I am also always curious to hear about the role or employers providing such excellent packages. Well done anyway.
Someone guessed you are in tech, an industry where some are suggesting a share price bubble, but whichever, any share and any industry can run into a crisis, so the risk needs to be diversified via some form of portfolio as an alternate.
Yes, Let's say a Tier-1 tech company. And shares have done very well over past years. I deliberately didn't sell for a few years, to ride the risk,and I mostly have managed to sell out at annual highs, in order to help fund house purchase and pay down mortgage. After renovation, and with current level of mortgage, I will not have something that 'forces' me to sell more of the shares, but I accept it is very risky to let the value build too high. Albeit, I have been paid hansomely for this risk by holding on to the shares in the past, and not selling as soon as they vest.
You mention being financially independent is the goal. I think Brendan nails this in his response, you are essentially there or on the home straight, so this is about protecting wealth.
You could approach this my doing an exercise to establish your cost of living, post mortgage repayments, required to maintain the standard of living you want, or in other words your desired retirement income. I think you have done this loosely, but put some actual numbers on it yourself. In an ideal world that number equals the your passive income, plus annual growth of pension and equity portfolio, with no need to sell anything ever. That may well be achievable for you given your income and youth.
Ye are right, I would be there in two years. Assuming I pay down mortgages with new savings (and don't invest them) and the 400k renovation is completed, then in two years, my costs are about 40k p.a. Rental is about 18k income. Pension growth would be about 22k (550*4%). And I would have no cash/stock in hand.
I think I can only access the pension from 50, and I think I would be more comfortable having a bit more room to maneover.
A second rental income cashflow. With a secod property of about 300k, would take 2 more years (so four years now), and then I could have the two rentals covering my base costs, and not need to sell equities to live, so would be well setup to weather stockmarket collapse.
Although Brendan is suggesting to buy a direct equity profile, before a second rental property.
It seems you enjoy your house but other than that your family are not driven by materialism, multiple posh cars and posh holidays. Even if you decide to start taking an extra holiday, it won’t be a major cost in the scheme of things, unless you go totally mad.
Thanks, yes I tend to agree, it would be very difficult for us to mad on spending
My instinct would be pay off the non trackers, max pensions, and get a diversified equity portfolio. decide or clarify if the “financial independence” is also about a very serious objective to retire early, or just a position in life so you always feel you have the comfort and choice. If retirement as early as possible is the goal then there are probably some threads on here too; you don’t need to live frugal but would want to watch your monthly costs don’t go creeping way up just because your earnings do, or things like your renovation are well managed and enjoyed but don’t become a total money pit.
Pensions are maxed. Mortgage will be paid down, although not yet clear if that is the next step, or after further investment first. Renovation is a risk, we don't have a good handle on the price for that yet.
I would also add given the sums involved that it’s worth taking proper advice about retirement planning and risk management.
Maybe I'm overly hubristic, but I am not convinced that I would get value from it? And did I mention I love doing things myself, rather than outsourcing them (possibly to a fault)