Just to add to your nervousness think about what happens when you will have a family and what’s the financial impact. Can you still live in your current house? With 2 kids as well? Can you finance the mother while she’s not working? All holidays are not gonna be paid 50:50 anymore but instead you pay all 3 or later 4 tickets. Do you need a second car? Calculate these things into your FIRE plan as well.
I second to try to decrease your leverage, also maybe look at a fixed rate refinancing option instead of libor. Nowadays 10 yr fixes go as low as 0.7% and you have one that has 2% almost.
I did say in my start post that i want to retire at 40. But this was more like a wish than a fixed plan, because of all the what if’s in my life that are just coming up at this age right now.
I think i can’t make a proper FIRE plan with all this variables until i am a bit older and my life is a bit more predictable.
But what i can say is that i wan’t need a lot of more money if i have a child or two. One of the main reasons i wan’t to get out of the Hamsterrad is to have time for my children. If there will be some. We live in a small house but i can build another room if i put an extra wall in.
If i can retire or work part-time i will probably sell my car and not buy another one. It depends on the difference it will make if we go by bus/train.
I could even make career at my company, they asked me about it, but i think id like to enjoy my live in the future and don’t want to go for a nice burnout. And my children will thank my this later!
I think i will be more hippie like when im retired
But after all i think all of you are right i should lower my leverage:
Next Month i can make a new deal for my mortgage for the block. I can sign it this month but it will start 12 moths later. I will do a 10 to 15 Year fixed mortgage depends on the rates i will get.
The plan is to higher my mortgage on the block and with that money plus some i have saved till then i will pay of the the -115’000CHF mortgage on my house on 12.2021 when it ends.
And the in 2023 i will lower my mortgages on my house again when the other -248’000CHF will end.
In between i can’t pay anything back because the contract i have with the bank want allow that.
But i will keep paying in my 1’000CHF in the ETF’s. I think it’s a good way to lern and get used to the socksmarket.
@ma0 There will never be enough socks in my portfolio! I don’t have an autocorrection software because there would end be a learning effect if i’d have one.
Just something to add to the pro’s for having your own RE investment:
You can lower your tax-bill a lot by investing in your house. Next month i will get a new roof over my head and that will cost me 27’000CHF. I will pay the bill with my pillar 3a savings. That will reduce my tax-bill by around 8’000CHF. And in my canton you get some money for saving energy in construction.
There from i will get another 4’600CHF.
That mens i will get a new roof almost half price. Payed with money that already reduced my tax-bill once
That raises an interesting question: would you consider your pillar 3A as a reserve for real estate investments or try to preserve it as a tax free vehicle for retirement? As a side question, would you rather then keep it in cash (to use short term) or stocks (to use later)? In an indirect amortization scenario, would you rather have it in cash (safety) or stocks (growth)?
Congratulation again. I envy you that you know how to put up walls or at least have the courage to do so. I’d love to buy a house with just outer walls and windows and then make it myself…of course if I were FIRE
I’am having an indirect amortization on my pillar 3a for my mortgage on the house.
The money (5’000CHF a year) i pay in the pillar 3a is only usable for paying the mortgage of or investing it in the house. I can’t use it to buy stocks as far as i know.
I did this decision 7 years ago and it was the right thing to do. But when i will renew my mortgage in 2023 i wan’t have to pay off the house any more because i will only have -200’000CHF left on it. Then i will start paying in to my pillar 3a to keep it for later. And i will probably hold it in cash to diversify my portfolio.
Thank you! I think humans always wan’t what they don’t have. I’d like to have a blog, an online-shop, programming skills… sooner or later i will have time to lern all those things!
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think about what happens when you will have a family and what’s the financial impact. Can you still live in your current house? With 2 kids as well? Can you finance the mother while she’s not working? All holidays are not gonna be paid 50:50 anymore but instead you pay all 3 or later 4 tickets. 