, she keeps picking herself up and moving forward.  She’s my best friend, my partner, and I know she’ll continue to go from strength to strength.

We’re having a low-key weekend.  We’re making some food and just going to relax as much as possible.  As I write this on Saturday afternoon, we’ve had some great food.  I made a butterbean, chickpea, and pearl barley soup.  Oana made some French potatoes, and we made a dessert that was so good it was almost a spiritual experience.  We made baked nectarines, with syrup made from orange, star anise, and cinnamon.  We made an orange, honey, and mascarpone cream, and served with a pistachio crumb.  See the pic below:

On Sunday my Dad is coming over and we are making enchiladas.  We’ve already made a couple of desserts including lemon and raspberry pots, and chocolate tiffin.  All in all, it’s been a good day for food.  

Lego

I’ve had a few more Lego sets delivered this week, including the Lunar Lander, and Optimus Prime.  I’ve also been assembling some of my older sets, some of which date back to the 1980s.  I’m still disappointed that my Lego Rocinante could not be completed.  Once I’ve organised some more of my older sets, I’ll dismantle the Rocinante and use the parts for other models.  I’d like to find a design for the Donnager-class battleships from The Expanse, but the only ones I can find have mixed reviews.  

Another model I’d love to build is Hillsborough stadium; home of Sheffield Wednesday F.C.  A google search led me to Chris Smith, and his website, brickstand.com.  He’s aiming to build The 92; the stadia of the 92 football league clubs.  I’ve exchanged a few messages with Chris and he’s given me some hints and tips for building Hillsborough, but unfortunately, he doesn’t have a full set of instructions.  If anyone out there has a full design for Hillsborough including a parts list, let me know as I’ll pay good money for a good design.

Credit: http://www.brickstand.com

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2023 Goals

Click here to see my 2023 progress (opens a new tab). 

What Am I Doing?

TV: If Only (Netflix). Taco Chronicles (Netflix).

Audiobook: Infinite Timeline by Jeremy Robinson, & How To Kill Your Family by Bella Mackie.  

If Only (Spanish title: Si lo hubiera sabido) was good fun.  It’s an eight-part series based in Seville and tells the story of Emma, a young woman trapped in an unhappy marriage.  One night, when there’s a Blood Moon, she travels ten years back in time into her younger body.  For the most part, it’s a light hearted Rom-Com which occasionally delves into darker territory.  Although I really enjoyed it, I hope it’s not renewed for a second season as it’s a complete story as is.  Sometimes, shows only need a single season, and if there’s no more story to tell then there’s no point dragging it out for the sake of it. 

We’ve also resumed watching Taco Chronicles on Netflix.  It is literally a documentary series about the different types of taco served across the different regions of Mexico.  It’s really interesting, and the things that these people can do with combinations of meats, salsas and tortillas are just mindblowing.  The show doesn’t just describe the different types of tacos.  It also delves into the history and culture of each region, showing how and why the people devised different ways of cooking.  If you like tacos, watch this show.  If you don’t like tacos, watch this show and you’ll soon learn to love tacos.  

I also really enjoyed How To Kill Your Family, which tells the story of another young woman, Grace, who is tracking down and murdering her estranged family.  The story kept me guessing, and I found myself not wanting it to end.  I think HTKYF will end up being high on my list of 2023’s favourite books.  

In between books that count towards my 2023 book challenge I’ve been revisiting the Infinite Timeline by Jeremy Robinson.  For those who don’t know, the Infinite Timeline is a series of a dozen or so standalone books that all come together for a big crossover event.  The stories that make up the timeline are a mix of sci-fi and horror.  The combination of Jeremy’s writing, and R.C. Bray’s fantastic narration is fantastic.  If you like sci-fi, horror, and a good amount of humour, you should check it out. 

Financial Update

Assets

Premium Bonds: £19,350.00 (no change). 

Stocks and Shares ISA: £67,717.01 (+£1,788.61). 

Fuck It Fund: £0.00 (no change).

Pensions: £57,156.86 (+£1,161.41). 

Residential Property Value: £228,006.00 (-£5,983.00). 

Buy-to-Let Property Value: £147,133.00 (-£3,860.00). 

Total Assets: £519,362.87 (-£6,892.98). 

Debts

Credit Card: £0.00 (no change).

Loans: £9,900.00 (-£100.00).

Residential Mortgage: £179,595.11 (no change). 

Buy-to-Let Mortgage: £105,015.74 (no change). 

Total Debts: £294,510.85 (-£100.00). 

Total Wealth: £224,852.02 (-£6,792.98).

Investment Income in 2023: £137.11 (target £8,500).

For the first time since I started this project, the housing market has dropped.  Both my apartment and BTL have decreased in value.  It’s important to remember that these drops are only realised if, and when, it comes time to sell.  I’ve already agreed on a price for selling my share of my BTL, and there are no immediate plans to sell my apartment, so these reductions only matter on paper.  The market will bounce back in time.

This week has seen reports coming from the ONS about GDP in November 2022 which suggest that the UK might not technically be in a recession.  This news does feel very much like a technicality and unless there are surprising figures for December, I think it’s a matter of when, not if, we enter a recession. 

A recession is defined as two consecutive quarters where GDP falls.  The Bank of England is concerned we could enter a recession that lasts for roughly two years, or for those using the new calendar, we are looking at a recession lasting three more Tory Chancellors.

With the global economy being more interconnected than ever I don’t think recessions in the 2020s are going to be like recessions of previous decades.  Money moves around the world at the speed of light, and what used to take days or weeks to ripple through the global economy can now take just minutes or seconds.  The most important thing to remember with investing is that time in the market is much more important than timing the market.  Having a system in place for investing and sticking to it through the good times and the bad is, generally, much better than trying to react to market conditions.  As I said, money moves at the speed of light and by the time you are thinking of reacting, it’s already too late.  Have a system in place and stick to it.

BTL Update

We’ll probably get another month’s rent from the property before the tenants move out and the transfer of ownership is complete.  What should be a simple transfer is not being helped by a legal firm that lacks even the most basic level of competence.  So far they’ve had the wrong names on documents and repeatedly sent contradictory instructions for what to do with the different forms they’ve sent out.  Both myself and my investment partner have years of mortgage experience, and we’re finding this a challenging process.  I dread to think how those with limited mortgage experience handle this process.  Hopefully, the next thing we hear will be that the transaction is ready to complete.

Thanks for reading and I hope you have a great week ahead.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink and other links

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Also, check out Darren Scothern’s blog which talks about autism, being autistic, and general mental health:

www.darrenscothern.com

If you want to show your support for my FIRE blog, please Buy Me A Coffee at the link below: 

https://www.buymeacoffee.com/davidscothern